Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
Franchise trends 2009-12-08

Trends in food franchising

With more than one family member working to fill in demand, people are eating away from home more frequently than at any other time. The dining habits of consumers are changing with changing lifestyles, the article throws light on the changing trends in

By Mahmood A. Khan Professor, Pamplin College of Business, Virginia Tech

We are witnessing an age when things are moving so fast that it will become very difficult for entrepreneurs to keep pace with the consumer demands.  With changing economic and social conditions, developing countries, particularly India and China have several unique challenges.  Population segments which were unable to afford earlier are now buying stuff which was not available to previous generation.  Examples include the use of mobile phones, fast foods, on-line ordering, call center demands, etc. All this has a big impact on consumer needs.  With more than one family member working to fill in demand, people are eating away from home more frequently than at any other time.  This can be in the form of having lunch during office hours, dinner due to the lack of time and energy to prepare food at home, ease of ordering food, and more people travelling due to the improved surface transportation.  All these have a big impact on dining habits of consumers and if we consider the millions of people in each market segment, the potential for food franchising is unprecedented.  Also, people are becoming more and more aware of ethnic foods and varieties.  In case of India, it is now common to find cuisines from south, north, east or west being served within one location.  An opportunity to try different cuisines is conveniently available. This changes the food selection pattern and food habits.  Hamburgers and Pizza are not Indian foods and does not have any semblance to traditional foods, however, they are now getting popular.   

Technology is changing the way we do things

Technological changes and the number of affordable gadgets have changed the way we used to do business.  Whether it is operational procedures, training, or management, technology is playing a big role.  These aspects are extremely important for franchising.  From farm gate to plate, technological advancement is changing the methods of doing things.  For example, it is much easy to trace food coming from a particular farm to vendor, food processing, and finally in the hands or plate of the consumer. Consumers can order food from their mobile phones, restaurants can have electronic menu boards, and essentially the entire process of serving food can be modernised.  Similarly, the delivery service is bound to grow tremendously in India.  Even providing lunch time deliveries can keep franchisees busy all the time.  

Simplicity of the menu items 

Considering the demand for large scale preparation, it is vital to have menu items

that are simple, easily prepared in a short period of time, and served conveniently. People are getting rushed for time more and more.  They do not have time or incentives to have very elaborate meals on a regular basis.  Food franchises sometimes resemble “filling stations” where people will stop to get petrol and move on. Carry-out or delivered food items are therefore becoming popular.  This requires that in addition to simplicity, the food should have quality retention properties at least for a certain period of time until the food is consumed.  This includes every aspect of quality from food characteristics to the packaging containers.  Considering the above mentioned facts, the success of franchising is based on simplicity of menu items.  Another indication that time is ripe for food franchising in India.   

Replication Capability

Based on the earlier point, in addition to being simple, menu items should be such that can be replicated easily.  The quality should be consistent to an extent that a food item bought from a franchise in Delhi should be a mirror image of the one bought in Mumbai or Hyderabad.  This again is the latent point of success of any franchise.  In addition, it should be such that personnel handling it can be trained to maintain consistency.  A product can be fine when prepared by one person and may not keep its consistency when someone else is preparing it.  This standardisation and multiplication of recipes, equipments, and processes are very important which needs proper training and development of operations manuals.  Again, carefully planned operational manuals are vital for the success of any franchise.  

Concept Development

This is the most important point that needs consideration in light of the trends discussed in earlier points. The food franchise concept has to be developed considering the consumer needs, quality of food items, replication capability, trainability, etc.  This is where many of the prospective franchisors as well as well established franchisors do not pay required attention.  It is the concept which keeps a franchise going for years.  For example, if we consider McDonald's their concept is simple, yet there are built-in points that make the franchise successful all over the world.  This is true for other franchises.  A franchisor should spend considerable investment in time, effort and resources in developing this concept.  It is advisable to get expert help in planning concept for franchising.  A restaurant may be very successful at one location, but it does not guarantee success at another location.  The concept should be unique, appealing, profitable and fulfill consumer needs.  Prospective franchisees should consider these points before getting into any franchise agreement.  

 

Competition

Any successful franchise will attract competitors and other businesses which will either duplicate or outdo the franchise concept.  It goes back to the “uniqueness” of franchise concept that keeps it from getting taken over by a competitor.  This uniqueness had to be carefully planned and built into any concept.  McDonald's, KFC, Pizza Hut, etc., have this uniqueness built into their franchise concept that makes them so successful all over the world.  That does not mean that there will not be other competitors selling similar items. However, a franchise should stand alone and be sustainable in spite of the competition.  For this marketing and promotion becomes important and therefore the need for having manuals describing some of the key elements of a franchise and how to proceed with the business. 

