Business Prospects with the Top Fast Food Chains in India

Business Prospects with the Top Fast Food Chains in India
  • Opening Intro -

    Out of all franchises in India, the ones which make the largest profit margins are fast food franchises.

    This is largely due to the tremendous love Indians have for food and their willingness to experiment with different cuisines.

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North Indians, for example, love South Indian food, and it is well-documented that North Indian franchises earn great profits in South India. American, Italian and Chinese foods have also really done well in India besides the classic Indian fast food.

The last two decades have really seen a boom in fast food culture and the number of franchises in the country. The demand for items like doughnuts, pasta, burgers, pizza and so on is so huge that despite the huge level of competition all around, you would rarely come across a fast food franchise running into a loss. This is amazing, as it allows franchises all over the world to join the bandwagon and invest in India to make huge profits.

So, Which Franchise Do I Choose?

If you are looking to start a franchise business, there are a lot of big names around eagerly waiting for your business. Choosing one of them is a big step, so you should really think long and hard before you commit to it.

Two very popular franchises, Domino’s and McDonald’s, do not offer their business franchise but do allow you to rent spaces for their restaurants, through which you can make some good money.

  • McDonald’s:
    The largest fast-food chain in the entire world, McDonald’s is operated by a franchise, affiliates or even the corporation itself. It generates revenues through fees paid by franchisees or affiliates and royalties. They are a highly adaptable brand. For example, the McDonald’s India menu is fairly different from the menu in America to make room for the cultural and regional preferences. Public favorites include burgers, desserts, soft drinks etc.
  • Domino’s:
    Domino’s was a part of the very first wave of international food chains coming to India, around 1996. The menu features a wide array of pizzas besides an assortment of tasty fast food. It is a household name in India and is doing really well.

Top Franchises in India

  • KFC:
    KFC is a franchise which offers a really high ROI, but will require you to put in a high investment as well, of around 1 crore, exclusive of a 4% royalty fee on their net sales. The ROI appears within two years, which is an indicator of the amount of business they do. It is tremendously popular among non-vegetarians in India, and you can learn more about it at any franchise info website.
  • Pizza Hut:
    Pizza hut is the largest and the very best pizza franchise in the country. Known for taste, quality, and its warm, comforting ambiance, Pizza Hut has endeared itself to thousands of Indians over the years. You will require an up-front investment of 2 crores and another franchise fee of 15 lakh rupees to start a franchise of theirs, with a 6% sales royalty.
  • Subway:
    One of the world’s largest franchises in fast food, Subway is growing rapidly in India. Subway serves light, relatively healthy fast food and does not serve pork or beef in India, which has led to it being widely accepted by the Indian consumers. You only need an investment of around 30 lakh to start a subway restaurant, and a one-time franchising fee of 4.5 lakh for the first franchise and 2.25 for the second. They also have some fantastic advertising schemes which drive up the profits for each of their franchisees.

Conclusion

Each of these franchises has made a huge name for it and is doing really well in the market; you really can’t go wrong with any of them. Just make sure you make an informed decision having considered your budget and all related variables.

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Last update on 2017-05-26 / Affiliate links / Images from Amazon Product Advertising API

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