McDonald's Not Ready To Sort Out With Bakshi
McDonald's Not Ready To Sort Out With Bakshi

NEW DELHI: The world’s largest QSR chain McDonald’s informed India’s National Company Law Appellate Tribunal (NCLT) on Wednesday that settlement of a long-standing dispute with Vikram Bakshi, its joint venture partner for the north and east, is “not possible.”

MIPL’s stand was taken on record by NCLAT, which had on 25 August asked both parties to try and settle the disputes that had led to the estrangement and keep the 169 McDonald’s outlets they operate in north and east India open and running while the talks are on.

The NCLAT also issued a notice to the parties to file their replies.

McDonald’s India had filed a petition with NCLAT on August 23, challenging a National Company Law Tribunal (NCLT) order that had reinstated Bakshi as the MD of Connaught Plaza Restaurants Pvt Ltd (CPRL). CPRL is a 50:50 joint venture between McDonald’s India and Bakshi. In 2013, Bakshi was removed from the post, following which he had approached NCLT.

On August 21, the American chain has terminated its franchise agreement with CPRL, which operated 169 restaurant outlets in India. Within 15 days of the termination notice, CPRL will cease rights to use McDonalds’s name, system, trademark, designs and its associated intellectual property, among other things. The outlets have time to run till September 6.

 
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Cremica launches seven new flavours of mayo
Cremica launches seven new flavours of mayo
 

Cremica Food Industruies Ltd, which is known for its salad dressings, mayonnaise and Ketchup, has unveiled new flavors of mayonnaise at the Indian Restaurant Congress (IRC) event 2019.The company has come up with seven new flavors of mayonnaise in the food service category; Mount Fuji Japanese Mayo, Wild Spice, Mushroom Willow, Tomakhan Mayo, Creamy Basil Pesto, Pickle Tickle and Frontier Josh Mayo which.  

 

Speaking at the event, Akshay Bector, Managing Director of Cremica said, “It is imperative for the Restaurant industry to focus on quality, supply chain and standardization of their offerings. Cremica's effort has always been towards introducing innovative product range that ranks high on taste and quality. We have a fairly good understanding of the evolving Indian palate. These new flavors of Mayonnaise will help niche category restaurants to redefine their offerings. Flavors like Creamy Basil Pesto and Mount Fuji Japanese mayo would be perfect for Italian and Sushi Restaurants.”

Cremica has been the title sponsor of Indian Restaurant congress. Since its inception IRC is considered to be the leading Business and Knowledge platform for the restaurant and food industry. The Indian restaurant Congress has made a mark in the industry and is a key event where Influential executives, thought leaders, innovative exhibitors, and industry titans come together.

The Show provided intriguing insights on the latest thing from industry leaders and visionary experts. Themed as ‘Restaurant leadership Conference’ the show attracted more than 500 stakeholders and key thought leaders from top restaurants and F&B brands from India and global markets.

 

 

 

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High In Demand, Easy On Returns: How Asian Food Is Heating Indian Food Space
High In Demand, Easy On Returns: How Asian Food Is Heating Indian Food Space
 

It was in 2003 when Ashish Dev Kapur launched Yo!China in India, the indo-chinese version of the quick service restaurant that ruled the hearts of middle class Indians. Little did he knew then that India would witness an altogether different and more diversified palate when he would expand the brand in over 15 years time. Today, people are no more restricted to noodles; they are trying all kinds of Asian Food starting from Japanese, Korean, Vietnamese, Burmese and Thai. This is not only trending but we are seeing restaurants opening around multiple concepts serving the best of Sushis, Singaporean Roll, Bento Boxes to name a few.

THE BUSINESS MODEL

To start an exclusive Asian food outlet, the investment required is around Rs 18 to 80 lakhs depending on the size (500sqft to 2000sqft). Smaller outlets of about 500sqft are required to focus on deliveries which have become a major business driver in this kind of the concept. Operations costs include Rs 7 lakhs on kitchen equipment, Rs 1.8-10 lakhs on interior designing, Rs 10000- 15000 on licenses, and Rs 7.5 - 20 lakhs on franchise fee.

Monthly earnings may range from Rs 6 lakhs to Rs 15 lakhs, with margins of 18 to 30%. Typical break even time is anywhere between 1-2 years.

Commenting on how the demand for Asian food is consistently growing year-on-year, Aayush Agrawal- Director, Wok Express says, “With rising per capita income and urbanization, Indian’s demand for various superior food products along with the urge for experimentation has led to necessitating a possible change in the food consumption pattern. They are warming up to the mixed bag of cuisines and flavours now available to them like Chinese, Japanese, American, Italian etc.

Adding his view on the same Praful Chandawarkar, Owner, Malaka Spice that was one of the first smart dining concept shares, “Footfalls are now divided and spread due to much larger options now available in the market . Average spend has increased marginally by 5%  year on year.”

FRANCHISING FOR BETTER RETURNS

Further, Karan Tanna, CEO, Yellow Tie Hospitality, which runs Wok This Way, a concept where you can make your own wok shares, “There are lot of oriental brands in this space but WOK This Way is unique vegetarian and healthy WOK and Oriental concept in the market. To have the consistency of the product in oriental cuisine, the standardization of sauces is very important.”  “In a franchise model, the franchise owner will get standardized sauces recipe from the franchisee and he will be trained to make every dish in a consistent taste every single time. Hence, because of support of consistency and standardization of not only products but also supply chain service level in entire restaurant business. It is very important to prefer franchising option in this space,” he further adds.

Sharing his view on the same, Kapur, who has expanded Yo! China to over 40 outlets, says, “Consumers order more from branded spaces. A franchise of a brand guarantees a certain business.” He looks for Investment Capability, Know-how of the sector, working style-connect with the Franchisor and on background check while signing a franchisee.

WAY FORWARD

Amid several fears over whether delivery will take over these small food concepts, experts believes that a retail convergence is the way forward. “Footfalls come from all sphere from office to corporate crowd from family to friends outings,” shares Saurabh Khanijo who is running Wanchai by Kylin that does a monthly sales of Rs 15-20 Lakhs of a restaurant that lies under 200-300 sqft.

Thus, we can see that with low on investment and high on profit side, Asian food concepts are really scaling in India. Brands like Mamagoto, Asia Kitchen and Mainland China that are on the higher-end targeting a much more experienced customers are also capturing a bigger pie of the franchise market by enrooting to international destinations.

 

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Fast on Move Easy on Returns: How Fast Casual is Biting a Larger Share
Fast on Move Easy on Returns: How Fast Casual is Biting a Larger Share
 

Fast casual industry has changed the restaurant scenario globally. And, we can call it the next wave of limited-service restaurants that might change how India used to dine out entirely in last few years. A fast casual restaurant combines elements of quick-service with casual dining for an experience that is relatively low in cost but often provides ambiance and varieties of food more associated with sit-down dining.

With freshness to the table, customization to one’s preference and a much more personalized experience, fast casual restaurants are here to stay for long.

When Consumer Becomes the Driver

“Consumers are getting more adventurous and open with their palate which is adding to overall eating out culture and driving growth in consumption,” shares Saurabh Khanijo, Director, Welgrow Hotel Concepts, whose restaurant Shophouse by Kylin has got wonderful response in NCR.

As per industry experts, consumers have become much more experimental and adoptive. Karan Tanna, CEO, Yellow Tie Hospitality, says, “Consumers now prefer concepts that are ‘younger and cooler’ and are moving away from mundane fine dining concepts. Consumers not only want good food and service but also prefer some kind of an added advantage and experience; it could be a live music gig or some kind of theatre happening in the plate. That’s why we see popping up of lot of modern fast casual restaurants.”

Business Model

To start a fast casual restaurant, typical investment required is anywhere between 30 lakhs to 85 lakhs depending on the area of the restaurant. Ideally, a fast casual restaurant requires an area of 300-1,000 sq. feet. The startup cost includes expenses of Rs 18 lakhs on kitchen and bar equipment, Rs 3.6 lakhs as interior designer fees, and  one-time franchise see may go upto Rs 20 lakhs.  

A fast casual restaurant may require 10-18 employees with total salaries ranging from Rs 2 lakhs to Rs 3 lakhs per month. While the rent could take up Rs 3.5 lakh depending upon the location, raw material expenses will be roughly Rs 7 lakhs and Rs 2.25 lakhs go in miscellaneous expenses including electricity and water.

With a monthly revenue of Rs 25-30 lakhs and monthly expenses of about Rs 15 lakh, the owner can make gross profits in the range of Rs 10-15 lakhs. In a typical franchise setup, businesses can break-even in 24 - 30 months.

“Brand awareness is the key factor. We’ve realised that it is all about quality, reasonable pricing and providing a unique experience, which helps in getting good returns,” points Krishna Gupta, Managing Director, 1441 Pizzeria, which has an average footfall of about 4,000 per month with average spending of Rs 450-500 per person.

Why Franchise?

According to most of the industry experts, franchise business is the best way forward in this space. “Restaurant business comes with lot of challenges as far as kitchen operations and training is concerned. Having a franchise partner who can give ready-to-serve recipes (so that dependency on the outlet level staff is reduced) and provides training will make it easier for the owner to operate the outlet. Hence, franchising is best option in this space,” adds Tanna who provides end to end solution to its franchise partners.

Gupta adds, “Starting your own restaurant is not easy and a lot of startups shut within 15 months. We have a tried and tested concept which is evergreen without most of the unpleasantness that comes with starting something new. We have a central kitchen which would supply all the goods and food items and also a training team in the back-end. This is over and above all the manuals for operations, HR, training, food and the customer experience that we provide.”  

Future Prospects

As the fast casual concepts are more open to customers where they are aware what is being cooked/baked for them, it automatically becomes more scalable. From concepts like ‘do-it-yourself,’ wherein you can customize and design your own food and decide on what toppings and sauces to be added on your favourite pizza it is becoming a favourite among young crowds who always look for some fun and quirkiness on the menu.

“If the customer likes the food and the complete experience, he visits at least 3 times a month as per our repeat customer ratio,” adds Khanijo who believes that such kind of concept has got a long shelf life and is looking to expand Pan India focusing on metro on the first go.

“We are running 25+ outlets of Genuine Broaster Chicken across pan India and the response has been great. We are looking at opening around 60 more operating outlets in India by the end of this year across segment,” adds Tanna who will be deepening their presence in the locations they are already present. “We are looking at places such as Varanasi, Udaipur, Ludhiana, Chandigarh, Bhopal, Indore, Nagpur, Nashik and Kochi, among others,” he further adds.

