Written By: Yukta Palekar

By taking use of the market capitalization, strong marketing, and human resources training of the franchisor brand, purchasing a retail shop franchise is a lucrative method to build wealth. A franchise's operational costs, break-even period, royalty fee, and franchise fee should all be considered while choosing one. Here is a list of seven of the most popular airport retail stores franchises in India, along with their associated operational expenses. By doing this, franchisees may maximize resources and create successful businesses.

The importance of Airport Retail store business to start in India

• Increasing Popularity: Airport retailing has gained significant popularity in India. Airports now offer large retail areas, top brands, and exceptional experiences.
• Retail Mix Expansion: The retail mix at airports is expected to grow further. Growth driven by the burgeoning domestic travel industry and aggressive bidding by private players.

Revenue Generation at Airports

• Aviation Income: Includes passenger charges, cargo, etc.
• Non-Aeronautical Revenue: Includes retail zones, shopping malls, hotels, etc. Of great significance as around 50% of travellers spend at terminals.

Major Developments

• New Terminals: It is expected to improve the retail space in Delhi & Mumbai new terminal.

Franchise Opportunities

• Sector-Wide Interest: Franchisors across all sectors vie for outlets at transformed airports.
• Subway's Expansion: Present at airports in Delhi, Bangalore, Ahmedabad, and Kolkata. Plans to expand give the franchise to all main airports all over India.
• Accessory Sector Demand: Hidesign has multiple stores at various domestic and international airports. Present at Delhi Domestic, Mumbai Domestic, Hyderabad International and Domestic, and Cochin International. International presence includes Heathrow and Copenhagen.
• Jewellery Sector: Forever Precious Jewellery and Diamond planning new stores in Delhi and Hyderabad airports.

Strategic Importance

• Prime Locations: Associating with airports is crucial for franchisors. Ensures a steady people footfall and targeted audience is more in the Airport location.
• Investment Requirements: Subway franchise investment ranges between Rs 25 and 45 lakhs.
• Location Approval: Kaati Zone ensures outlet locations are finalized with the brand's consent.

6 Profitable and Trending Retail Store Franchises in India

Domino’s Pizza Retail Store Franchise

Three kind of retail shop franchises are available from Domino's Pizza: classic, non-traditional, and transitional. Non-traditional takeout restaurants are tiny form factor eateries, whereas typical outlets have enormous square area. Transitional businesses cater to clients that are always on the go by offering fast lunch alternatives.

There are 1,700+ franchise locations available in the market, with a 5–10-year term. Franchise costs can range from ₹4 lakhs to ₹2.25 crore, with an average profit margin of 19% and a 5% loyalty rate. With franchise costs ranging from ₹4 lakhs to ₹2.25 crore, locations are available throughout India.

College students or young professionals make up the demographic profile, and they have a penchant for busy places with plenty of foot traffic, reasonably priced restaurants, and a wide range of customers. Pizza Hut is one rival choice.

TATA 1MG Retail Store Franchise

TATA 1MG, which has more than 20 locations nationwide, is providing a healthcare franchise opportunity in India. The investment will be ₹10 lakhs to ₹20 lakhs. The intended audience consists of locals looking for easy access to pharmaceuticals and medical supplies, people of different financial backgrounds, and community members who depend on easily available healthcare services.

MedPlus, MedLife, and NetMeds are some of the rival companies. The franchise seeks to offer community-focused services and reasonably priced healthcare options catered to various economic brackets.

Mio Amore Retail Store Franchise

East India's Mio Amore, a bakery and confectionery business located in Kolkata, is becoming more and more well-known. Till now MIO AMORE Retail store has located with the 300 stores, With a three-year franchise term agreement. People with discretionary money who are between the ages of 18 and early 50s and who want reasonably priced eating alternatives are the target demographic.

The franchise offers a friendly setting for food retail and eating requirements, with an emphasis on offering high-quality dining experiences and community-focused services. There are rival businesses on the market, such as 7th Heaven, Sugar, and Spice.

Haldiram Retail Franchise

The well-known Indian eatery Haldiram's provides retail outlet franchises in three categories: casual dining, quick service restaurants (QSR), and bakeries & confectionaries. There is a ₹15 Lakh franchise fee, a ₹50 Lakh investment, and a 2–4-year franchise tenure. The brand serves both tier 1 and tier 2 cities, focusing on upscale neighbourhoods and shopping centres. It serves customers from a variety of economic backgrounds and appeals to those looking for inexpensive dining experiences without sacrificing quality.

The brand wants to design a dining experience that appeals to its target market and fits in with their lifestyle preferences and financial data. A2B, Sri Krishna, MTR Foods, and Karachi Bakery are some of the competitors with same type of looks. The target market for the brand consists of those looking for reasonably priced eating options without sacrificing quality, as well as a wide

Baskin Robbins Retail Store Franchise

In India, there are three investment options available for the premium ice cream retail business franchise Baskin Robbins: kiosk, Parlor, and lounge. To guarantee seamless operation, the franchisee receives training and brand recognition. Urban dwellers who like sweets and snacks are the target market, with an emphasis on discretionary expenditure.

