
Tuesday, May 11, 2010 - 17:20
The fast food segment is growing at about 20 per cent per annum in India. Pizza Market takes a share of around five per cent of the entire fast food segment. This growth can be attributed to a large number of national and international brands venturing into the Food and Beverage (F&B) sector. There are about 300 million upper and middle-class consumers of processed and packaged food in the country, and another 200 million are expected to shift by the end of 2010.
Enormous change has taken place in Indian F&B industry. In May 2003 after much deliberation, the department of tourism renewed the 1955 initiated guideline for the classification of hotels. This move was aimed at ensuring that hotel in India meet international standards in service and facilities. The five star and four star hotels in India have raised their standards to compete with international brands.
The secret to success is a combination of a commitment to excellence, an obsession with the product you make or deal with, dedicated people, and a desire to have a little fun.
Before obtaining franchise of any brand, the franchisee should analyse the following aspects carefully before entering into any sort of agreement:
· The past history of the franchisor in terms of its existence and consistency in the market should be considered by an aspiring franchisee before deciding to take the franchise of any brand.
· Before taking any franchise, all the investment and Return on Investment (ROI) details should be carefully analysed, since many franchisors show good picture to the franchisee in terms of returns to attract them.
· Franchisee also has to consider the brand presence, expansion plans, and the kind of franchise opportunities available with them.
·Franchisor should provide a complete, proven business system that should be started as soon as the franchise agreement is signed, along with the selection of location. Franchisor should support the franchise through the designing, permitting, bidding, and construction process to grand opening, initial training, and on-going training.
· Franchisor should also provide them all the raw material supplies, staff requirements, and handling; centralise marketing and operational activities supports.
Last but not the least, due importance should be given to franchisee by franchisor so that he can give his inputs to the franchisor for the betterment of the business.
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