And, hence a dining experience where higher-quality ingredients, enhanced hospitality, and cozier dining rooms could mesh with lower prices and counter service, fast casual is the future of restaurant business in India.

 

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This Brand's Unique Combo Concept Is Set To Disrupt the Fast Food Segment
This Brand's Unique Combo Concept Is Set To Disrupt the Fast Food Segment
 

Kerrimo is the pioneer in the Philippines in franchising the food and drink in one cup concept i.e., the food and drink are put together in one carry-all cup so that the consumers can enjoy just carrying both in one hand. 

The fast-food brand Kerrimo was first introduced in 2007 but it was acquired by our company named Kerrimo Inc, in 2011, and we grew it from there, Armee M. Lanto, International Franchise Marketing Head of Kerrimo tells Restaurant India. In the Philippines, there are more than 100 stores, at present. Through FranGlobal, Kerrimo is looking to establish a good strong franchise network in India.

Venus Barak, CEO, FranGlobal mentions that a brand like Kerrimo will have a huge acceptance in India considering the small store format and easy-to-consume products which could be a great hit at cinemas, metro stations, railway stations, airports and local markets.

In an exclusive interview with Restaurant India, Armee M. Lanto, International Franchise Marketing Head of Kerrimo and Engr. Edmund T. Lanto, President and CEO of Kerrimo speak about the brand’s growth plans in India.

Indian Industry in the Fast Food Segment

The various food options in the market have led to a rise in the demand for newer and sustainable products. “The Indian market is open to international food choices now. India is very rich in its culinary history which we think we can infuse in our concept. We are very excited on how we are being introduced to the Indian food market,” says Armee M. Lanto, International Franchise Marketing Head of Kerrimo.

The Unique Combo Concept

Speaking on whether the unique combo concept will disrupt the fast food segment, Armee says, “Hopefully, in a good way.” “Our concept provides convenience along with the flexibility in serving the combos. Right now, Kerrimo offers french fries, sausages, nuggets but here we will serve items that are familiar to Indian palate - paneer, soya, and biryani,” adds Armee.

With Kerrimo, Armee and Engr Edmund are planning to open a new door of employment opportunities in India. Edmund T. Lanto, President and CEO of Kerrimo, says, “Keeping our core values intact, with our brand, we aim at providing employment, and business development opportunities in the Indian market.”

Expansion Plans in India

“We are starting off with major areas - Delhi-NCR, Mumbai, areas in Maharashtra and Bengaluru - as has been identified with FranGlobal,” says Armee.

She further adds, “We are very happy to see that many franchise applicants are excited to get associated with our brand. In the next five years, we are focusing on not less than 100 outlets pan India. We are very positive in that.”

Competition in the Indian Market

Armee tells Restaurant India that Kerrimo is the only player with such packaging in the industry segment in the country at present. “In terms of packaging, we are the only ones in India. But in terms of food, local fast food and snack joints, as well as bigger fast-food players, are our competitors,” says Armee.

Through its unique packaging, Kerrimo intends to create a new market segment in terms of the combo of food and drink. Armee says, “Indian market is familiar with the French fries and potato products but the way we present the food is something very unique and we hope that Indian market, especially the younger generation will appreciate it.”

The desire to eat healthily is growing and gaining popularity in India. Therefore, with Kerrimo, Armee and Edmund plan to keep the health quotient balanced in food. “Our R&D team is working on developing healthy food products. In drinks, we intend to serve organic and fresh options to cater to the specific market who demand healthier products,” informs Armee.

Franchise Strategy in India

“With the help of FranGlobal, we are looking at developing the area master franchise or area development partners. We have identified the key areas and are looking for the franchise partners for the same. We will put up our own store and recruit more franchisees to develop in that specific area.”

Franchise Selection Criteria

Apart from the basic franchise business experience, Armee says, “We are, specifically, looking for the individuals who have passion and dedication to develop the brand and move to a higher level. We are looking for someone who would take Kerrimo as their own and would put not only their resources but even themselves to the development of the brand.”

Franchise startup Investment

For the unit franchisee, the start-up investment will be between $20,000-25000, affirm Engr. Edmund and Armee.

 

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Restaurant Scalability is much more a Science than what We Think
Restaurant Scalability is much more a Science than what We Think
 

There comes a stage in business where every entrepreneur needs to take a stand whether to expand the business and meet its potential growth. A business can only upscale and grow if the right decisions are taken, at the right time. The entrepreneur needs to ensure that the business operations and sustainability are stable, before they plan the next phase of expansion. 

While there are numerous benefits, you can get from the expansion of your business, you need to do thorough research and planning before up scaling. The most essential thing before implementing an expansion plan for your business is to have an adequate bandwidth and funds. In case the expansion does not turn out the way it was planned, towards profitable growth, at least, you have contingency and bandwidth funds as a backup for sustainability of the business.

The business is worthy of doing only when there is an upward growth and brings value and excitement to the entrepreneur and his team members. There are various aspects involved in the successful expansion of the business. Yellow Tie Hospitality has adopted 4 easy steps to upscale their restaurant business using Franchising as a pivotal tool.

Business should be able to add Value: The first point you need to consider for successful business expansion is that the plans for up scaling the business should add value to the business for upward growth.  If a business does not add any incremental value and surges excitement for expansion and growth in the entrepreneur, the up scaling efforts are futile. Yellow tie was successfully launched in 2015 and with the major strategies to make a mark in the hospitality industry. It focused on bringing international brands to India, and developed its own brand. It was led by a passionate leader and this growth has brought more than 55 operational outlets in its pipeline.

ALSO READ: Yellow Tie Hospitality Is Changing The Way Restaurant Brands Can Scale & Sustain

Team Effort makes all the difference: The second thing you need to consider for successful expansion is that the core team of the company and the leader needs to be at par with each other in terms of passion and dedication to the business. Business is all about good relations and teamwork with your vendors, suppliers, and team members. The collaboration of teamwork is the most essential for successful business growth and expansion. Yellow Tie Hospitality has truly reflected strong teamwork. The team strength of the Yellow Tie has grown from 3 to 70 in the past three years. Young leaders have taken charge of multiple roles with diversifies responsibilities to implement aggressive growth plans. “The idea to offer entrepreneurs readymade restaurant concept that can be scaled up and managed with ease”, believes Karan Tanna, a 31-year-old Founder and CEO of the Company.

MUST READ: How Training Helps Build A Healthy Restaurant Culture

Going in the right direction: Karan Tanna focused on spending his precious time in the right direction. Be it any kind of business, the entrepreneur focused and dedicated his time to the right aspect of the business for increased efficiency, which set the groundwork for successful expansion. If the entrepreneur does not put up the right efforts at the right places, a business will never grow. The art of delegating responsibilities to the team members, adding the right values to the business and hitting the right chord in every business decision is crucial to achieve sustainability and growth. A hasty decision without proper analysis and discussion with the team members for an expansion of the business can backfire, most of the times.

Business Networking & Building Relationships: When Karan Tanna started Yellow Tie Hospitality, he travelled to various franchises to build friendly relations to expand business. The start-up earned investors by the way of successful testimonials. The company worked hard to ensure that the outlets that partnered with them initially achieved decent returns on their investment. Today, it has an analytical team to manage the PR & Networking at the right forums for the company. It has successfully partnered with 200+ entrepreneurs in just a year and it continues to succeed progressively. YTH has brought the Genuine Boaster Chicken franchise in India in the year 2016 and also partnered with celebrity Chef Harpal Singh Sokhi to start up Dhadoom, Twist Of Tadka & BB Jaan. Managing the logistics and the supply chain was among the toughest challenges that Karan Tanna had to overcome.

MAY INTEREST: How Top Restaurants Are Keeping Design Minimal

With the successful implementation of the business strategies for successful growth and expansion of the business, and sheer hard work and dedication from Tanna and his team has led to YTH success and successful upscale for the value of the brand. YTH has various achievements under its belt in a short span of time. YTH brand 'Dhadoom’ has been awarded India's Top 100 Franchise 2019, 'Wrapchic’ has won Best Debutant Quick Service Restaurant award in 2018, 'Genuine Broaster Chicken’ has been awarded as the Best American Style Diner in 2017. The brand had also won the Best Debutant Chain award in 2016 when it witnessed a whopping revenue of 1 Crore in its very first financial year.

Tanna says that he plans to upscale and expand Yellow Tie Hospitality but he understands that YTH is “limited by our bandwidth”. He also believes that this will soon change and growth is surely on the cards in the near future.

 

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Yellow Tie Hospitality is Changing the Way Restaurant Brands can Scale & Sustain
Yellow Tie Hospitality is Changing the Way Restaurant Brands can Scale & Sustain
 

Food Franchise and Restaurant Management company Yellow Tie that run brands like Genuine Broaster Chicken, Wrpachic, Just Falafel, Dhadhoom to name a few started it’s incubation centre in May 2018 & partnered with two brands – Umraan Regional & Wok This Way.

Started by Karan Tanna, Yellow Tie is partnering with brands that are unique and are scalable in its nature. For example;  Umraan Regional, a brand that brings together authentic regional recipes from different parts of India. The brand presence has grown by 500% in just 10 months of partnering with Yellow Tie. Similarly, Wok This Way, a healthy vegetarian oriental wok concept has grown exponentially in last 10 months in terms to scaling the business through franchising.

“We are also planning to add five more brands under Yellow Tie Hospitality’s incubation centre in 2019,” shared Tanna who look after certain criteria for taking up brands under their incubation centre.  “We focus if the brand has potential of being category leaders & have shown unit level economics,” he further added.

Expanding through Franchising

Umraan Regional launched its first franchise in Oshiwara, Mumbai and has four restaurants coming up in Nagpur, Sonipat, Bangalore & Ranchi. Meanwhile, Wok This Way is opening outlets at Oshiwara, Mumbai followed by outlets in Sonipat, Haryana & Kandivali, Mumbai.

“I am extremely happy to collaborate with Yellow Tie Hospitality as they understand the vision that I have for Umraan which is to take Indian regional food across the world. We are the first movers in Indian regional Food QSR and with this association we can penetrate market faster,” said Rahul Malik, Brand Owner of Umraan Regional.

The brand that runs over 50 restaurants under various category is also planning to add 60 more outlets of various restaurants brands that it operates. It is also eyeing locations such as Varanasi, Udaipur, Ludhiana, Chandigarh, Bhopal, Indore, Nagpur, Nashik and Kochi, among others.

