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Restaurant Franchise in India, How to Start? Top 6 Restaurant Franchise, Profit Margin

Restaurant Franchise in India, How to Start? Top 6 Restaurant Franchise, Profit Margin

Restaurant Franchise in India: Restaurant franchises are on the rise in India due to the ongoing expansion and demand in the food industry. If you are after the idea of opting for a franchise model in the restaurant industry, then you are at the right place. According to the report of the National Restaurant Association of India, the growth rate of the restaurant industry is estimated to be Rs 5.99 lakh crore at the end of the 2022/23 financial year.

In Hindi: चल रहे विस्तार और खाद्य उद्योग में मांग के कारण भारत में रेस्तरां फ्रेंचाइजी बढ़ रही हैं। यदि आप रेस्तरां उद्योग में फ़्रैंचाइज़ी मॉडल चुनने के विचार के बाद हैं, तो आप सही जगह पर हैं। नेशनल रेस्टोरेंट एसोसिएशन ऑफ इंडिया की रिपोर्ट के मुताबिक, 2022/23 वित्त वर्ष के अंत में रेस्टोरेंट इंडस्ट्री की ग्रोथ रेट 5.99 लाख करोड़ रुपए रहने का अनुमान है।

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What is a restaurant franchise?

A restaurant franchise is a business that allows the franchisee to obtain the right to sell and market the products of a particular restaurant brand. In this business model, the franchisee will pay a fee to acquire the franchisee license.

The franchise owner takes care of the management and running of the franchise outlet. Meanwhile, the franchisee will get monetary compensation based on the agreement. The restaurant brand will provide support and marketing support to run the outlet. This low-risk business model provides assured support and profits.

The essential requirements that should be considered before choosing this model are location, investment, type of restaurant brand, and market needs of your chosen region.

एक रेस्तरां फ़्रैंचाइज़ी क्या है?

एक रेस्तरां फ़्रैंचाइज़ी एक ऐसा व्यवसाय है जो फ़्रैंचाइजी को किसी विशेष रेस्तरां ब्रांड के उत्पादों को बेचने और विपणन करने का अधिकार प्राप्त करने की अनुमति देता है। इस बिजनेस मॉडल में फ्रेंचाइजी लाइसेंस हासिल करने के लिए फ्रेंचाइजी को शुल्क का भुगतान करना होगा।

फ़्रैंचाइज़ी मालिक फ़्रैंचाइज़ी आउटलेट के प्रबंधन और संचालन का ख्याल रखता है। इस बीच, फ़्रैंचाइजी को समझौते के आधार पर मौद्रिक मुआवजा मिलेगा। रेस्टोरेंट ब्रांड आउटलेट चलाने के लिए सपोर्ट और मार्केटिंग सपोर्ट मुहैया कराएगा। यह कम जोखिम वाला बिजनेस मॉडल सुनिश्चित समर्थन और मुनाफा प्रदान करता है।

इस मॉडल को चुनने से पहले जिन आवश्यक आवश्यकताओं पर विचार किया जाना चाहिए, वे हैं स्थान, निवेश, रेस्तरां ब्रांड का प्रकार और आपके चुने हुए क्षेत्र की बाज़ार की ज़रूरतें।

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Restaurant Franchise in India

How to start the best restaurant franchise in India?

If you’re new to the franchise business model, specifically in the restaurant industry, or if you already own a restaurant and want to learn about franchising opportunities, keep reading.

Follow these steps to know where to start your journey.

Evaluation of Business Model:

Start by evaluating a restaurant’s current business model. Find out if the restaurant concept is scalable. Analyze whether your current business model is giving you regular profits. And finally, analyze whether your restaurant concept is worth expanding.

Creating a process and system

If you find that your restaurant concept is scalable, create a process and a system. Expect your franchisees to follow this process and the design you create. Ensure consistency across all franchise outlets, which is important to avoid any brand name dilution.

Registration of trademarks and logos

It is necessary to register the logo and obtain a trademark of the restaurant brand. The franchisee will use this logo and trademark to sell the restaurant brand’s services.

