On the back of favourable developments and the proximity of enormous projects, the Indian pizza sector has seen rapid growth. Currently, Growth opportunities in pizza industry is propelled in large part by the growing young population, working women, frantic schedules, and growing disposable income of white collar class families. According to the Pizza Power 2015 State of Industry Report, the United States, Brazil, Russia, India, and China are all considered emerging pizza markets.
In India, the pizza market is valued over Rs 1,500 crores, and it has grown at a consumer annual growth rate of 26 percent over the last five years. Some of the unique characteristics of the pizza sector, such as quick service, low pricing, and so on, have made it extremely popular among the masses. As a result, India provides enormous opportunities for both domestic and international players.
Expanding opportunities for key players in the Indian Pizza Industry
Over the last few years, India has seen an increase in the number of quick service restaurants. At first, significant players in this country found pizza to be a difficult sector to break into because the entry barriers were high and moving up in this sector was difficult. Several businesses, on the other hand, have paved the way for other major players in the sector.
Residents in India are looking for more pizza options as the popularity of the dish grows. Local and international pizza establishments have expanded and advanced the market for pizza in India in order to suit the growing demand for this sort of food.
While the market potential for pizza is significant, businesses that are either entering or reentering the industry must focus on differentiating their products in order to make an impact in the marketplace.
Key Players in India’s Pizza Market
The rising popularity of pizza has created new growth opportunities for a number of major worldwide firms. Some of the most well-known companies in the industry include Pizza Hut, Domino’s, and Papa John’s, to name a few.
For Pizza Hut, India, for example, is one of the most important markets in the world. Over the next five years, this firm intends to increase the number of outlets it operates in the region. Currently, the store operates 360 restaurants in 100 cities across the United States. Within the next five years, they hope to have more than 700 locations open and operational.
Causes of India’s Pizza Market Boom
Despite the fact that pizza has been available in India for a long time, it has only recently become one of the most popular fast snacks among Indians. The rise in popularity of this sort of meal can be attributed to a number of things.
Consumption is one of the most important factors contributing to the development in popularity and demand for this type of cuisine. The demand for pizza has increased as more people have gotten interested in it. To accommodate the rising demand, more restaurants serving this sort of cuisine are springing up across India.
Another factor driving growing pizza consumption in India is the rise in the number of women entering the workforce in recent years. Working has restricted the amount of time that women may spend in the kitchen because they are largely responsible for preparing meals for their family. As a result, women and their families are increasingly turning to pizza as a quick and easy lunch.
The constant rise in Indian earnings has fueled the expansion of the pizza sector. Residents in the country can spend more money on this famous fast food as their income rises. As a result, the popularity of this meal has grown even more, as has the need for it.
Franchising in the Indian Pizza Industry profitable?
With a 30-35 percent increase in the last four to five years and a total turnover of around INR 938 billion, franchising is a popular business model. The sector presently accounts for about 1.8 percent of India’s GDP and is predicted to grow to over 4% by 2022.
There are various advantages to franchising your pizza business. On a daily level, franchisees spend money and operate franchise units, while you maintain brand consistency across the network and share profits. Take a look at how to start a pizza franchise in India.
How to franchise your pizza business?
Before franchising your pizza business, take the following steps:
Step 1: Perform a sincere self-assessment.
It’s not about the pizza or the royalties when it comes to franchising. In fact, franchising is all about fostering entrepreneurs and equipping them with the tools they need to thrive. Franchisors help their franchisees by locating locations and negotiating leases on their behalf, as well as providing marketing materials and advice, and guiding them through industry changes.
Franchising may not be for you if you are not devoted to developing talent and building relationships.
Step 2: Assess the concept’s “franchisability.”
Before franchising your pizzeria, ask yourself the following questions:
- Is the contemporary pizzeria capable of large-scale success, including the provision of high-quality, appealing goods?
- Is it possible for the franchisor to mimic the pizzeria’s operations so that it may be efficiently cloned?
- Is the franchisor able to sell franchises and recruit investors willing to put their money where their mouth is in the pizzeria’s success?
- With the correct management team and capital, can the franchisor move the concept forward?
- Is the business priceable at a level where both the franchisor and the franchisee may profit?
Too frequently, franchising is approached with a “me, too” mentality, but you must approach franchising from the franchisee’s perspective and create a programme that is franchisee-friendly, not one that merely maximises your revenue. Both parties must gain from franchising.
Owners should analyse the profitability of each of their existing restaurants after paying a year’s royalties and associated franchise fees in order to assess prospective ROI.
If your franchisees aren’t making money, the system as a whole may fall apart.
Step 3: Secure a trademark.
Prospective franchisors should check with the Indian Patent and Trademark Office to see if their name and tagline are trademarkable. If not, rebranding might be necessary before moving further with franchising.
There’s nothing wrong with rebranding, but you should be aware of the risks before investing too much time and money in the process.
Step 4: Have the necessary capital in place.
The majority of would-be franchisees lack the financial resources to build a complete, responsive system. Owners must have sufficient funds to print operational manuals, market the concept to potential franchisees, and provide comprehensive franchise training.
Because you can’t rely on your next sale to pay the bills, you may be pushed to take on clients you wouldn’t normally consider.
Franchisors should also hire an attorney who is familiar with the franchising industry and the legal requirements for establishing, selling, and managing a franchise.
Step 5: Document systems and processes.
The documentation of systems and processes is critical to the success of any franchise concept.
A comprehensive training and operations manual, possibly up to 500 pages long, should be prepared expressly for the franchise concept. Franchisees will boost the success of their business and encourage consistency throughout the organisation by adopting policies and procedures that streamline all parts of the operation, including food purchase and manufacturing. When franchising, it’s critical to have a solid system in place that can be copied over and over again.
In Summary
In India, the pizza sector is steadily expanding and will continue to do so in the next few years. As a business owner, you should think about how to expand and franchise your pizza business.
sparkle★minds can help you franchise your pizza business in India or overseas. We will lend you our knowledge to help you expand it swiftly. Get in touch with us right now to get started on your franchise.
