Why QSR Franchise is an Evergreen Business

Franchising in this area has been a profitable venture in the past and continues to be so.

By Content Writer
Why QSR Franchise is an Evergreen Business

Quick Service restaurants are a very popular and sustainable industry. Franchising in this area has been a profitable venture in the past and continues to be so. Even with the pandemic changes, the effect on QSR is much lower than the normal fine-dine restaurants. The highlight being the hygiene maintained by a service provider.

The time is right for investing in a QSR brand since the rentals are currently 30-40% low. This will be a significant improvement point at the bottom lines. Moreover, QSR is the industry that will bounce back faster than the other industries.

Jumboking is one of the Quick Service Restaurants that was started 19 years ago as a vada pav store. It slowly shifted its product to the Indian burger and now has varied options as Mumbai burger on its menu. It currently has 100 plus stores across Mumbai and Pune. Its shift from vada pav to Indian burger was essentially to expand and serve the customers' need. The customers saw the vada pav more like an Indian Burger. The company’s mission is to turn into the largest burger chain in India that is Indian.  It is the third-largest Burger selling company on Zomato and Swiggy.

Jumboking is looking for franchisees throughout India, majorly in the large cities like Hyderabad, Kolkata, Jaipur, Chhattisgarh, Madhya Pradesh, Delhi, and Chennai. It is open for Master Franchise in these large cities. It plans at opening about 50-60 new franchisees in a year.

Franchise Requirements

The eligibility of the prospective franchisee depends on the time and effort he can put in apart from the investment. The Investment should be an own investment or from a family member for the first store. 

Experience in the food industry is not a compulsion. No experience in this area would be an added benefit. But, the experience in business would help the franchisee to focus on customer experience improvement.

The investment required would be around Rs 20 to 25 lakhs plus taxes. The expected ROI is 3 years.

Benefits for the Franchisees

There are several benefits for the franchisee to look forward to:

- Real estate support: Location is a very important part of the QSR industry. The partner need not worry about the selection of location. The company has a dedicated team for store selection and finalization. The company already has more than 100 properties in Mumbai under negotiation.

- Procurement and Supply Chain: The supply chain gives a huge cost benefit to the franchisee. About 80 tonnes of frozen material is purchased by the company. For an entire year, the purchase price is fixed irrespective of market conditions. The company doesn’t keep any margins on the supply of the product. It maintains a timely supply to the stores. There is an integrated supply chain in place. It is a seamless process with automated weekly ordering.

- Marketing and Advertising: There is a dedicated budget set aside by the company for marketing purposes. It has set about Rs 3.5-4 crores for marketing in Mumbai alone. There is a new customer loyalty program in place to get customers. The brand is focused on positioning and marketing.

- New Product Development: The company has a pre-planned launch calendar which gives them a blueprint of what products are going to be added and when. The major customers of the company are youngsters. According to their preference, the three new products are added and at the same time, three products are removed.

- Training and support: It has a training programme in place called “train the Trainer” where the franchisee owner learns everything about the franchise. He in turn trains the staff at his franchise. When the franchisee himself knows the entire process from beginning to end he understands it and handles it better. To help him train the staff, the company has a mobile app that has pre-recorded videos by the trainer to the partners that can be used to train the HR. There is daily, weekly, and monthly refresher training.

Franchisee & Franchisor Relationship

Jumboking has a transparent relationship with its partners. It supports its franchisees in different ways. It has four master franchises that are involved in the company’s purchasing process. It also has an EDP (Entrepreneur Development Program) that encourages good franchisees to put up more stores. It also ensures that the store gets at least Rs 1 lakh per month.

The brand charges a Franchise Fee of Rs 4 lakh per franchise for 24 years and charges a weekly royalty of 10% plus GST.

 

Edited By: Vaishnavi Gupta

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