Food Industry

Franchising in Food Industry is Brimming with Opportunities, says Karan Tanna

The franchise industry is growing at a rate of 30-35% per annum and the sales turnover of the sector was recently valued at over US$7 billion
Franchising in Food Industry is Brimming with Opportunities, says Karan Tanna
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3 min read

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India is now seen as one of the world’s largest and fastest emerging markets, and its vast population size and cultural diversity have made it a prime environment in which franchising can thrive. The franchise industry is growing at a rate of 30-35% per annum and the sales turnover of the sector was recently valued at over US$7 billion. 

In conversation with Franchise India, Karan Tanna, CEO & Founder, Yellow Tie Hospitality, gives an insight into the franchising aspect in the food business and how it is creating opportunities for the small town players.

Opportunities for Smaller Cities

Franchising in the food industry is loaded with opportunities for players in smaller cities, which have unique concepts and which reflect growth indicators. Tanna says, “We are looking for brands from smaller cities like Siliguri or Vijayawada, which have distinct brand indicators but can be scaled up.”

He says, “There are 2 to 3 key things we look in a company, of course, we look at the financial stability of the company and do the required due to due diligence. But the most important thing is that we look at the concept which will either be a category creative or a leader in that particular food category. We also look into category leadership potential and a powerful entrepreneur an also that they have attained a unique level of the economy so on and so forth.”

What it Offers

Recently the company has acquired three brands Umraa, Wok This Way and Health Juice Centre, however, the firm also has exclusive licensing agreements for international brands such as Genuine Broaster Chicken from the US, Just Falafel from Dubai and Wrapchic from England.

The company provides support to franchisee partners in the form of setting up shop, sourcing kitchen equipment and initial hand-holding. Tanna says, “Umraan and Wok This Way have two outlets each and Health Juice Centre has six outlets. Yellow Tie Hospitality plans to open 55 outlets - 25 for Health Juice and 15 each for Umraan and Wok This Way - across the three brands by the end of 2018.”

The company has plans to take some domestic brands to abroad. YTH eyes Middle East market to expand Umraan there and Southeast Asian market for Wok This Way by next year. Wrapchic Founder Mahesh Raikar said, “We are planning to invest five million USD in the next three years with 25 stores at PAN India level across malls and corporate parks. We are very optimistic to grow Wrapchic not only in India but across Asia.”

This article was originally published in Franchise India by Nibedita Mohanta.

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