How Dominos Franchise Got It Right In India. Adapting To Food Franchising In India. - February 12, 2012 by baeor

Pizza For Thought

Jubilant Foodworks has got us hooked on to pizzas. Next step: donuts

It’s 9.30 am, and the shutters are up at a Domino’s Pizza outlet in Noida’s Sector 110. As the floors are mopped clean, a team of eight workers shouts in chorus: “Who are we? Domino’s Pizza. What are we? No. 1. What’s our goal? Sell more Pizzas, have more fun.” It is not a patch on the All Blacks Haka, but the passion is right there. Outside, two dozen Domino delivery bikes are lined; they face off with the Pizza Hut nearby. At 10.55 am, the first order trickles in; it is not your typical “pizza consuming” time for the country. But over the past 15 years, Dominos has altered the way India consumes pizzas.

The mid-1990s saw Domino’s, McDonald’s and Pizza Hut walk in. Says Ajay Kaul, CEO, Jubilant Foodworks, which operates Domino’s Pizza in India: “Pizza was considered a snack by many consumers… out here, there was no organised pizza or burger company.” Jubilant roped in AC Nielsen. “The first thing we realised was the consumer didn’t consider pizzas and burgers as an alternative to daal-roti even though 70 per cent of the consumption was happening at dinner or lunch time.” Dominos pushed hard. “In 2004, it came out with a campaign called ‘Hungry kya’. It signalled pizza as a fulfilling meal”. It paid off, and pizzas were out of the alcove.

In 2010, Domino’s sold 35 million pizzas, up from 21.74 million a year ago, and 8.99 million in 2007. The Bhartia brothers — Hari and Shyam — promoters of the -billion Jubilant Bhartia Group, hit pay dirt with the master franchisee rights for Domino’s in India, Sri Lanka, Bangladesh and Nepal they bagged in 1996. In 2010, Jubilant became the first food and beverage (F&B) company in the country to go public with a Rs 392-crore initial float. In January this year, it teamed up with Dunkin’ Donuts (DD); the first store is expected to open by mid-2012. The Bhartias hope to do an encore. “They (DD) have a large portfolio of drinks and savories. India is mature enough to accept the product range,” says Hari Bhatia. His brother, Shyam, adds: “We took 15 years before bringing in a second brand. The idea was to bring success to Domino’s, make it pan-India and then move towards other brands.”

Hunger For Growth
Technopak Consultants puts India’s overall food services retail market at Rs 36,400 crore (both organised and unorganised). Year-on-year growth is seen at 11-12 per cent, and by 2015, it will be Rs 55,000 crore. Says Pratichee Kapoor, associate director, F&B, at Technopak: “Five years ago, there were not many quality suppliers, and out-of-home consumption was once or twice a week, more so as a family outing. But the dynamics of demand have changed dramatically.” Technopak estimates that the organised market will grow at 25-27 per cent a year to reach Rs 15,000 crore in 2014-15.

Domino’s wants to get more than a foot in the door. It has a 90-plus cover outlet in Bhopal. Globally, Domino’s thrives on home delivery; about 30 per cent is dine-in; while in India, it is a 50:50 split. But you have be smart to get your costs right. In Delhi, the average seating would be about 30, but in cities such as Bangalore or Pune, where real estate costs are lower, it would be 60. Domino’s has also built upon a side-meal portfolio; it accounts for a sizeable 15-20 per cent of sales — a mix of pastas, chicken wings and desserts. It also stands out in sharp contrast to competition — share of the pizza delivery space stands close to 70 per cent, while in the overall pizza market, it is 50 per cent.

A quick comparison with competition gives a sense of Domino’s scale of operations. Papa John’s has 30 outlets; it plans to add another 30 by fiscal-end. Chicago’s Pizza remains a niche take-away format player; Sbarro (with 13 outlets) premium-priced pizza slices didn’t appeal to the Indian market; it has seen a few closures over the past few months. Yum Brands’ Pizza Hut, with its dine-in and delivery format, has 124 and 59 outlets, respectively. Kaul keeps a close eye: “Any company that goes back and forth is not sure where it belongs. The consumer will get confused if you offer 50 other things.” He takes a dig at Pizza Hut.

