Who knew McDonald’s, KFC, Pizza Hut, and Dominoes would become world-famous one day? When they first opened their business, they had only one outlet, only one store at only one place!
They were unknown and unfamiliar, and their food was all new in the market.
But now? They are household names, providing a sensational aromatic fast food which not only tantalizes our smells but also our taste buds. This is the miracle of franchising!
Franchising the food brand not only helped them to reach such great heights but also open outlets in more than 100 countries in the world, allowing the people to taste their products more and more.
What Does This Word Mean?
It is a marketing concept that is taken in by an individual or any organization as a plan to expand his business. It’s a type of license that grants a certain individual or an organization to sell a certain branded product under his name. The owner of the product is the Franchisor and the one who has to take the license to sell the product is the franchisee.
A franchisee pays a franchise fee to the franchisor for getting the license of selling his products and the right to use the franchisor’s name and logo for a certain period to enhance his business and earn profits.
Opening up a food franchise is a very profitable business than any others. Nearly all humans on this planet love fast food restaurants consisting of pizzas, kinds of pasta, fried chicken and burgers, and a lot of Indian food too!
How to Grow a Profitable Food Business Franchise in India?
There is an eleven pointer rule to follow if you want to earn maximum profits in food franchising:
Self-Evaluation!
Unless you gather proper experience to take your franchise model to the next level, you are stuck at the base forever. So try to be fair and honest to yourself. Reflect upon your capacity if you can launch a profitable food franchise business or not.
Is Your Concept Worthy of Franchising?
You should be completely sure if your concept is worthy of the franchise agreement or not or else it would meet a major flop. So try to research in detail about the concept of the food, market location, and the type of food the people in that market normally prefer. If you open a non-veg store in a place where people naturally eat vegetables, then your money has all gone down the drain!
Perfect location and a perfect concept of fast food brand will make wonders if taken up by the right franchisee.
Create a Unique Business Model for Your Franchise
The more innovative your business plan is the more you will be able to earn more revenues. The customers always value those outlets which offer them more than others. The satisfaction of a customer is the foremost feature.
Create something unique that will force them to come to your store more than usual. You can make the food more tasty and healthy; provide the services of a quick-service restaurant to attract attention!
Create an Infrastructure which is Healthy before Building up Your Franchise
Sometimes it costs more in the beginning to get a much profitable return. Spend money on comprehensive training where it is needed to make your franchise stand separate from others. You should prioritize on:
- Giving more importance to manuals support systems.
- Standardizing of recipes of different food products
- Marketing ingredients from local stores
- Operating with experts
- Creating a strong healthy infrastructure by marketing support to create a fast-food chain of business.
Face the Challenges!
You should have the capacity to face the challenges that will try to mar you down. Challenges like pricing of the fast-food brands, salaries of different personnel, and promotional payments. You have to find a solution to deal with all of them.
Challenges shape a business ready for the long run. Overcoming challenges will make you ready to take the market leverages into your own hands.
Appoint a Crisis Management System Who Will Work 24*7 for You
In a food franchise, issues related to food directly hamper the business. So you should always be ready to take action when situations like these arise. You have to tackle down emergency food crises beforehand.
If potatoes are unavailable in the local market you have to get a substitute immediately. Saying a NO to a customer will get you poor feedbacks and will impact your franchise business.
Handle the Growing Pains of the Company
Often your personnel that you have hired or the franchisee that is working for you is unable to provide the recipes for the new food that you have innovated.
Those times can become painful. You have to be patient while teaching them all the process of the new recipe or how to create a food product with a particular new piece of machinery. You have to be ready to accept such growing pains as your franchise business moves forward in line.
Capitalizations!
After you have dealt with all the challenges and the wholesale distributors with their inconsistent quality and overpriced, the time comes when your hard work gets rewarded. After expanding your business franchise to a minimum level, you have enough money to buy superior quality products directly from the growers instead of from the retailers and the wholesale distributors.
As a result, the ingredients for the food arrive in much better quality at a better price. No matter whatever inconsistencies the market is suffering, that will neither affect your food price nor your business. That’s the reward of being a bog brand!
Focus Straight On Your Priority!
Give some time to focus on your strength, create a plan strategically, identify your weakness, and your opportunities and threats that you have faced year long. Every year identify a set of resolutions and work upon them to finish.
This will not only help you to be proactive but also long sighted towards your business! So focusing on your priority is the top goal to open the franchise food brand business in India.
Provide a Superb Customer Experience!
Customers are the angels whom you have to please. That’s your sole target. By providing the best customer service beyond the level of all other food franchises available in the market, you are setting a path where the customers will become a fan of yours.
That will amplify your retail sales and also help you to build your brand nationally. Satisfying a customer is the foremost goal of a food franchise business. For that, you must pay attention to:
- Quality of food
- Quantity of food
- Price of the food item
- Delivery time is taken
- Extra values and discounts on special days
- Rewards for ordering more items
- Good packaging
- Feedbacks from the customers. Each feedback, be it positive or negative will help you to enhance more perfectly.
Motivation Comes To Form The Success Stories!
Seeing others finishing the target line or achieving their goal doesn’t only make us wonder about their secret of success but also motivates us to work harder. If they can reach their goal and become the best food franchise brand in the Indian market why can’t we? Motivations often come from seeing their success stories of how they handled different crises and paved their ways to reach the top.
Types of Food Franchising Often Found in India:
Food and beverages franchising are naturally of four types. They work in unique ways satisfying the demands of the customers and earning revenues.
Master Franchising
The owner of the restaurant hands over the working operations of his business to another man and the latter will assume the role of the former in dealing with all activities. Example: Taco Bell
Single Unit franchising
It is a type of direct franchising where the owner of the restaurant also works as a manager and all activities operator. He is the “–in-one”. Example: Urban Khichdi, Dakshination, Moti Mahal
Multi-Unit Franchising
The franchisee buys multiple units from a franchisor who pays a royalty fee and himself shoulders all responsibilities of managing these units alone. He becomes the manager and the owner of multiple franchises thereby earning a lot of revenue from multiple platforms. Example: Dough father, Kulchas & More, Subway
Company-Owned Franchising Business
There is a representative office working closely with the franchisee in monitoring business growth and development. They create the image of the brand recognition and connect the consumers with the brand. They are responsible for setting up outlets at various places and hiring franchisees to operate them. Example: Pizza Hut
If you don’t have time, investment amount or budget, and experience to start a new business from the scratch, then starting a food franchising business is all the best for you. It will generate higher levels of profits, generate revenues, and will train you to be a good businessman in the future.
Isn’t that a fruitful offer?
Dhinal Baxi
Dhinal Baxi is an accomplished advisor, Creator, writer, speaker, mentor, and truly visionary person. Exploring new opportunities and researching new ideas on franchising is his true passion. Dhinal works on brands that are futuristic, which are profitable to investors.