 

Location

With the growing trends, it is important to corner the best possible location where this new target population is available.  Getting into prime location is also a trick of franchise success.  With proper visibility, access, and convenience, a food franchise can multiply and be prosperous. Another basic component of franchising is multiplication capability.  A franchise suitable for malls does not necessarily do well as independent business and vice versa.  A kiosk or a vendor stand can be more profitable and successful than a full size restaurant.  Thus, considering all these aspects, location should be planned for the success of any food franchise. 

The above mentioned points are interrelated and show some of the basic elements of a successful food franchise in light of the contemporary trends.  Elaboration of these points is limited due to space constraints.  In any case these points are not exclusive and there are other aspects of franchising that deserve consideration.  Hope this discussion will ignite the anxiety to get into food franchising among potential entrepreneurs.   
 
 
 
 

Comment
poonam 21, Dec 2010 at 08:57 PM
hi, actually i found this imformation is not enough. if somebody have capacty to invest less than 5 lac. then what are other option for him to start a pre school franchisee?
Rishi Juneja 19, Feb 2011 at 08:04 AM
i am looking for suitable pre school franchise
Anitha Ananth 30, Sep 2011 at 08:28 AM
hi your technical details are ok but what about the ROI and profit ratio in detail???
sailaja 16, Jan 2012 at 10:06 AM
hi we are Bangalore based start up chain of preschool with unique concept .if you are keen on opening preschool in Bangalore mail me
Dr.Kiran Kulkarni 25, Jun 2012 at 03:35 PM
i didn\'t find ur mail id\r\nkindly mail me
Dr.Smitha Rahman 13, Sep 2012 at 07:57 AM
Im looking for a suitable pre-school franchise
REshma 14, Sep 2012 at 04:05 AM
give me a tentative idea of profit (ROI) monthly or yearly
Neena Kulkarni 30, Dec 2012 at 03:41 PM
i am looking for suitable pre school programme to set up
kamal rasaily 18, Nov 2013 at 02:54 PM
i am quite famliar with pre school as i was a teacher for 3 years.now that i have land around 12000 sqft and money well upto 15lac to invest i would like to open pre school in my area as there is no branded pre school in my area and as the population and the mentality of people living in my area are changing i find it the best time to open pre school for imparting education.kindly guide me in this regard i am interested going with brands of pre school
Naveen Saini 05, Dec 2013 at 06:55 AM
I want this for Bangalore location.
NAVEEN SHETTY 11, Jan 2014 at 06:53 AM
I have already started the pre school. i want to upgrade with latest technologies Around 45 students are there in my pre school
reneesh Matthew 13, Jan 2014 at 08:45 AM
I have worked with some of the best international schools in India and abroad. I am looking to start a chain of schools across some identified Indian cities.
Reneesh Matthew 16, Jan 2014 at 05:54 AM
Kindly contact me
Shailesh singh 19, Jan 2014 at 02:36 PM
Will anybody suggest me a good name for play school......m goin to start a playschool ......
SK Tiwari 09, Feb 2014 at 07:46 PM
hi reenesh ,I want to start a play school at Lakhimpur Kheri in U.P. a district HQ .
L P RAI 12, Feb 2014 at 07:49 AM
Hi, I am looking for a brand Preschool franchise in Bangalore. My wife is Ex - Principal Of Play school/ Nursery of Power Sector School.having qualification of MSc, BEd. Long Experience of teaching & school administration.
prakash mohan das 21, Feb 2014 at 09:40 AM
hai sir can u give me a best pre school franchise to start
SANTANU SINHA 02, Mar 2014 at 07:34 AM
Kindly contact with me very urgently.
Atul 24, Mar 2014 at 10:26 PM
i am exploring some options in NCR area, any suggestions.
shashikumar 21, Apr 2014 at 12:28 PM
Hi, i am planning to start preschool in bangalore, probably would go for franchise as i have no experience in this field. I am basically from IT sector. what would be the total investments that i need to have along with the franchisee fee?
richa 23, Apr 2014 at 05:44 PM
Hi, I am interested to open a pre school in Bangalore. Kindly let me know the requirements
Franchise Mgr 24, Apr 2014 at 05:15 AM
As part of our expansion plans of our very reputed preschool, we are looking for select franchisees in Bangalore who would like to open their preschool and childcare center and run it professionally.
Kiran 05, May 2014 at 03:39 PM
A well established, leading branded preschool franchise is available for sale in Bangalore.
Sujit 21, May 2014 at 06:41 AM
Hi Kiran,I would be keen to get into this sector.Can we discuss on this?
sonia yadav 08, Jun 2014 at 06:01 PM
hello! i m Sonia. I want to stat my own play school in Rajokri Delhi. Please guide me.
Sulabh Khare 17, Jun 2014 at 05:40 AM
