The Chennai-based Hot Breads features bakery items such as croissants and pastries. In the United States, the chain, which is run out of Freehold, N.J., also features items such as panini sandwiches and is adding gourmet coffee and chocolate.

FREEHOLD, N.J. — 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.

Mahadevan said that Hot Breads has scored as a brand that Indian Americans are familiar with from India. He added that it gives Indian Americans a sense of belonging here because they can visit a store, smell the curry and Desi coffee and be reminded of Hot Breads they have visited in India.

With the franchise rollout, the plan is to increase the general appeal for Hot Breads and draw in more non-Indian customers.

According to Arun Dua, Hot Breads' operations manager the plan is to change the bakery concept into more of a bakery café concept. This will include changing the menu to include popular lunch items such as chicken panini sandwiches. Hot Breads is also adding a chocolate menu and working on producing its own brand of gourmet Indian coffee.

U.S. Hot Breads stores have drawn Indian customers use to visiting similar locations in India. Now, with a franchising push in the United States, the chain is aiming to attract non-Indian customers with new sandwiches, desserts and drinks.

"Right now we have been a Desi bakery, but why stick there?" he said.

The biggest challenge with franchising is providing support to its franchisees and Hot Breads has established a training facility in its Edison headquarters for this purpose. Franchisees will be trained in baking techniques and store operations. Mahadevan said that consistent baking techniques across the chain are very important to him. In addition, he wants franchisees who will have their hands in the operation on a daily basis and are not just looking at Hot Breads as a business opportunity.

Hot Breads will use a hub-and-spoke franchisee model, meaning that each franchisee will be required to open three locations — one central store and bakery that provides food products to two other satellite operations.

To aid its push in the United States, Hot Breads has hired David Stein as director of franchise development. Stein comes to Hot Breads after four years with Dunkin' Donuts selling franchise locations of for the breakfast giant in New York and Pennsylvania.

Stein has been working in the franchise industry since 1987. With Dunkin' Donuts, he said he had great success selling the chain to Indian American franchisees and was interested in continuing to work with this community, which is one of the reasons he decided to join Hot Breads. He added that he also heard from his India American franchisees favorable opinions of Hot Breads and felt that the chain has great potential in the United States.

"Most of them knew of Hot Breads from India and they had good things to say about it, so that was big validation for me," he said.

"I like the concept of a company that is established and is coming to the U.S. and facing the challenge of coming to another country and making it successful," he added. "I like the fact that we are in a business were we really have no competitors. No one else is doing what we are doing, the way we are doing it."

Hot Breads has also hired Larry Reisman as the company's chief financial officer. According to Reisman, Hot Breads want to really be the franchise brand that becomes the most recognizable for Indian Americans as a place to go or as a potential business opportunity. "The Indian community, we believe, is grossly underserved," he said. "We've had tremendous success and we want to grow on that success."

According to Mahadevan, the interest in Hot Breads is already pouring in even though the company has yet to advertise its franchise opportunities.

Hot Breads recently held a seminar for potential franchisees, that Stein said will result in four franchise agreements.