1. Expansion of Restaurant
business through Franchisee
Model
Presenters:
Samik Gupta
Bishnu Panda
Group - 3

2. Agenda
Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

3. Exploring the Options
Management Control
Advantage  Standardization
 Flexibility
Own Units
 Heavy capital outlay
Disadvantag  Negative covenants
e  Human capital management
 Direct loss effect
 Tough micro management

4. Exploring the Options contd..
 Provides expansion capital
 Avoids employee related
problems
Advantage  Accelerate expansion over
wide area
 Motivated owner
 Lesser cost of manoeuvering
& micro managing
Franchising
 Sharing profit
Disadvantag  Loss of absolute control
e  Franchisee disclosure law

5. Implications
• Heavy capital outlay
1
• Human capital management
2
• Direct loss effect
3
Hence to go for Franchising

6. Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

7. Roadmap for the Franchisee
Model
Training Products & Services
*Pre set up training process *Sourcing Key Ingredients
* Categorical training process *Decoration support for
for staffs matching to the ambience
* Rights for utilizing our
* Monthly training & signages
reinforcements for first year & brands
Our
Support
Standardization
Marketing Assistance
Support
*Advertisement support
* Quality control
*Awareness drive for existing
* Inventory support
customers
*Product pricing
* Advisory support

8. Roadmap for the Franchisee Model
contd.Capital &
Infrastructure Franchisee Fee &
Royalty
* Capital requirement for
* One time payable fee
franchisee set up at the beginning
*Infrastructure requirement
* Royalty on revenue
for matching to the
* include fee for Marketing
ambience
and advisory support
Their
Deliverables
Proper
Documentation Brand Maintenance
* For operational processes * Matching to brand image
* For Sales and footfall * No indulgement with
recording others

9. Implications
Their requirements:
 Investments :30-40 Lakhs
 Space : 1500-2500 sq.ft.
Our Support :
 10 % of royalty as marketing support
 5% for advisory support

10. Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

11. Cost Benefit Analysis
BetterPL.xlsTraining support
•
• Marketing Support
Costs • Standardisation
• Avoiding the risk of
financial leverage
Benefits • Avoiding the cost of
Micromanaging

12. Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

13. The Way Forward
Metro • Bangalore
Selection • Mumbai
• Delhi
Location • Good catchment of
Selection Bengalis’

14. The Way Forward contd.
Zooming down to a Specific location for selection
site criteria.xlsx

15. The Way Forward contd.
• Advertisement
Inviting through local print
Potential media
Franchisee • Advertisement
through web
portals
Screening • Financial stability
of • Integrity
Franchisees • Active operators

16. The Way Forward contd.
Agreement Agreement to be
& finalized &
Offer to be rolled
Operational out
Part
The Journey begins…

17. Thank You