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A Comprehensive Business Plan for Affogato in India

Author

Siddhant Baliyan
March 28, 2025

Key Points

  • It seems likely that starting an Affogato business in India can be profitable, given the growing popularity of unique desserts and coffee culture.

  • Research suggests that urban areas with high foot traffic, like malls or near offices, are ideal locations.

  • The evidence leans toward an initial investment of Rs. 2,00,000 to Rs. 3,00,000, with potential monthly profits of Rs. 1,15,000 after ramp-up.

  • An unexpected detail is that Affogato, an Italian dessert, may require significant marketing to educate Indian consumers, given its niche status.

Business Overview

Affogato, a dessert made of vanilla ice cream topped with espresso, is gaining traction in India, especially in cities like Mumbai and Delhi. This business plan outlines how to establish a successful Affogato venture, focusing on market fit, operations, and financial projections.

Market and Target Audience

The target market includes young adults and professionals who enjoy coffee and desserts, likely in urban areas. Locations near shopping centers or office complexes can maximize visibility and customer traffic, given the growing cafe culture in India.

Financial Projections

Initial setup costs range from Rs. 2,00,000 to Rs. 3,00,000, covering rent, equipment, and supplies. With a selling price of Rs. 150 per Affogato and an estimated 50 sales per day, monthly revenue could reach Rs. 2,25,000, with profits around Rs. 1,15,000 after expenses.

Survey Note: Comprehensive Business Plan for Affogato in India

This detailed business plan for launching an Affogato business in India covers every aspect, from market analysis to financial projections, ensuring a thorough approach to establishing a successful venture. Affogato, an Italian dessert comprising a scoop of vanilla ice cream or gelato topped with a shot of hot espresso, is gaining popularity in India, particularly in metropolitan areas, making it a promising opportunity for entrepreneurs.

Executive Summary

The business aims to introduce Affogato to Indian consumers, capitalizing on the growing demand for unique desserts and the expanding coffee culture. With an initial investment of Rs. 2,00,000 to Rs. 3,00,000, the plan projects monthly profits of Rs. 1,15,000 after a ramp-up period, targeting urban areas with high foot traffic.

Company Description

The company, tentatively named "Affogato Delight," will specialize in serving Affogato, offering both classic versions and innovative variations to cater to diverse tastes. The mission is to provide a unique dessert experience, blending Italian tradition with local preferences, while the vision is to become a leading dessert brand in India.

Market Analysis

Affogato is increasingly popular in India, with cafes in cities like Mumbai and Delhi featuring it on their menus (End your meal on a caffeinated note with affogato at these restaurants in Delhi and Mumbai). The Indian desserts market is expected to grow, driven by a youthful population and rising disposable income, with the bakery market projected to reach USD 17.44 billion by 2028 (The Indian desserts market and how are startups contributing to its rise). However, as a niche Italian dessert, Affogato may require significant marketing to educate consumers.

Target Market

The target audience includes young adults (18-35 years), professionals, and coffee enthusiasts seeking unique dessert experiences. Urban areas, particularly near shopping malls, office complexes, and college campuses, are ideal due to high foot traffic and disposable income levels.

Competition

Competition includes existing cafes and dessert shops offering Affogato, such as those listed on Zomato (Affogato in Mumbai). To differentiate, the business can focus on unique flavors, quality ingredients, and a strong brand identity.

Product/Service Description

The core product is Affogato, served in a chilled glass to maintain the contrast between hot espresso and cold ice cream. Variations may include different ice cream flavors (e.g., chocolate, caramel) and additions like amaretto or Kahlúa, as seen in international recipes (Affogato - Wikipedia). The business will decide whether to make ice cream in-house for quality control or source from reputable suppliers like Amul (Top 10 Ice Cream Manufacturers & Brands in India - 2023).

Marketing and Sales Strategy

Marketing Approach

  • Social Media: Leverage platforms like Instagram and Facebook to showcase Affogato visuals and engage customers, given the visual appeal of desserts.

  • Local Advertising: Distribute flyers and place ads in local newspapers to build awareness, especially in target locations.

  • Partnerships: Collaborate with nearby businesses or events for cross-promotion, enhancing visibility.

  • Promotions: Offer discounts for first-time customers or special deals on weekdays to boost initial sales.

Sales Strategy

Encourage word-of-mouth through excellent customer service and loyalty programs. Host events like coffee-tasting sessions to build community engagement, positioning Affogato as a trendy dessert.

Operations Plan

Location and Setup

Select a location in urban areas with high foot traffic, such as malls or busy streets, with estimated rent around Rs. 20,000 per month. The store will require:

  • A high-quality coffee machine (Rs. 50,000 to Rs. 1,00,000).

  • Freezers for ice cream storage (Rs. 20,000 to Rs. 50,000).

  • Serving glasses, bowls, and basic kitchen equipment (Rs. 5,000 to Rs. 10,000).

  • Furnishings like tables and chairs (Rs. 50,000 to Rs. 1,00,000).

Staffing

Start with one full-time employee at Rs. 15,000 per month, with the owner managing operations initially. As sales grow, consider hiring additional staff.

Supply Chain

Source ice cream from local suppliers or brands like Amul, and coffee beans from roasters ensuring quality. Maintain multiple suppliers to mitigate risks of supply chain disruptions.

Financial Plan

Initial Investment

Estimated initial investment: Rs. 2,00,000 to Rs. 3,00,000, covering setup costs, equipment, and initial stock. Funding can come from personal savings, loans, or investors.

Revenue and Expense Projections
Ramp-Up Period

Account for lower initial sales: Month 1 (20 Affogatos/day, Rs. 90,000 revenue, loss Rs. 20,000), Month 2 (30/day, Rs. 1,35,000, profit Rs. 25,000), Month 3 (40/day, Rs. 1,80,000, profit Rs. 70,000), Months 4-12 (50/day, profit Rs. 1,15,000/month). Annual profit projected at Rs. 11,10,000.

Risk Management

Potential Risks

  • Competition: Other cafes may offer Affogato, increasing market saturation.

  • Seasonality: Lower sales during off-peak seasons or bad weather.

  • Supply Chain Issues: Disruptions in ice cream or coffee supply.

  • Economic Factors: Reduced consumer spending during economic downturns.

  • Health Concerns: Potential impact from health scares related to ice cream or coffee.

Mitigation Strategies

  • Differentiate through unique flavors and branding.

  • Build customer loyalty with programs and excellent service.

  • Maintain multiple suppliers for key ingredients.

  • Keep costs low to weather economic challenges.

  • Stay informed about health trends and adjust offerings accordingly.

Obtain necessary licenses:

  • FSSAI Food License: Required for food businesses in India (Food Safety and Standards Authority of India).

  • Trade License: From the local municipal corporation.

  • GST Registration: If annual turnover exceeds the threshold.

  • Comply with employment laws for staff hiring.

Implementation Timeline

  • Months 1-2: Research, market analysis, and location scouting.

  • Months 3-4: Secure funding, obtain licenses.

  • Months 5-6: Set up store, purchase equipment, and stock supplies.

  • Month 7: Hire and train staff.

  • Month 8: Launch operations.

  • Month 9 onwards: Monitor performance, adjust strategies as needed.

Conclusion

This comprehensive plan positions Affogato Delight for success in India, leveraging the growing dessert market and coffee culture. With strategic marketing, efficient operations, and sound financial planning, the business can achieve profitability and establish a strong brand presence.

Key Citations