Cost Estimation

After establishing the processes and system, the next step is to estimate costs, which include initial setup costs, food preparation costs, and location-related costs.

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Develop Brand Profile

It is very important to educate the franchisee about the brand vision of the restaurant, products and services, support, and the launching date for opening the franchise outlet.

Franchise Agreement Drafting

Since there are no specific laws governing restaurant franchises in India, it is essential to have a registered agreement between the two parties to avoid unwanted rifts between the franchisor and the franchisee.

Planning about staff training

It is necessary to train the employees of the franchise outlets to maintain the reputation of the parent brand.

Marketing the Franchise Outlet

Depending on the location of the restaurant outlet, the franchisee may support the outlet’s marketing efforts.

Top 6 restaurant franchises in India for 2022

Dunkin Donuts Franchise

The brand came into existence in 1948 and is highly popular for its donuts, coffee, and bakery items. Initially, it was launched under the name ‘Open Kettle Donut & Coffee Shop’. In 1950, the company was rebranded as Dunkin’ Donuts. The brand vision was to serve the freshest coffee and freshly baked donuts graciously, and the company still follows that rule today.

We Food Boat Franchisee

We Food Boat Franchise is a unique franchise model, which works under the cloud kitchen model. It is a model that offers multiple brands of food items under one roof. And the best part is that you don’t have to have special training for your staff members to get started. All you need to do is get licensed, and the team will provide you with complete online and offline marketing training.

KFC Franchise

KFC Franchise

This Franchise needs no introduction. It is a top-rated restaurant franchise across the globe. This restaurant brand is famous for its fried chicken.

Headquartered in Kentucky, it is the second-largest fast-food restaurant chain in the world. It operates in 136 countries and has 22681 franchise outlets across the globe.

In India, there are many options available with the KFC restaurant franchise in India. they include,

  • Smallbox: Focus on limited seating and grab-and-go ordering.
  • Food Court: Restaurant style for communal seating and grab-and-go.
  • Restaurant: Ample seating with in-house serving.

Belgian Waffles Franchise

Belgian Waffles, established in 2015, is dedicated to providing customers with quality waffles at an affordable price.

Waffles were new in India at that time, so he added a personal touch to his original recipe. Founder Shrey identified the huge market potential in India and established the Belgian Waffles restaurant. and launched the restaurant franchise business model.

Dominos Franchise

Domino’s Burgers and Pizzas are everyone’s favorite. And it is a well-known pizza delivery system all over the world that offers both online and offline ordering options. They also serve pasta, sandwiches, chicken wings, and salads. There are around 10000 Domino’s Pizza outlets in India.

Subway Franchise

Subway Franchise

This Franchise is a huge initiative with a total of 39000 outlets in 102 countries. In India, it is one of the top best franchises. And it’s the most successful sandwich chain in the world. There are 353 franchise outlets present in India, and the number keeps on growing. Their franchise model is very strong and is a very desirable franchise for any restaurant business owner.

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FAQs on Restaurant Franchises in India

Are Franchise Owners Rich?
The bottom line is that while a franchise can make you independently wealthy, it is not a guarantee. Choosing the right business in the right industry, and going with pre-existing entrepreneurial experience and/or existing funds can help, but your income-generating potential may still be somewhat limited

Which is the easiest franchise?
According to Forbes, fast food, transportation, fitness, services, DIY experiences, and personal health are some of the top franchising industries. Starting a franchise in any one of these categories will make it easy to run because there is such a high demand for them.

Can a Franchisee Lose Money?
Of course, if things don’t go well, both you and the franchisor lose money. Losses to the franchisor include money that was not recovered from initial training and supporting you, as well as the loss of royalty dollars that your unit failed to produce.

What is the failure rate for franchisees?
Widely publicized statistics from a 1987 study by the International Franchise Association (IFA) show that the franchise failure rate is 5% (this equates to a staggering 95% success rate).

Do franchise owners set salaries?
In some cases, to maintain uniformity or take advantage of bulk buying, a franchisor may recommend that its franchisees pay their employees using specialized vetted and approved payroll software. In other situations, franchise owners may have complete freedom to choose whatever payroll method they see fit.

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