Restaurant Franchise Opportunities

Franchise Jul, 14 2017

How restaurants grow their biz via franchisees

One need to get their training right, SOPs right, get a lot of technical people on board to be able to assist them and set up systems, it comes with huge cost.

By Nusra
Sub Editor

Restaurant business has today become very exciting space to be. From experienced people to start ups all are drenching themselves in this business. Seeing the global ratio of franchising where almost all top brands are franchised and are successfully growing in various counties have given a room to Indian brands to look at the same model. When one looks at opening a restaurant especially in a diverse market like Kolkata they need to get their training right, SOPs right, get a lot of technical people on board to be able to assist them and set up systems, it comes with huge cost.

“If you want to really get it right and you want it to be automatize and then only you can replicate it. Here you do not get too much of choice than to expand to get those cost in place otherwise running one restaurant of 70-100 seater and having all those automatization, training and SOPs in place you will not help you make money,” says Nitin Kohli, Business Head, Neotia Hospitality. So, if one has the vision about running a restaurant they need to understand the scope of expansion and what is their cost to build EBITDA in a better manner. One needs to hedge their investments in different verticals and category so as to earn best of it. One needs to go multi brands keeping the focus right.

Going by the local taste

India is moreover United States of India where every state has its own flavour, own palates and one needs to understand that they can’t please everyone in India. Brands entering India or already operating in India needs to understand what their core products are and focus on certain markets and cities despite of going pan India. “We can’t close our eyes and go to markets where no certain target audience are available. For eg: if you are a chicken based brand and you are planning to enter into Gujarat market which has very niche customer base will be wrong idea but at the same time looking at locations like Hyderabad and Kolkata for that matter will be easy to capture the market,” points Rohit Malhotra, Rohit Malhotra, Business Head-India, Barcelos. Meanwhile, relationship with the franchise partner and with the customer need to be understood on what are you giving to the market and what are you going to get back.

Driving with entrepreneurial skill

“I didn’t follow any rule book neither a rocket science. I was about to leave for Australia for my MBA and I went to my father’s restaurant for 15 days and in that 15 days I inculcated a vision that it has the potential to go far. From there my vision was expansion,” shares Bishal Saha, Proprietor, Kasturi Restaurant & Food Plaza who took his father’s restaurant to make it a brand. “My father taught me few good things that helped me grow this business; don’t serve something which you won’t have, you wants serve to your kid, the taste of the tongue is the same. I only serve food which I like,” adds Saha.

Thus, we can say that food business is all about expansion. If your brand is doing right and you have got the proper mix of the prepositions you are ready to expand.

Related: What’s in store for ‘Restaurant Franchising’ in 2016?

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