Franchisee Model_restaurant business

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Franchisee Model_restaurant business

  1. 1. Expansion of Restaurant business through Franchisee Model Presenters: Samik Gupta Bishnu PandaGroup - 3
  2. 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. 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. 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. 5. Implications • Heavy capital outlay 1 • Human capital management 2 • Direct loss effect 3 Hence to go for Franchising
  6. 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. 7. Roadmap for the FranchiseeModel 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. 8. Roadmap for the Franchisee Modelcontd.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. 9. ImplicationsTheir requirements: Investments :30-40 Lakhs Space : 1500-2500 sq.ft.Our Support : 10 % of royalty as marketing support 5% for advisory support
  10. 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. 11. Cost Benefit AnalysisBetterPL.xlsTraining support • • Marketing Support Costs • Standardisation • Avoiding the risk of financial leverage Benefits • Avoiding the cost of Micromanaging
  12. 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. 13. The Way Forward Metro • Bangalore Selection • Mumbai • Delhi Location • Good catchment of Selection Bengalis’
  14. 14. The Way Forward contd.Zooming down to a Specific location for selection site criteria.xlsx
  15. 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. 16. The Way Forward contd. Agreement Agreement to be & finalized & Offer to be rolled Operational out Part The Journey begins…
  17. 17. Thank You

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