low cost franchise Dec, 06 2009

Good Profits Come In Small Kiosks

A large investment seldom guarantees high returns. Investment in a low-cost kiosk franchise may be the best option in the present unpredictable business scenario. Read on to know more about this unique format.

By Abha Garyali
Sub Editor
Good Profits Come In Small Kiosks

An investment in buying a big franchise cannot guarantee the success or failure of any franchise and neither can the franchisor ever assure the success of franchising business outlets. In such circumstances selecting a franchise becomes tough. Investing all your money in buying a big franchise is more of a risk as compared to buying a low-cost franchise.

When aspirants, as well as new franchisees while looking for a select category do not find any low-cost business category of their choice then taking a kiosk of that particular franchise is the most suitable option. In the present business scenario, franchising is considered a boon to struggling entrepreneurs. Kiosks are small-sized shops, having a semi-permanent fixture and are generally present within a larger establishment such as a mall, departmental store etc. The structure of a kiosk could be designed as a standalone structure like a terminal, or a semi-enclosed booth. It offers a wide variety along with the advantage of low investment. Let us have a look at the most popular kiosks formats:

Coffee kiosk franchise: With the coffee culture brewing up across the nation, the up rise of kiosks is also in full swing. Major companies like Coffee Day Xpress, Brewberrys and Gloria Jeans Coffee etc have started their coffee kiosk which has gained tremendous popularity. The key to any such venture is finding out a location that will give maximum benefits to the sales of coffee. A location where people find it convenient to drink their favourite beverage is the ideal place for setting up a kiosk. To put it simply, the larger the number of people, the greater is the opportunity for sales. Adding other items such as pastries, sandwiches etc also promote your low-costing coffee kiosk. AG Puttaraj, President, Coffee Day Xpress said, “We have more than 900 coffee kiosks presently. Other kiosk formats of fast food and other essential items also present a wide variety.” According to Puttaraj, “Area required for setting up a kiosk is two to 25 Sq meters and the investment needed is from Rs 2-5 lakhs.”

Ice-cream kiosk: Ice-cream kiosks are yet another popular category which is doing wonders in franchising. Most of the major players in this category have adopted kiosks and cartwheel formats due to their rising popularity. Kwality Walls, Baskin Robbins, Vadilal’s, Amul etc are the main names in this category. RS Sodhi, Chief General Manager,Marketing, Amul informed, “Amul has two formats under it - Amul Preferred outlet (APO) and Amul Scooping ice-cream outlets. These are in the kiosk format and we have been gaining profits by these concepts. The kiosks are helpful in promoting the brand visibility as well as developing direct contact with our customers.”  Quick service restaurant chain Nirula’s has recently launched its standalone ice-cream kiosk model. Investment needed for taking up ice-cream kiosk franchise is from Rs 5 to 7 Lakh

Chocolate kiosk: A chocolate kiosk provides the entrepreneurs with the right franchising opportunity to invest and gain benefits.  Very few chocolate kiosks can be seen till now as this is an up-coming concept but has great future prospects. Specialty chocolate bars and box has become popular with chocolate kiosks.

Candy kiosk: The first thing that catches your eyes while visiting shopping malls, are the vibrant coloured candy kiosks. These have come up recently and have become quite popular, especially among kids. Candy Treats, Sweet World etc are the main players who have launched their kiosks in prominent locations.

Juice and cookies kiosk: A kiosk in the juice as well as cookies category is also a lucrative option for aspiring franchisees. Today consumers have become very health-conscious. This awareness has led to the opening of many juice bars in the country. Similarly branded cookies are also catching up with Indian preferences. Mr. Orange is a prominent player in the juice kiosk while Cookie Man comes under the cookie section.

This appealing kiosk format has also been adopted by various other players especially in food franchise. Domino’s, Yo!China etc have also come up with their kiosk to raise their success rate. Besides the food and beverage kiosks there are other kiosks as well. Kiosks of beauty and wellness centres are also in demand. VLCC, a well-known slimming and beauty centre has launched its kiosk-in-shop format to raise their sales.

Ideal location for kiosks

One of the factors necessary for the success of a Kiosk is the location. Some of the prominent places where kiosks are mostly visible are:

  • Shopping malls
  • Theatre Chains
  • Airports and railway stations
  • Convenience stores

Having your kiosk in any of these locations would be the best way to earn maximum profits. To conclude it can be said that kiosks are a low cost franchise busines but high profit format.

Related: A low cost treat

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