Ingredients checklist for a successful biz recipe
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Feb, 04 2014

Ingredients checklist for a successful biz recipe

One of the rapid and efficient ways to size up a restaurant is through franchise as it reduces financial load. Identifying key locations becomes easier which provides better revenue generation from each of the franchise outlets. To make the outlet a hit w

In F&B industry, franchising has become the most sought-after biz model for both, the investor and the franchisor. Across all the sectors in organised F&B industry, QSR format and casual service format has taken the lead. This format is the fastest growing segment with immense opportunity and competition in the food service sector. The bar has risen with many global players already leading the market, many more looking to open their venture. As per estimates, there are more than 2000 QSR outlets catering to the demand and changing demographic profiles. Brands in this sector are expanding like rapid fire, which further leads to opportunities galore for the investors.


Before a franchisee calls for a final deal, he must do a thorough research on the five most important ingredients to run a successful restaurant.


Each franchisee should tweak the menu as per the regional choices and customise a few dishes.  QSR brands hit the major metro cities first, with growing demand they are moving on to tier II cities. A challenging part for a QSR chain is to maintain the same level across its outlets from menu to services to get hold of the market and consumer.


This aspect needs to be accounted carefully due to the stiff competition in this segment. Strategically a brand needs to price their products to suit the customer pocket to retain them, keeping their margins equally balanced.


An important factor for most of the food segments is service as it requires keen observation to rightly make the experience of a consumer delightful and friendly. Taking into account a consumer visiting a QSR, it is likely a customer does not stay for a longer period as compared to fine dining; there is little time to impress and create a healthy environment for them. QSR requires their staff to be smart, friendly and well trained as they represent the brand; uniqueness is what matters for a QSR to be a brand.



QSR is different from other segments when choosing a location; ideally, a QSR can be set up around a multiplex, leisure zone, food courts, hospital, school, college and commercial areas. To capture the high footfall in commercial areas, it needs to cater to customer specific requirements and suitability. Location is an important element of QSR, which determines the footfall and customer base for good running of that particular outlet.

As per Sameer Kachru, CEO & CMO, GO Chaatzz, “Location is the most important parameter for a franchisee's success.  Second thing is funds for capital investment and working capital and lastly, the belief in their long term vision to run a restaurant.”

 Muralikrishna Parna, COO, Sagar Ratna has a similar belief   “Good location must top the priority list for any franchisee to be successful.”



A very important aspect that attracts the customer is ambiance  finest quality utensils and a perfectly complimenting décor that leaves a lasting impression. Presentation skill and food service should be a pleasant experience for the customer, as this becomes a turn-around factor.


Future trends in restaurant industry

As of now, tier I cities are at the verge of 100 per cent occupancy, as an expansion plan, many players are moving towards tier II and tier III cities. Big brands are looking at targeting small cities with small formats and domestic chains are opening up in big cities. A major trend in formats is in the form of kiosk and express outlets, a major advantage of a kiosk is attracting the crowd at point of sale. Express and stand Inn's have got a positive response in the market, impacting so much that even big brands are looking towards this format.

Street foods have started getting into the organised market with Ice gola and vada pav; concepts are being integrated like coffee shops serving sandwiches and fast food joints serving coffee.Technology has not been applied that well to the industry, but few additions are the online ordering system and IVR system for orders and payments.

Kachru also believes the same regarding the future trends, “There will be expansion into the tier 2 and 3 markets for the franchisor community. Skill sets are growing as the average restaurateur is becoming more organised. The staff working in smaller branded or unbranded restaurants is becoming more skilled.  Fresh new concepts in the QSR and the juice segment to spring up. Fast and cost effective food will be expected to become a norm in all food concepts.”


Components of operating a restaurant

ä Salary and wages

ä Utility services

ä Employee benefit

ä Restaurant occupancy cost

ä Direct operating expense

ä Repair and maintenance

ä Music and entertainment

ä Depreciation

ä Marketing General and administrative expenses

ä Interest expense

ä Other miscellaneous expenses

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