From 12 Orders to 20,000 Units: Co-founder Aditi Handa Speaks About Scaling The Baker’s Dozen

The Baker's Dozen is a bakery brand that started in Bombay in 2012. Initially focusing on sourdough bread, they aimed to provide high-quality, authentic bread in India. The founders, Aditi, Sneh, and Siddharth, began with a small kitchen and gradually expanded to a factory, catering to orders across India. They started with an average of 12 orders a day, reaching up to 25 on good days, and have now scaled up to 20,000 units a day.

Abhishansa Mathur spoke with Aditi Handa, Co-founder & Head Chef of The Baker's Dozen, to learn about the brand's inception, journey, challenges, milestones, and more.

What inspired you to start The Baker’s Dozen and why did you pick Sourdough Bread as your first product? 

To give some background, three people started this business: me, my husband Sneh, who is my current co-founder, and my younger brother Siddharth. In 2012, left our respective jobs, and came together. We used to have a whiteboard where we began brainstorming ideas for a business. We knew we wanted to start a business but were unsure of which industry to enter. 

We met with many people from different industries to learn about their stories and see what excited us. During one of these discussions, someone made a passing remark: "India mein achhi bread nahi milti" (Good bread is not available in India). This struck a chord with us because, after traveling globally and experiencing authentic bread, we realized that what we had in India was of poor quality. We thought, "Why not start a bakery?" So, the idea of a bakery went up on the whiteboard. My background is in psychology and human resources, Sneh's is in management, and Siddharth’s is in engineering. None of us had experience in running a restaurant, hotel, or anything related to food or hospitality.

As founders, we believed that at least one of us needed to have technical expertise in the business we started. I volunteered to learn how to bake bread. I went to New York to learn the art of baking. We chose New York because we wanted to learn from an expert, not from an average practitioner. If you want to create a great product, your teacher must be exceptional. During this period, we fell in love with bread. Initially, we thought we would open a bakery offering both bread and cakes. However, I fell in love with bread and did not see the same fascination with cakes. When I returned, it was clear that we should focus on a bakery specializing in bread.

Since sourdough is so synonymous with quality bread worldwide, it made no sense to start another bakery that didn’t excel in this area. Our first location was a shop in Prabhadevi, very close to Worli. As we began making sourdough bread, we attracted many French customers from a nearby French school. When they came into our store and said, "This reminds me of home; I’m so happy you’re here," it was the ultimate validation. If a French person is telling us our bread is good, we must be doing something right.

How did you manage to enter the Indian market? I imagine that must have been challenging.

Yes, it was difficult, and it still is. However, we started from a very simple background, not aiming for a large-scale or lavish business. Our focus was on creating a really good product and serving anyone who appreciated it. If that meant 10 customers, fine. If it meant 2,000, that was fine too. We were strategic in identifying our TG and subtly reaching out to them.

Our first kitchen was in Wadala. We targeted the central belt of Bombay and identified four or five upscale complexes where high-income residents lived.

We used packaging bags with our brand story, details and phone number. Inside each bag were two or three loaves of bread. Sneh and I would deliver these samples, introducing ourselves and our bakery. We asked residents to call us if they liked the bread. At that time, we operated only as a delivery business, without a physical store.

We targeted the right demographic, and word spread quickly once people liked our bread. Our first store opened in Prabhadevi, followed by another in Kemps Corner, Bandra. These stores sold out from day one due to effective subtle marketing.

Customer education was simple but effective. When customers asked for sandwich bread, we offered them our whole wheat bread and then gave them multigrain bread for free to try. Once they tasted the multigrain, they preferred it. We followed this by offering a free slice of multigrain sourdough with their purchase. Once they tasted it, they were hooked.

We also used a toaster in our store to give customers a taste of our bread with butter. If they didn’t like it, it didn’t matter. This approach worked well. During the pandemic, many people became home bakers and started baking bread. This surge in interest benefited our business, as people sought high-quality sourdough that was difficult to make at home. The buzz created during this time was invaluable for The Baker's Dozen.

What are some of the challenges you faced when you started The Baker's Dozen?

There were many small challenges because I felt we were starting a business in a city I wasn't even familiar with. I came from Ahmedabad, having grown up in a small town, and moving to a large city like Bombay to start a business with no real backing or support system was daunting. This wasn’t a B2B business; it was B2C, requiring brand-building activities. It was overwhelming at times. But we took it one step at a time: first, setting up a kitchen to make good bread, then opening a shop, and continuing to focus on quality.

We knew we had to be profitable from day one because we were self-funded and not raising any additional funds. We faced many small challenges, like the tempo guy not arriving or having to handle deliveries ourselves when there was no delivery boy. These teething problems were numerous.

