RESTAURANT FRANCHISE BUSINESS IN INDIA

RESTAURANT FRANCHISE BUSINESS IN INDIA

As the food and beverage sector in India is successfully evolving in nature with even more progressing restaurant trends. This sector is already the retail consumption category in India, accounting for approximately 31% of the country's consumption basket, compared to 9% in the US, 17% in Brazil and 25% in China. With globalization and coming of the internet, food trends in the restaurant space are representing growth in the coming days of the modern world. There were many trends expected to hit the market in 2019.

In this time of expansion in almost every sector, it is hard to choose from the copious amount of opportunities present in the market to start a new business. However, starting a new business is one step; and building a recognizable brand name that attracts customers everywhere takes years of adroit work.

"Away towards a man's heart is from his stomach" this traditional folklore, seems to be taken with great consideration especially in India where the importance of food never diminishes, but only increases which make the Indian food industry poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged with immense potential for value addition, particularly within the food processing industry.

Ever wondered why it is growing and expanding with such high pace? Nabob Leaders, as well as businessmen, are choosing Business from Food and Beverage industry as it showed up as one of the most vibrant service industries within India, with plethora of benefits of generating more capital effective businesses, creates new concepts in food and beverage offering new and innovative service elements, large untapped opportunity in smaller towns for quality eating-out chains and many more.

  • Contribution of Food Service Indutry to GDP:

Restaurant Franchising: Strong boom in the Industry!

Restaurant franchising is essentially used for expanding the business and distributing goods and services to meet higher consumer demand. It is a relationship between the brand owner and the local operator to skillfully extend the already established business. Before commencing operation of the franchise, the franchisee makes a required payment or commits to make a required payment to the franchisor or its affiliate.

Trending fast food and QSR's are one of the most blooming formats in India. International brands, as well as local brands who want to scale across the country, are readily accepting the franchising model. There are a lot of top restaurant franchises in India that can range from a Haldiram to a Chinese restaurant franchise in India or a Mexican restaurant franchise. When it comes to international food and restaurant businesses; restaurant franchise can be looked as perfect and foremost franchise opportunity to meet with effective profit earning goal of leading International brands in India.

Segments under Restaurant Franchise

Sales contribution in terms of percentage (%) which composed of the following segments in the F&B Service Industry:If you are looking for setting up a new venture that would yield a good amount of profit, then investing in a restaurant could be one of the best options for you. Yes, the food court business has boomed up in the last two decades owing to the extensively busy and mechanical lifestyle of people. Also having a meal in a good restaurant has become a symbol of status and who does not want to hold a high status in society. Thus, with the invasion of western culture into the day to day life of the masses, the restaurant business is also on a hike.

·       Organized standalone Market Size (INR ‘00CRORE)

Putting India on Map in global market!

Restaurant franchise is the most sought-after business idea to grow more vividly in the magnificent world of the franchise. More Indians are warming up to the idea of eating in restaurants, and not just for specific occasions. Thanks to increasing disposable income, urbanization and technology's influence on consumption habits; foodservice sales in India of USD 1.3 billion are growing at about 10% annually (making it one of the fastest-growing in the world). This growth is double the rate expected for the much more mature US restaurant industry and with a population quadruples the size. All told, between 2013 and 2021, the Indian restaurant market is projected to double.

India is one of the largest consumer markets globally, and one of the youngest with more than 45% of the population under 25 years old. For teens and young adults, eating out is a popular form of socializing, contributing to the growth of multiple segments within the expanding market. As per a report from NRAI, annual sales in the restaurant industry are $783 billion, and annual food and beverage purchases are projected to be at $279 billion.

Business for Yourself!

A restaurant franchise can provide an owner with peace of mind knowing that any big risks have already been sorted out a long time ago by the corporate owner. New restaurant franchise owners will be in business for themselves but will have the added tools and resources from their franchisor to make their restaurant succeed. A good franchisor provides owners with a great deal of opportunity and services such as Operating systems and manuals; site selection, tested designs of retail space, cost of equipment, planning in terms of Marketing and Advertising to maintain brand standards and quality.

FRANCHISE GROWTH IN THE INDIAN MARKET

A decade back eating out had not been a prominent feature in an Indian's life but over the years, due to changing consumption pattern, eating out has gained momentum. The revolution in this sector began in 1996 with the opening up of restaurants by McDonald's, Pizza Hut, and Domino's followed by Subway, Haldiram's, Moti Mahal and Barbeque Nation, etc. According to Restaurant India, the Indian franchising industry is estimated at $24 billion with an expectation to reach $35 billion by 2020. Someone looking for an opportunity to lay down new business, this line could be the best one for you. However, it would not be an easy task for anyone to win the trust of people without a good banner, hence; one needs the assistance of a franchise to start his business from scratch. The restaurant franchise in India has a lot of categories that can be explored, a few of the categories in the restaurant franchise in India are – Fine dining restaurant franchise, luxury dining restaurant franchise, multi-cuisine restaurant franchise, and quick service restaurant franchise.                                                                                                                                          

Revenue growth of key players in India

Considering the huge potential that this sector stores we have tried to narrow down the latest trends of the Food and Beverage Industry in India that will shape the year 2019.