“In FY06, Domino’s operated 106 stores, and has today touched 400 leaving competition far behind. Over the next two years, we anticipate the number to touch 540 easily,” says Sunil Sehwani, analyst at GEPL Capital.

Even though international chains have shown growth, Domino’s has expanded rapidly, “If you look at chains, such as Mc Donald’s Pizza Hut and even KFC, same-store growth remains equally strong, but expansion of Domino’s has been more aggressive,” says Deepak Laxmi, director (research) at Mumbai-based Mape Securities.

Source: Suneera Tandon, Business World.

Tags: Dominos Franchise, Pizza Hut Franchise, McDonalds Franchise, Pizza Franchise, Fast Food Franchise, Food Franchises In India, Dunkin Donuts Franchise, Indian Food Industry, Papa Johns Franchise,

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Take Your Kids to Work with You When You a Goddard School Franchise - February 5, 2012 by baeor

When you have young kids still at home which are too young to start school, but need to work, then you need to find a day care. It often can be difficult to drop off your kids and leave them with someone else all day while you work. One option you could explore is looking into getting your own day care franchise, like Goddard School. Instead of dropping your kids off, you could take them to work with you.

Goddard School is a Childcare and Education Business Opportunity

Starting your own business gives you the freedom to work the hours you desire while still being able to enjoy time with your family. There are many children’s services business opportunities available when you like working with children. You can look at franchising your own childcare and education business, like Goddard School. You can learn more about these and other franchise business opportunities here at Franchise Solutions.

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Starbucks Does Not Offer Any Starbucks Franchise Opportunities - February 2, 2012 by baeor

Most people might think that Starbucks offers franchise opportunities and that is why they have grown so large so fast. However, that is not the case as there are no Starbucks franchise opportunities available from the company. Instead the company has either purchased other existing locations or entered into agreements to place locations within other stores. Even though you cannot franchise a Starbucks, there are other coffee and beverage business opportunities available.

Starbucks Franchise Locations Non-Existent but Other Franchises Are Available

The coffee and specialty beverages market is one which has expanded in recent years due to Starbucks tapping into that market before other companies. While Starbucks franchise locations are non-existent, it does not mean that you cannot get a piece of this market with your own beverage business. You can discover all the current coffee, coffee shop and beverage franchises available when you visit our website, here at Franchise Solutions.

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Traditional South Indian Food Outlets Take To Quick Serve, Modern Fast Food Darshini Formats. Darshini Franchise Gets Extremely Profitable. - February 1, 2012 by baeor

At 8am every day, Bangalore-based businessman Venkatesh H. stands outside South Thindies sipping his first cup of coffee, dressed in shorts and a T-shirt. The coffee is part of a daily ritual that comes right after his morning walk.

South Thindies, a self-service eatery in south Bangalore, sells on an average around 5,500 “half-coffees” a day. A “half-coffee” is 80ml filter coffee sold at Rs. 7 (the equivalent of Mumbai’s cutting chai) for those who need a quick caffeine fix. Venkatesh is just one of several customers who spill out on the pavement in front of the crowded snack outlet.

“It’s the next step to the by-two coffee, where one coffee is split between two tumblers for two people,” explains B.M. Dhananjay, who started the place in 2009. This new kid on the block is among the city’s 5,000-odd restaurants, referred to by the generic popular name of a Darshini.

These small eateries offer south Indian fare at affordable prices over the counter in minutes. Customers can eat standing at tall tables in the front half of the eatery. The idea of serving “half coffees” came from R. Prabhakar, a distant relative of Dhananjay, who is also credited with having come up with the Darshini concept.

Retaining trained staff is a challenge for Darshinis Photographs by Aniruddha Chowdhury/Mint

After years of travelling the world, Prabhakar helped start a restaurant called Café Darshini, the first joint of its kind with an open kitchen and food-grade steel, in 1987. Soon after, he shared the concept with another relative, G. Janardhan, who used to run a south Indian restaurant in Jayanagar called Pavithra. Sold on the idea, Janardhan opened Upahar Darshini (UD) in Gandhi Bazaar in Basavanagudi in 1989.

UD’s immense popularity started a fad, with several hundred eateries mushrooming across the city, copying the style of functioning and the name—Darshini.