However, I believe these experiences made our brand more genuine. When I personally handled deliveries, it built a certain trust that no amount of marketing could achieve. Every business encounters such challenges, and many people might give up in these situations. For some reason, we were determined to persevere. Despite the difficulties, we continued because of our love for the product. 

What was your expansion strategy, and how are you scaling operations now that you have your own factory?

We've always managed our own manufacturing. We never wanted to outsource it because the product is so technical that, initially, I wasn't sure I could trust anyone in India to make it. Even the bakers we hired needed training to ensure they adhered to our standards—no corrupt practices, making it the right way, without using stabilizers, preservatives, or chemicals. So, we've always had our own manufacturing—starting with a small kitchen, and now a big factory—but the principle has remained the same.

Our value system has also stayed consistent: we continue making everything by hand, putting in the same amount of effort. While we've streamlined processes, we haven't turned our product into something mass-manufactured. Often, people think that using stabilizers or certain practices makes operations easier, but if it detracts from the customer experience, there's no point. We're not in this business to make our lives easier at the expense of our customers. It's supposed to be the other way around—our lives become more challenging so that you can enjoy more. That's the essence of a consumer business. Our commitment to the honesty of our product has remained unchanged from day one.

Our growth strategy began in 2013 when we started as a D2C brand. Back then, D2C wasn’t even a widely known term, but for us, it meant direct-to-consumer, with our own shop where customers could buy directly from us. We operated this way for about a year and a half until partner stores like Big Bazaar, Food Hall, and Nature's Basket approached us. Senior team members of these companies were already enjoying our products and asked if we could sell them in their stores. Because the demand came from them, we didn't have to pay listing fees or negotiate on margins.

This led us to adopt an omnichannel approach. By 2014-15, we also started retailing on Big Basket, which was the only e-commerce player at that time. The idea was simple: we're making a humble loaf of bread or cake, and it needs to be easily accessible to customers. It's not feasible for them to travel long distances just to buy bread, so we decided to go where the customer is—into the shops nearest to their homes. That's how our expansion happened.

During the pandemic, Quick Commerce began to pick up. For many companies, we were a great fit because we were already selling Pan India, manufacturing in Ahmedabad but reaching customers nationwide. As the quick commerce boom happened, we grew significantly.

How do you see consumer preferences evolving in the Indian bakery market, and how is TBD adapting its offerings to meet these changes?

We started with high-quality bread from day one, using hygienic practices and premium ingredients. Initially, not everyone appreciated the extra cost for quality, but post-pandemic, consumers became more health-conscious and understood the value of our products. This shift made it easier for them to choose us, as we had long emphasized our use of whole wheat, zero maida, and preservative-free methods.

Our commitment to clear and honest labeling has also benefited us. With the rise of label scrutiny, our pre-existing practices and transparent communication have resonated well with consumers.

We started as a bread shop in 2013 and did that for about two, two and a half years, only selling bread. After two to three years, when I felt comfortable with my understanding of bread, I decided to learn pâtisserie. In 2015, I went to Le Cordon Bleu in Paris to study pastry, and that's when we started a pastry kitchen and began selling cakes. But we've always believed in tea cakes—we never wanted to do frosting, cream, or icing. We focused on tea cakes and room temperature cakes because they are more widely consumed, healthier, and tastier.

Two years after that, we decided to branch into snacks and cookies as well. So, we started making crackers, lavash, breadsticks, chocolate cookies, peanut cookies, and coconut cookies. The menu has expanded into four different categories over the years. 

The Indian bakery market is expected to grow at a CAGR of approximately 11% to 13% from 2023 to 2028. How is The Baker's Dozen positioning itself to capitalize on this growth?

From the beginning, our goal has always been to produce a high-quality product, regardless of scale. For nearly a decade, we focused on creating an excellent product, pricing it to ensure profitability, and selling it. Over the past three years, this strategy naturally positioned us in the premium segment. While this approach achieved our goal, it also had an unintended consequence: it created a perception that only those with a higher net worth deserved high-quality products.

We realized that this approach was inherently exclusive, and we wanted to change that. We believe that anyone, regardless of their income, should have access to better food. Therefore, we decided to develop products at various price points to make our offerings more accessible across different income brackets.

However, this shift isn’t instantaneous. It required us to carefully evaluate what customers value and adjust our products accordingly. We focused on removing unnecessary costs and simplifying our processes. For instance, we reconsidered packaging to avoid over-packaging and unnecessary expenses that would drive up costs without adding value.

In the past year, we’ve successfully introduced a range of more affordable products, including bread, cakes, and cookies. This approach has allowed us to reach a broader customer base while maintaining our commitment to quality. We continue to innovate and expand our product range, ensuring that even our more affordable options adhere to our core values of using natural ingredients and maintaining high hygiene standards.

Our goal is to offer high-quality, affordable products without compromising on the values that set us apart.

What marketing strategies are you using to achieve your business objectives, and which mediums are working best for you?

