From one flagship store in 2014 to 250+ outlets in 2022, 7th Heaven has displayed tremendous growth in the F&B space. 7th Heaven has emerged as one of the most successful bakery brands and has a presence in 109 cities and 23 states in India. Right from J&K to Kerala and across Gujarat to Manipur, you are most likely to find a 7th Heaven outlet in every corner of the country. In addition, the brand launched its first international outlet in Dubai last year and is all set to open its doors to customers in the USA and Canada.
With over 250 outlets, its franchisee network sells between 7,000-10,000 cakes daily and is part of over 3 million celebrations across India every year. In fact, during the average day, every 6 seconds - someone somewhere enjoys a 7th Heaven product. Their franchising model has been so successful that, on average, a new 7th Heaven outlet opens every week. The brand boasts an esteemed clientele of many Bollywood and TV personalities. What makes this brand special? It is their ability to serve customized cakes to its customers on the same day and prepare their cakes in front of the customers in 7 minutes* in its Live Kitchen. We at Telegraph have an exclusive tell-all with their founders, Mr. Sanjay Chugh, Arjun Chugh, and Karan Chugh.
Scaling your brand so rapidly must have meant a tremendous workload; how did you manage it?
We are firm believers of the adage - 'Rome wasn't built in a day, but that doesn't necessarily mean the Romans were not laying bricks every hour. Scaling up to this level was a Herculean task; however, we found the solution in franchising and delegation. In expanding 7th Heaven's business, we've had to deal with a few challenges concerning franchising, but nothing replaces grit and hard work. As the brand continues to scale, the count of the stores under the 7th Heaven banner increases and, in turn, the need for continuous standardization on our part. To ensure uniformity across all the stores, we set up protocols to be followed across all aspects, from raw materials used down to the ambiance of the stores. Thus, to ensure the same quality-driven customer experience, we delegate responsibilities across all departments and have a support team that performs timely checks, including physical visitation of stores.
How do you keep the brand up to date and relevant in today's social media-obsessed culture?
Given the smartphone-obsessed era we currently live in, it is crucial for any brand that aims to be relevant to have a solid social media presence. We aim to appeal to the younger and old audiences alike by keeping up with the viral trends whilst promoting our brand. Posting catchy reels on Instagram or tying up with food bloggers and influencers in collaboration to extend our reach in the digital space. We keep our followers engaged by posting frequent contests online where they stand to win goodies from our brand. We constantly innovate and introduce new products across our social media every season and help redirect customers' inquiries to our franchises.
How important is company culture to you, and what measures do you take to maintain your desired culture?
Maintaining specific company culture is extremely important as we do not follow the typical vertical hierarchy system. Every employee who joins us is explicitly briefed about the guidelines and rules we have set for the company. It instills a sense of security and reinforces the fact that we are a good company with solid values. We do not compromise on quality or hard work and expect the same from our employees. Maintaining amicable relations with everyone and ethically dealing with franchisees and customers alike is non-negotiable. We expect honest work and work towards providing constant support and cooperation at all times. Even during the COVID-19 pandemic, we stood by our team by not laying off a single employee. On the contrary, we ensured to pay them throughout this period to ensure their livelihood was met in such trying times.
How do you build rapport with your workers? Why do you think this is effective?
From the moment the first lockdown was announced to the current point in time, we've been committed to safeguarding our employees' well-being. Currently, the 7th Heaven network employs more than 1000 people directly and several more indirectly. To protect their livelihoods as well as their health, we sent all staff members on paid leave during the lockdown. While other companies downsized and cut costs, our priority was to help our employees survive this tricky period. Not a single staff member was laid off, while on the contrary, we've tried to create more job opportunities by signing on franchises. We have always let our employees know they can approach the company for any help they need.
What do you think the reasons are for your successful franchising as opposed to other brands in this space?
Like many people, I was tired of paying high prices for what could be a hit-or-miss in terms of the freshness of baked goods, be it cakes, desserts, or savories. When founding 7th Heaven, one of the primary reasons was to ensure our customers get the tastiest and freshest items at economical rates. We only use the finest ingredients when making our products, so there is never a compromise with quality or consistency. This is ensured by standardization of recipes and constant training for all 7th Heaven members, including the owners, chefs, and the servers of our franchises. The brand also has a massive range of products which sets us apart from other chains, in fact, some of our outlets sell 300+ SKUs. To ensure excellent service, we have a dedicated team of specific staff members responsible for training and troubleshooting equipment-related work, among the issues a franchise model can face. Additionally, the cost of owning a 7th Heaven franchise is a competitive price starting at 14 lakhs. If anyone takes up the franchising of one of our stores, they are provided with a compulsory crash course in retail business management before their store opens. Our managers make timely visits in-person to ensure the smooth functioning of the franchise and provide on-the-spot solutions if possible. We also ensure chefs are re-trained from time to time as it helps keep their skills honed and up to date.
According to you, what advice would you give to an ordinary middle-class young person who is yet to decide on their career?
Throughout our years of working as entrepreneurs, We've learned 3 rules to always abide by. The first is to set clear, tangible goals. Vague objectives like "I want to be a great businessman" as well as specific, measurable goals like "I want to own 2 stores by the end of this year" won't help you climb the ladder of success. The second is never to make excuses. Everybody has bad days and lazy moments, but what differentiates you from the crowd is how you deal with them. Excuses may put off the work and give you temporary respite, but they have a way of sneaking up on you. This brings us to our last mantra, always get the work done. We pride ourselves on being result-oriented and the kind of people who finish what is required, no matter what else may be going on.