Pizza Hut

Pizza hut is a name that has become popular among the children as well as the elders. One of the most successful in this field, pizza hut is also the largest food chain in the country. To get the franchise of this company one needs to invest an amount of about 2.5 crores along with a royalty fee of 6% on sale. This is a golden company to invest in if you have a handsome amount to invest.

Kenny Rogers Roasters

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This is yet another household name in the food court industry. Belonging to giant Yum, KRR holds the reputation of best-roasted chicken. You would need to invest an amount of 1 crores to avail its franchise but this large amount also includes the floor area of about 2500 sq. feet. It is a good deal for large businessmen as the return after the investment is quite good.  

KFC

KFC has earned a good name in the non-veg food industry over the last decade. In India also it is pretty famous for its tasty menu and good services. To avail its franchise, one needs to invest an amount of about 1 crore along with 4% royalty charges on the sale. However, the restaurant would give an assured return in just 2-3 years reflecting that the investment is justified if you want fast and long term investment plan.

Subway

Subway is one of the most renowned names in the business of restaurant. Established in 1974, it has large a large chain of food courts all over the world. You would need to invest an amount of about 25 lakh and a onetime amount of 4.5 lakh to avail the franchise of this reputed company. However, the great amount of investment will be compensated by the large scale advertisement schemes of the company.

Taco Bell

It is among the top three franchises in India due to its delicious menu that satisfies the Indian taste as well as matches the world class services. This brand of food market Yum, needs you to have a large investment of about 3 crores with large amount of assured returns.

Haldiram’s Prabhuji

Haldiram’s is an iconic and a renowned name in the industry of food and restaurants. It requires a minimum investment of 2 crores and a minimum floor area of 2500 sq. feet. If you are situated in west India then you can enjoy better expansion opportunities.

Grill Inn

It is one of the best names in the fast food industries just at a nominal investment of 10-20 lakh. Also the floor area requirement is about 100- 2500 sq. feet.

New York pizza and fried chicken

It is a new name in the fast food field but it has become of the leading ones in short time. So if you are low in investment and looking for a trustable brand then this is just perfect for you.

GLOBAL EXPANSION OF INDIAN FRANCHISE INDUTRY

Recently, India was projected to regain its position as the fastest-growing economy in the world, with the country’s GDP growing to 7.2% in the last quarter of 2017. According to estimates, this number will further rise to 7.8% by 2019.

This spells good news for all sectors, and particularly, for the franchising industry. According to Gaurav Marya, India has already made its place as the second-largest franchise market globally (after the United States). With around 1.5 lakh franchisees and 4,600 franchisers operating in the country, he envisions that "this industry would grow to at least about USD 140-150 billion" in the next five years.

Market watchers also believe that despite the boom in franchising, India still has untapped marketing potential within the industry. This means that the sector is set to grow even faster in the coming years.

However, stepping into the highly competitive restaurant industry can be both thrilling and intimidating to new franchise owners. Being able to see the benefits, rewards, and potential failures will help prospective owners decide whether or not opening a restaurant franchise is the right decision for them.

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Franchise Discovery helped us set up our waffle franchise, from start to finish. We didn't have to run about for licenses, and all the paperwork was taken care of. We are now running the business happily. Thank you Franchise Discovery.

Vijay

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When we first came to Franchise Discovery, we didn't have much idea about starting a business. My wife and I are both from the service industry, but we wanted to get into business so that we could stop the 9 to 5 routine. We were helped beyond our imagination, and hope to start more businesses in the future.

Ranjan Singh

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Franchise Discovery made it easy for us to find investors for the business. It really helps when you have contacts in the marketplace, and we're happy to associate ourselves with Franchise Discovery.

Shrenik Shah

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Being in the franchise business for long we have come across many people. We have found Franchise Discovery to match us with the right investors according to their needs. This helps us as well as the investors, many of who are investing for the first time.

Ankit Shah

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I thank everyone at Franchise Discovery for the smooth functioning of starting our set up. We were skeptical at how to run a fast food business, but we got all the help and expertise we needed and couldn't be more relieved. We are now thinking of taking up another franchise of desserts this time. Hope things go well again.

Mohan