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Hot Breads Sets Sights On U.S. Franchising Market

Indus Business:

The Hot Breads chain has had great success in India, but the company is really hoping to put the hot in Hot Breads as it begins franchising in the United States.

“We have great plans of opening up Hot Breads here,” said M. Mahadevan, who first launched the Hot Bread chain in Chennai, India, in 1988. “We have a plan here for nice growth.”

With over 20 locations in India in cities such as Bangalore, Chennai, New Delhi and Pondichery, two in Bangladesh, four in Nepal, one in Paris and about 40 in the Middle East, there is no reason to think Hot Breads won’t fly in the United States.

In fact, Hot Breads already has 18 stores in the United States. The First Hot Breads store here opened in Edison, N.J., in 1998. Mahadevan launched this store after he came to the United States for a bakery show.

“It was just an experimental store and the quality drew people off the street,” he said.

The current Hot Breads stores in the United States are all partnerships between Mahadevan and owner/operators here. Now, though, Hot Breads has set up a U.S.-based business in Freehold, N.J., and will move forward with franchise locations.

Mahadevan said the plan is to get rolling with 20 to 30 stores, but the hope is to continue to expand from there. Current Hot Breads locations in the United States are in California, Georgia, Illinois, Massachusetts, Michigan, New Jersey, New York, Texas and Virginia.

Hot Breads features bakery items such as croissants and pastries with an Indian twist. In India, Hot Breads is touted for its French baking traditions, but in the United States it is the connection with India, and its pastries filled with spicy vegetables and meat fillings, that have connected with the India American customers.

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