franchisee model_restaurant business

Expansion of Restaurant business through Franchisee Model

Presenters: Samik

Gupta Bishnu

Panda

Group - 3

Agenda

Exploring the optionso Own- units

o Franchisees

Roadmap for the Franchisee modelo Our support

o Their deliverables

Cost-Benefit Analysis The Way Forward

Exploring the Options

Own Units

Management Control Standardization Flexibility

Advantage

Disadvantage

Heavy capital outlay Negative covenants Human capital management Direct loss effect Tough micro management

Exploring the Options contd..

Franchising

Advantage

Provides expansion capital Avoids employee related problems Accelerate expansion over wide area Motivated owner Lesser cost of manoeuvering & micro managing

Disadvantage

Sharing profit Loss of absolute control Franchisee disclosure law

Implications

1• Heavy capital

outlay

2 • Human capital management

3 • Direct loss effect

Hence to go for Franchising

Exploring the optionso Own- units

o Franchisees

Roadmap for the Franchisee modelo Our support

o Their deliverables

Cost-Benefit Analysis The Way Forward

Roadmap for the Franchisee Model

Marketing Assistance*Advertisement support*Awareness drive for existing customers* Advisory support

Standardization Support* Quality control* Inventory support*Product pricing

Our Support

Roadmap for the Franchisee Model contd.

Proper Documentation* For operational processes* For Sales and footfall recording

Their Delivera

bles

Implications

Their requirements: Investments :30-40 Lakhs Space : 1500-2500 sq.ft.

Our Support : 10 % of royalty as marketing support 5% for advisory support

Exploring the optionso Own- units

o Franchisees

Roadmap for the Franchisee modelo Our support

o Their deliverables

Cost-Benefit Analysis The Way Forward

Cost Benefit Analysis BetterPL.xls

Costs

•Training support•Marketing Support•Standardisation

Benefits

•Avoiding the risk of financial leverage•Avoiding the cost of Micromanaging

Exploring the optionso Own- units

o Franchisees

Roadmap for the Franchisee modelo Our support

o Their deliverables

Cost-Benefit Analysis The Way Forward

The Way Forward

Metro Selection

• Bangalore• Mumbai• Delhi

Location Selection

• Good catchment of Bengalis’

The Way Forward contd.

Zooming down to a Specific location for selection

site criteria.xlsx

The Way Forward contd.

Inviting Potential Franchis

ee

• Advertisement through local print media

• Advertisement through web portals

Screening of

Franchisees

• Financial stability• Integrity• Active operators

The Way Forward contd.

Agreement &

Operational Part

Agreement to be finalized & Offer to be rolled out

The Journey begins…

Thank You