franchisee model_restaurant business
TRANSCRIPT
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