The Hazelnut Factory, a fast-growing cafe and artisanal sweet chain, will invest ₹20 crore to open 12 new outlets across North India in the current fiscal year. The brand aims to double its annual revenue to ₹100 crore by the end of FY26.
Founded in 2019 in Lucknow, The Hazelnut Factory has carved a niche by bringing coffee, patisserie, and traditional mithai under one roof. With an existing footprint in cities like Lucknow, Kanpur, Gurugram, and Prayagraj, the company plans to enter Varanasi, Noida, Bareilly, Agra, Meerut, and Moradabad in its next phase of expansion.
“All outlets are company-owned and operated, except for one franchise-owned outlet in Kanpur,” a company spokesperson said.
The brand is currently operating 11 stores with an average size of 2,000 to 2,500 sq ft and is also strengthening its backend infrastructure. A new production facility in Noida—set to be operational in two months—will support 10–12 outlets. This is in addition to its central kitchen in Lucknow, which spans 60,000 sq ft and is currently 20–25% utilized, with capacity to serve up to 40 stores.
The company is investing ₹3 crore in the Noida unit to house a patisserie and coffee roasting division. Its product mix currently draws 30–35% revenue from the bakery category, 25–30% from artisanal sweets, 20–25% from coffee/cafe, and the remainder from savory offerings.
The brand is also exploring entry into the packaged sweets segment, signaling a foray into retail and potential D2C channels. Presently, 75% of its revenue is offline, with 25% generated from online platforms. The company has maintained profitability since inception, operating at 7–8% EBITDA margins.
In 2024, snack giant Bikaji Foods acquired a 53.02% stake in The Hazelnut Factory for ₹131 crore, supporting the brand’s ambitions to enter the QSR space and scale rapidly.
Over the next three years, the company aims to be present in five states with over 50 outlets, capitalizing on rising consumer demand for premium cafe formats with Indian sensibilities.