Why Pizza Hut Is The Best Fast Food Franchise In India In 2024?
Written By: Shruti Agrawal
In the vast and diverse culinary landscape of India, flavors and tastes know no bounds. The one fast-food franchise that has managed to carve a special place in the hearts and palates of millions is the Pizza Hut fast-food franchise. The Pizza Hut fast food franchise’s Indian odyssey commenced years ago, and its journey has been one of culinary innovation and adaptation. It introduced India to the delightful world of pizzas and Italian-inspired cuisine.
As 2024 unfolds, Pizza Hut remains an epitome of evolution while remaining rooted in authenticity. It has successfully married global flavours with Indian tastes, adapting its menu to cater to diverse regional palates without compromising on quality.
The enduring appeal of Pizza Hut in India stands as a testament to its exceptional position in the fast-food industry. This introduction will delve into the reasons why, amid fierce competition and a rapidly evolving food culture, Pizza Hut fast food franchise continues to reign supreme as the best fast-food franchise in India.
Pizza-Hut Fast Food Franchise
Dan and Frank Carney established Pizza Hut, an American global restaurant chain and international franchise, in Wichita, Kansas, in 1958. The chain is headquartered in Plano, Texas. Yum! Brands, Inc., the company that also owns Taco Bell and KFC, is the owner of Pizza Hut.
Pizza Hut made its foray into India in June 1996 with a restaurant in Bangalore and was the first international restaurant chain to pioneer this category.
While it offers a range of classic and international pizza options, it has also introduced unique Indian-inspired flavours and toppings. It also serves pasta dishes, chicken wings, salads, and an array of appetizers and desserts. In response to India's vegetarian-majority population, Pizza Hut in India places a significant emphasis on vegetarian options.
Pizza Hut Fast-Food Franchise Model In India
Pizza Hut is a popular fast-food franchise in India, and it has a reputation for being profitable. The franchise model in India operates through three different restaurant formats.
Here are some key details about the Pizza Hut franchise model in India:
- Types of Franchises: Pizza Hut permits its franchisees to establish various Pizza Hut-branded establishments at designated sites. The estimated cost of the delivery or carryout restaurant is ₹15 lakhs. The restaurant that delivers food costs about ₹20 lakh. The estimated cost of the restaurant model is ₹30 lakh.
- Minimum Investment: A minimum expenditure of INR 20 lakhs to 40 lakhs and a minimum space of 1000 to 1500 square feet are required if you plan to open an outlet. The remaining franchisee requirements, which include possessing a net worth of INR 5–6 crores and INR 3 crores in liquid capital, should also be crossed off.
- Profitability: Pizza Hut is India’s second-most popular pizza brand, with a market share of 27%. It has established more than 450 restaurants in India today and has a plan to double the numbers in the next five years. The franchise is profitable, and it is a stable revenue source.
- Application Process: The application process to obtain a Pizza Hut franchise in India is pretty simple and straightforward. The individual seeking a Pizza Hut franchisee needs to head over to the company’s site and fill out the relevant e-form as per the requirements. The application form seeks plenty of information from the applicant regarding personal and official details.
- Franchise Requirements: A net worth of between INR five and six crores and INR three crores in liquid funds are prerequisites for becoming a franchisee. Additionally important are a solid credit history and report. A formal commitment to protect the trade secrets and proprietary information of PHI must be signed by the staff members. A police verification certificate and GST registration certificate are also required.
Steps to set up a Pizza Hut Fast-Food Franchise in India
- Contact Pizza Hut: The easiest way to get in touch with Pizza Hut is to visit their official website and fill out the franchise inquiry form. You can also contact them through a franchise consultancy.
- Check Eligibility: Pizza Hut does not ask for any special requirements, but there are certain eligibility criteria that have to be fulfilled by an individual. These include having a net worth of INR 5-6 crores and INR 3 crores of liquid funds, a strong credit report and history, and a police verification certificate.
- Choose the type of franchise: Pizza Hut offers three different types of franchise options based on investment and the level of risk one is willing to take. These include traditional restaurant franchises, pizza hut delivery franchises, and express outlet franchises.
