Gaining franchise of an eatery

[Kilroyquasar]

Hello everyone!

a friend of mine living at Indore, has expressed his interest to apply for taking a franchise of an eatery (he's stuck on domino's; i had suggested to him 'rolls mania'). his areas of interest are Indore/Goa/Mumbai (in the order of preference). he needs to know more on the following lines:

1. initial franchisee-cost
2. whether arrangement of cooks would be done by the franchise
3. Monthly revenue distribution scheme
4. other employees

i went through a few pages via a google-search, but i bank my trust more on the suggestions i could get here out of the experience of our forum-members.
apart from the above points, please add any info you may want to from your side, like, options of any other eatery, precautions, etc.
i have no knowledge of this subject, and hence seek opinion here.
thanks!

 

[mpaspc]

IIRC Domino's does not offer franchises in india . ONLY jubliant foodworks can open domino's franchise . The amount of investment can be high especially in metro's Even if the Real estate part is rented .

I don't have a idea of Commercial Real estate prices in these but setting up a restaurant like domino's will require a handsome amount depending on the size . You can open a subway (http://www.subway.co.in/) in a bit upscale area's preferably near educational instituitions . It can be opened in an area of 400-500 Sq ft and investment will be around 15L + initial buffer for salaries ,rent , raw material etc .

 

[prateekS]

Also, I've heard kfcs cost around 40 lakhs to open.

Subway would be a good choice, only near an educational institution, hell you should think of opening it inside or near some big university with residential/non-residential students.

 

[Being.smart]

I dont think he will be able to get some like Domino's, Pizza hut and Mac.D, generally big companies had got hold of the license over major part of India, and when they find it good, they will open it.

I dont know about KFC, but i think the initial cost will be in the range of 1 crore or even more, leaving the property cost, also in eatery franchise you will hardly get 8-14% margin on the total revenue collection, so better decide accordingly.

It will be a much better idea to hire some experienced hotel manager, and open your own Bar+restro, you can easily bag commision in the range of 30-45%, also the initial cost will be much lower in the range of 40-60 lacs.

 

[mpaspc]

I dont think he will be able to get some like Domino's, Pizza hut and Mac.D, generally big companies had got hold of the license over major part of India, and when they find it good, they will open it.

I dont know about KFC, but i think the initial cost will be in the range of 1 crore or even more, leaving the property cost, also in eatery franchise you will hardly get 8-14% margin on the total revenue collection, so better decide accordingly.

It will be a much better idea to hire some experienced hotel manager, and open your own Bar+restro, you can easily bag commision in the range of 30-45%, also the initial cost will be much lower in the range of 40-60 lacs.

I don't want to admit it but @Being.smart is actually right , although i find the hiring the hotel manager part a bit weird(read : unsustainable ) .

 

[Kilroyquasar]

IIRC Domino's does not offer franchises in india . ONLY jubliant foodworks can open domino's franchise . The amount of investment can be high especially in metro's Even if the Real estate part is rented .

I don't have a idea of Commercial Real estate prices in these but setting up a restaurant like domino's will require a handsome amount depending on the size . You can open a subway (http://www.subway.co.in/) in a bit upscale area's preferably near educational instituitions . It can be opened in an area of 400-500 Sq ft and investment will be around 15L + initial buffer for salaries ,rent , raw material etc .

yes, its 'jubilant foodworks'.[DOUBLEPOST=1374344565][/DOUBLEPOST]thank you all for your suggestions! i have conveyed the same to my friend. not quite inspiring, but it is, what it is - reality!

 

[Punker]

well I talked to a guy in McDonald's and he said that they charge Rs.6000 per sq. ft. as their franchise fee and do interiors, provide machines and training for employees. Minimum requirement for MCD is 2000 sq. ft. and profit sharing is 80/20 (80% franchise holder and 20% MCD)

PS: I'm from Bhopal and can give you contact number for subway guy in Indore if you interested.

 

[prateekS]

AFAIK all McDonald's in mumbai are owned by Hardcastle restaurants pvt Ltd.

And as far as subway is concerned, their website says everything.

 

[Being.smart]

Ask your friend to open an Online Gaming Parlour

with all LAN Gaming, connectivity to world-wide servers, 3D gaming and Playstation move gaming

once i had planned to do so, but Reliance failed to provide a 15-20 Mbps dedicated connection to my home, due to which i had to drop the plan.

The Initial plan was of Reliance Gameplex + my own parlour

 

[raksrules]

@Kilroyquasar

Since the first preference is Indore, i suggest try contacting Infosys (yes the IT company, don't ask me for any contacts). They probably have or are going to open a campus there.
Infy usually have very big offices and many brands open their stores within the office premises. In Pune, we have Dominoes, Subway, Cafe Coffee Day, Bakers Basket (for cakes and pastries), Kwality Walls Swirls inside the premises. The rates offered within offices might be bit less than what it is outside (not always true). Like in Cafe Coffee day outside a Tropical Iceberg costs Rs 76 (+ taxes) while within campus CCD it is 39 Rs + taxes.
There are special rates for dominoes pizzas too.
But you have some sort of guaranteed footfalls due to the large employee population.

 

[Fenix]

Domino`s/Mcd`s require lots of moolah + you need to have good business acumen i.e they would give franchise to someone who already has experience in it. I did inquire once from them and in Chandigarh the cost of opening one was almost 70/80+. Subway/US PIZZA is the least expensive among these all.

 

[kippu]

http://www.franchiseindia.com/

enjoy

 

[Kilroyquasar]

thanks everyone!! i got much critical info here, all thanks to you. i would now like to request you all not to spend any more efforts on this to reply here, as my friend tells me that he is not going to pursue this anytime soon now. i have noted the one common suggestion, and that is, 'subway'.

well I talked to a guy in McDonald's and he said that they charge Rs.6000 per sq. ft. as their franchise fee and do interiors, provide machines and training for employees. Minimum requirement for MCD is 2000 sq. ft. and profit sharing is 80/20 (80% franchise holder and 20% MCD)

PS: I'm from Bhopal and can give you contact number for subway guy in Indore if you interested.

thanks a lot! much appreciated.

@Kilroyquasar

Since the first preference is Indore, i suggest try contacting Infosys (yes the IT company, don't ask me for any contacts). They probably have or are going to open a campus there.
Infy usually have very big offices and many brands open their stores within the office premises. In Pune, we have Dominoes, Subway, Cafe Coffee Day, Bakers Basket (for cakes and pastries), Kwality Walls Swirls inside the premises. The rates offered within offices might be bit less than what it is outside (not always true). Like in Cafe Coffee day outside a Tropical Iceberg costs Rs 76 (+ taxes) while within campus CCD it is 39 Rs + taxes.
There are special rates for dominoes pizzas too.
But you have some sort of guaranteed footfalls due to the large employee population.

thanks for telling that! another friend of mine had opened an outlet of 'rolls mania' at some IT-park in Pune.