Franchisees are probably going to hang around at malls or other entertainment venues, looking for easy ways to state their sweet tooths. The franchise business offers a varity range of age groups a selection of high-quality options. Havmor, Amul, Ibaco, and Kwality Walls are some of the rival companies.

Belgian Waffle retail business franchise

Investors can choose between the two franchise models—kiosk and café—based on which one best fits their needs. The company helps its franchisees guarantee a return on investment within the first 12 months of business.

The Belgian Waffle chain serves people in residential areas or adjacent communities, providing easy-to-eat alternatives for those between the ages of 16 and 45. Food aficionados looking for a variety of cuisines and dining experiences make up the target audience. The business offers accessible and reasonably priced meal alternatives, catering to a wide age range.

Consumers value deals, breakfast-focused options, family-friendly, informal dining spaces, convenience, and ready-to-cook food. Theobroma, Karachi Bakery, and The Baker's Dozen are some of their rivals.

Top Retail Franchise Destinations in India

• Major Airports:
  • Delhi International Airport
  • Bengaluru International Airport
  • Hyderabad International Airport
  • Rajiv Gandhi International Airport (RGIA)
  • Mumbai International Airport
  • Chennai International Airport
  • Kolkata International Airport
  • Cochin International Airport
  • Ahmedabad International Airport
  • Goa International Airport
  • Trivandrum International Airport (TIA)

Franchising as a Growth Strategy

• Ensures Higher Customer Footfalls: Generates increased revenues. Essential for success in these markets.
• Understanding Target Consumers: Franchisors must understand their consumers and shoppers before investing.

Opportunities of Airport Retail Stores in Smaller Cities

• Preferred Locations: Franchisors prefer malls or commercial hubs in B or C class cities due to lack of malls in smaller cities. Example: Crossword Bookstore opens stores in malls or high street locations with parking facilities.

Tier II and III Cities are Promising Airport Retail stores

• Rising Potential: Due to better infrastructure, state-of-the-art office spaces, and skilled manpower. Higher disposal incomes and increased media exposure make these markets attractive.
• Franchisor Expansion Plans: Tanishq plans to open 25 new stores in tier II and III cities in 2012-13.
• Target Cities: Allahabad, Bhubaneswar, Cuttack, Silchar, Tezpur, Gangtok, Indore, Jamshedpur, Hisar, Raipur, Ranchi, Nagpur, Patna, and others. Crossword Bookstore plans expansion in cities like Patna, Agra, Varanasi, Rourkela, Sambhalpur, Hubli, Belgaum, Mysore, Vijayawada, etc. Classic Polo targets the southern region including Coimbatore, Pollachi, Namakkal, Kumbakonam, Trichy, Pondy, Shimoga, Bellary, Davengare, Belgaum, Kannore, and Kovalam.

Successful Franchisors and Brands

• Top Brands Expanding: Pizza Hut, Domino's, KFC, Subway, Gitanjali Jewels, Tanishq, Reebok, Adidas, Raymond Ltd, Turtle Limited, Allen Solly, Classic Polo, Crossword Bookstore, EuroKids, Amul, Cartridge World, Motilal Oswal Securities Ltd, Starwood Hotels, Carlson Hotels.

Real Estate Challenges and Strategic Expansion

• High Metro Rentals: Real estate rentals in metros have reached unsustainable levels.
• Penetration into Unexplored Markets: Brands are shifting focus to aggressive expansion in smaller cities.

Airport Retail Stores Franchising Pros and Cons

• Successful Business Model: Enables faster expansion compared to metro expansion alone.
• Strategic Growth: Understanding the advantages and challenges of franchising can help brands capitalize on growing demand in smaller cities.

Key Considerations for Airport Retail Stores Franchise Investment in India

• Low-Cost Investment: Franchises offer a low-cost investment route with significant revenue upside.
• Selecting the Right Franchise: it is very difficult to choose the right franchise business. The business should be located at the crowded area.
• Location Considerations: Avoid opening near another same-store franchisee to prevent customer pullbacks and revenue reduction.

Profitable Retail Franchises in India

• Strategic Planning: the business should selection the franchise and the location is key to success. Ensure realistic ROI expectations and avoid scams related to unavailable franchises.

Growth of Airport Retailing Store in India

• Airports ensure a client base and target core customers..
• Higher Rent and Returns: Higher rent per square foot at airports compared to other cities. Higher returns per square foot, with examples like Croma’s annualized realization of Rs 1.2 lakh per sq. ft. Expected trend to continue.

Demand for Retail Franchises in India

• Popular Retail Stores: Increased demand due to the popularity of stores like More, and Reliance.
• Diverse Franchise Options: Options include bookstores, coffee shops, departmental stores, footwear stores, furniture stores, and top shops.

FranchiseBazar Retail Directory

• Assistance in Finding Brands: FranchiseBazar helps in finding the best brands for starting a franchise business. Small, departmental, online, and garment retail franchises are available.

Starting a Franchise Business

• Explore and Start: Visit FranchiseBAZAR to explore and start a successful franchise business in India.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.