Building a Successful Pizza Franchise Business
Building a Successful Pizza Franchise Business
The History of Pizza by Genevieve Thier claims that this acidic, savoury pizza has been around since 500 B.C. Pizza has changed greatly since those early days in terms of ingredients and cooking techniques, but its core components of flatbread, sauce, cheese, and toppings continue to make it one of the world’s most adored foods. What makes pizza a truly global cuisine is how it has evolved to the flavours and ingredients of many geographical places.
Similar to other markets, the Indian market has embraced this well-known cuisine. Restaurants like Domino’s and Pizza Hut have developed something of a cult following among young people in India over the past ten or so years. However, it wasn’t an easy transition for pizza from an Italian delicacy to an indispensable cuisine for Indians. Let’s explore further the beginnings, developments, difficulties, and development of the Indian pizza business.
The Indian Pizza Franchise Industry
Midway through the 1980s, pizzas were introduced to the Indian market and were viewed as yet another savoury snack food. Pizza was seen as a side nibble to indulge in and had not yet evolved as an alternative for lunch or supper because there were not many pizza delivery services available at the time, with Don Giovanni’s being the sole one in Calcutta and Nirula’s being the major go-to location for Delhiites.
Pizza didn’t become a household brand until Domino’s and Pizza Hut joined the Indian market in the 2000s. These companies made major menu innovation investments and experimented with various sauces, flavours, and ingredients to cater to the distinct tastes of Indian consumers. All of these fascinating inventions—Paneer, Soy, Kebabs, Butter Chicken, even Kurkure toppings—were made possible by them. To accommodate India’s sizable vegetarian population, many vegetarian choices were established. Â
The majority of foreign pizzerias that have effectively tailored their menus to the regional preferences of Indian consumers are benefiting from the sizeable and devoted customer base of that country. People just believe that India is one enormous market, as Bill Schreiber of Little Caesars, the third-largest pizza company in the United States, put it. But no. Each region has its own tastes, including the South, North, West, and East. Domino’s, Pizza Hut, U.S. Pizza, Chicago Pizza, Papa John’s, Smokin’ Joe’s Pizza, etc. are a few of the industry’s key participants.
Other pizza businesses are still new to the market, compared to Domino’s and Pizza Hut, which have been present in India for more than 20 years. However, these companies are prepared to spend in their R&D to create menus and serving size that would appeal to Indian consumers since they see India’s potential to be the next giant in the pizza sector. Â
The main reason why the American pizza business Sbarro and the Australian brand Eagle Boys had to deal with a number of issues was their inability to invest sufficiently in R&D and develop inventive menus that are tailored to the eating habits of Indian consumers. Sbarro is now returning to India, however, having learnt from its past errors and planning to grow quickly in the next years. The company is attempting to capture a portion of the Indian market with appropriate goods, pricing, and positioning.
Why should you start a pizza franchise?
Pizza is a food that Indians have grown to sincerely appreciate and adore. Therefore, enjoying a pizza won’t become obsolete any time soon. India’s pizza sector is increasing quickly as a result of the nation’s rising wealth and purchasing power. Here are some reasons why purchasing a pizza franchise is a fantastic option for investors and businesspeople:
Simple menu innovations
Pizzas in India have long passed the experimental stage, unlike other foods like donuts or pitas. It is now mainstream, commonplace, and well-liked throughout India. Despite being a very popular food item, pizza menu innovations are infinite, relatively inexpensive, and hence simpler to carry out. There is no need for brand-new machinery or specially qualified personnel. There are countless possible combinations of sauces, cheese, toppings, and even the wheat used for the pizza foundation. A franchise outlet owner also need not worry about creative costs associated with changing the menu and goods in response to the continuously changing wants and requirements of the customers because the franchisor often invests in the same.
India has the biggest proportion of youth in the world, which makes it simpler for us to get talented, knowledgeable, and affordable labour. In India, where there are approximately 500 million workers, it is not difficult to locate workers who are best suited for the variety of jobs in a pizza shop. The Indian workforce’s proficiency with the English language is another major benefit, making it suitable for serving customers from many racial and cultural backgrounds.
