How to Start KFC Franchise in India: Best Business Idea
If you’re looking for an investment opportunity that offers good returns, starting a KFC franchise in India may be just what you’re looking for.
KFC’s full form is ‘Kentucky Fried Chicken’. With over 400 outlets in India and a strong presence in the market, KFC is a well-known and respected brand.
The franchise offers comprehensive training and support to its franchisees, as well as a proven business model.
If you’re interested in starting a KFC franchise in India, here’s what you need to know about the cost, requirements, process, investment, and benefits.
Table of Content:
- What is KFC and its history
- Why start a KFC Restaurant in India
- What are the requirements to start a KFC Restaurant in India
- How much does it cost to start a KFC Outlet in India
- What is the investment for a KFC Restaurant in India?
- What is the process to start a KFC standalone outlet in India
- What are the benefits of starting a KFC Restaurant in India
- How to apply for a KFC standalone outlet in India
- Documentation required for a KFC business in India
KFC and its history
It is a fast-food restaurant chain that specializes in fried chicken. It is the world’s second-largest restaurant chain after McDonald’s, with 22,621 locations globally in 136 countries as of December 2019. The company is headquartered in Louisville, Kentucky.
KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the franchise model, and the first “Kentucky Fried Chicken” franchise opened in Utah in 1952.
The food brand popularized chicken in the fast-food industry, diversifying the market by challenging the established dominance of hamburger franchises with its “finger lickin’ good” slogan.
Why start a KFC Franchise in India
The fast-food industry is growing rapidly in India. The busy lifestyle of the people and the change in food habits have led to the growth of this industry. Fast food is no longer considered unhealthy and is now seen as a convenient option for busy people.
According to a report, the Indian fast food market is expected to grow at a compound annual growth rate (CAGR) of 16% from 2019 to 2024, reaching a value of Rs 1,31,674 crore.
The major players in the Indian fast food market are McDonald’s, Domino’s Pizza, Subway, Burger King, and Pizza Hut.
This is a well-known brand in India with a strong presence in Tier I and Tier II cities. The company has been operating in India for over two decades and has a network of over 400 outlets.
Starting a franchise in India is a good option for entrepreneurs looking to start a business in the food industry.
The franchise offers good returns on investment and is an established brand with a strong customer base.
How to Start KFC Franchise in India:
If you’re looking for a franchise opportunity that offers good returns and comprehensive training and support, starting this franchise in India is a great option.
With a total investment of 1-1.5 crores, it is an affordable option for many entrepreneurs. So, if you’re interested in starting your own business, consider this franchise in India.
What are the requirements to start a KFC Restaurant in India
The minimum requirements to start a KFC Restaurant in India are as follows:
- A minimum investment of Rs 1-1.5 crores
- A minimum area of 1000 – 1500 sq. ft.
- Experience in the food and beverage industry
- The ability to invest in marketing and promotional activities
- A strong customer service orientation
- The ability to maintain high standards of quality
- Good financial management skills
- An understanding of the local market
- A dedication to the brand
- Good communication skills
How much does it cost to start a KFC Outlet in India?
The cost of starting a franchise in India varies depending on the location and type of outlet you choose. For example, an outlet in a tier 1 city will cost more to set up than an outlet in tier 2 or 3 cities.
The type of outlet also affects the cost – a standalone outlet will cost more to set up than an outlet in a mall or food court.
Here are some approximate estimates for the cost of setting up different types of outlets in India:
- A standalone outlet in a tier 1 city: ₹ 1 to 1.5 crores
- A standalone outlet in tier 2 or 3 cities: ₹ 70 – 90 lakhs
- The outlet in a mall or food court: ₹ 50 – 70 lakhs
This includes the franchise fee and the cost of setting up the restaurant. The franchise fee for a KFC franchise in India is ₹ 30 lakhs.
In addition to the franchise fee, you will also need to invest in the cost of setting up the outlet, which as we’ve seen can range from Rs. 1-2 crores depending on the location and type of outlet.
What is the investment for a KFC Restaurant in India?
Investment opportunities for a KFC Restaurant in India are as follows:
- A minimum investment of ₹ 1 to 1.5 crores is required to start Restaurant
- The franchise fee is ₹ 50 lakhs
- The cost of setting up the restaurant is approximately ₹ 75 – 90 lakhs
- Marketing and promotional expenses will be incurred
- Working capital will be required to run the business smoothly
The total investment required for this franchise in India is therefore ₹. 1 to 1.5 crores.
What is the process to start a KFC Restaurant in India? / How to apply for a KFC Franchise in India
The process of applying for a KFC Restaurant in India is relatively simple. You can fill out the online application form on the official website and submit it along with the required documents.
Once your application is received, a team member of the company will get in touch with you to discuss your application further.
If your application is successful, you will be invited to attend a training program at the Training Academy of the company.
The training program is designed to teach you everything you need to know about running a successful restaurant or outlet, from food safety and quality control to customer service and marketing.
After completing the training program, you will be required to sign a franchising agreement with the franchisor. This agreement will outline the terms and conditions of your business, including the royalty fees you will need to pay.
What are the benefits of starting a KFC Franchise in India?
The benefits of starting a KFC Restaurant in India are numerous. As a well-established and respected brand, it has a strong presence in the market and is known for its quality products and excellent customer service.
By starting a KFC franchise in India, you can tap into this existing customer base and generate good returns on your investment.
In addition, the company offers comprehensive training and support to its franchisees. Franchisees are given access to the Training Academy, where they can learn everything they need to know about running a successful outlet or restaurant.
Finally, the KFC Restaurant has a proven business model that has been successful in other markets. This provides you with a roadmap to follow as you start and grow your business, ensuring that you can generate good returns on your investment.
There are many benefits of starting a KFC outlet in India, some of which are listed below:
- Well-known and respected brand
- The franchise offers good returns on investment
- It has a strong presence in India, with over 400 outlets
- The franchise offers comprehensive training and support
- The company has a dedicated team to support franchisees
- KFC is constantly innovating and introducing new products
- Brand has a strong marketing and promotional campaign
- The franchise offers flexible working hours
- The Franchisor is committed to maintaining high standards of quality
- The company has a strong customer service orientation
What are the documents required to start a KFC Franchise in India?
The following documents are required to start a KFC franchise in India:
- A business plan
- Financial statements for the past 3 years
- Income tax returns for the past 3 years
- Personal resume
- Bank statements for the past 6 months
- Photographs of the proposed location
- Letter of intent
- Franchise agreement
- Training certificate
- Legal documents
- Miscellaneous documents (license, permits, etc.)
Conclusion:
Starting a KFC franchise in India is a good investment opportunity as it offers good returns on investment, is a well-known and respected brand, has a strong presence in India, and provides comprehensive training and support to franchisees.
A minimum investment of ₹ 1 – 1.5 crores is required to start the Restaurant including the franchise fee of ₹ 50 lakhs.
The cost of setting up the restaurant is approximately ₹ 1 crores. Marketing and promotional expenses will be incurred. Working capital will be required to run the business smoothly.
Are you an
Entrepreneur or Startup? Do you have a Success Story to Share? SugerMint would like to share your success story. We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
|
Follow us on Twitter, Instagram, Facebook, LinkedIn