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Franchise 2016-02-04

Small Formats, Big Returns!

As this model offers bigger growth, it creates a win-win situation for both franchisee and the franchisor.

By Deputy Features Editor
Small Formats, Big Returns!

Have you ever thought of investing into a restaurant franchise brand that offers low investment and bigger results? Yes, Kiosk models or small outlet formats which offers on the go business to restaurant owners can give you a good return.

Hitting it right

Over the years, kiosk formats are widely accepted by restaurant owners and are gaining ground in the fast evolving restaurant scenario in India. Targeting at locations like Railways, Airports, Bus Stands or Drive Thru, these restaurants can be seen anywhere. Even, the top malls in India are creating a few of these concept restaurants at their food court.

These restaurants are not only giving the brand a good catchment, but also malls are leveraging great footfall.

And, as they require lesser space, hospitals, schools & college campuses are also getting attracted towards the format. According to the report, “Eating Out- A Bite of F&B Food Service in India” conducted by athenainfonomics website, the proliferation of malls and better retail infrastructure has presented an opportunity for players to share costs associated with operations. The number of food courts has increased from 39 in 2007 to 270 in 2010, representing a compound annual growth rate of 27.36%. This number was expected to go up to 1,200 in 2015, showing a compound annual growth rate of 34.76%.

Betting ‘Big’

Though, many restaurants are growing in this segment, big format restaurants are also cutting the size of many outlets to fit in. Brands like Falafel, Maroosh, Wanchai by Kylin, Kathi Rolls are trading on money with the small business V/S big returns.

“We are planning to open around 15 outlets in Mumbai and Bengaluru by 2016 end. Moving forward, we will also enter Hyderabad, Pune and other tier I and II cities. Some of these outlets will be company owned and some will be franchise owned,” shared Dhaval Udeshi, Brand Head, Falafel.

As this model offers bigger growth, it creates a win-win situation for both franchisee and the franchisor.

“On an average, we have revenue of Rs 12-14 lakh per outlet, but there are outlets which are doing Rs 19-20 lakh per month. And as of now, we are around 24 crores with 21 outlets and by March we are projected to grow at 28 crores with 32 outlets,” said Ketan Kadam, CEO, Impresa Hospitality.

Moreover, with low maintenance, easy returns, less manpower and less investment, this model gives restaurant owners a way to grow their business quickly.

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