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Food Franchise Expansion in Major Indian Cities

By January 7, 2021No Comments

It is commonly accepted that the first food corner started in Paris in 1765 for tired travellers. Earlier, the food restaurants were intended only for tourists away from their homes and afterwards, eating outside at food corners or restaurants became a centre of attention for residents. From that time till present, the food industry has shown a great boom.

So many brands have already captured the market and some are still in their nascent stage. Food business owners are expanding their business by distributing franchise and new managers winning higher revenue by investing in such brands’ franchises. The Wire reports that the Indian food industry is valued at INR 22,665 billion in 2018 and the projected growth rate is INR 50,571 billion by 2024. Not only in India but globally this industry is on its boom. The Wire also says, the world food market size in 2018 was worth US$ 3.4 Trillion and is expected to grow by the worth of US$4.2 trillion by 2024.

Henceforth, the food franchise industry is flourishing due to its immense profitability and benefits. Some benefits for franchisees include:

Financial Accessibility

Most of the food franchisors have connections with lenders or banks for the issuance of loans by following some terms and conditions for franchising grounds. An individual who would like to buy a franchise, the franchisor aids her/him to take a loan so that proper franchise structure can be made.

The High and Instant Success Rate

A well-recognized brand spread its benefits with its franchisees at all stages. The franchisee doesn’t have to focus on other external things because a franchisor provides all the required stuff. Brand name & identity attached to the food business helps in giving instant and high profitability to franchisees. It accelerates the growth of both the franchisor and franchisee.

Expertise Not Needed

In a franchise business, there is no need for food-related expertise. Every type of training related to baking, making, and managing is provided by the franchisor. All your hard work, documentation, licensing, the staff is taken care of by the franchisor. In the sense, food franchise allows you to work independently without worrying.

Individual Specifications

To get started with a food business, an individual may need a partner at any point in time because of a lack of support. But in case of the food franchise business, one needs not to have a partner because each support is provided by the franchisor. Hence you can run your business independently.

Staff hiring In the food business, what matters the most is “trained professionals”. New entrepreneurs who’re willing to start their own food business don’t have an outlook towards expert staff. But in a food franchise business, the brand itself provides the franchisees with the trained, reliable and skilled staff as per the budget for example- chefs, commis chefs, manager, master chef etc. after providing training.

Easy to Upgrade

Food business can never be stopped because customers always prefer tasty, delicious and affordable food. Up-gradation in this industry doesn’t need special higher investment, you only need new equipment and menu. Moreover, as part of the franchise community, the franchisee doesn’t have to care about innovation cost associated with altering the products, in reaction to the regularly changing desires of customers.

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