An unopposed question which has always been racing the minds of new and upcoming entrepreneurs in the food industry is that which food franchise makes the most money? Well, the truth is, there is no straight answer to this question. One can debate that there are some iconic brands and companies which have made their way up to the top in terms of capturing business sizes and continue to be growing with their franchise models such as McDonald’s which still dominates the market. McDonald’s adopted a franchise business model to easily penetrate new markets and enlarge its target markets. About 80 percent of its restaurants worldwide are owned and operated by franchisees. This model helped push up McDonald’s gross margins and operating income and gave it a stable revenue stream with lower operating costs and risks. However, India does not have a direct facility for buying the franchise of McDonald. There are two giants in India namely Hard castle Restaurant and Connaught Plaza Restaurant. Hardcastle Restaurant sells McDonald’s franchise in the West and South India while North and East Indian franchisees are under Connaught Plaza Restaurant. The total investment cost with McDonald’s can be somewhere between, Rs. 6.6 Cr to Rs. 14 Cr of investment, as per industry sources. Other brands which have little-to-much success in establishing franchises in India, are Subway, Burger King, Starbucks, KFC. All of these Franchises, costs on the higher range, while with a low franchise fee but higher setup cost, shooting up the total amount of investment. This might work if you have big liquid capitals. The right way to get into the Franchise business is to know where your strength lies. That itself defines the future success of the franchise. If food happens to be your area of expertise, then it’s just a matter of understanding and applying correct fundamentals, that are of cost, area, training, operations, and the progressing expenses required.
There are plenty of upcoming and fastest-growing Franchisees that are available to invest but it is best to watch out the differentiators. Couple of names come to mind when one thinks of fastest-growing Franchise in India which is already or has the potential of becoming the Food franchise which makes the most money are Petoo and Goli Vada Pav. They have had some success in building their presence in India.
Petoo, however, wins this round because they are not only serving Indian food, but also has a backbone which helps their franchisee quickly start getting their returns and reach faster break-even.
What decides the success of a food franchise?
Cost and Set up Fees, which starts from merely 5 Lakhs. They have the size requirement to set up a takeaway store from 250 sqft and for a 20+ seater restaurant is 450 sqft. Kitchen size since its not a live kitchen but some chef-less model, the requirement is 100 sqft. And low manpower about 2-3 in the kitchen which is way lesser than the usual needs in a live kitchen which is 7 people at least.
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Size and Growth: A proper business plan is given by them which gives the franchisee the idea about the realities of the business. It also would help them to calculate risks involved, opportunity to grow in future etc.
Support: Their terms of executing business which includes staff training, operations support, inventory management is straightforward and helps the franchise determine tangibles even before they have started the business.
Uniqueness: They are one of the first companies to open a franchise with the QSR model while serving Indian food in it. Few franchises have come close to doing this, but their menu only had very items but Petoo.in does not compromise on the variety of their menu.
Overall it is a good low-risk investment keepíng a food franchise in mind.
Read more : who is the biggest food franchise
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Food Franchise IN 