The Hazelnut Factory, a Lucknow-born confectionery and cafe chain, has opened its 23rd outlet, "THF Lakehouse," in the resort town of Nainital, marking its first entry into Uttarakhand state. Here is the template for how a regional brand crosses state lines: who (this brand), when (opened August 10, 2026), what (its first store in a new state, and its 23rd outlet overall), and why (extending its footing into a new state from a location with strong tourist demand). How should location be designed when rolling out a confectionery and cafe format in India that carries a gift or souvenir character? This piece offers a reading that also applies to Japanese food and confectionery brands.
On August 10, 2026, The Hazelnut Factory opened "THF Lakehouse" on Mall Road in Nainital. The location overlooks Naini Lake, and this is the brand's 23rd outlet. Sarita Arya, the Member of the Legislative Assembly (MLA) for the Nainital constituency, attended the opening. The brand was born in Lucknow and runs a format that combines artisanal Indian sweets (mithai) with specialty coffee, a bakery, a patisserie, and all-day dining. It operates 23 stores mainly across the North Indian market, and this opening extended its reach into Uttarakhand state.
Sweets and desserts are easily tied to travel purchases and souvenirs. A tourist destination makes sense as the location for a first store establishing a foothold in a new state, since it can capture seasonal visitors on top of local customers. Founder and CEO Ankit Sahni said, "Nainital has always held a special place in my heart. I spent my student years here," showing that a personal connection also lies behind the opening. The brand translates traditional Indian flavors into a modern cafe format, targeting Uttarakhand's tourism-driven hospitality market. It is designed to reach both local residents and seasonal visitors.
This sequence of expansion has a practical logic for a regional brand crossing into a new territory. First, a tourist spot has a low cost of gaining awareness — an experience encountered while traveling stays in memory, and visitors recall the brand back in their home area too. Second, because confectionery and cafes can sell "experience" and "souvenir" at the same time, a photogenic location like a lakeside spot works for both promotion and spend per customer. Third, if the first store builds a track record by capturing tourist demand, it becomes a foothold for expanding into the state's urban areas. Inviting a local dignitary (a state legislator) to the opening is also a standard way to speed up local acceptance. It is a template of spreading a standardized format outward from a place with personal ties and a story.
This is based on the brand's store-opening announcement, and results in sales or footfall are still ahead. What can be stated with confidence is the milestone of the 23rd outlet and first entry into a new state, the founder's comment, and the fact that the local MLA attended the opening. How many stores follow in Uttarakhand, and how far tourist demand translates into year-round sales, will have to wait for operating results. This piece does not make definitive growth projections beyond what has been publicly disclosed.
For Japanese confectionery and food brands with a gift or souvenir character, this case offers a hint for location design. Rather than going straight for a prime location in a major city, it is effective to enter through a tourist destination or a location with high experiential value where awareness is easier to gain, then use the track record built there as a foothold for expanding into cities. The trend of Japanese food and the Japanese dining experience being accepted in India also shows up in the entry plan of a major convenience store chain (Lawson makes its first Mumbai landing, taking on the market with curry onigiri) and in the first landing of a Japanese beverage (Calpis's first landing in India and how its entry was designed); reading them together gives a fuller picture. The local appetite for investment that goes deep into cooking and eating habits also shows up in major investment into the ready-to-cook sector (the change in food shown by major investment in iD Fresh Food).
Expanding into a new state starting from a tourist location can spread beyond confectionery to regional food brands in general. This also overlaps with the move by local ice cream and confectionery brands to expand their coverage into mid-tier cities and tourist destinations (a local ice cream brand's push into regional cities). A format that can sell experience and souvenir at once can build profitability from seasonal visitor purchases even in a tourist destination with thin year-round demand. For foreign and Japanese brands alike, how they choose a location determines whether entry succeeds.
The Hazelnut Factory's Nainital opening shows a template for a souvenir-oriented confectionery and cafe format expanding into a new state from a tourist location. The first move Japanese companies rolling out confectionery and food in India should make is not to choose a candidate first-store location by sales potential alone, but to evaluate it from the angle of "is this a location where awareness is easy to gain, and where experience and souvenir can be sold at once," then design a plan that uses the track record built there as a foothold for expanding into cities. Location is part of the marketing.
RECENT
2026.09.24Bridgestone India’s 30th-anniversary film builds on the founder’s motto2026.09.24Flipkart’s move: putting the two meanings of "BBD" on Kolkata buses2026.09.24Veteran fertilizer maker KICL enters beverages with coconut water, starting in three South Indian states2026.09.24Pinit delivers saris in under 45 minutes, setting up a mirror and lighting at the customer’s home to choose fromCONTACT
Considering entering the Indian market?
Building on the developments on the ground covered in this article, we will suggest an approach that fits your products.
Book a free consultation →SOJAPAN
We support Japanese companies entering India, from market research through local partner development, test sales, and import.