“At that time, fast food was the big thing everywhere, so the idea was waiting for implementation in India,” says Prabhakar. It was a concept that changed the way middle-class Bangalore ate.

Today, after the initial burst of popularity, a relatively smaller number of outlets have survived. They’ve had to cope with changes in demography and eating habits, and economic obstacles. A concept that will beat the Darshinis as an on-the-go dining option is yet to emerge.

Most Darshini customers pledge their loyalty to the outlet whose coffee they prefer

The trendsetting self-service outlet UD was 900 sq. ft in size—400 sq. ft was used for the open kitchen space and the rest for a few tall tables for customers to stand and eat at. Since the area was already teeming with old-time eateries such as Vidhyarthi Bhavan and Brahmin’s Coffee Bar, which also served the usual breakfast and tiffin options such as idlis and dosas, UD could have been a me-too joint. But residents rushed in, drawn in like bees to honey.

“Technically, Brahmin’s Coffee Bar was the first to introduce the idea of self-service,” says Prabahkar, of the 47-year-old restaurant. But when Bangaloreans saw a sparkling clean open kitchen at UD that offered sterilized spoons which were stacked in boiling water, a place that promised 100% transparency and hygiene, they took to it. Exhaust fans and kitchen equipment, until then seen only at five-star hotels, were now on display at the Darshini down the road.

Images of everything on the menu were tastefully shot and displayed, much like at McDonald’s outlets across the world, and the service was as quick, if not faster, than any multinational fast-food outlet. Finicky customers could also ensure that their coffee was tossed around enough for the right amount of froth or, in draught beer terms, “head” on the surface.

Adiga’s dosa is a popular choice at all their outlets

“We weren’t serving prepackaged food, it was fresh breakfast that people ate at home. Only, we offered it faster and tastier,” says Janardhan. The pricing was an added bonus. “At a time when other restaurants were serving coffee at Rs. 2 , I sold it at Rs. 1,” says Janardhan.

The idea caught on quickly: The high turnover, lower real-estate investment and smaller staff meant the food was inexpensive, and hygienic. By 2006, Bangalore had around 5,000 Darshinis, with high concentrations in south and north Bangalore, which have a large, traditionally vegetarian population. Conservative in their outlook, these parts of Bangalore were otherwise wary of hygiene standards at hotels.

Among the first to grab the baton from UD was Vasudev Adiga, who opened his first Darshini less than a kilometre from UD in 1993, naming it Adiga’s. Son of K.V. Nageshwar Adiga, who started what can still be called the city’s favourite idli outlet, Brahmin’s Coffee Bar, the business was not new to the young Adiga—but he had bigger plans than just running a single outlet.

Mornings are busy in the Upahar Darshini kitchen.

“I started the race, he grabbed the baton and is still running,” smiles Janardhan. Adiga now has 15 branches across the city, three of which are franchises, and plans to open many more on the highways that lead to Bangalore.

Seated at his new branch on MG Road, Adiga asks his employees to be quicker. Not more than a month-old, the two-level restaurant, with self-service on the ground floor and dining area with seating on the first floor, is packed during lunch hour. “Adiga’s is now a brand,” he says, but surviving in the industry has not been easy. At the outset, Adiga priced his menu to compete with the thousands of other Darshinis in the city. Enjoying the edge that his brand has, he accepts that prices now are a tad above competition.

Bangalore grew quickly in the 1990s, with an influx of immigrants from all over the country as the city grew into a hub for information technology. Tastes were bound to change, and called for innovation. The Darshinis began to offer this through menus comprising north Indian food.

“It was important to serve to a large number of immigrants and many of them at the time were north Indian,” says Prabhakar, adding that suddenly, everybody seemed willing to move out of the comfort zones of their Udipi recipes to try roti-dal-paneer. The trend is said to have been started by the Shanthi Sagar chain, which also introduced the concept of having two sections, one with a seating space and the other self-service.

In 2009, in the midst of a global slowdown, more than 1,000 of the small, independent eateries shut down, unable to cope with the rising real estate prices and labour availability issues. “Even today, our biggest challenge is to keep our staff with us,” says Adiga. “I might hire a cleaner today, and he won’t turn up the next day because another place offers him more,” he says—but adds that the city still has the space and appetite for more outlets.