“Wok This Way is India’s first healthy only vegetarian wok concept and we have received tremendous response in our first store. With Yellow Tie we are confident of putting Franchise systems in place and grow nationally and look at International markets by 2020,” added Anand Bhatia, Brand Owner of Wok This Way.

Tanna also acquired Bombay Blue last month from Everstone Capital. The company will also soon launch its new brand 'Yellow Food District' and is entering the food court management segment, especially in greenfield projects and in tier-II and tier-III cities.

“ We are launching the first exclusive Yellow Tie branded food court will in Sonipat in April,” added Tanna who focus a lot on brand building, software, raw material supply, menu engineering, training and marketing.

"Staying true to our vision of giving India’s first soft power restaurant chain and seeing the value we could add to two brands that we have incubated, we have decided to incubate more brands in coming year. We are looking for category leaders brands with proven unit level economics and promoted by passionate restauranteurs," he furhet shared by adding that being India’s first and only scalable restaurant incubator it puts a lot of responsibility on them to increase the rate of success of restaurant chains and make them sustainable. "We want to leverage our experience and infrastructure to make profitable and sustainable brands and there is no more satisfaction than supporting entrepreneurs who have achieved a profitable and differentiator concept," he shared.

 

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This Global Brand Has Big plans To Mark Its Re-entry in India
This Global Brand Has Big plans To Mark Its Re-entry in India
 

Johnny Rockets boasts a legacy of more than 30 years of irresistible food and infectious fun. The brand believes that everyone deserves a place where they can escape from the complicated world and experience the simple goodness of classic Americana which rings truer today than ever. How? Along with their over-the-top American menu filled with high-quality, craveable classics that put America – and Johnny Rockets – on the culinary map, the brand offers an over-the-top fun experience that no one else does - an escape from the ordinary that engages customers, filled with dancing, ketchup art and uplifting music

FranGlobal has signed Johnny Rockets, the global restaurant brand, for their re-entry in the Indian market. Johnny Rockets features a modern twist on the classic diner - with comfortable seats and areas perfect for gathering, friendly, approachable service and music that combines iconic classics with pop culture.

Founded in 1986, the brand operates more than 350 franchise and corporate locations in 30 countries around the world.

The Johnny Rocket’smodel to success is simple: memories that make people smile in addition to affordable and authentic menus, translating into loyal customers who seek them out, as opposed to the other way around.

In an interview with Restaurant India, Senior Vice President, International Business at Johnny Rockets, Fred Joosten and Vice President, International Marketing at Johnny Rockets, Cathy Kellner-Diaz talk about the re-entry of the international restaurant franchise brand in India.

Reasons Why Johnny Rockets Exited Indian Market

The business was healthy with strong customer awareness and appreciation for our craveable quality food and fun, celebratory atmosphere. However, the franchise partner didn’t have the infrastructure we needed to expand.

Also Read: Finding Right Partners Is The Key To Expand

Target Customers for Johnny Rockets in India

Millennials, who seek authenticity, quality and meaningful experiences, have been a key focus for Johnny Rockets, along with families looking for the same. And while birthdays and celebrations were once a primary reason to visit Johnny Rockets, our appeal has grown to people of all ages looking for over-the-top food and fun in their everyday life - from good report cards to good first dates, from good appetites to - quite simply - good moods.

Competition in the Industry

There are lots of brands offering burgers, but no one offers the lively burger, shakes and fries experience that you can only find at Johnny Rockets.

Main Competitors of Johnny Rockets in the Geographies that it is currently operating in

Hard Rock Café, Chilis, and Carl’s Jr. could be considered as competitors in the region, however, our unique positioning and emphasis on over-the-top Americana and fun truly separate Johnny Rockets from the rest.

Indirect Competition faced by Johnny Rockets

All restaurants face indirect competition from all other restaurants, as well as folks dining at home. Johnny Rockets does not face any more competition in this regard than anybody else, and you can argue they face less due to their unique positioning, flexibility and commitment to the burgeoning off-premise market.

Johnny Rockets’ Marketing Strategies to Counter the Competition Effectively

Our signature experiential elements —DANCING, KETCHUP ART AND STRAW TWIRLS—engage and involve our customers and make us a place to celebrate everyday moments. These are exclusive to Johnny Rockets and make our brand enduring.

Every Johnny Rockets restaurant serves simple, great-tasting food from an innovative menu of all-American favourites including freshly made Burgers, crispy American Fries, classic Sandwiches and indulgent hand-spun Shakes and Malts. 

Our all-American concept resonates throughout the world—from Bali to Brazil and Seoul to Santiago—where our brand is thriving with irresistible food and a passion for fun that no one else offers to our scale.

Growth and Expansion Plans in India

We see potential throughout the country in both established and newer markets, especially those with an emerging middle-class and large influx of educated youths including Delhi NCR, Mumbai, Pune, Chennai and Calcutta.

The Franchise Partnership Model That Johnny Rockets Follows, Internationally

Master Franchise, some with sub-franchising ability.

How to Become an Area Franchise Partner for Johnny Rockets

- Available funds

- Operational infrastructure

- Knowledge of his territory and marketing

- Passionate belief in the Brand.

 

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"Finding Right Partners Is The Key To Expand"
"Finding Right Partners Is The Key To Expand"
 

Dubai-based leading French bakery and Restaurant Pascal Tepper is all set to mark its debut in India with World Iconic Brands.

WIB or World Iconic Brands is a specialist franchise development company in India. Five-generation-old brand, it is a modern dine-in bakery and the brainchild of master baker Pascal Tepper who holds the 'Meilleur Ouvrier de France' title, a much-coveted recognition as the best French artesian in the baking trade.  

“I have everything to discover from INDIA and INDIA to much to discover French bakery through Pascal Tepper French BAKERY; We have a franchisor and you have a very good future in INDIA do not let it go, work together hand-in-hand and together make Pascal Tepper French Bakery establishments coveted by all INDIANS.”

~Pascal Tepper

In a tête-à-tête with Restaurant India, Siegfried Nierhaus, Managing Partner and Founder of PTG Consulting, talks about the contemporary dine-in bakery concept, and the growth and expansion plans of Pascal Tepper in India.

Pascal Tepper, the French Dine-in Bakery and its Presence Across the World

'Meilleur Ouvrier de France' Pascal Tepper

Pascal Tepper is a contemporary dine-in bakery concept. It is a mixture of best French bakery products and also serves other food and beverages dishes - from starters to retail items. Baker Pascal Tepper is the brand owner; he is recognized by the French President for being one of the best bakers. And that’s why the title 'Meilleur Ouvrier de France'.

Finding Right Partners 

We started with Dubai in 2011 with the dine-in bakery. It was a phenomenal success. It is based on quality, consistency, value-for-money and a mix of a nice story which baker Pascal has brought to the fore with the bakery. The idea was to bring the concept out to the world.

We started in the UAE; we have five outlets there. A Pascal Tepper outlet requires an area of 10 to 600 metre per square; it varies. From the food truck concept to a fully-fledged dine-in bakery - we are serving throughout the day from 7 am to midnight. We have catering, dining and takeaways at Pascal Tepper. In UAE, Pascal Tepper is quite successful. After approximately seven years, we think it’s time to roll out the concept globally.

We are considering a lot of countries, but we are expanding with India first. It’s the first time that Meilleur Ouvrier de France is coming to India with his own concept and restaurant.

The Indian market is quite big. India is changing a lot these days because of the travelling possibility Indian community has. The exposure through travels had made Indians more conscious, and, therefore, we see a lot of business coming up in the country’s market.

The key is to find the right experienced partners in different parts of India, who are fulfilling our quality expectations.

I believe there is a big potential for our concept of different sizes in 5 to 7 key cities. The ambitious target is to have opened the first outlets in 2019 and have in total six outlets opened in 2020. A total number of 50 outlets in 10 years is our target.

High Rent Is The Major Challenge in India

A major challenge in India will be the high rents. When you want to position yourself as a top range, as a high-end dine-in bakery, you have to be in a best-possible location. And the best-possible location costs a lot of money.

We are here to make all the stakeholders, the staff and the guests happy. There should be a financial gain to the investors as well.

Our next challenge will be to maintain the quality and consistency in India. We want to produce maximum inside the country and not import the products.

Indian Market for Pascal Tepper

India is always been very intriguing to me – its culture, history, scale and its “Gastronomie” with all the flavours and spices. Every time it is almost like arriving onto a new planet, and while India has always had a culinary influence on the world, its economic and cultural influence is growing.  The country represents a large market with consumers who are curious about the world around them, and who are willing to try new concepts and cuisines. So it’s a very promising time to be here.  France is a very popular tourist and business destination for Indians so the French cuisine and savoir-faire is not a secret anymore to some Indians. It is time now to bring to India the “Best French Baker” recipes and produce the best possible French bread on site and develop an exciting F&B concept for the ever demanding and growing population.   

Pascal Tepper’s Growth Strategy in India

We believe that India has a great potential for our Pascal Tepper French Bakery concept, because of the enormous market and the local production with the available ingredients. If we succeed in this amazing and exciting challenge to develop with our partners a successful Business Model and quality and consistent Food and Beverage outlet, we will be able to develop almost everywhere globally.  

Ideally, we should have in every big city our Flagship bakery and restaurant outlet, 3 to 10 smaller bakeries, some Food Kiosks and a Production kitchen.

We could start as well with only the flagship bakery and restaurant where we will produce all our food items and specialities on site.

Marketing Strategy

We want to position our concept as a casual dining Bakery and Restaurant. The Baker products should be the best in the city as we are carrying the best French baker title with us in the brand and the name Pascal Tepper stands for Quality and consistency. Pascal Tepper itself is one of the most “French-looking” bakers with his unique moustache and customer will recognize his face very soon. Our customers will be able to choose from Dine In, catering, delivery or take away and we want to communicate properly on the different ways of receiving Food or beverage items from Pascal Tepper French Bakery. 

Money to be Invested?

I think the most important for our brand is to bring the “Know how” of running successfully Food and Beverage outlets, bringing the recipes and savoir-faire of our Menus, the training techniques for the future staff, the brand and its Values to the destination. We will leave the money invested to the professionals and Indians who believe in our brand.

