India’s milkshake market exhibited strong growth between 2015 and 2020. The market is expected to expand at a compound annual growth rate of 25.3% between 2021 and 2026. It is currently being fueled by factors such as a large young population, changing lifestyles, and convenience. Let us learn more in detail regarding the rise of the milkshake franchise in India.
A milkshake consists of milk, ice cream, flavouring syrups, and sugars blended together to form a cold dairy beverage. This beverage is available in a variety of flavours, including chocolate, vanilla, and strawberry. A variety of toppings, such as sweetened dry cereal, toasted coconut, marshmallows, biscuits, fresh fruit, cinnamon, cloves, and dry cakes, are used to enhance the taste of this drink.
Is Milkshake Business Profitable in India?
Fresh organic juices and shakes have risen to become a profitable franchise business opportunity in India. Formerly dominated by local shops in an area, the market is moving from unorganized to organized chains.
In India, the market is expected to grow by 25%-30% due to factors such as growing health awareness, rising disposable incomes, fruit imports from elsewhere and changing consumption patterns. Investing in a shakes and juices business offers a plethora of opportunities for those looking to earn high returns with a low investment.
How to know if your milkshake business is ready to franchise?
It is not easy to start a franchise, so always remember that there are some factors you should take into account before you decide to franchise your business.
- Analyze the market.
If you plan on franchising your business, you’ll need to begin by exploring another market, preferably one that is in a different city through and through, where you can scrutinize the idea. Depending on a city’s background, history, environment and other factors, what works in one city may not work in another. Make sure that you’re not forgetting a factor that could improve your business success.
- Consider your expenses
Initially, entrepreneurs who are considering franchising need to ask themselves how much it will cost. Things like purchase expenses, inventory, and working capital are all things you should contemplate before franchising so you put yourself in the best possible position. You need to be prepared with a lot of capital if you consider franchising a business.
- Ensure franchisees are carefully screened
Be extremely careful when selecting your team members. They will be a vital part of your business, so you need to be extremely careful about selecting them. Will they have faith in your business? Will they be able to follow your way of life without fail? When you screen potential franchisees, keeping your business’s future in mind should be at the forefront of your mind.
- Make sure policies and procedures are clearly defined.
Entrepreneurs thinking of franchising their organization should have clearly defined policies and procedures. Document your procedures as a whole, and make certain they’re as flawless as possible. Why? In such a case, it will be much easier to recreate a generally working business model when franchising your organization.
- Manage the quality
Most big business owners today are franchise owners. An organization’s biggest downfall is not having a quality control framework in place when it is initially franchised. There should be frameworks in place to ensure that your product or administration is consistently delivered across all of your franchisees. If not, your brand will be tarnished very quickly.
Advantages of Milkshake Franchise in India.
- High profit margins from milkshakes.
Milkshakes, on average, account for profit margins in the range of 50%-70%. The average selling price of a cup of milkshake with different ingredients such as milk, ice cream, syrups, sugar, cookies, nuts, chocolate, coffee, and others generally ranges higher while the cost of production is less.
- Growing preference for new flavors of milkshakes.
Beverage consumption is increasing significantly worldwide. Healthy beverages such as milkshakes, protein shakes, frozen drinks, malted milkshakes, fruit smoothies, juices, and others are also gaining popularity due to their many health benefits. Milkshakes are popular because of the unique taste and presence of milk. The demand for new equipment will increase with end-users focusing on expanding their product offerings.
Disadvantages of Milkshake business.
Milkshakes are a great way to consume your daily vitamins and fruit requirements without buying a bushel. While Milkshake stores are essentially beverage businesses, they face unique disadvantages because of the nature of their product. A household budget that is tight most often cuts Milkshakes and other consumables.
Some of the disadvantages of Milkshake Business are:
- Workplace Hazards.
Businesses that make Milkshakes need employees who cut fruit and prepare other ingredients. However, blenders aren’t able to puree whole fruits. The fruit must be cut up by employees with knives or dicing devices, which requires experience in order to avoid injuries, although even experienced workers can sustain injuries due to the pace of work. If your employees are injured, you must find temporary replacements and pay worker’s compensation, if applicable.
- Food Inventory.
A Milkshake business needs fresh fruit, milk, yogurt and other ingredients in order to make Milkshakes. Fresh fruit, however, has a short shelf life — usually only a few days. You are forced to throw most of the fruit inventory away if your Milkshake business is experiencing a slow week. In the same way, if you use half of a fruit, such as bananas, for a Milkshake and do not make any other Milkshakes that require bananas, you will likely have to throw out that half banana.
- Equipment Costs.
Milkshake production requires a significant equipment investment. To store fruit and other ingredients, you need a refrigeration unit and possibly a freezer. Your Milkshake equipment also consumes a significant amount of electricity to operate, driving up your monthly electric bill. We recommend using industrial blenders which are built for heavy use. Additionally, if any of this equipment breaks down, you must pay someone to service the machine.
- Business Fluctuations.
When national economic turmoil or a recession is in full swing, people may not purchase Milkshakes with their leftover money. Milkshakes are typically luxury items that require consumers to spend disposable income. As a Milkshake business, you may need to reduce your profit margin and offer discounts to customers in order to stay afloat.
India Milkshake Market Trends:
Significant growth in the food and beverage industry contributes to the positive outlook for the market in the country. The growing number of private-label milkshake brands in India is also providing a boost to the market. International milkshake brands are also opening franchise outlets in metropolitan areas to facilitate convenient product distribution.
Also contributing to this market growth are changing lifestyles and eating habits of consumers. There has been a shift from carbonated drinks to milkshakes among consumers, especially millennials, due to the growing number of shopping malls and recreational centres.
Additional growth-inducing factors include the introduction of packaged milkshakes in novel flavours and ready-to-drink (RTD) travel-friendly packaging solutions. In an effort to attract a wider audience, manufacturers are also developing milkshakes with organic ingredients without preservatives and artificial sugars. Market growth for milkshake franchise in India is also expected to be driven by factors such as rapid urbanization and greater consumer spending power.
The milkshake franchise in India is a wonderful passion project, whether you are planning to start a new one or are thinking of expanding an existing one. Milkshake shops are fun to own, even if they’re a lot of work, but what you gain from them is far more valuable than all the hard work you put into them!
