Restaurant Franchises in India

How to start, and how much does it cost?

Restaurant industry has a steady growth rate. It is the most popular business segment in the world. There are a lot of restaurant franchise opportunities in India. Both foreign and local brands are looking for investors. The restaurant industry in India, however, has its own peculiarities and subtleties. Most of the Indian population are vegetarians. So, entrepreneurs might look for veg restaurant franchises in India. Most brands offer a vegetarian menu, so it won’t be a problem to open a franchise of any famous brand.

The cost of a restaurant franchise in India differs, depending on the brand. There are restaurants and cafés for every budget. There are franchises that require only $11,000, or 908,000 lakhs. More popular brands require more sizable investment, their cost range from around thousands to millions of dollars.

The sale of a restaurant franchise in India is an easy and quick process. Browse through the list of the best franchises on this page and find the one that suits you the most. Contact our team to get a consultation.

What is a restaurant franchise?

A restaurant franchise is an enterprise that is licensed by the franchisor but owned and run by the franchisee. This business model allows entrepreneurs to open a restaurant with ready-made business solutions and technologies and franchisors to make money by collecting a lump-sum fees, royalties and other license fees, and also to expand the brand's influence in the market.

Franchising is a win-win business venture for both participants of this relationship. It is a highly recognized model that has a lot of benefits.

What are the pros and cons of opening a restaurant franchise?

Acquiring a restaurant franchise comes with many benefits. Some of them are as follows:

• Marketing support. You become a part of a well-known brand, so your franchise will get recognition from the start. Besides, you do not need to spend relatively huge funds on advertising. Usually, it is the franchisor that takes care of promotion of the whole network. Entrepreneurs just have to pay a fixed fee for this kind of service.
• Brand recognition. Consumers that are already familiar with the brand are not afraid to come to a new franchise. If the brand is well-known, then the demand is likely to be high from the start. You need to carefully analyze your options and find out everything about the brand, including its popularity and performance.
• Thriving industry. Restaurants and food are the most popular segments in the world. There are a lot of opportunities and good financial prospects there.
• Guidance and assistance. Entrepreneurs do not have to figure out all business aspects by themselves. The franchisor performs as a mentor and helps all franchisees navigate business processes and operating subtleties.

However, as with any other businesses, there are downsides to owning a restaurant franchise:

• High costs. A restaurant franchise can be a pricey affair. The cost of a franchise depends on many factors, including the network’s success, brand’s reputation and public image. There are also ongoing royalties that you have to cover each month.
• Unfulfilled expectations. Some franchisors promise help and assistance but don’t deliver. Therefore, when choosing a brand you should be extremely careful. It is essential to go through all possible sources of information.
• Lack of independence. Franchisees will have to come to terms with the lack of freedom and creativity. When acquiring a franchise entrepreneurs agree to follow all the rules and standards of the restaurant brand.

How is a franchise better than an independent restaurant?

Many entrepreneurs dream of owning their own restaurant business. And, a franchise may just be the right format for achieving it. A restaurant business requires a lot of time and effort, there are a lot of challenges and aspects. When you open a restaurant from scratch, you have to think of and take care of all aspects of development and further operation of a unit. Whereas with a franchise, you get ready-made business solutions, like a restaurant concept, design, technologies, supply chains, and help with recruitment. A franchise business will distinguish you in a competitive environment and guarantee stability and profit. What are the main benefits of owning a franchise rather than an independent business?

They are as follows:

• Expert assistance from the franchisor in choosing a location
• Recruitment programs
• Training
• Provision of reliable and trusted product suppliers
• Help with restaurant design
• Marketing support

What are the steps required to start a restaurant franchise in India?

The process of setting up restaurant franchises is similar for most brands. If you’re interested in a franchise, apply to be considered a candidate. Each brand has a selection process that every applicant has to undergo. It usually includes interviews. There are financial requirements that entrepreneurs have to meet.

If both the franchisor and the prospective franchisee are content with each other and terms of cooperation, then it is time to launch a franchise. Entrepreneurs have to sign the FDD and pay a franchise fee upfront. Then, there is a training that new partners have to undergo. After that, there is a search for a suitable location, construction works, and purchase of necessary equipment and supplies. When franchisees hire staff, it is time for the grand opening.