You now know that your restaurant business has become the talk of the town in Mumbai. So why not make it a known name across various cities of India? You might be glad to know that you can franchise your restaurant business from one city to another. This is possible without emptying your bank account. Confusing? No. Don’t be. It is just time to adopt the franchising business model, to make your brand known to more of India. Here’s a step-by-step guide which will help you franchise your restaurant business from Mumbai to many other cities in India. Also, what are the advantages of franchising your restaurant from Mumbai, and how profitable it is to franchise your restaurant business right away are discussed.
How To Franchise Your Restaurant Business From Mumbai Across India – A Comprehensive Guide
When it comes to having multiple branches of your food business, franchising is one of the most affordable choices available.
A single location that already has a well-known brand can experience a meteoric rise in earnings through the use of franchising. The return on investment (ROI) can reach 100 times while having minimal resources.
Let us take the example of a restaurant called Le Pinoz Pizza. This is a franchise business that has been in the country for 12 years now. Moreover, it has been able to compete with top international brands like Pizza Hut, and Domino’s Pizza.
So to get into more detail, here is a guide which can help you on how to franchise your restaurant business from one city to many others in India.
#1. Creating a profitable franchise model
First, if you can, you should try the “do-it-yourself” strategy. If your resources permit it, you should also try to recreate the business by yourself in a location that is known to you. This new outlet will provide you with hands-on experience as well as more than sufficient understanding of a variety of topics, including hiring, management, standard operating procedures (SOPs), budget, and total cost requirements.
To verify the viability of your food franchise, you should consider making this model shop lucrative. In addition to providing you with practical experience and a correct framework for communicating, this will also provide you with insights into franchising.
#2. Defining Your Franchise Profit Channels
Once you have established a successful franchise, you will be able to determine the amount of money that franchisees should pay to franchise your brand. After all, this is how you will be able to profit. You can conduct market research. Choose a business that is comparable to your own, and investigate the costs associated with owning their franchises.
Franchisors can generate additional profits in addition to these two fees. This is by charging additional fees for the provision of other services and advantages to their franchisees. These services and benefits may include the employee training programme, machinery and supplies, raw materials, advertising money, interests, and so on.
#3. Legal Franchise Agreement & IP Protection
In India, franchising is not governed by a single legislation. Rather, it is governed by a collection of around ten acts that, when taken together, control franchising. Your brand is protected, and you can avoid making expensive mistakes. For this reason, a franchise agreement must be drafted that is by these acts.
About the Franchise Agreement in India: Also known as an agreement between the business’s owner and the franchisee. Your goal is to ensure that the agreement has all of the details in the most accurate manner feasible.
Not only will the agreement include specifics regarding franchise fees and royalties, but it will also include topics such as liquidation, arbitration, obligations, trademarks, and other related topics. This franchise agreement serves as a safeguard for your business as a franchise model.
#4. Marketing Planning & Strategy
Whether or not you are successful in marketing your brand and recruiting franchisees will determine the extent to which your franchise grows. During the first year of your franchise, you should prioritise quality over quantity.
Scaling up too quickly can cause more harm than good because your business is still in its infancy. Because of this, you should begin with a small number of franchisees and concentrate on developing a stable process as well as a business plan for the restaurant.
To ensure you have the right marketing plans and strategies in place, you can also connect with experts in the field. Their role will be to effectively market your brand online, prepare digital campaigns, help in lead generation and more.
Another option will be to get registered on food franchising sites like FranchiseBazar, which will give visibility to your brand and attract the right investors to carry your business forward. Once you have established yourself in the market and established a few franchises, the challenging part is already behind you.
Once you have gained knowledge from these experiences, you will be able to grow your franchise business with ease.
#5. Training Programs
Onboarding members is the most important step after establishing a marketing strategy and licencing your franchise to franchisees. To assist the franchisee, you will need to ensure that all of your SOPs, procedure manuals, and supply streams are in place.
One of the most crucial things is a training programme for both new employees and franchisees.
The training is possible online, at your main branch, or a designated training venue. Moreover, it can last anything from a few days to a few weeks. That is for you to decide.
Your goal in executing the training strategy should be to impart your brand’s guiding principles, philosophy, mission, and vision to the new franchisees.
Moreover, throughout this article, we have given a concise overview of all the fundamental information that you need to be aware of to give a franchise of your restaurant in India.
Advantages Of How To Franchise Your Restaurant Business From Mumbai To Other Cities In India
While we all are aware that franchising your business in India comes with several benefits, here are a few of them you should be aware of.
- Enhances increased market reach: When you expand to other locations, you have the opportunity to enter new markets. This will help attract a bigger number of customers. This can greatly boost both the visibility of your brand and the income potential.
- Helps diversify your customer base: The demographic information and cultural preferences of various cities are quite different from one another. Expanding to other places allows you to satisfy a wide range of customers’ likes and preferences. This helps you to broaden your consumer base.
- Expand your brand’s visibility: Growing your business into more locations can help you get greater recognition of your brand on a national scale. When your brand becomes well-known in a variety of regions, it has the potential to position itself as a name that is trustworthy and reliable.
- Economies of scale: With the ability to purchase in bulk, pool marketing resources, and consolidate operations, you may be able to take advantage of economies of scale. In the long run, this can help cut expenses and boost profits.
- Stability of your business: The stability of a company might be enhanced by operating in more than one city. Having strong performance in other areas might help mitigate the impact of market downturns or local challenges in one place. This will make the business model more resilient overall.
- Adapt your business model to regional preferences: The eating patterns and preferred cuisines of various locations could vary. When you open a second location, you can tailor your menu to local preferences, increasing the likelihood that people will dine there.
- Increased profits: More customers means more opportunities to take advantage of economies of scale, which could lead to more revenues. Increased sales and better financial results are possible outcomes of a well-executed expansion plan.
- Competitive edge over local competitors: Having a chain that operates in multiple cities can provide you with a competitive advantage. This is possible over smaller and also local competitors. It enables you to portray your brand in the market as a dependable and well-established alternative that is available to consumers.
To Conclude,
Now we come to the end of our blog on how to franchise your restaurant business. If our blog is informative and with valuable insights feel free to fill out the franchise expansion form. Our franchise experts will reach out to you on a one-on-one call to give your journey a start right away.
