Once upon a time in Paris, a man opened a food stall for weary travelers and tavern keepers.
That was in 1765. The first fast-food quick service restaurant thus began in this way. Previously the restaurants and fast food snack bars were meant to fill the tummies of only travelers who were away from home.
But slowly the notion changed. Nowadays, restaurants are places for luxury activities for everyone.
In India, the majority of the people are dependent on street food from the vendors and cafes selling different tasty edibles.
So franchising a fast food restaurant has numerous advantages in India since it is one of the fastest-growing industries in the present times.
The growth of these exponential fast food business plans has primarily due to the franchise business model well adapted by a big few companies by selling out their brand and logo to dedicated franchisees in return for a franchise fee.
Some benefits of the fast-food franchise industry are:
- The set up of an outlet is extremely simple
Fast food franchises are very easy to set up and they need nothing more than a minimal start-up price.
With a proper franchise agreement, the franchisor leases the brand for a fixed term to the entrepreneur with a contract of an annual licensing fee.
The franchisor helps the franchisee in making the set up highly attractive and appealing so that the demand for the food perks up among people.
- High demand for fast-food chain among different sections of people
Due to high exposure to the internet, global cuisines and tasty food and beverages get high exposure among various sections of people, especially among the age of 15 to 35.
This has lead to immense success among the fast-food industries. Every day more than 65% of fast-food restaurants meet with 100% sales in this country due to a high demand for them.
As a result, the franchise of fast food tends to become more profitable than others.
- More labour inducive environment
India has the largest youth population in the world. Here access to low-priced well-skilled labour is relatively easier than in other countries.
Moreover, 90% of Indians are well familiarised with the English language, so that helps in catering to the needs of training personnel and communicating with consumers of different backgrounds. This helps in increasing the sales and fastest-growing amount of profits.
- A brand can be easily recognized
India’s market is very competitive and breaking a brand, attracting customers, creating brand recognition is very difficult to accomplish.
But in the food franchise business model, this competition is eliminated. For example, McDonalds, Burger King, these food franchise is a previously established consumer base brand and the brand is already well recognized.
This helps in boosting the business and provides new doors of expansion more than other products.
- Flexible to innovation
Innovation is rather cheap and very much flexible in this sector as compared to other sectors of the franchise.
One doesn’t need new instruments or tools of operation in making new innovation. Food is created based on the imagination of the cook and the demands of the people. So the more innovation this sector grasps within, the more profit it will generate in the future.
- Low capital of investment.
For opening up a food franchise. One doesn’t need millions of dollars in their pocket. There is much fast food franchising that can be opened with a budget of 5 lakhs or below.
Moreover, since they are highly profitable, the amount invested in opening up the outlet will be incurred back in no time. Less annual licensing fee. Less amount in hiring talented skilful personnel, and less start-up cost, make the overall expenditure quite cost-effective.
There are some more advantages of the opening up franchise in India of different fast food:
- The possibility of eating in a Quick Service Restaurant (QSR) helps to provide healthy food to people at low cost, thereby more profits to the franchisee.
- Cooking a meal at home requires a lot of time. So eating at a healthy fast food restaurant saves time and cooking and the cost of buying vegetables.
- Local business owners receive ample scope to boost up their business due to these fast food outlets buy selling them raw materials and other staffs.
- Fast food restaurants are capable of meeting the dietary requirements that many people are suffering from. Many people have different food allergies. Fast food restaurants provide charts for their meals and their ingredients thereby, letting each one know what they are eating without any worries.
Different types of fast food like sandwiches, burgers, fries, soft drinks, rolls, pizza, milkshakes, coffee, sweets are some of the common fast food found in our country which helps naturally everyone to fill their tummy on a daily purpose.
Franchising a food restaurant is no doubt the most profitable franchise since it creates more revenue than other franchise models.
Dhinal Baxi is a founder of franchise Insider. As a founder, he has served hundreds of clients. His experience from the financial sector has helped them to achieve great success in the franchise world.