Tags: south thindies, darshini franchise, UD Franchise, Upahar Darshini Franchise, vidhyarthi Bhavan, Brahmins Franchise, Brahmins Coffee Bar, adigas franchise, vasudev adigas, shanti sagar franchise.

Source: Live Mint, Jan 27 2012.

This Blog/Information/Press Release/Information has been posted by Sparkleminds, A Franchise Consulting Company Based At Bangalore, India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.We specialize in Food Franchising In India, amongst our various franchise verticals, providing assistance to the franchise industry at large.Visit www.sparkleminds.com for more details.

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Casual Dining The Best Bet In The Indian Food Industry Franchise. - January 28, 2012 by baeor

Jay Singh started with a chain of Hard Rock Cafés, a restaurant brand today synonymous with music memorabilia. He then invested in premium lounge bars such as Shiro and Mai Tai (to be launched soon). He recently introduced Indian foodies to America’s popular California Pizza Kitchen. In the pipeline are plans to bring American Polynesian chain Trader Vic’s and a chain of high-end Japanese restaurants. He surely is satiating the global Indian’s taste buds.

“The restaurant trade in India is growing exceedingly fast. There will be a few strong groups that will become national players and we are well-positioned to be among them,” says the upbeat executive director and co-founder of JSM Corporation Pvt Ltd, which is a master franchisee for the restaurant brands in India.

Singh has no doubts that the casual dining business in India is the best bet for an F&B entrepreneur. Taking stock of his brands’ performance, he says Hard Rock Café has done well in every market that it has a presence in India. The first café was launched in Bangalore in 2006, followed by Mumbai, Delhi, Pune and Hyerabad, and Singh has planned two more location launches in 2012.

Shiro, an in-house premium lounge bar brand offering Oriental cuisine and exotic drinks, started in Mumbai two years ago and has since moved on to Bangalore and New Delhi. But Singh is cautious about Shiro’s expansion plans. “We are very selective about Shiro’s growth. This year, we are starting one each in Nigeria and Las Vegas,” he points out.

It’s clear that JSM GGC, the joint venture which runs these restaurants, is not keen on churning them out in large numbers. Even in the group’s pizza offering, the California Pizza Kitchen (CPK) chain, Singh intends to open five or six outlets each year.

The American chain, unlike its other well-known players in the business (Pizza Hut and Domino’s) will remain a casual dining restaurant chain offering soups, salads, pizzas and pastas made ‘onsite’ and with ‘fresh ingredients,’ says Singh, making the distinction between CPK and other pizza chains very clear.

Apart from freshness, CPK’s other claim to fame is its celebrity patron guests: Hollywood diva Cameron Diaz or teen sensation Miley Cyrus. While former US President Bill Clinton frequents CPK for his favourite pizza, an outlet in Maryland played host to the first family when President Obama’s daughter celebrated her ninth birthday.

“As a brand proposition, we are unique in India. Apart from the two popular brands, there was no third alternative and now you have a very different proposition. We are far more adventurous than other brands but we will not expand like other brands,” says Singh.

With four CPKs in the country and five more next year, Singh is already looking forward to introducing another restaurant brand to Indian foodies: Trader Vic’s, a Polynesian restaurant chain, and Mai Tai, a line of premium lounge bars. While he’s in the process of tying up with a high-end Japanese restaurant brand with the first of the restaurants to be launched in Mumbai soon, he says Mexican food is also doing well in India.

There’s no doubt that Singh is treading the right path in the food industry. Studies show that Indians, on an average, eat out once in two weeks, while in Jakarta it’s 44 meals a month and in Hong Kong it’s one meal a day. “We have a long way to go in casual dining,” he says.

While there’s no stopping the fast-paced growth of the estimated .3-billion Indian food service industry, growing at about 30 per cent annually, Singh is more worried about the talent needed to run the industry than the rising commodity prices.

“As the country grows, our purchasing power will increase. Therefore our bottom lines may not be impacted, although I wish we could manage our costs better,” he says.

But the challenge staring the industry would be scarcity of skilled talent, he points out. “One has to invest a lot of time and money in training and upgrading skills.” JSM GGC now employs 1,350 people and would double the number next year. There are few training schools and companies have to set up a pretty strong internal training system, is his advice.

