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Jun, 15 2013

Spicy biz idea for healthy returns

There will always be success stories in the Indo-Fusion food business. But Go! Chaatzz.. seems to be the epitome, especially after the way they have changed the face of Indo-Fusion restaurants on a global scale.

From a humble beginning in 2008, Yes India Hospitality Services Pvt. Ltd (YIHSPL), with its two marquee brands Go! Chaatzz.. and Go! Foodiezz.., has presence from Kashmir to Kerala and from Assam to Rajasthan in India. With a three-unit franchise deal in California and a seven-unit deal in Florida, Go! Chaatzz..  has proved itself as a lucrative business opportunity to reckon with. And this is just the start. Indians, in the last decade, have witnessed a dynamic alteration in their taste buds. The need to infuse contemporary flavours, blended with desi tadkas, has become a prerequisite when catering to the new generation of diners.

Franchising – a successful business recipe

Riding high on the Indo-Fusion business platter, this rapidly growing and scalable business brand, YIHSPL, is all set to be the answer to becoming India’s first true global chain of F&B brands. They are making waves pan-India. Within India, they operate on single as well as multiple-unit franchise deals.

The parent company, YIHSPL, is of true F&B pedigree as it is co-owned by the promoters / operating partners of Radisson Hotels, Park Plaza Hotels and TGI Fridays in India. YIHSPL has grown into a conglomerate of successful F&B brands.

With a rapid franchise expansion beyond the borders, the brand is looking at capturing virgin markets before direct or indirect competition plays spoilsport. YIHSPL, through all its brands, has already been able to enter tier II, III and IV markets by making inroads into cities such as Sri Ganganagar, Baroda and Trivandrum, among others, by exemplifying their adaptability to suit market demands. It is the standardisation that has led to their measured scaled growth thus far. Geographical locations cannot now deter Go! Chaatzz.. from becoming a global F&B market leader.

The brand\'s very evolution has become an inspiration for many because with franchising as the most significant ingredient in their business recipe, they have come a long way from franchising kiosks across the nation to now being slated as the next big thing in Indo-fusion food.

Flying high in foreign land

YIHPL has made a mark globally by tickling the taste buds of their consumers. This global chain of restaurants plans to spread their flavour of success via franchising by opening 150 profitable franchise units by 2016.

Expanding their footprints successfully across continents, YIHSPL is filling the void of an Indo-fusion food brand that is all set to spread their flavours across the world. Wafting aroma beyond the shores of the country, YIHSPL started their operations in the US via master franchising in October 2012, in Fremont, CA, USA. Go! Chaatzz.. has been enormously successful in creating close to a 35 per cent international client base in the US. A significant amount of chinese origin, hispanics and the americans have taken not only to the vegetarian and the taste part of Go! Chaatzz.., but also the ‘new age’ India it has to offer with its modern and contemporary brand positioning strategy. The brand functions primarily through the master franchise model outside India. This is primarily done in order to build a concrete base in each international market.

The brand has created their own niche market by introducing the ‘new gen’ flavours of Indo-fusion food. They will have their presence in prominent cities in the US. Go! Chaatzz.. is concentrating heavily on the USA market in particular, considering they have made a fantastic start over there. The  first store in Fremont, CA, USA, is now one of the renowned Indian F&B units in the Silicon Valley and the bay area. Besides enjoying great revenues and footfalls, they have an enviable reputation. The company is eyeing the following markets for further expansion:

United States of America (New York, Texas, Illinois, DC amongst others)

Entire Gulf Council of Countries

South East Asian market (Thailand, Singapore and Malaysia, in particular)

United Kingdom (London, Manchester, Birmingham, Cardiff amongst others)

Indian sub-continent (Nepal, Pakistan and Bangladesh already under discussion)

For franchise opportunities in the above mentioned markets, discussions are underway with various parties and soon the brand will announce the opening of their outlets.

Vikram Sood, Director Development (Global), YIHSPL, says: “The company is already in talks with  master franchise partners. We are at various stages of negotiations for key international territories, such as the GCC, ASEAN, the UK and Australia to achieve a global scale. We are very excited to start operations in two new international markets in 2013. We know we have the product, we just want the right market to introduce the product.”

