How scalable is restaurant franchise in India – Iyyappan Talks

How scalable is restaurant franchise in India – Iyyappan  Rajendran Talks
There is no doubt that India is a land of foods that are diverse as much as its cultures and traditions. Every state and region in India has its own share of delicacies and cuisines that are world famous. Moreover, Indians’ never ending love for different varieties of food has made food industry the obvious choice for investors, innovative entrepreneurs and business owners and aspiring franchisees. Think of any better way than a restaurant or café franchise to make a foray, and make big in the blooming food sector. Strategizer is the leading franchise business consultancy in Chennai for restaurants and cafés. If you’re looking for the best franchise business in madurai and Tamilnadu, then myself Iyappan Rajendran, Founder of Strategizer, is at your disposal. Strategizer is the Best franchise consultant in Chennai.

Today, many leading global food brands, including Subway, McDonald’s, Dominos and Baskin Robbins, already have had a strong presence in India through a wide franchise network. India also proved as the right market for these brands that expanded rapidly taking the franchise route. As per a report by KPMG, the F & B sector increased at 9% during 2017, which was 5% in 2012, with about 27,000 franchised outlets making their way into the length and breadth of the country. Many of the franchise business opportunities available in the food sector.


With restaurant franchising gaining steam and investment from global investors to support, the industry is slated to register a healthy growth in the immediate future. If the latest report by Francorp is anything to go by, the Indian franchise industry is expected to hit an annual growth rate of 30%. The market size of the total franchising in 2020 is believed to be $24billion, and is slated to achieve the $35bn mark in future.

How important is long-term relationship?
One of the important factors that will help in scaling up restaurant franchise is long-term relationship between the franchisor and franchisee. I always tell my clients that franchising in itself is a value-based partnership, and for it to be sustainable in the future, the goals and vision need to be calibrated and aligned properly. Factors including close and direct communication with the customers, and workable systems and processes all help realize the objective of scaling up business.  Partners looking for committed and long-term partners, who care about food safety, are ideally suited for franchising.

The main criterion that decides how a franchisee should help the franchisor brand is literally taking it into an unknown region or demography as part of its expansion partner. Location matters a lot when it comes to expansion, and therefore scaling up the business, and that is why franchisees need to be often local experts. It is important for franchisors to have different formats for different locations. Restaurants are scalable based on the locations of the residential households, footfalls, the type of households and workplaces or offices, price sensitivity, intensity of competition, and how important is the location for people to visit, and fulfill their needs.  If you are looking to expand your restaurant business through franchise business model , strategizer franchise consulting services is the best franchise consulting in India,

The big fat Indian Market
India is definitely the biggest market for consumers by 2030 and could bring opportunities at large for both global as well as local restaurant chains through franchising mode. Though the size of the Indian market is an advantage, restaurants need to develop their core strengths with a clear business and operational process to roll out franchises systematically. There is a potential for 1000’s of restaurants in India to come up, and make big in the coming years. However, I feel there are no established guidelines that ensure the success of a franchise. But the mantra of success as for the scalability of restaurants is mutual trust between the franchisor and franchisee, without compromising the brand value for short-term gains.