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Franchise 2017-01-27

Why do you franchise

95 per cent of franchised outlets are doing well today as compared to company owned restaurants.

By Deputy Features Editor
Why do you franchise

We have been hearing since ages that when one wants a quicker return and he want to grow his business rapidly he need to franchise. Start ups or a layman who has never been into any kind of businesses but has a passion to own and run his own restaurant generally stuck while finding answer to his query...why franchise? If he is putting in his own money into the business he can directly rent up a space and open his own restaurant. According to the experts, franchising makes you learn the key aspect of driving and making your restaurant a brand. It is a great way to understand the business from scratch. According to reports, 95 per cent of franchised outlets are doing well today as compared to company owned restaurants.

David Griffith, who was a technology expert and has worked globally with some of the top brands, always had a desire to own something of his own and being a food admirer he thought of doing something in food business. When he shared the idea with his family and friends who is generally one’s first investment partner, they laughed on him telling this is not his cup of tea. Unable to start something of his own with no experience in running a business, he thought to take franchise route and it was then Subway was entering India. He took Subway’s franchisee and learned the art of running the brand and mastering the art of its growth. Today his Subway outlet at Bengaluru airport is awarded one of the top selling outlets in Asia Pacific region.

“Franchising is very great idea to grow one’s business as you are excelling your brand without putting the money, shares Griffith who is Founder & CEO at Habanero Foods International which is now running two of its home grown Mexican brands Burrito Boys and Habanero in South Indian market.

Similarly, Karan Tanna an Engineering graduate has a similar story who entered into the food business after working with some of the top MNCs. Tanna took franchise hold of Ahmadabad based Kutchi King and expanded it to over 200 restaurants in India. After working for the brand for almost four years, he exited the company by setting up a sustainable franchise model for the brand. Recently, he brought the franchisee right for famous QSR chain Genuine Broaster Chicken by bringing it to India by setting up stores in Mumbai. Today, in less than a year the brand is running four outlets in Surat, Kolkata, Raipur and Mumbai with 25 outlets already in fit outs.

“We are not hesitant to take franchise in any part of the country as we have tried to make the sustainable franchise model,” says Tanna who started Yellow Tie Hospitality adding that the franchisee doesn’t have to worry about anything as everything will be provided by them.

But because of the few wrong decision a brand fails to cater to the right kind of customer by opening at low traffic location with system which is not concrete. Hence, the right time to enter into the franchising model is when one is sure that his systems and processes are in place to expand the brand and take it to the next level of development. According to experts if you are opening at a low traffic location make sure you have a standard design and food so that people can recognise you. 

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