A pizza franchise can eventually contribute to large earnings if the first steps of investigation into one’s potential franchisor are appropriately carried out. The few components used to make a pizza are all inexpensive. All of the following are cheap ingredients: flour, water, yeast, cheese, and toppings (the majority of which are currently purchased locally at wholesale prices). Ovens, which are necessary for baking pizza, are not significantly less expensive than industrial machinery. A pizza franchise may therefore offer good returns from minimal to medium investment if the correct franchise brand is chosen.
Compliance-friendly business process and set-up
F&B businesses are frequently criticised for breaking rules governing cleanliness and quality. The enormous assistance that comes with opening a franchise, including help with staying in compliance with the law, is one of the largest advantages. The heavy lifting has previously been done because franchisors’ current work procedures and manufacturing lines already adhere to the industry’s standards for customer service and sanitation.
Higher rates of patron loyalty
Businesses who sell pizza are aware of how important a customer’s initial impression is in developing a positive brand image and nurturing loyalty. This is likely the reason Domino’s and Pizza Hut have been seeing good growth rates, but there is still possibility for new competitors to carve out a niche for themselves. Pizza is a cuisine that both adults and children may enjoy, but the pizza industry has historically focused primarily on appealing to young people. Given that India has the most young population of any country in the world, it is easy to understand why pizza businesses, both new and old, frequently use young people in their advertising and marketing.
Things to Keep in Mind Before Starting a Pizza Franchise Business Setting up requirements
It’s essential that the franchise owner be well-aware of the funds, space, and other expenditures necessary for opening a franchise outlet before opting to invest in a pizza franchise. The franchisee must first pay a one-time fee to the brand in order to purchase the rights to operate a franchise outlet. Aside from this fee, additional costs can include buying or renting a shop, furnishing the business, employing and training personnel, buying equipment and staff uniforms, etc. There are several franchise models available as well. Before purchasing a franchise, it is important to have a realistic understanding of all these expenses and details.
Consult an authority for guidance
The pizza market in India is thought to be worth INR 3,500 crores and is currently expanding steadily, particularly during the past five years. The pizza industry is very profitable but also very cutthroat. It is advised that you speak with a franchise specialist before employing a pizza franchise. An expert may help you structure a transaction, introduce you to current franchise owners, and recommend services that are appropriate for your company’s objectives. They can also provide you advice on the greatest and most successful brands on the market. As a result, in order to make the most of the rising interest in and investment in the Indian pizza sector, it is crucial to consult an expert so that you can make an informed choice.
Set reasonable goals
This is without a doubt the most important thing for potential franchise owners and investors to bear in mind. The initial outlay for a pizza franchise may appear to be far larger than the expected revenues or growth. To focus on the enterprise’s wider vision while acknowledging that the first profits may be modest is a necessary component of owning and operating a firm. Thus, it is essential to comprehend and assess both recent and historical trends in the pizza market in order to set realistic franchise goals and determine success.
Recognising various models
A franchisor frequently offers a variety of ownership options. A single-store franchise, multi-store franchises, an area developer, or a master franchise are some of the often available possibilities. It’s crucial to comprehend and weigh the advantages and disadvantages of each type before deciding to start your pizza franchise business. The optimal franchise ownership model for you will also largely rely on how much money and effort you are prepared to put into the company. For instance, one may either benefit from owning a pizza franchise and gaining expertise before launching their own independent enterprise or they can fully commit by building a multi-store franchise firm.
The key to success in India’s intricate yet profitable industry is to make a large investment in research, comprehend local tastes, take into account local health trends, and create menus appropriately. The level of assistance that now the brand is prepared to provide is another important aspect to examine. For instance, Eagle Boys provided important finance and assistance, but only when they were just starting out in India. The brand ultimately failed in India due to their inability to maintain financing in order to stand out from and compete with other pizza companies.
Therefore, it’s crucial for potential franchisees to completely comprehend the franchisor’s vision and a clear strategy that has been tailored especially for Indian clients as they decide which franchise brand to purchase.