Globally, when we look at some of the successful brands, franchising has paved a way for their success story. From opening the first store in early 1990s in India, McDonald’s has taught the Indian market the whole concept of franchising and today home grown brands like Haldiram’s, Bikaneravla and Goli Vada Pav have entered more than 200 plus count in terms of their stores via franchising.
Also, many Indian brands have entered global markets looking at potential targets and catchment and doing great businesses in these markets. “Food and beverages business is not an easy business to make money with. It’s a very tough business to manage. So, anyone who is not experienced and is planning to enter this business needs to partner with people who are experienced,” shared Siegfried Nierhaus , Managing Director, Atlas Hospitality.
Getting the Right Partner
People started food business thinking it is trendy, fascinating but it is very hard to make money. Also, lately we have seen a lot of chefs wanted to take a franchise and they have failed as well, major reason was not the right partner with you in order to develop a successful business model. We are very passionate about food, service and staff but it need to make business sense and you need to calculate properly all your margins. “If you have developed a concept and you strongly believe that you are ready to franchise and you are not making at least 10 per cent NOP in your business for consecutive three years, don’t start franchising,” added Nierhaus.
Also, it is very important to look into the eyes of your partner if things are not going well. Franchise is a large subject. You need technology, product and supply, concept and design everything in place. “If any of you think franchising as a business you need to look at the franchisee and first thing first why somebody needs to invest in your business. As a franchisor you need to make sure that your margins are there and if you expand can your franchise partner make money out of it,” pointed Muhummed Ibrahim, Founder, Chaiiwala.
Commenting on the same, PraveshPandey, Director, BygBrewski Brewing Company said, “The relationship between a franchisor and a franchisee is like a marriage. Either there is bondage or a bonding. A good relationship can be when the partners think about each other. As a franchisor we need to ensure that there is a team which is working on ground with franchisee and always there to help them more as a relationship rather than a checklist or process.”
Hence, we can say that there is no denying that franchising allows restaurant owners and entrepreneurs to experience the freedom of working for themselves while enjoying the safeguards of a successful and establihed business model. But owning a franchise is more than the brand and the blueprint you need to put in equal effort to make the brand even more successful in new geographies and region.