- Determine the investment amount: The initial investment required to start a Pizza Hut franchise in India is around INR 14 lakhs, which includes the initial franchise fee. The investment amount does not include restaurant construction, restaurant opening expenses, or opening inventory. The brand also charges a royalty fee of 6.5% of the overall profit earned by a unit.
- Find a suitable location. Pizza Hut has enlisted specific locations for the franchise, depending on the zone. The reasonable space requirement for a brand like Pizza Hut is at least 1000 Sq Ft. to 1500 Sq Ft.
- Complete the approval process: The approval process involves a series of background checks and interviews, and it generally takes 10-12 weeks.
- Attend training programs: Once you are considered a qualified client for opening a Pizza Hut franchise, the company will provide you with various training programs that will impart knowledge and teach you how to effectively run this food chain business.
- Open the restaurant: Before opening the restaurant, you need to mark off the remaining franchisee requirements, which include signing a written agreement to keep PHI’s trade and proprietary information confidential, obtaining a GST registration certificate, and obtaining a police verification certificate.
Market Trends Of Fast-Food Franchise in India
The fast-food franchise industry in India is growing at a rate of 30% every year. The second-largest market for franchisees overall is India. Food and beverage companies continue to rule the franchise market and have some of the fastest growth rates.
Food franchises are profitable in India due to the sheer diversity of cuisines and delectable flavors that Indians know and love. Quick service restaurants (QSRs), sometimes referred to as fast food restaurants, are growing in popularity.
The quick service restaurant market in India is predicted to reach INR 431.27 billion in FY 2027, up from its FY 2020 valuation of approximately INR 188 billion, or a compound annual growth rate of 14.2%. This indicates that the Indian food franchise market is expected to grow in the upcoming years.
India's thirst for social interaction and growing disposable income have contributed to the growth of the country's cafes and bars. The market is driven by a young demographic inflow. Young individuals (18 to 35 years old) spend a large portion of their income on eating out and fast food, which they find to be delicious.
The home-delivery and take-away models are expected to expand at a higher growth rate with a market share of approximately 21.25% and 40.81%, respectively, in FY 2027 as compared to the dine-in segment.
The market trends suggest that health-focused concepts, QSR with a twist, and home delivery and take-away models are becoming increasingly popular in India.
Benefits to Start a Pizza Hut Fast-Food Franchise in India
- Pizza Hut is a well-known restaurant brand that has seen considerable success in India. With a focus on providing the greatest customer service, the company offers a wide selection of unusual pizzas. Establishing a franchise is a recommended option because the brand offers a sustainable commercial prospect.
- Franchises are relatively simple to set up and usually require an initial start-up cost to be paid by a franchise owner. Both the franchisor and the franchise owner have found great benefits from the franchise model.
- The key advantages of opening a fast food franchise in India are that it is a simple set-up and requires less risk than building an enterprise from scratch.
- When it comes to client retention, Pizza Hut outperforms the top-selling pizza brand in India. The investment in a Pizza Hut franchise in India is likely to be profitable, although it may take some time.
- Owning a Pizza Hut in India includes access to world-class training, support, and marketing resources from the company. The business also provides a strong return on investment, with typical franchisees making a profit of INR 10 lakhs annually.
- According to the International Monetary Fund, India's GDP is growing at the fastest rate on record. SMEs, or small and medium-sized enterprises, have been a major role in this expansion. Therefore, it makes sense that people would want to launch a small business, and one of the most popular industries to enter is the fast-food industry.
- The experience required for establishing a Pizza Hut franchisee is not too demanding on anyone who is eager to set up one and requires a minimum investment of INR 14 lakhs.
In a nation known for its love of food, Pizza Hut remains an icon in the fast-food industry, offering a slice of global cuisine while staying rooted in the rich tapestry of Indian flavors. As the brand continues to evolve and adapt to the changing culinary landscape, one thing remains certain: Pizza Hut's legacy as a beloved fast-food franchise in India is set to endure for years to come.
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