Why starting a Pizza Hut franchise in India is a good business idea?
The precise answer is, due to the enormous growth in the last few years that has led Yum! corporation to start the separate Yum! Restaurants India back in 2011. As of now, it runs more than 220 KFC franchise in India, alongside 170 Pizza Huts and more than a hundred Pizza Hut Home Service Units. The third Yum! brand, Taco Bell, is also entering the Indian market (yes, starting a Taco Bell franchise in India is yet another good option). Pizza Hut has also been ranked as the #1 most trusted food franchise in India by The Economic Times. Don't you want to open a Pizza Hut restaurant in India and be a part of the second most vibrant and promising market of the world? Surveys show, almost all Americans eat a pizza at least once a month. We can't say the business prospect of Pizza Hut in India is that good already, but it has a good future for sure as the Indian QSR industry is expanding fast.
Investments: Cost of starting Pizza Hut franchise in India and ROI
Indeed, the cost of starting a Pizza Hut franchise in India is quite high. In the United States, minimum investment required for opening a Pizza Hut franchise would be something around $350000 to $400000. Translated into Indian currency at the prevailing rates, that means nearly 2 crore rupees. However, considering the comparatively cheaper land value and lifestyle in most Indian cities than in the United States, this cost could come down to one and half crore rupees. The initial franchise fee is 25 thousand USD, or nearly 14 lakh rupees as per the present conversion rates. Additionally, you will have to pay an annual 6.5% royalty on your profit.
Now let us come to ROI, or Return of Investment. The initial investment amount of starting Pizza Hut franchise in India is indeed colossal, but the return is always worth the investment. The future potential of Pizza Hut in India in general is quite good, and we have adequately explained that in the above section. In the coming years, Yum! Restaurants India hopes for a fourfold growth of revenue in four years. Mr. Niren Chaudhary, MD, Indian Subcontinent, Yum! Restaurants (India) Pvt. Ltd. mentioned in 2011 that in the previous three years, the business was doubled, and in the next four years, the aim is to grow it fourfold to have a topline of 1 billion USD.
Best places to start new Pizza Hut franchise restaurants in India
We think the scope of new Pizza Hut restaurants in bigger cities in India are relatively less. Most Indian metro cities have one or more Pizza Huts, and the other competing brands like McDonalds are also there. Thus, metro areas are nearly saturated, but the growth and potential growth are clearly visible in suburbs. The suburban Indians are also fast getting habituated to cosmopolitan lifestyle with increasing fascination to western foods, and the land value in suburbs for starting a new Pizza Hut restaurant in India will also be relatively less. Remember, in areas crowded with vegetarian peoples, you might need to increase your veg items. There are two all veg Pizza Huts in Gujarat to cater to the Jains who do not meat at all, nor eat at places where non veg dishes are served. You have to adjust your business plans according to your locale. Nevertheless, that comes later; the first thing is to invest, get permission and start the restaurant.
Here is a map of existing Pizza Hut franchise restaurants in India.
Starting Pizza Hut Franchise in India: Contact details, telephone number, official website
If you want more details about opening a new Pizza Hut in India, you may contact Pizza Hut India Franchise.
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