More than 50 years later, Pizza Hut is still selling its specialty pizzas and has outlets all over the world. Pizza Hut now has over 40 locations in India. Let’s see how much is a pizza hut franchise cost in India? we are going to see, Its investment details and how you can get this franchise?
- Creating a food business is the first step. Building a famous brand name that draws clients from all over the world, on the other hand, requires years of effort.
- If you want to get into the restaurant business, franchising can be a good place to start. It expedites your path by affixing a well-known brand name.
- Are you unsure where to begin? In this blog article, we will address any queries you may have about food franchising in India. So that you have all of the information you need to begin your adventure.
- Let’s get started!
In India, franchising is becoming a popular way of doing business, and companies are increasingly focusing their recruitment efforts on the active entrepreneur. Pizza Hut is a subsidiary of Yum! Brand Inc., the world’s biggest restaurant chain, and remains a popular option.
With westernization pervading every aspect of Indian society, Pizza has dominated the culinary sector in all its glory. Residential Indians are also quickly acclimating to cosmopolitan lifestyles, with an increased affinity with western delicacies.
Pizza Hut has a large selection of vegetarian and non-vegetarian pizzas. This article will tell you the conditions, methods, and Pizza hut franchise cost in India.
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About pizza hut business model
Pizza Hut’s business plan is based on the company’s affiliation with multinational parent Yum! Brands. The worldwide franchise behemoth has already made a reputation for itself.
It is among the top ten food chains in the world and wants individuals to join it as entrepreneurs to serve people all around the world.
Pizza Hut is a restaurant franchise in the United States that was started in 1958. Dan and Frank Carney founded the corporation in Wichita, Kansas. Yum! Brands, Inc., one of the world’s largest restaurant corporations, owns Pizza Hut.
The brand is well-known for its Italian-American cuisine, which includes pizza and pasta, as well as side dishes and desserts. As of 2018, Pizza Hut had 18,431 locations worldwide.
Pizza Hut was purchased by Pepsico in 1977. 20 years later, in 1997, Pizza Hut, Taco Bell, and Kentucky Fried Chicken merged to form Tricon Global Restaurants, Inc., which was eventually renamed, Yum! Brands, Inc. in May 2002. The company’s logo, known as the ‘Red Roof,’ is also one of the most well-known corporate emblems.
Pizza Hut has chosen a business plan that consists of three distinct restaurant types. The first and most common type is family dine-in establishments where people can sit and eat their meals.
The second type of site is a storefront delivery and carry-out establishment where customers may order meals and take it with them.
The third type of site is a hybrid location, which includes all three — carry-out, dine-in, and delivery choices. Lunch buffets are available at several Pizza Hut locations. However, it is primarily via these three models that Pizza Hut generates money.
In the year 1996, Pizza Hut launched its first franchise store in India in the city of Bangalore. It has grown at a pace of 40 percent every year since then. Pizza Hut now has over 400 locations in the United States, with intentions to more than quadruple that number in the next five years. Pizza Hut also intends to recruit more than 14,000 delivery drivers by the end of 2020.
Pizza Hut is now India’s second-largest pizza company, with a 27 percent market share. All of the data and goals listed above indicate that investing in a Pizza Hut franchise is a wise move. Now you can imagine what would be the Pizza hut franchise cost in India and its profit margin.
Because of Yum! Brands Inc’s international brand, ever-increasing customer popularity, and gradually developing assets, establishing a Pizza Hut franchise in India might be an appealing business concept.
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How to take the pizza hut franchise?
It is not difficult to own a Pizza Hut franchise. The firm has expanded enormously over the years and is well-known.
Initial qualification typically takes 10-12 weeks and comprises a series of background investigations and interviews. Following that, trade area selection and approval can take three to nine months, depending on a variety of circumstances, including when you designate a trading area to pursue.
You must fill out a request form from the address shown.
As with any other franchise, there are some standards that must be met by an individual in order to be qualified for a Pizza Hut dealership. The prerequisites are as follows:
Although no particular amount has been provided by the firm, industry research indicates that a minimum of 1,000 to 1,500 square feet of area or outlet space is necessary to open a Pizza Hut franchise.