Franchise requisites

To partner with YIHSPL\'s brands, one must have the passion to run the F&B business, have  adequate financial holding power to sustain the  business model, a corporate and system-based mindset and a desire to grow with the brand through multiple units and geographies. Prior F&B experience is an added advantage to understand the nuances and shorten the learning curve, but it is not a prerequisite.

The brand engages the franchisees through brand franchise contracts and an optional management contract if desired by them. Master franchising is always a preferred relationship as it benefits YIHSPL and the franchisee as well in every which way. Each market has its own dynamics and potential. All of those are mutually agreed between both parties when the relationship is initiated.

Wafting aroma of desi delights

The brand is en route to achieving the target of 150 franchise units by 2016 with units operational in India, the US, the UK, GCC and the ASEAN. They plan to become the largest and most promising Indian F&B brand. On their expansion and strength, Sameer Akhil Kachru, CEO & CMO, YIHSPL, says: \"We have the scope and want to be in every city through one of our  brands. In India we aim to have a strong foothold in metros and state capitals  while we will explore lower tier cities simultaneously.” YIHSPL will be adding at least 30 more franchise units to its portfolio by the end of this financial year 2014/15.

Also, they plan to take their franchise store count to 100+ by the end of the year 2014, across their brand portfolio. The company is strategising a few more stunning innovations to make the brand more promising from a franchisee’s perspective. Moreover, the company is also planning to operate 1,000 outlets globally in the next 15 years via the franchise route alone. They are, and will enforce the franchise business model as a catalyst for growth and presence on a global scale.

Food for thought…

Innovations for standardisation - The master key for profitability

To be chef and labour dependent is something that will only hold back growth for the brand and their franchisees. The New Product Development (NPD) Department at YIHSPL is on an ‘always ON’ mode. They are probably one of the few companies in India to have standardised majority of the menu through Retort Process, non-preservative based, FDA approved packaged food. This coupled with video recipe banks and complete manualised formatted of working has led them to aspire to be potential market leaders. Internationally renowned and accredited vendors produce sauces, marinates, curries and other accompaniments for the YIHSPL owned brands. Such innovative thinking makes the brand rock solid when it looks to expand into all overseas and other remote Indian markets.

Support to succeed

YIHSPL works on great staff reporting systems, including daily P&Ls, product-wise sale and profitability analysis. A critical daily business update format is followed in order to help their franchisees and their communication with YIHSPL on a recurring basis. All franchisees in their system know the health of their business on a daily basis, and so does YIHSPL.

Rajat Shah, Director, Product & Business Development, says: “The NPD team at YIHSPL is dedicated to introducing truly unique  standardised menu items, which offer a competitive edge for our franchisees. We are in the F&B business. We want to provide menu magnetism for our end client and they must get the same sumptuous food every day they visit us. It will create higher repeat clientele because you don’t get such innovations via our direct competition.”

Go! Chaatzz.. is a unique Indo-fusion F&B brand that operates only in the United States as on date. The “chaatzz..” part of the brand name can be very deceiving, considering it provides a whole host of menu items, including Indo-Chinese, Indo-Mex, North Indian, South Indian and Chaat food. It is the International version of Go! Foodiezz.. with an adapted menu proposition focusing on the international market alone. The brand has been modified as per the international taste palette, positioning and overall appeal. Go! Chaatzz.. is a market leader in the Californian market and will be introduced in three more countries by 2014.

Go! Foodiezz.. is a pan India brand operating from Assam to Rajasthan and Kashmir to Kerala. It is available for franchising in various vending modules. The brand has seen significant growth in the past two years and is focused on master franchising in key markets such as Gujrat and Maharashtra. Their menu repertoire is very appealing and vast at the same time. Innovations galore in menu items, style of service, brand positioning, delivery and vending modules has made this brand a force to be reckoned with. It is indeed one of the most aspired brands of the country today.

Franchise facts: 

Brand

Area

Investment (USD)

RoI

Go! Chaatzz..

 

1,500 sq ft to 7,000 sq ft

 

150,000 to 400,000 (depending on sq ft and city)

 

2 years approximately

 

 Go! Foodiezz..

 

1,500 sq ft to 7,000 sq ft

 

(INR) : 50 lacs to 2.50 crores(depending on sq ft and city)

 

2 years approximately

 

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