 

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This Multi-cuisine Restaurant is Betting Big on Authentic Food and Fresh Menu
This Multi-cuisine Restaurant is Betting Big on Authentic Food and Fresh Menu
 

Prior to opening Pho King, Bhavya had been in the catering business for almost six years. At that point, his friend and Co-Founder (the Gastronomical Genius behind the food), Mukul approached him as he was looking to come back to India after an extremely successful stint in Australia. Mukul, is a Hospitality graduate who was part of the opening team of the iconic 360 degrees restaurant at the Oberois, who later went to do his Masters from Le Cordon Bleu Australia; subsequently he opened and ran restaurants for many celebrity chefs in Australia. Mukul is also an accomplished sommelier who has hands on experience in running vineyards as well. “The inspiration for Pho King came from Mukul's wife who is Vietnamese, we brainstormed and came up with the name and started from a small take away counter in GK1,” shared Kohli for whom the rest, as they say, is history. Excerpts from the interview:

What are the different types of cuisines served at your restaurant?

With a state of the art Kitchen, Pho King’s menu has been crafted by Master Chefs from across the world to ensure an authentic gourmet experience. We have an innovative menu of Vietnamese, Mexican, Indian and Pan Asian cuisines prepared with the freshest and finest ingredients.

How difficult it is to run a multi cuisine restaurant?

Not very if you are equally focused on all the different cuisines that you are offering. The restaurant business in itself is one of the toughest businesses to run and requires a lot of passion, dedication and almost obsessive focus for it to even have a chance of being successful.

Who is your target customer?

We truly believe that with Pho King we have managed to create an offering which appeals to all age groups and demographics; from the urban young, to the office goer, to the family crowd we cater to everyone. The food, ambience and music is all paired to ensure a truly relaxed outing where conversation reigns supreme.

What is the average footfall?

It's different for different outlets as the restaurant sizes vary. In Saket, for example, we do approx 350 covers every day, which doubles on weekends. In Gurgaon (which is 1/6th the size of Saket), we average about 60 covers a day.

Now that you are running three outlets. Which is your top performing outlet?

Champa Gali is where we started out from and that is our top performer. Gurgaon is only 4 months old and is seeing very robust month on month growth. Hauz Khas Village has just opened and we have big plans for this outlet going forward.

How about designing the restaurants. What are the elements that you take care?

My job is to ensure that all the restaurants follow the same brand theme and all the major elements of a Pho King restaurant are highlighted in their various avatars. An existing customer should ideally walk into a different Pho King outlet and immediately feel at home; that remains my endeavor.

How do you decide on a location when opening a new outlet?

Location is key in this cut throat. We try and analyze the potential of a location rather than current status. We made a huge bet with Champa Gali and that has sort of been our decision making process with the other outlets as well. Hauz Khas Village is a franchise business, so the location was already taken before we entered the picture.

What is your expansion plan?

We are planning to open 10 more new outlets this year, as a part of company’s rapid expansion plan. It intends to embed its roots in cities like Noida, Mumbai, Chandigarh, Goa, Jaipur, Bangalore and Kolkata. After establishing ourselves in Delhi/NCR, we are now set to reach more states where all the 10 outlets will be operated by the company. We entered the market with the vision of authentic food and fresh menu and will continue to do so.

 

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McDonald's Takes Bigger Pie in India, Posts Net Profit of Rs 65.2 Lakh
McDonald's Takes Bigger Pie in India, Posts Net Profit of Rs 65.2 Lakh
 

McDonald’s India has posted its first profit during year-to-March 2018 amid a long-drawn legal dispute with one of its key licensee partners.

The global burger giant posted a net profit of Rs 65.2 lakh during FY17-18, compared with a net loss of Rs 305 crore a year ago, according to its latest filings with the Registrar of Companies.

McDonald’s India is operated by two partners in the country; Westlife Development by Jatia’s which is master franchisee for West and South and Connaught Plaza Restaurants (CPRL) that looks after North and East operations of the burger chain.

“The company has not only been able to stem any further erosion of its net worth, but has also been able to successfully reverse the trend of erosion through the infusion of fresh capital,” mentioned McDonald’s India in its latest regulatory filing. Total income which it earned mostly through royalty, grew 8% to Rs 119.6 crore.

During the year, the company allotted shares worth Rs 71 crore to the parent company and also increased authorised capital by Rs 50 crore to Rs 458 crore.

Last week the American burger chain has included the much loved Aloo Tikki burger on their international menu. McDonald’s Chicago is dishing out the humble potato cuttle burger by giving it a vegan tag abroad. This has clearly made a lot of customers happy as many are posting pictures of their vegan meal on Instagram.

The modified McAloo Tikki meal consists of a toasted bun filled with a veggie patty made with potatoes, pea and seasoning reminiscent of samosas. It is then topped with fresh red onions, tomato slices and eggless creamy tomato mayo.

“Customers have expressed interest in items from McDonald’s restaurants located in India and we’re excited to offer them the opportunity to try the longtime vegetarian favourite, McAloo Tikki,” said Nick Karavites, McDonald’s Operator in an official statement.

In the last 2-3 years eating out market has seen a continuous 10% annual growth with QSR segment capturing the bigger pie of the market. Growing urbanization, footfalls at malls where 10-20 per cent spaces are allotted to f&b brands has posted a high growth of these kinds of brands.

 

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Farzi Cafe Aims at Opening Franchise Outlets in Tier-2 Cities
Farzi Cafe Aims at Opening Franchise Outlets in Tier-2 Cities
 

A modern Indian bistro, Farzi Café started in 2014 with the aim to bring Indian cuisine back in vogue. The brand has constantly reinvented itself by seamlessly combining culinary art with modern presentations and cooking techniques, showcasing innovative adaptations to offer the finest modern day cuisine to patrons.

The brain child of Zorawar Kalra, the managing director of Massive Restaurants, Farzi Café offers a quirky yet epicurean experience where you enjoy gourmet food , catch up with friends or simply spend some time away from the craziness of your day-to-day lives. “With live gigs and performances by international artists every few months, Farzi Café offers a unique dining experience amalgamates innovative, progressive cuisine with high energy ambience,” Kalra says.

Franchise Overview

Having taken the franchising route in 2015, Farzi Cafe currently operates with five operational and eight under-fitouts. The plan is to open 20 new franchisees in the next 12 months. Under the Massive Restaurants’ banner, Farzi Café is also aiming to introduce top food and beverage brands in the world in the next five years’ time by establishing a brand presence in all the major cities of the world. “We plan to achieve it by opening a large number of franchisee stores in Tier II cities India and around the world, apart from the company-owned restaurants,” adds Kalra.

Franchise Facts

  • Total outlets: 11
  • Investment: Rs 4 - 6 crores
  • Area: 3,500 sq. feet
  • Expected return on investment: 30%
  • Expected breakeven: 18 - 24 months.
 

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This Juice Cafe is Catering to the New Age Customer
This Juice Cafe is Catering to the New Age Customer
 

Juice Lounge’ was incepted in 2005 to capture the idea and sell unique juices, power juices, energy boosters and super boosters. The health café has now expanded its presence to 30+ cities in India and abroad catering to the new age customers.

The future plans in regards to India expansion are to penetrate the Tier I, II & III cities that has the market potential. “Our business has a lot of potential as everyone is becoming more health centric. Through this business we can make a healthier India,” shares Manav shital, Director, Black Orchids Pvt Ltd that owns Juice Lounge outlets. The investment is also quite reasonable for a kiosk or an OTC.

Franchise Network

Juice Lounge is currently running 30+ health cafes in India and abroad in cities like Mumbai, Bengaluru, Delhi, Haldwani, Pathankot, Haridwar, Mohali to name a few. “In the next 5 years, we are looking at around opening more than 100+ stores spread across India & other countries around the world,” adds Manav elaborating that evaluating the proposal we choose the route of franchising as it would help the brand to grow faster. The returns for the investment were very lucrative which helps us to grow even faster. The group has also customized the concept as per the taste and likeness of the locals. And, is running in Kiosk, OTC and Lounge Model.

FRANCHISE FACTS

Year of establishment: 2005

Year to start franchising: 2009

Total No. of stores: 30+ (India and Abroad)

Break up of company-owned + franchise stores: 2 (Company owned) & 28+ franchise

Investment required:10 to 18 Lacs depend on the model

Area required (in sqft): 100 to 800 sq feet

Expected RoI:40 to 60% pa

Expected break-even:18 to 24 months

Preferred cities &location: Tier I, II & III cities. High Street & Mall Food Courts are more preferred.

 

 

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How This Waffle Chain is Capitalizing on Franchise Network
How This Waffle Chain is Capitalizing on Franchise Network
 

Started in 2015, The Belgian Waffle has disrupted the waffle market in India in last three years. Started off with a small outlet in Mumbai at INOX cinema in 2015, today, the group is running 170+ stores across 40+ cities in India. The Belgian Waffles sells around 20,000+ waffles everyday and has also expanded its presence to neighbouring country Nepal.

“We’ve spent a lot of time getting our product and proprietary eggless batter right, which was really appreciated in terms of quality and consistency,” shares Shrey Aggarwal, Founder, The Belgian Waffle Co that has created a warm, fun and approachable brand identity that resonated with all ages from 8 to 80.

Franchise Network

“The largest QSR player in India is Dominos with ~1300 outlets. We currently have 170+ outlets so it is a long road ahead,” adds Aggarwal who believes that India itself promises to be a very fertile and interesting landscape for the brand and product.  

Further, although the brand is amongst the largest home grown QSR chains in India, they harbour aspiration of taking India to the world. “We have established our presence in Nepal and are actively looking at neighbouring countries. We have a product of global standards and this category is well received across international borders. With that in mind we are not aggressively looking at international expansion,” adds Aggarwal.

The brand is also looking at expanding into newer verticals which will help them in leveraging on their pan India brand presence. The idea is to delight the end consumers in categories where there are gaps. “We are also looking some interesting brand partnerships and alliances where we can capitalize on our product and process expertise coupled with the technology expertise of some players to come up with products which will delight the end consumer,” concludes Aggarwal.

 

FRANCHISE FACTS

Year of establishment: 2015

Year to start franchising:
2015

Total No. of stores:
170

Investment required:Rs. 25 – 27 lacs

Area required (in sqft):200 – 300 sqft

Expected RoI:6 to 18 months

Preferred cities &location: Tier II, III cities

 

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Creating a Finger Lickin' Experience
Creating a Finger Lickin' Experience
 

It all started with one cook, Colonel Harland Sanders, who created a finger lickin’ good recipe more than 75 years ago, with a list of secret herbs and spices scratched out on the back of his kitchen door. Today his formula for success is still followed in more than 20,000 restaurants in over 125 countries and territories around the world. KFC introduced its craveable chicken to India in 1995 and today has a presence across the country with more than 350 restaurants.


