Food and Beverage Sep, 27 2010

Yogurt Adding Delectable Profits

The concept of franchising was introduced in India a few years back with businesses like ice creams, pizzas, and coffee etc, that have proved to be lucrative. Over the years franchising has picked up well with lot of new and exciting franchise concepts. Y

By Abha Garyali
Sub Editor
Yogurt Adding Delectable Profits

The food and beverage industry is gaining tremendous pace in the last few years. India stands second to China as world's largest producer of food. The health food and beverage market is projected to grow at a growth rate of about 35 per cent per annum as per a recent study conducted by the Tata Research Management Group. This growth can be attributed to the new and unique business opportunities coming up in the food franchise industry. Frozen yogurt, is one of such international business concept witnessing extensive popularity in India.

Yogurt or curd (as it is commonly called) is evolving as the most preferred desert among the Indians as it can be consumed during breakfast, lunch or dinner. International food franchise business have led to a rapid increase in its variety as well. Frozen yogurt is available in different flavours and offers rich experience to consumers’ with its delicious and mouth-watering assortment. In India, people in general consume yogurts for climatic as well as health related benefits but with hectic life style only a few can enjoy its home-made taste. Moreover with Indians getting more brand conscious, people are consuming readymade yogurt from a branded outlet. Such change in lifestyles led to franchising of this food item. As informed by G.S. Bhalla, MD – Cocoberry, “When we started off there was no other yogurt outlet chain in market. The success that we have achieved has happened due to our proud franchisees.” Let us have a look at few other factors which have given a boost to this unusual business concept pan India.

Boosting factors for yogurt business

Owning a flavoured yogurt restaurant or outlet is comparatively a recent development in the Indian markets. However, this unique business opportunity assures success if operated efficiently. Yogurt is a delectable food item. Presently, with more and more people becoming health conscious, it is considered the best food item to offer taste as well maintain health. Bhalla shared, “Today consumers want different experience. Introduction to frozen yogurt is a different experience for people in India. People are now more aware of the healthy eating lifestyle.”

Secondly, increased disposable income and people’s preference of eating out can also guarantee its success. Busy schedules and women working outside, leaves less time to make yogurt at home. On the other hand, with the concept of frozen yogurt pepping up consumer’s preferences, people are changing to tastier and healthier options of yoghurt. Another factor added to yogurt franchising is the comfort that it offers to women entrepreneurs. Women who are fond of cooking or preparing special food items can take a frozen yogurt franchise and turn their hobby to a successful business.

However, aspirants who are still undecided about taking a franchise or starting their own business of this unique opportunity need to understand first why franchising is always a better option.

Franchising of yogurt business

Though yoghurt franchise business is quite popular internationally, but is in emerging stage in India. At present, there are only two franchise brands in India, but that the concept is catching up fast among other franchise brands. In fact, yogurt franchise businesses are gaining significance with each passing day.

Niche segment benefits: Aspiring entrepreneurs can cash-in many benefits of this unique business opportunity. This is due to the few top franchise players in the segment who are still in the expansion mode. These players would give individual attention to the debutants as they are keen on expanding their business venture. Therefore, aspirants can get a lot of assistance from the parent company of a yoghurt franchise like, site selection and acquisition, assistance in agreements and legal requirements, construction and design support, equipment selection and purchase, manpower selection and training programs, opening and marketing strategy, operations audit and quality control etc.

Low investment: The second reason for its popularity is its low cost franchising  investment as compared to other F&B outlets. As informed by Bhalla, “Cocoberry Franchise Partner System starts at a low investment model depending on location and size. Low investment and higher repeat sales ensure a healthy return on investment (ROI) for franchisees.”

Increased acceptance: However, brands like Cocoberry has proved its success by opening 16 operational stores, out of which 11 are franchisee owned. Kiwi Kiss, a Canadian frozen yogurt chain, better known for its juice and smoothie brand Jus Booster Juice has plans to bring their yogurt brand in India soon. This development shows the rising popularity of the unique concept in India.

Cautions while running a yogurt franchise

Every business demands lot of care and cautions. Yogurt franchise is no such exception from other successful businesses.  A few precautions are given below:

Maintaining health and safety issues: While taking a yogurt food franchise it is of utmost importance to take it from an established company. Yogurt is a food item which is extremely sensitive to health and safety issues. Selling yogurt is subjected to health hazards if not done carefully. Thus, a single mistake can be disastrous for entrepreneurs. Therefore, a thorough study of the franchise company and studying their health codes is very important.

FMCG food item: Yogurt is a FMCG (Fast Moving Consumer Good) product, which may perish in a short time. Therefore, it is important to do a careful market research and establish the daily demand before placing the order to the franchisor. Matching the supply with the demand is essential as storage of yogurt is not advisable due to its short expiry date period.

Adhere to franchise rules: Running F&B business always requires maintaining outmost  hygiene and cleanliness in the outlet. Moreover, adhering to the franchisor’s rules is always preferred as he has the experience in the business. Moreover, franchisors have to maintain a consistent standard in their different outlets for the brand success.

To conclude, it can be said that running a yoghurt franchise business is quite easy and simple. Aspiring entrepreneurs are sure to get lucrative benefits by taking its franchise now as this concept is gaining huge acceptance across the nation.

Related: Forecast of food franchising

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