All You Need To Know About The Indian Quick Service Restaurant Industry

Deciding the Location

Staffing Your Quick
Service Restaurant

Managing Operations

 Deciding The Menu

Restaurant Profit Margin

Gross Margin
Net Margin

How to Increase profit Margin

1. Increase sales Volume

2. Lowering overhead cost

Restaurant POS Software

Quick Billing:
Advanced Delivery:

Online Food Ordering:

Integrated Combos And
Discounts:

Inventory Management:

SMS Integration:
CRM Integration:
o Know About The Indian Quick Service Restaurant Industry
High footfall area

Training for Consistency because only because only assembling and prep of food is there.

* Product Standardization - Centralised Kitchen and Staff training

* Finalizing Supplier : how well you can dictate your terms and how healthy your understanding is for your
operations to run smoothly.
,caliber to meet your goal, being a huge buyer of a small firm is at times better than being a small buyer of a
big firm.

Should be simple and support impulsive buying. Should take max 109 seconds buying a high profit item

Sale-Food & Beverages Cost (Includes GST+Common Cost+Freight)

GP-Other Cost

e profit Margin
1. Increase S.P
2. Train employees
3. Improve Table Turnover

1. Minimize Food waste

2. Reduce Utility Bill
3. Lower Emloyee Turnover

The billing should be fast and accurate to be able to keep pace with the speed of service.
A separate segment within the POS to track the delivery orders.

In the age of online ordering, your POS software must support online ordering integrations.

Your POS software must allow you to create different combos and discounts easily.

Chose a POS software for your QSR which can keep track of inventory in real time.
Your POS software must have SMS integration so you can send out necessary messages to the customers
with ease.
Your POS must have a CRM integration for customer satisfaction.
3 to 5%
1 Ticket Size Average order value
2 SSSG
3 New Stores
4 Sales per store
5 Gross Profit Margin
6 Brand Contribution Margin
7 Net profit
How To Franchise Restaurants In Ten Steps

1. Current Model Evaluation

Evaluate the cost structure of the cash flow for the first year and what would be the five-year-return to the franchise.
The cost structure includes the following-
Initial setup cost
Infrastructure development
Equipment required
Technology
Marketing plan
Human resource
2. Robust Process
If your concept is replicable, then you need to establish a robust and efficient process to ensure consistency across outlets. Th
aspects are-
Sales Reporting and Tracking
Stock and Inventory Process
Supply Chain Management
Vendor Management
Payouts and Commission Management
Staff Training
3. Trademark and Logo Registration

When you franchise your restaurant, you give someone the right to use “Your” logo and Trademark. Hence, registering your b
and acquiring a trademark is the most important, yet often most ignored the step of franchising your restaurant. Registering fo
trademark becomes essential when you begin to think of Franchise Restaurants. To protect your Intellectual Property, franchis
get everything registered, to protect from a fraudulent Franchise party.

4. Cost Estimation

After deciding the processes, you need to prepare an initial setup cost or investment plan for Franchise Restaurants. The top
franchise business models owe their success to the accurate cost estimation and cutting down on their food costs, wherever
should have all the possible heads of expenditure. Based on your restaurant’s business model, divide the initial setup costs.
Infrastructure
Location (Rent for three months)
Interiors
Electric and Electronic Fittings
Furniture
Branding / Signage (Interior / exterior)
Licensing & Establishment Cost
Here are a few licenses that you will require for the further establishment of your outlet. Other than that, you can look at a
of licenses you would otherwise need to settle down with a restaurant.
FSSAI
VAT/GST registration
Local Municipal Licenses
Liquor Licenses*
Franchise Fee
Royalties
Working Capital Requirement (For the first six months)
Rental
HR
Electricity
5. Cash Flow And Financial Projection

Based on the current and the past sales of your restaurant, consider the current Cash Flow and the Financial Projections. Th
should prepare a cash flow for the revenues based on the number of orders per day and multiply it by the average ticket siz

For example, if your outlet gets 56 orders on weekdays and 70 orders on weekends, the total orders in 30 days would be 1,792
1232 and 70X8=50). With an average ticket size of Rs 400, the monthly revenue of the outlet will be Rs 7,16,800.

Further, the franchisor should estimate the expected average growth rate and project it for the first twelve months of the bus
franchise. Also, project revenues for the first five years or the tenure of the franchise.

6. Brand Profile
Prepare a Brand Profile and to give a better understanding of your Franchisees. You must be in the zone of competing with the
restaurant franchises in India. The documents should contain the vision of the brand. It should also give the vision of the brand
brief detail about the products and services offered along with the schedule of the opening of the new outlet.

7. Franchise Agreement

Since there are no laws specific to Restaurant Franchising, it is vital to have a registered agreement between the two parties to
rights of both the franchisor as well as the franchise. The Agreement should speak about the payment, plan, tenure, schedule,
the support the franchisor will provide to the franchise. At times, the Franchise Restaurants stops paying the royalty once the
been set up.

8. Training
Training of the Staff is essential to maintain the standards of the product as the original Franchise Restaurants. The franchisor
execute the training of the entire staff, right from the Head Chef to the busboys. The induction and training of the new employ
be done much before the opening of the Franchise Outlet.

9. Marketing and Advertising

Based on the geographies, the franchisor can support the franchisee in marketing and advertising by including it in the origina
them understand the market and execute marketing activities on behalf of the franchisee in the initial days. It is vital to have a
Guideline for the Franchisees to adhere to.

The entire Guest Experience needs to be replicated, almost precisely. Even then, there are several factors, such as the Targe
Base and the Location that play a crucial role in the success of the restaurant. Thus, Franchise Restaurants come into the pic
done right, Franchising proves to be a lucrative business approach.
1 Saving on Chicken GST
2 Buying from a big firm all over india so not much discount. Then we break that in to regions and got good deals l
3 We open more stores, it also enables us to get leverage on our fixed costs such as brand building and administra
4 We remain focused on selecting the best sites in terms of footfalls and visibility and also keep focus in small tow
5 increased incomes and internet penetration imp in Growth
6 Set up delivery focus store to cater online market which is growing at pace after COVID
7 A smaller format delivery focus store with some sitting drive cost efficiency and time efficiency in opening new s
8 The presence of multiple brand stores in specific location helps to increase efficiencies of our supply chain and a
to regions and got good deals like in North region.
brand building and administrative expenses across our store network to drive better margins.
nd also keep focus in small towns

me efficiency in opening new stores

ncies of our supply chain and also allows us to negotiate competitive lease rentals for our stores