food franchise Sep, 10 2016

A Hot & Spicy Food Business!

Today, Restaurant business has it all– Art, debt and equity.

By Gaurav Marya
A Hot & Spicy Food Business!

The High margin restaurant business has caught business flurry in the last 7-8 years and has witnessed a gigantic shift from unorganised eateries to organised food joints with chain restaurants and franchise systems,which is now further matured to specialised food chains and now getting personalised with on-demands food of subscription based models.

Eating out has become de-rigueur and the restaurant trade is seen as the next big Business Opportunity. Indian dinning average(once a week) was lowest in developing markets, which in last 5 years has shifted to eating out once in 4 days, optimistically looking to be 2 days in a couple of years. On an average, consumers spend Rs 90- Rs 570 while eating out. Subsequently, returns for restaurant business have touched 30 –35 per cent a year. Over 6 billion USD will be spent in next 3 years in the food service sector that would generate over 100000 jobs, especiallyin India.

Today, Restaurant business has it all– Art, debt and equity. It can be noticed in the new destination being developed in Delhi's old Connaught Place, which now owns 165 bars in 2 km radius serving over 15000 guests every night and 40000 guests on weekends.

Top 11 #trending Food Business Investment Opportunties

Topping the Charts: QSR Businesses

1. Global Fast food chains- Bring global Quick service Restaurants concept to India,matched with right Indian localisation is a winning business formula. Of first ten restaurant chains in India, 7 are international food brands.

2. Food trucks + Kiosks: From an entrepreneurial standpoint, kiosks, carts, trailers, and food trucks have lower investments & overheads and can be moved if one location does not generate enough business.

3. Indian fast food chain: Indian street food and regional food, served in hygenic set-ups work a great business where costs are kept under tight check , can gross upto 45% ROI.

4. New Age On-demand Delivery formats : Food Delivery startups have bought new business models with Member based meal supply like recipe box at home , or Hyperlocal delivery with From internet only food ordering platforms or throughDark Stores delivery.

5. Coffee shops: The high-volume, low-transaction business has takers from diverse groups for business meetings, students, woman only parties and work stations.

6. 7 to 11 dinning café:New restaurant formats are toying with diversification, with longer opening hours and multi-concept operations in one site –also adding takeaway and retail elements in the business.

7. Juice and health bars:Juicebars and smoothie cafés are small-scale businesses that can be startedinside a gym, in a kiosk at the local mall or office complex.

8. Buffets Restaurants: Especially popular with families and small groups, Buffet restaurants operate according to a value-based business model with reasonable pricing.

9. Fresh and Fast Casuals: Increasingly, superior 'food for the money,' is driving restaurant consumption patterns which are less competitive & more creative food places like Gourmet burger stores ,sandwich bars having chef driven menus or freshly made food servings with value additions.

10. Specialty cuisines:International food that were earlier about Chinese and Italian has today got specs of Greek, Lebanese , Nepalese, Turkish and Japanese and Korean food.

11. Night clubs, lounges and bars:Youth is the major crowd pullers today, pubs, bars and nightlife are the new trends in the industry and has the highest margin in food Business going upto 80-85%

Unconventional Locations

Location dynamics have changed completely in food business. Restaurants are looking for out of the box locations like educational institutions, railways and airports, Central Business districts, which were being neglected earlier offers great consumer base.

An Industry founded on Partnerships

As a Restaurateur, getting growth loans from banks is difficult, and it is an accepted practice to strike partnerships. You can choose a partner who is involved in the operations of the business or one who only wants to see the profit and loss statement every quarter. Food franchising contributes 28 % of Indian franchise industry ahead to world’s average of 22% of 3.95 trillion USD.

Related: Catering to timely profits

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