Nowadays, the world is expanding and nobody has time on their hands. So time has become the most important factor in everyone’s life. Nobody wants to invest their time on that thing which consumes more o’clock, especially in the household chores whether it is cooking, washing or cleaning.
As we are aware, India is a fast-growing developing country and people and generally Indians love food.
In metropolitan cities, where people are busy with jobs and fast moving life, they want everything on the go. They prefer things specially food which is ready and yet tasty. And this is the reason that the demand for restaurants in India is rapidly growing especially in cosmopolitan cities. Food franchises are providing the best fulfilment of all the needs which customers urge for.
Food franchises not only give you an option of a restaurant but you can open any kind of eatery like cafes, book reading ventures and clubs. The franchise has a distinct model which gives an option to a businessman to choose their style of hybrid model. The model of the franchise describes the responsibility the owner will have in the future.
Different categories of food model franchise used in India:
- Single-Unit Franchising: Under this category of model the owner has direct control over the particular restaurant without any interference from the member of the franchise. It is also known as direct franchising. It is a fabulous model for new entrepreneurs to invest their money in it. Example: Pind Balochi, Sagar Ratna
- Multi-Unit Franchising: In this, the owner of the franchise gives more than one unit to the entrepreneur as a reward to the responsibility in this model as compared to the single unit model. Example: Wendy’s and Nirula’s.
- Area Development Franchising: It is similar to multi-unit but there are a few differences in it reflecting the point of a large unit flying its wings across the region. Example: USA brand in the territory of India.
- Master Franchising: In which the owner of the restaurant is given the responsibility and power to control the whole territory of a specific area. He /she becomes the master owner of that area. Example: Taco Bell and Hongkong Kitchen.
- Company-owned Franchising: Last but not least the company starts to construct its value in the market. But innovating their brand. The members of this company work along with the company to accomplish their own identity by creating a brand. Example: Pizza Hut.
The entrepreneur should be aware of jargon used in the world of a franchise
I. Franchise: This term means the procedure in which any representative gave their right to another entity to utilise their whole business process whether to wield their recipes or trademark.
II. Franchisee: It is the one who is buying rights or the entrepreneur who is investing money in the franchise
III. Franchisor: This is used for that person who has all the rights. The person who invents the brand value can be any individual or any company.
Importance of food franchises in India
? Increasing repression of food appetite: People in cosmopolitan cities don't like preparing food much and due to the high manifestation of social media platforms people prefer eating in these fancy eatery places. In India, more than 75 % of the franchise earns 100% profits. Franchises provide the taste according to the needs of the customers.
? Diminutive investment: To startup or to enter the world of franchises once doesn’t need to invest a lump-sum amount of money. The entrepreneur can start up their venture having Rs 5 lakh in his or her pocket.
? Human resources with an immense population: India has the second-largest population after China. The personnel are cheap here and easily available for jobs and 85% of them are educated and familiarised. It helps us not to spend the money on their training. They know how to deal with the customers. And, they are the assets of any franchise.
? Easily set up: There is no complication to set up the food franchise restaurant. It only takes a little bit of research and the legal franchisee spend some money on licensing procedure.
? Profitable in an economic crisis: The food franchise remains stable and profitable in economic crisis. In India, the GDP rate is declining day by day but it doesn’t affect the business of food as delicious food is an important part of everyone’s life. The human can face the situation to choose between the opulence commodity and delicious food. People always drove on the meal only.
? Prodigious sector: It is one of the boosting sectors in India and it will not stop here. The demand for this sector will flourish more in the future.
These are some key pointers for the entrepreneur to establish or startup their business in the food franchises. There are many roaring stories of the businessmen who earn billions through this sector such as RJ Corp, and Rajiv Jaipuria; they earn a lot of money by holding the food franchise.
The initial cost of investment is not more than starting a regular restaurant you need to spend money on these contrivances which are:
- Franchise charge
- Set up cost
- Hire hands charge
- Refundable security deposit
In the whole world, India becomes the main hub of franchising as it has all the factors which fit into the genes of franchises. This is one of the key reasons for the stagnant growth of food franchises in India. The expert analyst in the future food franchises will go immensely in India and boost the economy of our country.
(The author is owner, Imly Cafe)