Food and family are possibly India’s two biggest obsessions. Needless to say, Indians are extremely impassioned about food to the extent that food is not just limited to feasting for them but also attracts focus while fasting. This is why a blend of food and business has come out to be a successful model over and again in Indian market. Those who intend to make a grade in the food industry should consider franchising as the first choice. In general, franchising is considered a better model to invest rather than starting your own business. If you intend to start your own business venture by means of franchising, the food and beverage sector can provide you with unprecedented success. The present blog lists down the major reasons why food franchising works well in India and why you must consider this sector to earn lucratively.
1. Evergreen Sector:
A major reason why food franchises are so well accepted and successful is that people will always need to eat. Even during recession when people watch what they spend, they don’t mind paying a visit to food court and spend for relishing a toothsome meal once in a week or fortnight. It may be possible that economic slowdown can affect the frequency of consumer’s habit of eating out. However, it is unlikely that they would completely give it up. Also, some demographic groups particularly millennials aren’t confident in their cooking skills when compared to other generations and that’s why, they would prefer purchasing food from restaurants. Also, in an era of technology, the cuisines of different cultures have gotten platform to globalize itself. When you open any social media site or even switch to cookery channels on televisions, you come across myriads of food items and dishes which generally occupy a deep seat in your mind. So, you can’t think of anything else but having a bite of the food at least once. Moreover, during pandemic some food franchise companies like Domino’s maintained their sales by advertising their hygienic concerns among public. In a nutshell, the demand for food and franchise is always off the charts.
2. Indian Consumers are willing to Experiment:
India enjoys diversity on multiple grounds, food culture being one of them. The taste buds of Indians are habituated of tasting different flavors owing to different nuances in different food cuisines of India. Indians love and take pride in their food unconditionally. However, while relishing the Indian food they are also open to experiment with international cuisines. That’s why fusion food has been popular and well accepted among Indians which gives opportunities to many innovative brands to grow well in the Indian market.
Thanks to globalization, more international brands are establishing their franchise and serving customers in India. At present, innumerable iconic international food brands have become a part of Indian food culture. Menu customization and extensive market study can help you get acceptance in Indian market.
4. More Disposable Income:
Owing to higher disposable income, more and more consumers are driving to spend on food not just as a necessity but as a luxury as well. Emerging middle-class, growth of sub-urban areas and growing number of millennials and Gen Z are facilitating more sales in the Food and Beverage. That’s why food franchising has been delivering promising outcomes to various types of franchisees. Thanks to growing disposable income and abundance of the workplace, the industry has taken off quite well.
Most people opening a restaurant whether an independent one or food franchise would need to need a bank loan to get their business up and running. Getting a bank loan is not easy. However, because of the proven track record and level of support, most banks and lending institutions look at franchises as safer investments than start-up businesses. When you have a solid business plan that has already shown desirable results, it is easier to get banks to lend capital to cover the often-considerable licensing fees and equipment costs.
6. Reduced Risk:
Whenever you think of franchises, most likely the names that come up into your head are all food franchises. This established brand recognition can benefit your franchise to a great extent when you start out. When you start an independent business, you would need years to build up customer base and strong reputation. However, franchise business brings with it a benefit of built-in customer base and a strong reputation. A sense of familiarity always attracts and comforts the customers, thanks to which most customers choose to eat at a food franchise instead of newly opened independent restaurant start-up. About 80% of start-up businesses fail because of the unpredictable nature of public tastes. Since franchises have proven themselves over a period of time, the risk of business failure reduces in it.
Choosing a food franchise offers you in-depth training, support and proven practices to run a successful franchise unit. Training, software systems, phone and email support- even advertising campaigns are all generally provided by franchisor and come from a proven track record. This becomes all the more important and beneficial if you’re a first-time business owner. You will get training on how to run the food franchise, hire employees and advertise. The most comforting thing about choosing a food franchise is that you are not plunging into the business world all alone. You will be offered plenty of tool and resources such as operating systems and manuals, site selection and design, marketing and advertising plans, equipment and supply cost, etc.
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My name Is Dhinal Baxi and I am from Ahmedabad, Gujarat, India. I am a founder of franchise Insider . As a founder, we have served hundreds of clients. My experience from the financial sector has helped them to achieve great success in the franchise world. Franchise Insider is one of the leading franchise advisory and consulting company.