Singh is surprisingly averse to experimenting with different formats for food retailing. “I’m not comfortable with the smaller format space.” He’s also not enthused by retailers’ new pet spaces: airports and business parks. “In Hyderabad, we opened an outlet in the airport and shut it and are not very keen on it now. Of course, it’s not an experience that defines airport retail,” he clarifies.

On business and IT parks, he sees the danger of his outlets turning into small niche places. “We have got so much potential for us in traditional locations, so many cities in India. We don’t have to be looking for these kinds of alternative spaces.”

Source: Anjali Prayag, Hindu Business Line, 10 Jan 2012.

Tags:Hard Rock Cafe Franchise, Shiro Franchise, Mai Tai Franchise, CPK Franchise, Trader Vics Franchise, JSM Corporation,

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Keep Your Business Open All Year with an Ice Cream Franchise - January 26, 2012 by baeor

If you want to get into one of the hottest franchise industries around, look no further than your neighborhood ice cream shop. With an ice cream franchise, you can be a part of your community and serve your customers all year long. If you have a mobile ice cream franchise, you can drive around and serve your community in the summer when kids and families are out at the park or other local hangouts. Or, you can open a franchise for a popular ice cream chain and have a store location. Either way, people love ice cream even when the weather turns cold.

Which Businesses Have an Ice Cream Franchise Available?

If you are interested in opening an ice cream franchise, begin your search with Franchise Solutions. There you will find information on available franchises, as well as start up costs and descriptions of companies. Connect with others in the franchising business to get any questions you have answered before investing your money.

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A Subway Franchise for Sale is an Affordable Business Opportunity - January 23, 2012 by baeor

Opening a new fast food restaurant requires that you figure out what type of restaurant you want to open as well as find an ideal location. An affordable opportunity is a Subway franchise for sale in your area. Subway provides a healthy alternative to other fast food restaurants while offering a fast and convenient way to get a quick meal. You will find that there all different options for opening your Subway by having either a stand-alone store or placing the store inside an already established business.

Subway Provides Location Assistance for a Subway Franchise for Sale

When you purchase a Subway franchise for sale, by completing our ownership request form here at Franchise Solutions, you get assistance from Subway in selecting the location. When you are presented with several different options, you will want to consider several factors before making a decision. While you may be tempted to open your business in an area which has other restaurants and shopping centers, this may not be the best location due to the competition. There are plenty of other areas which have fewer competitors and a demand for this type of franchise which may offer you better earning potential.

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A Franchise Business is a Business Which You Purchase - January 17, 2012 by baeor

When you franchise a business, you are purchasing your own business. You will need to have upfront cash investment money available to begin the franchise application process. You will most likely also need to take out a small business loan in order to fully pay for the franchise. As part of your franchise agreement you will need to make regular payments to the parent company in return for being allowed to use their name, sell their products, and receive ongoing training and support.

A Franchise Business is Less Risky than a Brand New Venture

When you are looking for a less risky business venture than starting a business from the ground up, you should consider a franchise business, like those offered here at Franchise Solutions, instead. A franchise is a business which is already established and has been successful in other areas. When you open your own franchise you are helping to expand the growth of the parent company while getting to own and operate your own business.

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How to Buy a Franchise - January 12, 2012 by baeor

There are many people out there that are interested in buying a franchise, but are not quite sure how to take advantage of the opportunities presented to them. It is important to know how to buy a franchise, so you can be aware of all of the necessary steps beforehand. That way, the process will be faster and you can be on your way to owning a successful franchise. Search for articles online or advice from industry experts so you can be prepared for any situation. You can study a company’s past financial data and see a projected ROI, as well as what kind of capital you will need to get started as well.

Learn How to Buy a Franchise from Industry Experts

Those in the know will help you when you first research how to buy a franchise. It can be a daunting task to go into business, especially if you have little to no experience. It is important to get all of the help you can so your business venture ends as a success for you and your family. Visit Franchise Solutions today to learn more about franchises.

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Where to Find Franchise Opportunities in Your Area - January 9, 2012 by baeor

If you are looking to find a franchise to buy and manage locally, it will be difficult to find an opportunity unless you know where to go. Online listings of franchise opportunities will have postings for local franchises for sale, and will also offer insight into a number of industries that may have franchise openings. [...]
Franchise Opportunities Water Cooler

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