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D. food business format

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A small discussion on business formats for food serve industry

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D. food business format

  1. 1. Prof. (Dr.) Nimit Chowdhary Department of Tourism and Hospitality Management Jamia Millia Islamia, New Delhi
  2. 2. 1. Quick Service Restaurants
  3. 3. 1. Quick Service Restaurants • The investment required for opening a Quick Service Restaurant is around Rs 10-15 lakh, out of which a significant proportion would be spent on marketing the restaurant. • The average menu price for a meal for two at a Quick Service Restaurant is usually around Rs 500-600. Menu prices can vary according to the cuisine and the type of setup you have.
  4. 4. 1. Quick Service Restaurants • Since the initial investment required in this food business idea is relatively low, coupled with this is the relatively high rush of customers, makes QSRs garner a high-profit margin, which approximately amounts to 15- 25%. • This helps quick service restaurants to reach their breakeven point in 3-6 months given that it is running smoothly.
  5. 5. 2. Casual Dine Restaurants
  6. 6. 2. Casual Dine Restaurants • The total investment required for opening a Casual Dine restaurant in India is roughly around 10-15 lakhs. Size of the area must not be less than 2000 sqft. • The Profit Margin of Casual Dine restaurant is usually around 20-25%, making it one of the high-profit food business ideas in the restaurant industry. • The average cost of customers per meal is Rs. 500 – Rs 1, 000 (for two). • The investments incurred in this formats aren’t that high, but they have the potential to reach the breakeven point within approximately 18 months.
  7. 7. 3. Food truck • While the investment is as less as Rs 10-20 lakhs, the profit margin that you would incur is quite a lot. • A second-hand Truck can easily be converted to a Food Truck, the price of which can be around Rs 8-10 lakh. You also require only 3-4 employees to run a Food Truck. • Expect to reach your breakeven point within 6 to 8 months. • The estimated profit margin for a food truck and a food cart is roughly around 50%. However, the profit margins vary significantly from the type of food you serve.
  8. 8. 4. Cloud kitchens • If you are new to the restaurant industry and are looking for high-profit food business ideas, then you should sincerely consider opening a Cloud Kitchen. • The initial investment in this food business idea is nearly negligible since you can cook at your house kitchen, which will have all the minimum equipment and utensils required. You can also save yourself from the monthly rentals that drain most restaurants. • Your investment would not be more than 1- 2 lakh. The area which you need to pay attention to apart from food in this restaurant business concept is marketing.
  9. 9. To franchise or not
  10. 10. A franchise restaurant Pros • Franchise restaurants are easier to run for new and inexperienced restaurateurs as well. • Fewer risks are involved as the concept has already been tried and tested. • The Franchisor usually provides help to the Franchisee in terms of staff training, supplies, equipment, marketing, etc. Cons • The cost of acquiring the Franchise is high, and there is also a weekly or monthly Royalty fee. • The owner has little control over Franchise restaurants. Lack of creative freedom and decision- making power can be frustrating.
  11. 11. An independent restaurant Pros • Entire control is in the hands of the owner. • Low investments are needed. • Steep learning curve, especially for new restaurateurs. • The owner pockets all profits. Cons • There is a high risk of failure, especially for first- time restaurateurs. • The business and operations can be consuming in terms of time and effort. • There is usually operational inefficiency due to the lack of standard rules and policies.
  12. 12. Chain vs Independent restaurant
  13. 13. Chain vs Independent restaurant
  14. 14. Chain vs Independent restaurant
  15. 15. Chain vs Independent restaurant

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