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February 04, 2019

Fast Food Restaurant Franchise Opportunities in India

Fast Food Restaurant Franchise Opportunities

Fast food restaurant franchise opportunities in India are composed of growth and promising future. In India, the food sector has emerged as a highly profitable sector. The industry which was valued at USD 39.71 billion in 2017 is set for a huge growth, and by the end of 2018, it touched USD 65.4 billion. The quick restaurant services (QSR) or fast food restaurant franchise opportunities in India are buzzing like never before, with all big brands doing exceptionally well. Indians are foodies and in order to satisfy our taste buds, we are crazy about fast food chains. Today, QSRs like Pizza Hut, Domino’s, KFC, McDonalds and Subway are expanding their fast food restaurant business plans. In this long run, Indian brands like Apsara Ice Cream, Belgian Waffle, Keventers and The J’s are also coming up fast to heighten the competition.

If you are looking for your very own fast food restaurant business plan expansion, following are some of the growing fast food restaurant franchise opportunities in India:

1.KFC Franchise India:

Kentucky Fried Chicken, popular as KFC, is an American fast food chain that serves finger-licking good fried chicken to more than 12 million customers each day in more than 115 countries. KFC’s parent company is Yum! Brands, Inc.—World ’s the largest restaurant company. Opening a KFC franchise in India is a huge investment. In US one is required to have liquid assets of nearly 3.6 million, i.e., nearly Rs. 2 Crore. Since, India has cheaper lifestyle than US, estimated investment for KFC franchise India is nearly Rs. 1 Crore. Apart from these numbers, In US, KFC franchise has a net worth of $1 million with $25,000 franchise fee. To avail its franchise, one needs to invest an amount of about Rs. 1 Crore along with 4% royalty charges on the sale. However, the restaurant would give an assured return in just 2-3 years reflecting that the investment is justified if you want fast and long term investment plan.

2.Subway Franchise India:

In today’s era, Subway provides one of the expanding fast food restaurant business plans. At present Subway runs 500 plus franchise stores in India, and as per its country head, company plans to increase franchise retail stores in the next five years. The minimum investment amount is Rs. 25–30 lakhs. The franchise fee is a single time payment of Rs 4.5 lakhs (approximately) the first time, and Rs 2.25 for the next. The advertising and royalty fees of Subway in India are 3.5% and 8% straight on the net sales, respectively. The running cost will be around Rs. 1 lakh. The anticipated profit or return on investment, asestimated, should be not less than 40–50% annually.

3. Pizza Hut Franchise India:

Pizza Hut is a name that has become popular among the children as well as the elders. One of the most successful in this field, Pizza Hut is also the largest food chain in the country. Yum! Brands, Inc. is a parent company to our very beloved Pizza Hut, along with KFC. This pizza brand owns more than 37,000 locations in more than 117 countries. Cost required for Pizza Hut’s fast food restaurant business plan in India is as high as, approximately, Rs. 2 Crore. Initial franchise fee is Rs. 14 lakh ($25,000). Additionally, one will have to pay an annual 6.5% royalty on the profit. This is a golden company to invest on, if you have a handsome amount to invest.

4. Dominos Franchise India:

Jubilant FoodWorks Limited operates Dominos Pizza brand with exclusive rights for India, Nepal, Bangladesh and Sri Lanka. This is a very popular name in the list of fast food restaurant franchise opportunities in India with over 959 outlets. From the viewpoint of fast food restaurant business plan expansion, Dominos Pizza is a trusted brand. Total investment required for this franchise is Rs. 65 lakhs–2 Crore. Neverhteless, non-traditional and transitional stores require less than estimated, i.e., Rs. 50 lakhs and R.s 60 lakhs, respectively. Apart from initial investment, the royalty fees for Domino’s franchise India are 5.5% of stores weekly royalty sales and 4% advertising fund. There are other charges like charges for testing and evaluation, indemnification, cost of enforcement varies place to place. Rs. 30,000 per year after one year are the charges for annual software enhancement fee.

5. McDonalds Franchise India:

With more than 20 years in Indian fast food restaurant business plan and expansion sector, McDonald’s is the brand that, in the first place, introduced the concept of fast food restaurant franchise to Indians. McDonalds franchise requires a total investment of Rs. 6.6–14 Cr, with liquid capital of Rs. 5 Cr. The franchise fee is nearly Rs. 30 lakh. As a franchise, you will be charged a service fee of 4% of total sales. The other type of deal that McDonalds offers to its all franchisees is referred to satellite locations quick service offerings. While the initial investment for starting such type of food joints is Rs. 17 lakh, the duration of franchisee-ship differs for different locations. These locations include universities, airport, store and hospitals. The break-even is almost assured to come in 2 to 3 years.