The phenomenal rise of the food franchise sector in India has made one thing very clear: in the next years, more restaurant owners will consider venturing into this profitable and brand-building venture.
Ravi Jaipuria, chairman of RJ Corp, has joined the ranks of India’s newest billionaires, according to one of the success stories in the Economic Times. When it comes to his estimated riches, it’s a whopping Rs 8,250 crore.
RJ Corp, his enormous corporate empire, includes real estate, fizzy beverages, fast food, health care, and more. His portfolio includes a franchise for a brand like Pepsi, which has carved out a permanent position in the hearts of cold drink enthusiasts.
Pizza hut franchise cost in India
The cost of a Pizza Hut franchise in India is the next step. Do you want to know how much a Pizza hut franchise cost in India ?
The amount of money necessary is determined by the sort of franchise in which an individual wants to invest. Pizza Hut provides three different types of franchises. These are their names:
- Delivery service based Pizza Hut restaurants: Pizza and other PHLLC-approved items are offered for dine-in and carryout services in this sort of franchise. A person must pay between 25 and 30 lakh rupees to get ownership of this sort of franchise.
- Pizza Hut locations that use the delivery/carryout (Delco) system: In this form of franchise, the only way to sell things is through carryout service. A dealership of this sort of franchise requires an investment of roughly 15 lakhs.
- Delivery-based restaurant (DBR) / Fast-casual Delco (FCD) system Pizza Hut restaurants: Products are offered for dine-in, carryout, and delivery purposes under this type of franchise. An individual who wants to become the owner of such a business must pay around 20 lakh rupees.
Royalty: One must also pay a monthly royalty to the corporation, which is equivalent to 6% of the franchise’s total sales in that month.
Advertising fees: If a person wishes to buy a Pizza Hut franchisee, he or she must pay advertising fees to the firm, which amount to 4.25 percent of the franchise’s total sales.
Eating out is the ideal method to avoid the hassle of cooking, especially for those who work and are away from home. People who have moved to cities from small communities to earn a living rarely have time to prepare dinner every day. They enjoy going to restaurants and little food joints for a better environment and a variety of foodie-licious cuisines. Looking at the quickly expanding need for fast food corners, little restaurants, and elegant dining palaces, it’s not a stretch to predict that the pizza hut franchise business in India would skyrocket, enticing more individuals to become involved.
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Another important thing about the pizza hut franchise cost in India-
The one-time investment required to launch a franchise is a mash-up of numerous fees. It involves everything from the installation of the necessary equipment, such as sofas and software, to the employment of employees and their uniforms. A franchise fee and a refundable security deposit are also included.
According to the Economic Times, the following are the investment and average break-even periods for several types of restaurant models:
Kiosk or Food Court Outlet:
This is perfect for someone who wants to test the waters and begin small.
5-15 lacs in investment is required.
Average payback period – 0.5-2 years
A bakery or a dessert parlor
Choose this kind if you have always had a passion for sweets and baking but need brand help to get started.
15-35 lacs in investment required
The average payback period is two to three years.
QSR vs Casual Dining –
If you wish to start with a fast-food chain or a casual dine-in, the following are the approximate commercials:
35-50 lacs in investment required
The average payback period is 2 to 5 years.
Pizza hut franchise profit margin
With a 30-40 % profit margin in business, you can make 70000 – 80000 rupees profit in the pizza hut franchise business.
Doing business and generating a profit are not always synonymous. Several business initiatives promise large riches but fail miserably to deliver on them.
However, very few company endeavors can be lucrative, to begin with, therefore anyone interested in starting one should have total trust in the enterprises they have picked.
Branding is one of the variables that contribute to the success of a commercial enterprise.
Franchising is one of the quickest methods to get your business up and running. You don’t have to worry about stocking or keeping stocks, and you already know that you’ll be able to keep your franchisee for as long as you operate the firm.
Even more tempting is the fact that no prior expertise is required to manage a successful franchise in India.
Pizza Hut is one of those precious franchises that will never fail you down. Pizza Hut India’s success is completely based on its advertising approach. The beginning of the business was a fantastic market milestone.
Pizza Hut has a number of distinguishing traits that have enabled it to handle a large number of goods in a single location. The franchise’s profit production is totally dependent on the individual success of the storefront.
