KFC is fast food chain which has been growing in the favour of the people in India. If you are planning to join the bandwagon and open a KFC franchise, then it’s important to know the cost implication. Let’s know about KFC Franchise Cost in India.
Initial Investment
The initial investment for a KFC franchise cost in India can vary depending on several factors including:
- Location: Prime areas of the metropolis will normally require more cost to rent or to purchase.
- Size of the restaurant: In large restaurants, there is need to put in place more structures and utensils as compared to the small restaurants.
- Interior design and decor: The degree of customisation and branding can affect the costs This has the affect of potentially negatively impacting costs.
- Equipment and technology: Some essential cooking utensils, point of sale terminals, other tools of technology will enhance the investment.
Franchise cost of KFC restaurant in the Indian market can therefore cost up to about 1-3 crore. This consists of franchise fee, security deposit, initial inventory, and other set up cost.
Ongoing Costs
Once your KFC franchise is operational, you’ll incur ongoing costs, such as:
- Royalty fees: To KFC you will remit a percentage of sales as royalty fee.
- Advertising and marketing: It means that KFC will need some inputs into the advertisement and marketing projects.
- Rent or lease payments: The level of investment you have put in the property from where the franchise operates.
- Utilities: The principle expenses include electricity, water and other utilities such as sewage and garbage disposal.
- Employee salaries and benefits: Salaries, commissions and other remunerations payable on employees.
- Inventory and supplies: Food and beverages expense and other consumables expenses.
- Maintenance and repairs: Costs associated with the operation of the restaurant including costs of equipment.
Factors Affecting Profitability
Several factors can influence the profitability of your KFC franchise:
- Location: It shows that a great traffic can really boost your sales up to a great extent.
- Marketing and promotion: Appropriate promotional tools are captivating in gaining the attention of the customers and making them buy the products.
- Customer service: Ensuring high levels of customers’ satisfaction can help to retain the customers and turn them into repeat customers.
- Operational efficiency: It is clear that the effective management of the restaurant basically presupposes the minimization of certain costs and an increase in the restaurant’s profitability.
Ways on How to Open a KFC Franchise
- Express interest: One can go through the online application or may directly contact the KFC restaurant to show the interest towards the job.
- Qualification process: Having gone through your Curriculum vitae, KFC will assess the qualifications and experience.
- Site selection: Forthwith establish convenient locations for your franchise.
- Financial evaluation: Make a clear and specific budget.
- Franchise agreement: Enter into a franchise; enter into a written agreement.
- Construction and renovation: Buy land and construct the restaurant, or remodel it based on the design you want to portray for KFC.
- Training and staffing: Educate your staff & recruit new employees if needed.
- Grand opening: Celebrate the ‘grand opening’ of your K F C franchisee.
Hope these above information are enough about KFC Franchise Cost in India.