The quarter ending June marked the seventh consecutive quarter of positive System Sales Growth in the country for KFC. “We are currently 350+ restaurants strong and are confident of growing our presence further. Our vision going forward is to continue building on our strengths and delight consumers with the best experience – whether it is taste, service, quality or accessibility,” shared Samir Menon, MD, KFC India.

Franchise Network

The group is actively franchising since 2002, and has reorganized the KFC business under larger, well-capitalized franchisees in 2015 to further boost India growth and create significant value for all stakeholders. “We're in play with both equity and well-capitalized franchisees, and these are the twin engines that drive our growth,” added Menon who belives that their partners are experienced business entities with outstanding reputation to leverage the huge opportunity that India has to offer and, in the process, create significant value for all stakeholders. 

 FRANCHISE FACTS

  • Year of establishment: 1995
  • Year to start franchising: Actively since 2002
  • Total No. of stores: 350+
  • Break up of company-owned + franchise stores: NA
  • Investment required: NA
  • Area required (in sq ft): 2000
  • Expected RoI: NA
  • Expected break-even: NA
  • Preferred cities & location: Metros and emerging cities
 

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Unique Plating and Serving to be the Top Trend in 2019
Unique Plating and Serving to be the Top Trend in 2019
 

Established in 1982 in Brisbane Aromas Café is one of the first coffee houses to establish a reputation for lounge, ambience, stylish service and great coffee with freshly made food accompanied with liquor. With classic, plush interiors coupled with memorable espresso and signature desserts, the Aromas Café experience is second to none. It was in early 2008 that the owners at Ideal Hospitality India got lured by this café and after a constant research for over a year the promoter Anuya Mhaiskar opened the first café in India. Excerpts from the interview:

How it all began?

We have done extensive research on trends and gaps in the market before finalizing the agreement with Aromas Café (Australia) to introduce the chain to India. The café sector (in India) has experienced substantial growth over the past few years with several more local and international chains joining the competition for market dominance. The true espresso houses however, continue to thrive and be that preferred option; offering character, quality and a perfect setting to catch up with friends, colleagues or family. 

Is it a master franchise deal or a joint venture?

We do have single franchise outlet in Mumbai. However, we are yet to expand in other cities and it will be a master franchise deal for all other cities except Mumbai.

We see that globally 90 per cent of the restaurant brands are franchised. Why franchise as a model? 

That’s true! Giving franchise is win-win for both the brand & franchise owners. Also, it takes years of experience to create a brand. By taking franchise, we don’t just sell the brand but we do share our experience along with it. Franchise owner are equipped with all tools to run a smooth business & grow as a partners. In return, brand gets faster expansion & presence. By giving master franchise, brand gets city wise owners which help in monitoring the business.

Aromas Café is known for its finest coffee in the Australian market. How are you staying true to its core product value? 

We actively look to employee professional and well-presented staff, with an interest in the coffee industry and most importantly bringing a positive personality to the team. Our Baristas are trained by the Master Barista with live Skype feeds from the Australian Master Barista, allowing them exposure to international standards and providing insight into the origins of our signature award winning coffee blend and what it takes to make a perfect cup of coffee.

Food, contributes 65% of the revenue. So it is imperative that the kitchen team is trained by our experienced culinary leadership and our service team by our dedicated training Department. In addition to the ongoing IHPL training course program, the staff is given specialized training to ensure that they are equipped with sound food & beverage knowledge as well as industry best practice bench marks. They are encouraged to continuously work on their skills.

How much have you Indianised the menu keeping the local taste and preferences in mind?

60% of our menu is Indiniased to ensure we don’t loose on the larger target customers in India.

Who are your regular customers? 

Coffee culture is spreading tremendously in our country. Mostly Residential & Corporates are our regular clientele. We see our loyal guest for all three time meals at all our outlets.

What is the average footfall at your cafes?

 We cater to 1400 - 1500 people daily (for 7 outlets).

We see that all day dining as a trend is picking in India. Why did you choose to be a whole day dining place instead of café as your core service?

We started this trend and then others followed us. Being just a cafe will not satisfy us as we want to cater to all kind of guests. It should be one stop place when it comes to food, coffee with pair of wine & beer.

What is your plan expanding the brand (no. of outlets, cities in target)?

We believe in taking one step at a time. Hence, once we launch an outlet, we make sure that the operations are running smoothly and if ensured about so, we move on to planning the next outlet. We are about to reach a total number of 10 outlets in Mumbai soon. We are looking at expanding to tier 1 and tier 2 cities like Delhi, Bengaluru, Goa, Gujarat and a few more. India is a country of coffee lovers and we hope to take the brand on a Pan-India level, serving the entire nation heartily.

What according to you would be the top trend ruling 2019?

Innovation will be the trend in both coffee & food industry. Earlier, it was about eating & drinking, however now along with the taste, people focus on presentation of the dish. Hence unique and efficient plating and service for dishes and beverages is going to be the top ruling trend in 2019.

 

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5 Factors Why Restaurant Brands Choose Franchising
5 Factors Why Restaurant Brands Choose Franchising
 

With quick returns and profitable business ideas, food franchising has always tempted great investments in India. And, today it contributes 28 per cent to Indian franchise industry ahead to world which is an average of 22 per cent of $3.95 trillion global market place of franchise industry.

Franchising these days is not limited to QSR and casual dining restaurants but fine dining spaces are also eyeing franchising as an option to expand their concept. In addition, today several leading global franchise companies, such as Dominos, McDonald's, Yum Brands, Baskin Robbins and Subway, have already established a presence in India. Franchise industry is expected to benefit greatly from government support across various sectors through various measures including foreign direct investments (FDI) in single multi-brand retail.

With restaurant franchising gaining momentum and finances coming from all corners of the globe, the industry can expect a hefty growth of industry in coming years.  According to a report by Francorp, “The Indian franchise industry is expected to grow 30 per cent on yearly basis. The figures of total franchising industry is believed to have reached $ 24bn and focused to touch the $ 35bn mark by 2020.”

Here are five main reasons why franchising is attractive to maximum people:  

Asset Light–A franchisee model is asset light and help brands focus more on the product and its quality. Hence, it is a good business to invest in.

Scalable – The model is highly scalable as brands are banking on expertise of product and process and letting the franchisee manage the store operations.

Local Area Knowledge - The key to success in the QSR business is to get the location right. For this local area expertise is of paramount importance and which is what the franchisee partner brings to the table

Focus on Product and Process – This model helps restaurants to channelize their energies on the core aspects of the QSR business - product development & process innovation. Consumer experiences revolve around the product and franchisee experience revolves more around the process.

Branding, Marketing and Distribution– Restaurants have taken cues from several global food brands and have studied their success and business model of expansion. They harbor similar global aspirations and hence want to channelize their energies on product development, branding, marketing and process innovation to rapidly scale in India and overseas.

 

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How Juice Bars are creating a Revolution
How Juice Bars are creating a Revolution
 

Juice Lounge’ was incepted on 2005 to capture the idea and sell unique juices, power juices, energy boosters and super boosters. The health café has now expanded its presence to 30+ cities in India and abroad catering to the new age customers.

The future plans in regards to India expansion are to penetrate the Tier I, II & III cities that has the market potential. “Our business has a lot of potential as everyone is becoming more health centric. Through this business we can make a healthier India,” shares Manav shital, Director, Black Orchids Pvt Ltd that owns Juice Lounge outlets. The investment is also quite reasonable for a kiosk or an OTC.

Franchise Network

Juice Lounge is currently running 30+ health cafes in India and abroad in cities like Mumbai, Bengaluru, Delhi, Haldwani, Pathankot, Haridwar, Mohali to name a few. “In the next 5 years, we are looking at around opening more than 100+ stores spread across India & other countries around the world,” adds Manav elaborating that evaluating the proposal we choose the route of franchising as it would help the brand to grow faster. The returns for the investment were very lucrative which helps us to grow even faster. The group has also customized the concept as per the taste and likeness of the locals. And, is running in Kiosk, OTC and Lounge Model.

 

FRANCHISE FACTS

Year of establishment: 2005

Year to start franchising: 2009

Total No. of stores: 30+ (India and Abroad)

Break up of company-owned + franchise stores: 2 (Company owned) & 28+ franchise

Investment required:10 to 18 Lacs depend on the model

Area required (in sqft): 100 to 800 sq feet

Expected RoI:40 to 60% pa

Expected break-even:18 to 24 months

Preferred cities &location: Tier I, II & III cities. High Street & Mall Food Courts are more preferred.

 

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How Bikanervala is Disrupting the Snack Market Globally
How Bikanervala is Disrupting the Snack Market Globally
 

Having established first Store in Chandni Chowk , Delhi , Bikanervala started spreading its wings and  gradually covered Delhi and NCR and their after other parts of the country and it did not stop but crossed the borders and penetrated into neighboring country Nepal to far of countries like USA, New Zealand, Dubai, and Singapore.

With one vision in mind, which resulted into a revolution of serving the humanity with great Indian Traditional taste and takes it across the Globe, Bikanervala is running 80 restaurants globally. While promoting India and Indian heritage, culture and cuisine, making it International class by innovations so as to satisfy the felt need of the entire world by serving good quality delicious and nutritious food.

Franchise Network
Bikanervala is currently running 15 franchise stores globally. “Reliability, Quality, consistency in flavor and economic are some of the important features of the products and products make a brand. This has been our secret to success in Brand BuildingHundred years of experience pooled and presented to the market with customer centric approach,” shares the spokesperson.

 

FRANCHISE FACTS

Year of establishment:1988

Year to start franchising : 1992

Total No. of stores: 80

Breakup of company-owned + franchise stores: 65+15

Investment required: Approx. 4-5 crores per store

Area required (in sq ft):10,000 sq ft.

Expected RoI: 10-12%

Expected break-even:0.5 Cr Sales PM

Preferred cities &location: India plus Overseas.

 

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Dhadoom to set up 50 stores by 2019, focus on tier II and III cities
Dhadoom to set up 50 stores by 2019, focus on tier II and III cities
 

Started in 2017, Dhadoom is one-of-a-kind restaurant serving Global Fusion Street Food. Dhadoom offers an exciting mix of international recipes fused with Indian flavours, thus appealing to the Indian palettes of all age groups. “From our Restaurant interiors to our menu, every element represents the vibrant and quirky energy that defines Dhadoom,” shares Karan Tanna, Founder & CEO, Yellow Tie Hospitality that owns Dhadoom.



