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Nov, 03 2015

A fresh palate of franchise profits

Having established itself in Delhi by opening two outlets, the Canadian submarine sandwich chain, Mr. Sub is all set to spread its succulent flavours pan-India.

Arnav Saluja, Chairman, Beverly Food & Beverages- Master Franchisee, Mr. Sub in an interaction with Franchise india, shares the short term and long term goals of the brand.

How do you see franchise model as a means of expansion?

Franchise model is quite profitable. One can expand with company owned units as well but, franchising helps others also to get associated with your brand. One could open company owned stores with ease, but with franchising you expand, gain brand recognition and more people get attached to the brand. This way you are enabling the people to grow as well and not just the company.

What are your expansion plans?

We are planning to open 25 stores by March in Delhi NCR. Our prime focus is on this region. In the second fiscal we shall move down to Mumbai, Bangalore, Pune and Hyderabad. Following this, we wish to expand in tier II and III cities with a mix of company owned and franchise model. We are looking at a total of about 250 stores in next two and a half years.

Tell us about the presence of Mr. Sub in India.

Presently, we have a total of two outlets in Delhi. First one, we opened at SDA market and the second one is in West Patel Nagar. We have five more outlets coming up. One outlet is in pipeline at Connaught Place. Other locations include Defence Colony and GK1. We are in talks with malls at Vasant Kunj and Gurgaon. We are coming up with outlets in RK Puram, Kamla Nagar and Model Town. We will open up at Galleria market and Sector 29, Gurgaon.

Why did you choose master franchising over joint venture?

Though joint venture helps in creating a brand together without having the responsibility on one person alone, master franchise route suited us. It helped us to use our creativity.

Will you be sub-franchising further?

Yes, we are in the planning phase of sub-franchising, therefore, we are open for partners as well.

What are the challenges to establish an international brand in India?

The biggest challenge for anybody is revamping and creating a new product. Devising a new strategy all together within the brand parameters for a different market and getting it right according to consumer tastes and preferences. Another big challenge is getting the human resource. There is a lot of talent pool but directing and channelising it towards the brand is a task today.

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