Secret Recipe For Successful Franchise Business
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Set Your Priorities Straight
For any franchise business to succeed, the consistency of the quality of product and service is important or else it affects the relationship with the customer. Hence franchises fall flat on their face.
The consistency can only be maintained if the franchisors consciously collaborate with passion-driven entrepreneurs.
Samrat Reddy, the man, and the brain behind the energy smoothie brand Drunken Monkey says, “It is important to work with people who can make the process work. It is good to have a great idea, but that doesn’t help if it doesn’t have a process which will make it work. So, when I came out with this range of healthy smoothies, I also ensured it was a model of replication anyone else could follow and adhere to the quality standards which we monitor strictly. If someone does not meet our quality standards to the minimum 75% checklist attributes, we have to mark that outlet in our red book. This is a rarity because we choose our partners very carefully.”
Reddy is a sports enthusiast and ensures that the smoothies contain the best fruits sourced from local farms to his various franchisees on a daily basis.
Reddy explains that the reason they have grown so quickly is that they kept their standards of quality consistent.
Drinks and More
Reddy says, “People are wishing to have comfort at their doorstep. We are facilitating this and have tied up with various food aggregators. Currently, home delivery orders make for 30 percent of our sales.”
Currently, the young Reddy plans to expand his business model’s base in Delhi. So aspiring franchisees can do away with smaller kiosks and not worry about major overhead costs. With an initial investment of Rs. 20 lakhs for the takeaway kiosks, return on investment is good in 1.5 to two years time. The seating space outlets of 500-1000 square feet come to Rs. 35 lakh might take a wee bit longer.
Expanding Portfolio Without Leaving Base
In two years, Drunken Monkey is 60 outlets rich. Most of the outlets have not even completed a year.
Reddy says, “In terms of revenue as a company, we have multiplied from first year to the second year 40 times. We have been improving month to month. As more and more people are accepting this idea of smoothies, consequently more people are turning into our customers with an ever-growing market share.
Apart from expansion, our plan for the next 5 years is to reach out to people in different ways through different distribution models. For example - we can get into supermarkets or places where people can pick up smoothies by themselves. So, eventually, we will release a few smoothies with better shelf life, where they can be kept fresh for more time. Apart from this, with fresh fruits, we can do more (apart from smoothies). So, there are more products we can give out in our outlets- expanding our portfolio without leaving our base which is “fresh fruits”.”
This article was originally published on Franchise India by Nibedita Mohanta.