Dhadoom is eyeing metro cities, Tier II and Tier III cities through a franchise model opening around 50 outlets by December 2019. “I see myself spearheading a revolution in the restaurant chain industry. I will have played a pivotal role in taking Indian home-grown brands across India and the globe. I will be the ‘go- to person’ for any entrepreneur who has started a restaurant and dreams of scaling it up. I will work with many entrepreneurs and early-stage companies and share my experiences and learning that can help them make their brand the next McDonalds or Starbucks,” added Tanna.

 

Franchise Network
Dhadoom is currently running 14 franchise stores in cities like Mumbai, Bengaluru, Delhi, Mysore, Kolkata and Ahmedabad with 100% franchise stores. “Globally & historically big brands like Mc Donald’s, KFC, Dominos etc. have only grown through franchising that made me believe that if our franchise management capability in the restaurant industry were sharpened we could give a national brand and we could take Indian brands around the globe,” adds Tanna.

FRANCHISE FACTS

Year of establishment: Dhadoom was established in the year2017

Year to start franchising:
Dhadoom started franchising in the year2017

Total No. of stores:
14

Break up of company-owned + franchise stores:
All are franchise stores

Investment required:15 – 30Lakhs (Depending on Format)

Area required (in sq. ft):100 – 500 Sq. ft.

Expected ROI:15 – 18 Months

Expected break-even:12 – 15 Months

Preferred cities &location: Metro cities, Tier 2 &3

 

 

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What's Next for QSRs in India
What's Next for QSRs in India
 

FOOD INDUSTRY is no doubt booming at a fast rate, giving due credits to the rising disposable income of the middle class. Speaking specifically about the Quick Service Restaurants (QSRs) like Pizza Hut, Burger King, McDonald’s, Burger Singh, etc that is growing exponentially in the recent times. According to a last year report by KPMG in association with FICCI on ‘India’s food service industry: Growth Recipe’, the food service industry in India can broadly be classified into four major segments, wherein Full-service Restaurants and Quick Service Restaurants (QSRs) together account for around 73 percent, rest 14.6 percent being street kiosk desks and remaining 12.5 percent being bars and cafes.

Two mega metros, Mumbai and Delhi NCR contribute to 22 percent of the overall Food Services market (11 percent each) followed by six mini metros comprising of 20 percent share in the Food Services market basis the FICCI report on Indian Food Services.“As more and more chains mushroom across multiple regions and franchising being seen as a viable option by a larger segment of the population, the QSR segment has seen considerable changes in the past one year,” says M. Yeshwanth Nag, Founder of The ThickShake Factory.

According to Nag, QSRs are what the modern Indian prefers, as life gets faster and time more precious, consumers need their product created and supplied faster with articulate presentation and perfect taste. “We can see QSRs moving to tier 2 or tier 3 cities more and more in the next few months as more and more players realise the potential for these areas,” he adds.

Urbanisation,youth spending, nuclear families and improved logistics can be a major catalyst to penetrate QSR segment in various parts of India. Also, about 50 percent of India’s population tends to eat out frequently which brings India to a very close proximity to developed QSR spaces across the globe.  “Technology will surely play a major role and will be able to cater to different customer segments and help in knowing their taste and preferences. The CRM will be more well defined and will help us tapping new customers along with allowing us to bring back our old customers by giving lucrative discounts and promotions as well,” feels Nitika Kapur, CEO of Nukkadwala about the future potentials in QSR segment.

One of a very interesting trend in QSR segment noticed by Kapur is the shift of serving Indian authentic regional delicacies drifting away from serving western cuisine. The need for the hour is for the suppliers and QSRs to innovate together. To make the business models work, a good balance between the right prices, acceptable transactions on a weekly basis and most importantly ensuring a right supply chain is crucial.

Seeing the potential in Indian market, the traffic to enter the Indian market has increased. "The QSR segment is one of the most exciting segments in the F&B industry today. People are opting for quick, casual and value for money meals and QSRs offer exactly that. For our Japanese QSR we have experienced over 200 percent growth in the last two years,” said Hakuei Kosato the founder and Managing Director of Sushi and More India Pvt Ltd. The company announced their plans to open more Sushi kitchens and also launched their new QSR brand “The Don” in Mumbai recently.With the big brands building up, the small brands are also expected to rocket their operations and sales in the next few years to provide their share in the growth spectrum of the whole QSR segment.

 

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Why Franchise Is The Best Model
Why Franchise Is The Best Model
 

The dream of starting their own business grew more with time before they found themselves adapting the franchise model.

Franchising model is something from which both seller and buyer can make success. The ability to use others money for expanding their own business is something which the franchiser prefers a lot. Growing their business in this way is more rapidly than going through some investors or other kind of lenders.

Franchisees also enjoy many perks which comes with the franchise model. There is a higher chance for gaining success than starting something of their own. From the location to the interiors of the outlet, everything is handled by the franchise which removes a lot of pressure from the franchisees. The only thing that they have to do is to provide the franchise model with required money they demand. Rest everything is taken care by them.

With perks comes drawback too. Franchise being the best model has some drawbacks too. Franchisees lack in terms of independence from the product they sell to the interiors of their establishment. Despite of having some creative ideas in their mind, they are unable to put it in action as they are restricted. “Franchise model is something which everyone is looking for in the current time. “With the advantage of making money and profit rapidly, this model is sure shot success for both franchisers and franchisees,” says Bhavesh Bhatia who is the owner of Pahmos, Noida.

Some benefits of franchising model

  • 1) It comes with a higher chance of success than starting a business of your own.
  • 2) Things works at a rapid pace between the investments to the opening of the brand.
  • 3) Assistance is provided for the location search.
  • 4) Training and support is provided even a person is unfamiliar with the industry or brand.
  • 5) The brand is already recognized in the market which is having their inbuilt customers.

 

India is witnessing the invasion of many franchises which are being loved by the people.  The full -service franchise is expected to grow by 8 % in 2018 which clearly indicates that this model has clearly marked its presence in the market. Knowing the perks of having a franchise, people are now taking interest and are ready to pay the franchisers the amount they demand.

A franchising model comes with a simple mantra which is “Just follow the system”. It can be considered as the reason behind why franchises are so successful in today’s time. Following this mantra, franchisees tilts towards buying a franchise thinking that if they are going to follow them then success not very far away from them. Franchise is considered to be a model which can provide people with profits in a short span of time. The only thing required is to invest in the franchise and get training.

“Franchising model has changed the way f&b industry is working now. Brands like Mcdonald, Starbuck, Pizza Hut etc have expanded to every region because of the franchise model. It was my passion and dream to start something of my own otherwise I also would have moved towards a franchise model enjoying the perks of having it and making profits by serving the people,” shares Divij Bajaj, owner of Headphones lounge.

Things are changing for the franchising models with time. Initially, they were just focussed on finding the investors for their franchise so that they can extend their brand. They almost took independence from the franchisees by applying all the ideas by themselves. But things are becoming more mutual now. Franchisors are trying to make the buyers comfortable with their ideas and cultures.

Franchisers and franchisees should share towards working with mutual goals and ideology towards the success of franchise unit. Some independence should be there so that it can lead to mutual understanding which will work for the brand as a whole.   

 

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"I am keenly involved in the food safety drive at FDA"
"I am keenly involved in the food safety drive at FDA"
 

Food safety has become a major issue in the last two years. Talking to Restaurant India, Shri Shivaji Desai, Joint Commissioner, Food & Drug Administration- Pune shares about the food safety programs at FDA.

What is your view on food safety in India?

The food safety and standards act, 2006, has been implemented since 2011. In Maharashtra, FDA has taken responsibility to implement this act. The restaurant factor is there. We have to follow norms mentioned in the schedule 4 i.e. part 5 that is for restaurant, hotel and catering facilities. It should be followed by these entrepreneurs. We have to inspect and take programs and inspect many times so that they should comply by the industries. If schedule 4 is complied you have achieve goals that is required by the act for safety management system.

Restaurants are following the norms but the unorganised sector is not. What do you have to say about it?

We are giving street vendors registrations and about 12 lacs vendors have been educated and provided license on it. Though, it is a very difficult task but people will have to come together to follow these regulations.

What is your view on growing culture of and restaurant as industry?

With growth of smart cities and IT industries there is a sudden push in the eating out trend. And, seeing the opportunity it provides, we have to support the food culture of India which is as diverse as its culture.

What is your role at FDA?

I am keenly involved in the food safety drive at FDA. We have done a special drive and we found majority is not complying with the law and we have issued notices as warnings. They have to comply in 14 days and if they do not we have to cancel their licenses.

Many a times restaurants have applied for licenses but it takes time to get the revert. What are you doing for it?

It is not at all difficult these days. It is an online process and FDA has launched a website and you have to make an online request and your license will be issued in 8-10 days.

 

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Empowering employees into franchisees
Empowering employees into franchisees
 

Of lately, we all have seen many people turning into entrepreneurs via franchise route. But, there are some rare examples of people who out of their zeal for entrepreneurship, have transformed into the brand’s franchisee for which they were once working. Such examples have renewed their jobs into their passion for business via franchising. Let us read about such inspiring tales of these victorious bosses who were once empowered by their brands and now, how they are empowering others and creating employment opportunities too.

Food
Subway, the world’s largest sandwich restaurant chain, recently opened its 600th restaurant in India at Bharuch in the state of Gujarat. Strategically located on National Highway 8, the new restaurant is spread over an area of 966 square feet and is owned by Hareshwar Koralkar who once worked for Subway for 4 years in Australia. Koralkar shares: ‘It is a great feeling. Setting up this restaurant has been a huge learning experience involving a lot of hard work, challenges and triumphs. However, Subway’s support on all aspects of business including training has made the entire effort worth it. I aspire towards making this restaurant the number one eating-out destination in the region.’

What makes it special: This Subway features Metro Décor, a design format which enhances the restaurant’s appeal by making it more stylish and spacious. State-of-the-art interiors, chic lighting, a modern-age sitting area with natural wood-toned and black-laminate floors complete the restaurant’s upscale effect helping guests enjoy a great eating-out experience. Across the globe, Subway operates more than 44,000 restaurants in 112 countries. Another great example in Subway is of Iniyaraja Ramajayam. Back in 2004 when Iniyaraja was still a student, completing his Master’s Degree at Birmingham City University in UK, he took up a part‐time job at a Subway restaurant near his school. Being part of the Subway team gave him invaluable insights into the company and its functions. When asked how he felt about the brand, Iniyaraja said without hesitation, “It was love and it was mutual. I love Subway and the brand loved me back. Subway was my very first job but now, it’s my career.” Following his stint at the restaurant, Iniyaraja was offered a permanent role with Subway’s DA team where he was engaged in a more hands on role and became an integral part of the business development team. He then went on to set up his first Subway in 2010. Now, he is running 2 restaurants.