An ISO Certified Company Smartkidz looking for franchise Pan India. Interested people please contact.
Sushil Chetna 11, Aug 2014 at 08:16 AM
Hi, my wife is looking to start a play school in Bangalore. She is currently a daycare coordinator. Please let us know the best options financially..
PRIYA 28, Jul 2014 at 05:03 PM
Suggest me the name of best Preschool which i can open in Indore..
Nitil Tiwari 22, Sep 2014 at 07:24 AM
Hello Sir/Madam,I am interested in opening franchise in Bangalore, pune, jabalpur preschool . please guide us.
Jayashri 08, Nov 2014 at 04:46 PM
Hi, We have our Pre school in Pune . We are ready to give franchisee.
ritu 20, Nov 2014 at 06:01 AM
kiran ..do get back to me on the above email id for the sale of u franchisee in bangalore
itu 20, Nov 2014 at 06:05 AM
sailija...do get back to me with ur proposal
Ruma Dutta 04, Feb 2015 at 01:57 PM
Hi, I wanted to start a preschool in Bangalore & having capacity to invest 5 Lacs at this moment. I am from IT background & not having any experience in this field. Pls. guide me how to start the show.
dfasdf 05, Mar 2015 at 02:49 PM
NIL
Shashikumar 05, Mar 2015 at 02:55 PM
Hi Ruma Dutta,I am Shashi Kumar from bangalore, looking for franchise options in bangalore. As you are also looking for such options, wanted to get in touch if you did any exercise in finalizing which preschool to choose for taking franchisee option.I also have same budget of <5L but as per my understanding it would cost more and based on some of the info from few preschool response. if you like to input some information, please mail me or contact me. Thanks,Shashikumar. S
Anamika Sinha 16, May 2015 at 10:33 AM
Hi ! I am interested in opening a pre school in Lucknow. Could you please help and provide me with the requirements and all.
sruti 02, Jun 2015 at 05:20 AM
Hi,i am looking for a best preschool franchise in bangalore.
Mrs payal Taneja 09, Jun 2015 at 09:38 AM
Hi, I have worked for pre schools as the branch head and also set up new branches in the area but now looking forward to open my own center.I am very much Interested to open the center asap. pls suggest if any one is aware of pre school franchise. THANKS.
atul 06, Oct 2015 at 08:19 AM
hello, I am atul and i am looking forward to open preschool franchise with day care facility in it in faridabad (NCR) area by the end of this year.I can invest upto 15 lac and dont possess any experience in this field.Can anyone suggest some options that are feasible in this area.they all say ROI coverage in 2 years of opening but truth always ought to be otherwise.
Rathi 01, Nov 2015 at 10:40 AM
Hi,I have an idea to start a preschool or a franchise. Which would be the best option? Please guide me.
ann 16, Nov 2015 at 07:25 AM
hi..I am interested to start a pre-school in Bangalore.
Rajat Jain 16, Nov 2015 at 05:09 PM
Hello everyone, I have a Pre-School in Lucknow and would like to give franchises to interested people for good business opportunity in Lucknow & U.P.. If interested kindly contact on my mail id.
Bhadrik Veera 04, Dec 2015 at 11:32 AM
We would like to provide you with the needed information regarding opening a Pre School.kindly call us.
Rekha 17, Dec 2015 at 07:12 AM
Hi I need more information on Franchise model, ROI, Education background, suitable place for starting it up.. Please inbox me more details...
rakesh 22, Dec 2015 at 05:28 AM
Hi, I am planning to start the smart school franchise kindly suggest me what could be the investment ,qualification and procedure to follow. Kindly ping me through email it will be more benefit to me
Related opportunities
  • Join hands with Smart school Education Pvt Ltd and be..
    Locations looking for expansion New Delhi
    Establishment year 2011
    Franchising Launch Date 2014
    Investment size Rs. 2lac - 5lac
    Space required 1000 - 2500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater North West Delhi New Delhi
  • Multi Cuisine Restaurant
    About:CELEBRATIONz by Exciton Hospitality is conceptualized to offer an amazing..
    Locations looking for expansion Maharashtra
    Establishment year 2012
    Franchising Launch Date 2017
    Investment size Rs. 1 Cr. - 2 Cr
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Casual dine Restaurants
    Confused of what food franchise business opportunity is right for..
    Locations looking for expansion Maharashtra
    Establishment year 1982
    Franchising Launch Date 2000
    Investment size Rs. 50lac - 1 Cr.
    Space required 1800 - 2000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Nashik Maharashtra
  • Women's clothing
    BRAND PROFILEBreya tailors together Indian elegance with Western style, to..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2016
    Investment size Rs. 30lac - 50lac
    Space required 500 - 1500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories