Edelweiss estimates that while the entire food services market plunged 82 percent year-on-year in the first half of FY21, the contraction that organized chains such as Domino's, Burger King, McDonald's (West & South) reported was restricted to 45 percent.
The focus should be on increasing yield per square foot of space and ensuring that rental cost is kept as minimal as possible. Engineering the menu will ensure that high-selling food products are focused upon.
Enterprises in the hospitality sector should work with the best technical service providers to maintain a foolproof digital transformational plan for the future.?
In a typical revenue share model, the landlord gets 80 percent of market rental or 15 to 18 percent of the top line, which according to many restaurateurs are higher.
The rat-race has been a prolonged move, yet many succeeded to stand out. And the only reason they stood out was because they chose smart work instead of the dominating hard-work-culture.
With the business potential of tier-2 cities getting huge as much as that of big cities, turning investments into profits are way easier due to lower overheads.
Labour costs account for one of the highest expenses, amounting to approximately 45 percent of the total operating costs and in some cases, it may be as high as 75 percent.