The meteoric rise of Haldiram’s from a little family-run confectionery in Bikaner to a worldwide food and beverage behemoth delivered a powerful message: Indian flavours are loved by people all over the world. A similar story unfolds at Saravana Bhavan, a once-modest eatery in Chennai selling genuine dosas and filter coffee that has expanded to over 20 nations. Rather than just providing ideas, this serves as a road map for modern Indian restaurant business operators.
Tier-2 and tier-3 cities, as well as countries abroad, are now playing host to Indian restaurant chains. The timing is perfect for franchising, what with the rise of eating-out, the convenience of delivery services, and the unprecedented interest in Indian food around the world.
Read this article to find out why franchising is the best way for Indian restaurant owners to scale their business, what famous companies like Haldiram’s and Saravana Bhavan have done it, and how you can do it too.
The Market Pulse: Why the Indian restaurant business is growing so quickly
By 2028, the forecast calls for the Indian food service sector to surpass ₹7.5 lakh crore. The most rapid expansion, at 20% CAGR, is occurring in the organised market, which includes franchises and chain restaurants. Several changes in the market are driving this trend:
- Restaurant dinners are becoming more affordable for wealthy city inhabitants.
- The Spread of Indian Food Around the World: From Dubai to New York, Indian food has gone from “exotic” to popular.
- The tech-enabled delivery ecosystem is allowing even localised firms to reach a wider audience through platforms like Swiggy, Zomato, and ONDC.
- Untapped growth zones exist due to the Tier-2 and Tier-3 appetites of smaller communities, who desire comparable dining experiences as metros.
- Consumers are looking for regional, authentic, and wellness-focused Indian cuisines.
In a nutshell, both local demand and international interest are shaping the chance for Indian restaurants to expand their businesses.
Haldiram’s: The Sweet and Savoury Empire Analysis
The year 1937 marked the beginning of everything with a small bhujia shop known as Haldiram’s. Its current capitalisation is in the multi-billion dollar range, and it runs stores, restaurants, and fast-moving consumer goods packaged goods. What is the key? Standardisation, franchising, and diversification.
Growth Principles from Haldiram’s Business:
- Multiple-Format Approach – They generated a lot of money from packaged items, fast food joints, and casual dining establishments.
- By forming partnerships with other franchises, businesses were able to quickly expand their operations without having to invest heavily in new stores.
- Advertising Indian snacks as a global aspirational brand with a global presence, aiming at the Indian diaspora.
- Good Taste Standardised recipes and careful supply chains ensure consistency across all sites.
In addition to being scalable and successful on a worldwide scale, Haldiram’s demonstrates to Indian restaurant owners that franchising Indian food is possible.
A look into of Saravana Bhavan, a prominent South Indian international establishment
There are already Saravana Bhavan restaurants throughout the United States, the United Kingdom, the Middle East, Singapore, and other countries, expanding from its 1980s origins in Chennai. It was different from Haldiram’s in that it served only genuine South Indian cuisine.
Saravana Bhavan’s Expansion Lessons:
- Speciality Positioning—Refrained from watering down the brand by concentrating on genuine vegetarian South Indian cuisine.
- Attracting expats and residents alike who are looking for real Indian flavors—a global phenomenon.
- A franchise-led global growth strategy using affiliates overseas for low-risk expansion.
- Operational Discipline: Strict regulation of all ingredients, employee education, and production processes.
Thus, Saravana Bhavan exemplifies the successful global expansion of a regional food brand without compromising its uniqueness.
A Guide for Businesses Looking to Franchise Their Restaurant Business
Using the examples set by Haldiram and Saravana Bhavan, here is how to launch your own expansion project:
Enhance the DNA of Your Brand
Position yourself in a distinct way. Do you provide real North Indian thalis? Indian contemporary music? Focus on a specific area? Attracting franchisees requires a memorable brand story.
Make All Recipes and Processes Standard
Consistency is key to the success of a franchise. Keep records of recipes, inventory systems, and procedures. Make a training program that anyone can follow.
Create Models for Franchising
Choose a format: fast food, fine dining, express counters, or foreign. A variety of models appeal to a wide range of investors.
Construct a Robust Franchise Option
Provide transparent agreements, marketing, training, and supply chain assistance, and ROI frameworks that are easy to understand.
Utilise Technology
Tech integration lowers risk and assures consistency, whether it’s cloud kitchens for distribution or centralised kitchens for supply chain.
Promote Your Franchise
Make use of online resources, franchise expos, and food and beverage investor groups. Emphasise indicators for consumer demand and success stories.
Experiment in Tier-2/International Vendors
Expand in modest increments first, and then scale internationally. When you do well in regional cities, it usually gives you the confidence to go global.
Why Franchising Is the Most Effective Approach for Expanding an Indian Restaurant Business
Opening more locations of a restaurant chain requires a lot of money and comes with a certain amount of risk. In contrast, franchising provides:
- More locations in more cities in less time means faster market penetration.
- Franchisees share in the initial investment, which eases their financial burden.
- Franchise partners have a deep understanding of how consumers behave in their specific area.
- Brand Loyalty: Growing a business’s reach increases its credibility, which wins over loyal customers.
- Franchise fees and royalties bolster the brand’s bottom line.
Thus, Franchising is a great way for even well-established businesses to grow, such as Bikanervala, Sagar Ratna, and Kailash Parbat.
Future Trends in Indian Restaurant Franchising
These major trends should be considered by business owners who are thinking about expanding their Indian restaurant businesses:
- Hyperlocal foods are becoming national trademarks, such as Rajasthani thalis and Chettinad chicken, through regional food franchises.
- Fusion with Contemporary Indian Ideas — Innovative products that combine street food with a contemporary presentation are becoming popular among millennials.
- Tech Integration – AI-powered demand forecasting, cloud-based kitchens, and insights powered by point-of-sale systems.
- Sustainability-New age customers are drawn to eco-friendly packaging and plant-based menu items.
- Global Footprints—Indian cuisine franchises that target the diaspora continue to thrive in countries like the United Arab Emirates, the United Kingdom, and Singapore.
These tendencies show that franchising your Indian restaurant brand is a smart move right now.
Before you expand, look out for these obstacles:
- Keeping All Retail Locations Uniform
- Locating Trustworthy Franchise Affiliates
- Managing the Supply Chain in More Compact Urban Areas
- Preserving the Originality of International Cuisines through Menu Adaptation
- Managing Expansion while Preserving Identity
Moreover, You can lay the groundwork for long-term success by planning ahead for these.
In conclusion, your restaurant will be the next big franchise story.
Restaurants in India are riding an expansion tsunami that shows no signs of abating. The world is prepared to welcome further Indian cuisine brands, thanks to the meteoric rise of thali brands from regional chains to national chains and the widespread interest in Indian flavours around the world.
There should be no reason for your restaurant brand to not achieve the same level of success as Haldiram’s and Saravana Bhavan. After all, they went from selling bhujias to a global empire and dosas to a household name in New Jersey, respectively.
It is entirely possible for your restaurant to become the next Indian cuisine behemoth influencing the world’s taste buds with the correct business strategy, operational discipline, and market timing.
Is opening a franchise a possibility for your restaurant? Here at Sparkleminds, we are experts in assisting Indian restaurant entrepreneurs in developing strong franchise models, finding the correct investors, and expanding their businesses throughout India and beyond.