Tours and Travels
Leading name, Thomas Cook has a total count of 104 franchise outlets in over 150 metros, mini metros and Tier II & III markets, pan India. A unique initiative that the brand has launched via its franchise model is the opportunity for skill development and employment generation. Rahul Shinde, an Ex-Thomas Cook India staff, with an experience of over four years, was given an opportunity to set up a Thomas Cook India franchise outlet (Gold Circle Partner) in an area that offers significant potential that is Dadar, Central Mumbai. Being a Maharashtrian, this is of great value to Thomas Cook India’s regional Marathi outreach to tap the highly significant and growing Maharashtrian consumer segment for the holidays.

This has these benefits:

  • Opportunity of leveraging knowledge-expertise and experience of a staff trained by the Thomas Cook India enterprise
  • Enhancing the Travel & Tourism eco-system and extending the market
  • Delivering on PM Modi’s focus of skill development.

Flowers n Gifting
Leading Florist brand, Ferns N Petals is also proud to have given its franchise to Nikita Tokas in 2013. During her stint while working with FNP, she got so inspired with its franchise model that she decided to own one and open store at Lajpat Nagar, New Delhi. Nikita is now an inspiration for many at FNP.

Fitness
We found one such example at the Mumbai based Fitness chain, YFC (Your Fitness Club). 33 years old, Amit Gokhe was working with YFC and now a franchisee of the Borivali West centre. Rizwan Sayed, Founder of YFC says: ‘Amit has always given us incredible results. It is always beneficial to have our employees as franchisees. They already understand the brand so well that it becomes much easier for them to run the gym at their cities. The employees surely understand the personification of the brand much better.’

 

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How service charge wariness is hurting the Casual dining segment
How service charge wariness is hurting the Casual dining segment
 

Eating out being one of the major contributors in the country’s economy is highly affected by the discretion announcement of service charge by the Ministry of Consumer Affairs. Service charge being a levy that the restaurants add to the bill to compensate and encourage its employee in a better manner- both in front of the house and in the kitchen.

According to experts in earlier days guests used to tip the servers and this used to only go directly to the servers attending to that table. The kitchen staff which puts as much hard work did not get a share of the same. In the service charge model, the restaurants are able to share the same with all the staff. The charge is mandatory and is part of the bill. If a guest is unhappy with the particular food item they have ordered or the service in general then they can raise a complaint with the server or manager and in many cases the restaurant will replace the dish or give a complimentary dessert or a discount on the bill to make the guest happy. This is at the discretion of the management and not the guest. “The Consumer Affairs circular is very ambiguous and leaves it open for interpretation. We are already seeing complaints from guests who did not have any problem with the food or service but just feel they do not wish to pay the service charge due to the said circular and the media reports surrounding the same,” shares Ashish Saxena, CEO- TexMex Cuisines which runs Chili’s restaurants in India adding that the things will settle down in a few days and guests will continue to appreciate good food and service and pay the full price for the same.

Not only this, the decision has created a discrepancy amongst the guests and host as the guests are not ready to pay the service charge no matter how good the food is or how much they enjoy the service. “It is an opened ended decision leaving a huge scope of discrepancies between guests and restaurant management. Till now service charge was charged after informing the guest, they can choose not to dine in a restaurant with service charges. Such abrupt changes, heavy taxes and unfriendly licenses policies are making it very difficult for restaurant industry to grow at rapid rate. Government must act only after consulting industry bodies to understand repercussions,” adds Karan Tanna, CEO- Yellow Tie Hospitality which is running Genuine Broaster Chicken in India.

Also, in the wake of a statement implying Service Charge billed by restaurants are optional, the Hotel and Restaurant Association of Western India (HRAWI) has come out with a clarification to all industry stakeholders. In a letter to the Department of Consumer Affairs, the Federation of Hotel and Restaurant Associations of India (FHRAI) the apex body of hotels and restaurants, has appealed for withdrawal of the advisory as it has been creating chaos and disruption in the smooth functioning of restaurants across the country.

The association has clarified that there is nothing illegal about levying the fee and has citied judgments by the National Consumer Disputes Redressal Commission, New Delhi which is the highest consumer forum of the country as well as by the Hon’ble Supreme Court, which have upheld the legitimacy of this practice.

“Service Charge like any other charge is a proposal from the restaurant or an establishment to potential customers. It is for the customers to decide whether they wish to patronise the said restaurant or not,” says Dilip Datwani, President, HRAWI. “A restaurant or hotel may just as easily absorb the said service charge into the remaining charges being collected by it from the consumer (by simply including it in the prices on the menu). Service charge is considered a beneficial payment since it is meant for the benefit of the staff of the establishment. So, some establishments make a conscious choice to adopt a beneficial policy towards its staff members by assuring them a minimum tip which is a percentage of the rest of the charges.”

Commenting on the same, Manik Kapoor, Executive Director- Dhaba by Claridges points, "I feel service charge has been always discretionary in a way thumb rule being between 5% and 20% depending on the customers experience and satisfaction. Keeping the above range in mind restaurants started capping service charge and transparently reflecting it in the bills,” adding that the way the current situation is being portrayed would lead to utter chaos and confusion. There would be a constant dispute between many restaurants and diners on whether the same should be paid or not.

Hence, we can say that a crystal clear policy can be seen the way forward for industry where taxes imposed by the government on restaurants and hotels going down could be far more beneficial to both the diners and restaurateurs. 

 

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Restaurant India Congress goes down South
Restaurant India Congress goes down South
 

The Indian food service industry has evolved tremendously over the past few years as the country has seen an upsurge in the innovative and trendy concepts. Today, food business has moved past just being bread and butter business; it has caught attention of many multinational companies.

Indian Restaurant Congress saw grand success of its sixth edition this year with top names of the industry coming together. Building on its success, Franchise India is set to replicate the platform in the southern region with the launch of Restaurant Congress in Bengaluru on 18th December at Hotel Sheraton. The show will also acknowledge the region’s top achievers at the gala awards evening.

“I welcome you to the Restaurant India 2016 South India edition, which is being held in its very first edition,” said Mr Gaurav Marya, Chairman, Franchise India. The objective of the conference, added Mr Marya, is to make a difference in the South Indian restaurant sector whether it is a small restaurant chain in a tier 2 city or an international chain entering India or perhaps a brand on the anvil of disruptive growth by creating the way forward for the change we all are experiencing in the industry today.

Themed around ‘Thought for Food with a Regional Touch’, the show will focus on the juggernauts of restaurant business down south which has created an impact in the overall restaurant business by introducing the best of concepts and bringing the best menu to the table.

The congress will be attended by more than 300 restaurateurs and over 50 restaurant industry leaders, and chefs along with an incredible speaker line up including Niren Chaudhary- President, KFC Global, MasterChef Sanjeev Kapoor, Celebrity Chef & Restaurateur, AD Singh- MD, Olive Bar & Kitchen and Chef Ajit Bangera- Senior Executive Chef, ITC Grand Chola to name a few.

Franchise India also thanks Shri U.T Khader - Hon’ble Minister Food, Civil Supplies and Public Distribution; and Shri Priyank Kharge - Hon’ble Minister of State- IT, BT & Tourism for honouring us by confirming their presence as Chief Guest and Speaker at the congress and awards respectively.

Sponsored by Cremica Foods and supported by DineOut, DS Spiceco along with StudioJ as design partner, Restaurant India will be a one stop platform for knowledge sharing and networking for all the shareholders of the ecosystem. We, on behalf of Franchise India, welcome you to the Congress.

Keep posting about the Congress!

@IndianRestCong 

#Restaurant2016 #Bengaluru

 

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Top Ingredients in Food biz to watch out in 2017
Top Ingredients in Food biz to watch out in 2017
 

Food in India is as diverse as its culture. Just walk a mile; you can feel the difference in the taste and preferences of eating out behaviour. As Indians are a big foodie, their love for variety makes restaurant and food as a good business idea. With the Indian franchising industry expected to reach $35 billion, there are opportunities galore for both international and home-grown brands to capture the bigger pie of this market.

According to a KPMG India report, the food and beverages sector is expected to grow at 9 per cent by 2017 from 5 per cent in 2012, opening about 27,000 franchised outlets, which in itself are giving room to restaurant brands to expand their wings.

Customer is the King

The food business scenario in India is growing at a hefty amount inviting global brands to enter into the Indian market and promoting Indian brands to expand overseas. Since, majority of the population that the country has are young, aspirational and well travelled with high disposable income, eating out in itself is going to be fun and experienced rather than just feeding the belly.

“You need to choose your segment and understand your customer,” shares A. D. Singh, MD, Olive Bar & Kitchen, who believes that food has taken a new dimension in India and today one needs to bring lots of Tamasha along with the food.

According to latest reports, India is going to be the largest market for consumer in terms of consumption by 2030. And with this it brings lots of opportunity for emerging players like Tea Trails, Brewberrys Cafe, Genuine Broaster Chicken, who wants to expand via franchising.

Young blood

The key preferences for a franchisor while vouching for a partner are a franchisee should have enough money to invest into the brand, and must have certain experience to the table. But now the franchisors are preferring the young over the rest, as they see the passion and the dedication in them. Explaining the same, Karan Tanna, CEO, Yellow Tie Hospitality, which runs Genuine Broaster Chicken in India, says: “Major pivot between success and failure of any franchised outlet is the fire to do something innovative and the enthusiasm that remains the same. With young franchisees on block, owners assure that these two are fulfilled.”

Since, long-term sustainability is an important aspect, which the food business demands today, aspirational young partner with a passion to drive the business will be a key to remain at the top.

The Right Place

The location acts as a catalyst in the food business. No matter how young and fresh your concept is, if you have not a right location then you are super flop. And, whenever a brand expands its demography, it looks for a franchisee partner because the partner has a better knowledge about the market and the location. Location also decides the capital expenditure incentive of a business, since footfall is an important part in getting the revenue. “Location with high footfall saves headache in the long run,” adds Singh, who is running his restaurants at some of the best locations in India.

