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What Are the Advantages and Disadvantages of Food Franchise in India?

Street foods are the wide range of ready-to-eat foods and beverages prepared and sold in public places, mainly in streets. No one can resist the urge to digging into roadside delights. And, the best part of street foods is that they are low in cost compared with foods served in restaurants and also offer an attractive alternative to home-cooked food.

In India, a variety of street delights can be found but, there’s one thing that bothers everyone – hygiene. People think that street foods are not good for health whereas, some thinks that street foods are good to eat because they prepare the food in front of the customers. Well, hygiene mainly depends on the place where you are eating your food. This is one of the main reasons why food restaurants in India are rapidly growing.

Food and beverages business has witnessed an exponential growth in India. More and more people are investing in this industry. If you are also planning to start your own restraint in India or planning to buy food franchise in India then, go ahead. But, any franchise presents itself with both advantages and disadvantages and you must know about the franchise business you are planning to buy. However, the merits and demerits of every franchise are almost the same.

If you are planning to invest in a restaurant franchise then, here are the top advantages and disadvantages of the food and beverages industry.

Advantages

Instant Business

When you buy a food franchise in India from a renowned brand then you get an instant business. You don’t have to worry about your restaurant name, the décor & design, menu or the marketing and advertising. You will get a chance to run a business that is already running on a good level in the country. If you have a dream to run your business in multiple locations, a franchise is set up to do just that.

Well-Established Name

Name recognition is the biggest advantages of a franchise business. You know that you are investing in a business that is already an established brand, running on the national and international level. This way you get a well-established name. You don’t have to put efforts in marketing or advertising your brand to attract customers and they are already familiar to that brand. From locals to those who are travelling prefer to eat the franchised company’s food. So, you won’t require start-up costs for advertising to attract customers towards your restaurant as you are investing in a well-known brand.

Financing

You will need fund or capital to start your business and food operation business is usually simple with banks. They know what is involved with opening a restaurant in India. The banks know exactly what to look for to make you feel comfortable with approving the loan.

Training and Support

A franchise opportunity comes with training and support from the head-office. Whether you want staff or employees or need equipment and furniture for your restaurant, you will get complete support from the franchiser. They will recruit the professional employees for the restaurant and will also give proper training to the team to work according to their requirement.

Disadvantages

Money

Buying a food franchise in India is not an easy thing. Many of the renowned restaurant chains in India require lakhs in assets, before they will consider letting you buy their franchise in your city. But, usually these franchises comes expensive, lack of money is a major drawback of buying restaurant franchise in India.

Lack of Creativity Freedom

When you buy a franchise then you don’t have the right to make changes in the design or infrastructure of the restaurant, menu, etc. Even if you have some creative ideas or concept in your mind for marketing or advertising, you are just locked to do whatever the company decides to do.

Lots of Rules

From finding the right location to the size of the restaurant, everything will be done by the franchiser. They have their own rules, which you need to follow anyhow. All the franchisers have rules that must be followed by the franchisee. Make sure you are okay with all the rules and regulations of the company beforehand or else you will lose your right as franchisee.

Royalties

When you a buy restaurant franchise then you are also expected to pay royalties. This will cover the advertising, menu flyers and other support that your franchiser gives you throughout the year. While setting a budget to run your business make sure to add the franchise fees in your budget.

Starting or running a new business is not easy. You may face many challenges during the process so, it is suggested to invest in a franchise model that has higher chances of higher growth in less time. Now, as you know both the advantages and disadvantages of investing in the food franchise in India so, think for a thousand times, take your time and make the right decision.

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