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Area required to start a pizza hut franchise
- To open a Pizza Hut franchise, you must have a certain amount of land.
- While Pizza Hut does not specify certain space requirements. Based on market norms, we would recommend at least 1000 Sq Ft. to 1500 Sq Ft. as a realistic space need.
- This would also differ across cities and suburbs. In established urban regions, the market is saturated. However, this is not the case in a city’s emerging and expanding sections.
- The rural Indian populace is also quickly acclimating to a cosmopolitan way of life. Among these is a growing interest in western meals.
Training and support
Pizza Hut offers trained personnel to its franchisees. The Pizza Hut employee training routine differs from most others.
Most places need a combination of classroom and on-the-job training, whereas Pizza Hut foregoes classroom training entirely and extends on-the-job training. Typically, the organization delivers eight to twelve weeks of training at your site.
Pizza Hut, like most franchises, provides two forms of assistance. The first is continual business assistance such as newsletters and conferences.
You may acquire tips and tricks of the trade by attending conferences with other franchisees. There will also be a grand opening, a toll-free number, and online help.
The second type of support is a martingale. Having the support of an International Brand is quite advantageous and serves as an excellent marketing tool. Pizza Hut will also assist with a loyalty program, an app, cooperative advertising, and ad templates.
Pizza hut franchise contact number
Pizza Hut Head Office Address: 12th Floor, Tower D, Global Business Park, Gurgaon, Haryana, India, Pin code: 122002
Pizza Hut Office Phone Numbers: +91-124-4025100
Twitter ID: twitter.com/pizzahutin?lang=en
Location: Gurgaon, Haryana
This might be your initial approach toward joining the world’s largest pizza franchise. We hope our thorough Pizza Hut Franchise Guide provided you with all of the information you were looking for.
Term of legal obligations under pizza hut franchise
The sharing of Pizza Hut information to workers is governed by a specific legal duty. Employees are required to sign the agreement while it is being put up in order to protect the confidentiality of PHI’s trade and proprietary information.
The franchise period would be 5 years from each licenced facility. PHI may agree to an extended schedule, but in no case will the period last longer than ten years from the start date.
Although the profitability of every franchise is dependent on its performance and footfall, an individual can expect a monthly profit of 20,000 rupees.
Get a lawyer
There will be a lot of paperwork and negotiating when purchasing a franchise. Make sure you have a lawyer on your side to assist you sort through the specifics and double-check papers. The less you have to worry about legal issues, the more you can focus on putting other resources (such as places, people, and cash) into action.
Ask them a questions
Purchasing a restaurant franchise requires a significant financial investment and time commitment. Make sure you ask the franchisor all of the pertinent questions. There is no such thing as a trivial or insignificant question! To begin, consider the following:
- Are the payments based on a royalty or a commission?
- What amount of assistance and training can you expect from them?
- What are the rules and regulations?
- What exactly is their Standard Operating Procedure? (SOP)
- Who are their rivals?
- Who are their allies and partners?
- What is the long-term vision of the restaurant brand?
Is taking a food franchise is profitable?
According to the Economic Times, Ravi Jaipuria, chairman of the privately held RJ Corp, is India’s newest billionaire, worth Rs 8,250 crore. He has grown his business as a franchisee for companies such as Pepsi, Pizza Hut, KFC, and Costa Coffee.
While this may be an example of a unicorn. Many other small company entrepreneurs have profited from restaurant franchising as well.
In an interview, Angad Singh, who has successfully handled franchises of New York Pizza and Fried Chicken in Chandigarh, says, “Both my father and I are enthusiastic about food, but none of us has the competence to start up and run a business.” Buying a franchise was the obvious solution.”
When it comes to pizza in a country like India, it doesn’t get much better than Pizza Hut. With the company’s aims of expanding its locations over the next five years and having more than 14,000 delivery drivers, it’s easy to see Pizza Hut’s route to success, and they have no plans to stop or slow down.
So, if a person has a passion for pizza and money to invest, Pizza Hut is unquestionably the finest option. As a result, we’ve included all you need to know about Pizza Hut Franchise India.
We hope that we can assist you with all areas such as Pizza Hut Franchise cost in India, profit margin, and so on. If you have any questions, please contact us.