A profitable business

Restaurant business is not every one’s cup of tea. Just because a particular brand is making the headlines doesn’t mean you should invest in that brand. A brand needs to be profitable if you are looking to invest in it. With the food business becoming the hot discussion of the Indian ecosystem, everyone today wants to own a restaurant or a delivery business but how many of them actually survive remains an unsolved puzzle. “Make sure you invest in a business that is profitable,” points Srikanth Narasimhan, Founder & Director, Veda Corporate Advisors.

Hence, we can say that with lots of start-ups entering the space, franchise is an important part to grow the business. However, franchising in itself is a partnership, the vision and the goals need to be aligned to build that partnership. Though, there is no set formula that makes your restaurant a hit. But the ingredient lies in the basic principles, and the flavours in flourishing a brand. 

 

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"We are looking for partners who embraces fun and freshness"
"We are looking for partners who embraces fun and freshness"
 

Tell us something about Funk Coffee’s global presence.

Funk Coffee is an Australian coffee brand established in 2005. We are having 16 stores in Australia- 13 of which are in Adelaide and three in Brisbane. We are now planning to expand to India in partnership with Fran Global. We have done extensive research about the market and we are ready to now launch our brand and offerings in the Indian market.

When can we see Funk Coffee opening stores in India?

It’s really difficult to say this as we are just at the start looking for the partners. Though the response is really very positive and people are interested in our Master Franchising concept. So, I expect in next six months Funk Coffee can plan to open outlets in India.

Tell us about your menu.

We are serving coffee along with food. We are serving 100 per cent good quality coffee. We are keen on doing menu which is similar to the taste and palate of Indian customer. At Funk we source fresh, local produce from South Australian producers to bring our customers a large selection of great menu choices. We’ve created a menu that is fun and fresh with delicious seasonal specials.

What are the criteria for finding the partners here in India?

We are looking for partners who have got the same passion, philosophy and they really embraces fun and freshness that we are trying to do. We are looking for someone who can help us in expanding from North to West and guide us in finding the right local partners. And, he is willing to support us as a brand.

What is your target location?

We are looking for both high street and malls. We are looking for kiosk as well as cafe model.

What is your view on the growing trend of coffee culture in India?

I really think that Indian market has come a long way in the last three years in the coffee market, snack food and western preferences. From business to a breakfast coffee is what India is going to see as a trend. 

 

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Why FBOs need to control hair contamination
Why FBOs need to control hair contamination
 

When eating out at a restaurant if you find human hair in your food you are likely to be disgusted. You will lose your appetite and straight away leave the restaurant and never return. The same applies to finding human hair in processed or packaged foods. You are likely to dump the entire contents into the dustbin no matter how expensive. Human hair is made up of the protein keratin, which also makes up the outer layer of the skin and nails. In itself keratin might not pose a problem but the truth is that besides feeling nauseated hair can lead to contamination in foods and of course finding hair in food casts a shadow on the reputation of the brand.

To ensure food safety FSSAI has established hygiene and sanitation guidelinesas per Schedule 4 of the regulations which mentions that human hair must be controlled from falling into exposed foods in eating establishments as well as in food processing and manufacturing plants. According to food regulators the term food includes foods, beverages, bottled water and nutritional and functional products so none of these products can contain hair.

How hair causes contamination

You will be surprised to note that hair is one of the most commonly found ‘foreign bodies’ in food. Foreign body means any extraneous matter found in food which is not a part of the ingredients. Therefore any foreign body found in food means that the food is contaminated and not fit to eat. Human hair is termed a physical as well as a microbiological contaminant because besides being extraneous matter, it can also lead to the growth of microorganisms in the food. Oil, sweat, residue of hair treatment chemicals and shampoos, dyes or any other organic matter sticking to the hair becomes a breeding ground for pathogens when left in processed foods for long periods of time. A report published by the National Institute of Science, Technology, and Development Studies, New Delhi on human hair waste states that hair could contain a number of toxic chemical contaminants. These contaminants reach hair from the environment and so these same toxic substances can reach food from human hair.

Risk involved

Hair in food also poses a physical risk as a person can choke on it, it can get stuck in the throat or cause nausea and vomiting. However, besides the physical aspect hair is a potential route of Staphylococcus aureus contamination from the human scalp. Human hair can transmit ringworm as well as fungal infections if a person is infected by these. Staph aureus, as it’s often called, is a type of bacteria that can be found on the skin and hair as well as in the noses and throats of people and animals. The Centre for Disease Control and Prevention states that the most common way for food to be contaminated with Staphylococcus is through contact with food workers especially when foods are prepared by hand and not cooked. Hair in salad or cut fruits, sandwiches and chutneys could pose a problem as hair can remain in these foods for hours. There is a heavy stigma attached to any food that contains hair, be it at a restaurant or in home-made pickles. The popular sun dried chips &papads can easily be contaminated with foreign matters including hair as they are left to dry in open, but finding human hair in the restaurant food would be due to the lack of good personal hygiene practices.

Human hair is shed constantly

According to Hair Foundation, Queen’s College, Oxford University, England every human being with hair on their heads, sheds between 100-150 hairs every day at a constant rate. Therefore a person doing an eight hour shift will lose around 33-50 hairs. Multiply this by the number of personnel working in the restaurant or manufacturing plant and you can calculate the pathogen risk to food. This figure is attributed to only hair from the head but hair can reach foods from the arms, beards, moustaches and even from the chest. Hair from the arms can travel into baked products from flour that has to be kneaded with the hands. Anything that enters food from the body parts of human beings is a potential contaminant. Therefore people working in restaurants, bakeries and food processing units have to follow strict hair control measures.

Preventing hair contamination

FSSAI has strict guidelines for following good hygiene and sanitation practices including wearing of nets and caps to prevent hair from entering foods. In most countries, people working in the food industry are required to cover their hair because it can contaminatefood. Complete capture hairnets are now available that has led to the decrease of hair falling into foods. Some countries even have rules for wearing beard and moustacherestraints especially for those with long beards and moustaches as people tend to touch them absentmindedly which could cause hair to fall into foods. Good manufacturing practices advise that all personnel wearhairnets, headbands, caps, beard covers or other effective hair restraints so hair does not come into contact with exposed foods.

Is your food safe?

When consumers find hair in foods they are likely to wonder what other possible contaminant the food could contain and if it is safe to eat. Hair in food is like a sign which tells consumers about the poor hygiene standards maintained by the Food Business Operator (FBO). It brings the restaurant, product or brand adverse publicity which could result in loss of sales. FBOs need to ensure food safety, by complying with FSSAI regulations so their brand is protected. To gain consumer trust in their products they have to take all measures to prevent any kind of contamination.It is therefore important to address all personal hygiene issues because in food preparation and food manufacturing plants there are a number of personnel who can transfer contaminants to food. Contaminants can be transferred from the body, skin, mouth, hands or hair to the product or from clothing, footwear, utensils and other tools used in daily food preparation activities.

 

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Nature's Hut to open 250 outlets by 2020
Nature's Hut to open 250 outlets by 2020
 

What was the idea behind starting Nature’s Hut?

I started Nature’s Hut in 2008. We are making our products from fresh ingredients and we don’t preserve the raw materials. We use chemical free raw materials. We supply the raw materials from Kandi forest area, the unit we have in Himachal belt.

What is the product range?

We have some exclusive products like fruit barfi. The concept is that the traditional sweet has khoya, sugar, ghee and oil and it all have adulteration and we are making sweets without all these ingredients. And, our barfi is made up of fruit pulp, almonds and brown sugar which have a shelf life of four months. Apart from that we have some natural anti-oxidants, unique teas from amla, crushes. We are organic certified. We have apple cidar vinegar, jamun cidar which is different from other cidar because we are making it from fruit juices and not extracts.

What is your market presence?

We are not commercial; instead we are selling products through our retail outlets. We have 25 outlets, 14 in Himachal, 4 in Uttrakhand and 6 in Rajasthan.

Who are your target customers?

We are targeting upper middle class crowd. We are not focusing on masses because our product is a high end product. We give small quantity with high quality. For ex: we make sweet lime pickle and if you taste that pickle you will find that it has many herbs and it solves every digestive problems. So, with people we are selling the finest products and that’s why the rates are not competitive. Our client is happy with the product and the reputation is very good.

Which are the places we can find you?

We are selling at tourist places only. We are not selling at plane areas. We will cover entire India tourist places. By 2020 we will open 250 outlets at these locations.

What is your expansion plan?

We are working on a strategy to cover tourist places first and we will cross 250 stores by the end of 2020 that time we will approach Hyper city, Big Bazaar and more in metro cities to provide us a space to open our brand. The rental is very high at these markets and that way it’s not possible to cover the ROI that we get presently.

We are also working on some good products. Gluten free products and good quality wine.

What is the average footfall at your outlets?

Foodtfall depends on area to area and season to season. This is a tourist season so we are getting around 80-100 footfall at a single outlet daily.

Do you have any franchise outlet? What is the average cost for a franchise outlet?

We are company owned outlets. It costs around Rs 15-20 lakh on an average to own our outlets.

Where is the manufacturing unit located? Which is the top selling product?

We are having two manufacturing unit- Talwara and Patiala. Barfi is the highest selling product. 

 

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Pizza Hut sees 6% decline, KFC reports 1% drop in Y-o-Y sale
Pizza Hut sees 6% decline, KFC reports 1% drop in Y-o-Y sale
 

At a time when global brands are luring Indian customers’ with great deals and offers to overcome the drop in sales, Pizza Hut and KFC faces has seen decline in sales this season.

While Pizza Hut has witnessed a 6 per cent drop in year-on year sale, KFC has seen 1 per cent decline in sales.

Yum Brands, which operates quick service restaurant brands Pizza Hut, KFC and Taco Bell, has changed disclosure levels of earnings starting the January-March quarter.

The company has stopped sharing same store sales of the India business as a standalone entity as it has integrated these into global KFC, Pizza Hut and Taco Bell Divisions.

"Yum has likely clocked 10 consecutive quarters of negative same store sales growth, reflecting challenges for all QSR players," shared a report by Edelweiss wrote released on Thursday.

Yum Brands operates close to 800 Pizza Hut, KFC and Taco Bell stores in the country. With global majors like Yum!, McDonald’s, Domino’s and Dunkin Donuts reporting continuous fail to meet the customers’ demand and negative growth for last few quarters, players like Burger King, Carl’s Jr and Wendy’s are expanding their operations in the country. 

 

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