We focus heavily on point-of-sale marketing, both in physical stores and on digital platforms like Instamart and Big Basket. Our strategy starts with ensuring a high-quality product that is priced affordably. Without a solid product, marketing efforts can be ineffective.

For our bread, we emphasize the absence of harmful ingredients such as palm oil, maida, and preservatives, while promoting healthy components like millets and 100% atta. In our cakes and cookies, we highlight guilt-free indulgence, ensuring there are no trans fats, bad sugars, or artificial additives. We stress that our products are made with natural ingredients in hygienic conditions.

Our marketing strategy includes prominent in-store displays and tastings, which allow customers to sample our products directly. This hands-on approach helps attract new customers and reinforces trust in our brand, ensuring that if they like the taste, they’re likely to buy again.

To attract first-time customers, we focus on brand awareness campaigns that highlight our unique values. For instance, during the pandemic, we gave away free cookies to those who got vaccinated, reinforcing our commitment to community health. We also address our environmental impact by offsetting plastic use and delivery emissions. These initiatives enhance our brand image and help new customers choose us over competitors. 

You have numerous partnerships with retailers and e-commerce platforms. How have these partnerships contributed to TBD's growth, and what percentage of your sales do they represent?

I believe that much of our sales success stems from relationship building, which goes beyond networking to include collaborative growth plans. We invest heavily in these relationships. Sometimes, we increase our marketing spend on their platforms or adjust our production to meet their demands. This mutual investment fosters a stronger partnership and motivates them to offer us better visibility. Ultimately, our sales numbers reflect the strength of these relationships.

Can you share your experience with funding rounds? At what point did you decide to move from being a bootstrapped company to seeking external funding?

We've raised funds twice: once around July 2021 and then again in December 2023. Both times, the funding was used to increase our manufacturing capacity and to boost our marketing efforts for revenue growth.

The approach to funding can vary for each founder. Some people seek funding before starting a business to feel secure, but we preferred to seek external funding only once we were confident in how best to utilize it. Every founder's journey is different, and there isn’t a single right or wrong approach. It took us about 6-7 years to refine our business model, understand which products sold, how they sold, at what price points, and in which stores.

During the pandemic, we finally figured out this formula and decided it was time to raise funds. When we presented this approach to investors, we demonstrated not only our deep understanding of the business but also our confidence in how we could effectively use their investment. This transparency and confidence made investors comfortable, as they saw our commitment and trustworthiness.

While preparing for funding, you need to conduct extensive research into your own business metrics—such as how your products perform and which channels are most effective. Investors will ask probing questions, some of which you'll be prepared for and others you might not be. This scrutiny helps you gain clarity about your business, making you more objective. Whether you're fundraising or not, this ongoing self-assessment becomes a crucial part of running a successful business.

What are some key learnings and insights you have gained personally through your journey with The Baker’s Dozen?

So, there are two things. First, whatever business you're in, you should know your product inside out. Second, understand your company's finances. Regardless of how many founders you have—whether it's one, two, or more—all founders need to have a strong grasp of the financial aspects.

Not having control over finances can lead to significant issues. You must understand your unit economics, cost structure, and the value each cost brings. Scrutinizing these elements is crucial. Once you have a grip on these areas, many of your marketing and purchasing queries will be easier to address. Mastering these fundamentals can help resolve most business problems.

As co-founders and a husband-and-wife team, how do you balance your professional and personal roles while leading TBD?

Everyone has their own unique solution to this. I don't think there's a standard approach. We’ve tried to balance work and personal life, but it hasn’t worked for us. It’s a blend of personal and professional aspects that works extremely well. It’s not just between my co-founder, Sneh, and me, but also with our kids. Our kids understand our work style, the time we have with them, and our weekends. They've adapted to this routine as well.

So, my answer is to find what works for you. I don’t believe we can achieve  strict work-life balance or clear boundaries between personal and professional life. It’s a mix, and I wonder how others manage it while being successful. I don’t have that formula.

Future Plans for TBD?

Our future plans include doubling our revenue and expanding into Tier 2 and Tier 3 cities. We aim to develop new products that are more accessible and suited for quick consumption. Our growth strategy involves deepening our presence in Tier 1 cities while also reaching new markets with a tailored product range.

A piece of advice to aspiring entrepreneurs who want to make big in the baking industry!

This is generic advice for anyone starting a business: never give up. You'll face thousands of reasons to quit daily, but maybe just one reason a month to keep going. The answer to every problem is persistence. Keep trying until you succeed.

In the bakery industry, it’s crucial to understand what sets your product apart. Ask yourself why a consumer would choose your product over what they typically buy. What value are you adding? You need to solve a problem—whether it’s offering a better price, superior distribution, or higher quality. If you can’t address at least one of these issues, it’s worth reconsidering your approach.