#AskPS
Is Food Franchise a dead business?
Piyush Soni .

Is Food Franchise a dead business?

First of all, I’m in no position to buy a business currently. However, I’ve always been fascinated by the idea of investments and growing income.

I’m just trying to learn a few things!

I’ve really been interested in fast food franchises, along the likes of Subway, etc. I was just casually browsing business for sale sites and trying to gauge an idea of how businesses function and how they are managed.

One thing I noticed, particularly with Subways, which is why I mentioned it above, is a lot of the listings are for sale by owners who either purchased them/started them around 4-6 years ago.

Any ideas, Why?

If it’s bringing profit to your business portfolio, why the need to sell?

Originally Posted Here
12 Comments

Ankush Mehrotra

NO ITS FAIRLY HEALTHY & ALIVE. As discussed with several of my clients at frantiger, we have removed this cloud of misinterpretation that the food business is dead. Yes, food businesses that haven't evolved past serving on-premise are surely going to die because of less or no customers. However, those who have evolved to cater to serve larger audiences via dark kitchen or cloud kitchen concepts are making their fair share of the business. We have two fine examples of such franchise are https://frn.pw/samocha and https://frn.pw/fruit

Both have made sure that pandemic has not impacted their sale, and with utmost quality served fresh and hygienically, they have even increased their franchise traction as well as customers.

Need more insights, we can connect too.

Kislay Ranjan

Subway flopped in India similar to west. This is because the novelty factor proportionate to price ended.
Moreover, in places like Bihar, they considered meat to be undercooked( basically due to bias for roast and curry). So they had to shut shop.

Piyush Soni

Woah! Sad to hear this! But what according to you is the best working franchise if someone want to start?

Kislay Ranjan

Fast food chains are good but one has to adapt to the market. I think Subway topped while recession but post that McD gave it a tough competition. I feel Subway couldn't adapt much.
Also food is more of a festival here. You dine out to enjoy. Otherwise you can cook in home. So you have to have the menu like that. That's why pizza from Domino's are a hit. They have that exclusivity. Subway or even McD are more of a breakfast brand.
P.S- I am not an expert but an ardent foodie. So this is my take. However, I never visited McD even in US. My fav breakfast was Belgian Waffle. I wasn't regularly eating it but every weekend or alternate ones. That was my idea of eating something tasty and unique.

Yash Thakur

I won’t recommend any food franchise now but a drive thru setup with perfect home delivery system (only few specific items, so we can improve the quality & hygiene) has a lot of potential.

Piyush Soni

Yeah right now! I also don't think this would be advisable! Yeah but for future, I might consider investing!

Avinash Kewlani

Yash Thakur I second that, we might see some niche brands in food too given the current conditions.

I personally would prefer having an outlet of max 7-8 items...

Nikhil Sachdeva

Majority of Indians have learned all dishes available.

Some very new concept in food and dishes can be a hit.

I wonder why people will still eat the same old punjabi, south indian, thai and chinese dishes now.

Goutham Bhat

There is a lot to talk about food business.

Pm me I can give you my entire insights

Vijay Agrawal

I don't think so that food Franchise will be a dead business.. Food is the only thing that is forever business. The only thing is that business has to be Re Engineer..

For example #frozen #snacks.

We have doubled out sales during the lockdown.. To know more DM.. #Spice_circus

Sibendra Mallick

Btw every food business doesnt have secret recipe, its all about the secret.

For example, The Lassi shop sells franchise of 15L only(10+ franchises in bangalore) and has got customers and brand recognition, yet a new brand compared to KFC or MCD, and the ROI is much faster and profitable.

Well, i am not paid by them, i am saying , coz moral is , if your one shop is extremely profitable due to the product, not customer service, u can make franchise of it.

For reference: u can watch Founder movie, it was all about finding the best product then franchising them out.

Sooraj Kumar R

Subway is low on value for money for me. McD is the opposite. That should explain why which of these two do so well. Sure the menu is different but I think the value for money factor isn't that different still. Indians wouldn't consider either of them a meal but a snack.

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