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franchise 22 Feb 2016

Restaurateurs see great business in franchising

India made brands are also looking for a quick return and fast growth are entering franchising model to grow big.

Food service growth in India has triggered growth across a wide range of industry, boosting the entire ecosystem. The biggest disruption which is shaping growth of food service industry in the major cities in India contributing to premium dining concepts here.

Tighter concepts flexible returns

As people are much more confident and experienced in terms of selecting what they are going to eat, tighter and attractive concepts are wooing them. Today, customers’ are not looking for an exclusive food options, rather they are more attracted towards a concept that sells an overall experience.

“For any business to get easy returns, it is good to have tighter concepts,” shared an expert on conditions of anonymity.

For example, kiosk or the small formats restaurants are doing a good business in India. Brands like Maroosh, Keventers , Falafal, are having a good business in India. Generally, this type of model gives an average of Rs 12-15 lakh returns on one single outlet which chains like McDonald’s or the Domino’s are not able to perform despite running over 1000 outlets in the country.

Franchising as a medium

In the last two years, we have seen over a dozen of restaurant chains entering Indian market and spreading their wings. Growing organically in country like India is actually tough because other day a restaurant is opening here. And, to keep a pace with the growth and know the market well, global chains have partnered with locals in the country as a franchisee to grow their brand in India. Tweaking their menu, getting the best locations and cracking the best deals are what these brands are doing to establish themselves in fast evolving Indian market.

Meanwhile, India made brands are also looking for a quick return and fast growth are entering franchising model to grow big. Restaurants like Macchiato Pizzeria Grill & Bar, Keventers, Green Chick Chop are all taking franchisee route to grow their businesses.

“We are planning to enter other cities by March and there is already 6-7 franchisee enquiry down the lane,” shared Alok Tiwari, Co-Founder, Macchiato Pizzeria Grill & Bar.

Commenting on the same, Aman Arora, Partner, Keventers said, “We believe that in order to expand and grow fast, franchising is the best and quickest medium.”

On an average a unit level franchisee gives 30-40 per cent of return while a multi level franchisee builds 15-20 per cent returns.

“We are doing very good business. At our company owned outlets we are doing business of around 14-15 lakh per outlet per month. Whereas, the franchised outlets are doing 12-13 lakh per outlet per month,” added Arora.

Thus, with franchising as medium to grow the brand, we would see more development happening in the restaurant business in next two years.

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