Can you tell us about 7th Heaven?
7th Heaven is a successful cake and dessert chain that was started in the year 2011. The brand currently has 35 outlets Pan-India and has presence across six cities, namely: Mumbai, Delhi, Bangalore, Surat, Vadodara and Hyderabad and looking to franchise outlets across the country. 7th Heaven has on its menu a huge array of International desserts that include Cupcakes, Cakes & Pastries, French Macarons, American Cheesecakes, Italian Cannolis, Brownies, Savoury items, Waffles, Chocolates and Beverages among others.
Q2. Which company owns 7th Heaven?
The brand 7th Heaven is owned by Kitchen Fragrances India LLP. Kitchen Fragrances India LLP is an ISO Certified leading and trusted Manufacturer, Retailer and Distributor of food products in India. The company was established in 2011 and has developed three successful brands, 7th Heaven (Desserts & Cake Shop), Ice Cream All The Way (Ice cream Parlours) and World of Flavors (India's First Global Snack House).
Q3. What differentiates 7th Heaven from the other brands? What is its USP?
1.] 7th Heaven has a Live bakery concept. Any cake, in any size, in any flavor, can be specially made fresh for the customer with 7-10 minutes. While 7th Heaven offers the freshest of cakes, other brands offer cakes that are a day old or two-days old.
2.] 7th Heaven is the only pure vegetarian Cake and Dessert Shop in India that caters to not just the vegetarian market, but also to the non-vegetarian market. It is the only brand that offers Eggless Macarons in India.
Q4. What will be my Investment, if I wish to acquire a 7th Heaven Franchise?
The total investment is Rs. 18,00,000/-. Retail cum Manufacturing complete set up of the store & kitchen would be done by us including all equipment, machinery, air conditioning, display units, baking oven, billing machine, computer, interior, etc.
Q5. Can I do the interior myself?
A-Z setup of the outlet will be done by the company only. The company has to standardize the interior of its outlets across India and hence cannot allow franchisees to do the setup.
Q6. What is the minimum shop area requirement to open a 7th Heaven outlet?
The minimum shop area requirement is 300 sq. ft. (Carpet Area). Please note: This is the minimum requirement, we currently have outlets that ae as big as 1200 sq.ft. The cost for the franchise is subject to change depending on the size of the store (Rs. 1.5 Lakhs extra for every 100 sq.ft).
Q7. How are the margins divided between the company and the franchisee?
Out of 100%:
- 15% of total sales - Royalty paid to the company
- 25% of total sales - Cost of Raw Material to make the products
- 60% of total sales –Margin of Franchisee
Q8. What are my monthly expenses?
You will be expected to bear the cost of:
a. Staff Salary
c. Rent (If property not owned by Franchisee)
d. Sundry Expenses (Packaging Material, etc)
Q9. What will I be left with after all these expenses?
Our franchisees currently are making a sale of Rs. 15,000 to Rs. 40,000 per day, depending on the location. A franchise that has a sale of Rs. 15,000 per day, can expect to make a net profit of more than Rs. 1 Lakh. (Depending on Various factors like rent etc.)
Q10. Are Retail Sales my only source of Income?
No, Retail Sales are not the only source of income, You are free to supply products at wholesale rates to other stores, supermarkets or Corporates.
This is a huge source of added income for our franchise owners.
Q11. What about the Raw Material needed to make the products?
Most of our suppliers, supply on all India basis and we have a tie up with them. So we shall tie you up with the suppliers / distributors in your city. Incase the supplier is not in your city, we shall tie you up with the supplier nearest to your city as most of the raw material has expiry life if 6 months to 1 year, you can buy it once in 6 months also. We only use the best, highest quality raw materials to make our products and it is essential that our franchisees use the same raw material, helping us standardise the quality of our products pan India. Your inital investment for raw material would be 1-1.25 lakh rupees for the classic model, 1.5 lakhs for the plus model and 2 lakhs for the cafe model, which is not included in the franchise set up cost. This is part of your monthly rotational expense which you will cover back from your sales.
Q12. How many employees will I need? What about their recruitment and training?
You will need a total of three employees to run the store:
a) Two Chefs (Hired and Trained by the Company)
b) One Counterperson (Hired by the franchise owner, Trained by the company)
The company will provide you with a replacement if a chef decides to leave you.
Q13. How is Inventory Management done? Will there be a lot of wastage?
At 7th Heaven, you have the luxury of making products as per demand. There is no need to maintain a huge inventory and cakes can be made as and when needed in your very own kitchen. This hugely lowers the amount of wastage.
Q14. How do we decide the ideal Store Location? Will the company help us?
The store has to be located in the main market area only as high footfall is very crucial for good sales. You are expected to look for a few good options in the area that you wish to target, and the company will help you finalise the best location.
Q15. How long will it take to set up the Store and the Kitchen? When will the store be ready-to-run?
Our Interior designer and their team, take just 25 days to 1 month to get the store up and running.
Q16. What about Promotion & Marketing? Will the company help us?
1. 7 th Heaven, before the launch of your outlet, will distribute 24,000 leaflets in your local area, with an offer for free cupcakes to every customer to give your sales an initial boost.
2. The company will tie up for you with: Zomato, Ola Cabs, Swiggy & Paytm
3. 7 th Heaven has an active social media presence on: Zomato, Swiggy, Facebook, Instagram & Twitter.
4. 7 th Heaven has an E-commerce website where customers can place online orders
5. 7 th Heaven offers membership programs to its customers, to encourage repeat sales
6. We at 7th Heaven, from time to time come up with marketing schemes to boost our sales (E.g: The 777 offer) and you will be involved in all our marketing initiatives.
Q17. Can I sell products that do not belong to the 7th Heaven brand?
No, Franchisees are only allowed to sell products that are provided to them by the company. No products belonging to any another brand can be sold to the customers at the 7th Heaven outlet.
Q18. How long is the franchise agreement for? Is there a renewal fee?
The agreement is for a period of 5 years. A renewal fee of Rs. 2.5 Lakhs is taken at the time of renewal.
Q19. I have a bigger shop in mind, can the company offer me more products?
Yes, we at 7th Heaven offer additional products such as:
1. Ice Creams & Waffles (Additional Cost of Rs. 2.5 Lakhs)
2. Snacks & Savouries (Additional Cost of Rs. 2 Lakhs, also requires an additional chef)
3. Beverages (Coolers, Coffees and Milkshakes)
These additional products greatly impact the sale and give it a major boost. The additional cost is for the machinery and counters that we will provide to you to make the products at your store.
Q20. Are there in hidden costs that we should know about?
You are required to acquire a few licenses from the government and pay GST taxes to operate a franchise. The cost of acquiring these licenses and taxes are not included in your investment of Rs. 18,00,000/-. However, we will guide you through the process of acquiring licenses. Barring the expense of acquiring licenses and paying taxes, all your needs are taken care of by 7th Heaven and we will provide you with a ready to run store.
Thank you for your interest in 7th Heaven. We assure you our 100% support and expect the same from you. We value our franchisees as they’re the ones who take our brand forward. We wish to enter a mutually profitable symbiotic relationship; where we can together grow from strength to strength.