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Franchise 2016-09-21

How restaurant can grow via franchising

With growing competitions in the market it’s not possible for a single person to look after a brand at different market and that’s where he looks for a helping hand.

By Deputy Features Editor
How restaurant can grow via franchising

If I am growth ready, how can I take my brand forward, is what all business operators think when they slowly take on the path of success. And that’s where people think of entering into franchising model. With excitement and opportunity of opening more than 1000 restaurants in India alone, the market is inviting people to unfold huge success stories. From brands like McDonald’s and Domino’s building a franchisee chain to heritage brands like The Embassy Restaurants and Keventers taking shortcut routes to franchising, we can really say that there is lot to happen in India.

Franchising remains one of the most attractive operating model for international brands foraying into India with quick roll out, local training, customisation, access to local markets and above all, a local master franchisee who looks after all such operations.

With 1.5 trillion dollar turnover across the globe, which invites 6 billion people consumption on an average per week with 5 dollar per cheque, making it a massive business, restaurant industry is ahead of crude oil industry and the global arm industry. And because of the size of the industry it attracts a lot of new players, investments, excitement in the category.

However, growing your brand is not the mere concern in real if you take a life of 10-15 years restaurants about 80 per cent of the concepts, restaurants don’t survive more than five years. So, there is something that we need to learn as we look into expanding the concepts. If I have the concepts, how do I grow and how do I grow successfully. I have a very soft approach to it and it is if I have a winning concept- Do I have a win with customers, do I have win with my employees and do I have a win with my shareholder? Is all what needs to be taken care of believes Unnat Varma, MD, Pizza Hut- India Sub Continent.

Growing with demand

Is my concept based out of the need or trend based in the marketplace thinks restaurateurs when they expand beyond geographies? But, If you are doing a great job with your concept, you are definitely going to see a comeback customer, claims Varma who is operating close to 500 Pizza Hut outlets in India.

“You franchise because you are not sure about the market, you don’t have expertise about the market. A lot of people take franchising because they have money and not passion,” shares Kabir Suri who operates 28 restaurants under Azure Hospitality.

Similarly, Ashish Saxena, CEO, TexMex Cuisine shares, “we are looking for partners and if we find that the partner has the capability to drive sales in that market is being exposed well to the local area.”

Overhauling competition

With growing competitions in the market it’s not possible for a single person to look after a brand at different market and that’s where he looks for a helping hand. “If you don’t want to caught by competition it’s franchising,” believes Sam Chopra, Chairman, Carl’s Jr. And, this goes well with ability to communicate and explain things. “The ability to communicate and ability to understand on both side are two factors in franchising, tells Julianne Holt Kailihiwa of Sumo Sushi & Bento.

And, hence we can say that with market booming with opportunities there is lot to happen in franchising. 

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