What is the KFC Franchise cost in India ?
Detail information about KFC Franchise and KFC Franchise cost in India
Every person dreams about having his own business and, must run successfully. Taking a franchise is one of the common, safe and brilliant steps. If you are interested in starting a food business or retail food business, setting up a franchise of some renowned and productive brand could be a brilliant idea. If you want to start a KFC franchise in India, at first you need to know the process involved before buying the franchise. Besides this you have to gain all required information of KFC and how to start the KFC franchise in India.
Kentucky Fried Chicken (KFC) is an extremely famous US originated F&B brand opening in Utah in 1952. KFC is very popular in India. Today, KFC is beating McDonald’s in India. If you want to open a KFC outlet in India and do not know about all required things then this is an ideal blog for you. Here you can get all required information and contact details. So, read the blog properly.
KFC franchise history and details
KFC (Kentucky Fried Chicken) is a worldwide popular fast food chain with a great story behind it. The founder of KFC, Colonel Harland Sanders, was going of his numerous disappointments and was depressed because of multiple failures. He invests his entire fund and began the KFC stall in the roadside at Corbin when he was 65 years and with his 105 USD.
He utilized his mother’s chicken recipe and supplied door to door. Later the recipe becomes the authentic KFC chicken recipe. People start loving this recipe and gradually turned the most popular fast food in the town. Colonel Harland Sanders is an extraordinary example of entrepreneurship. His journey is remarkable and motivates people to make their dreams come true. It is the example of never give up, try hard and win the race.
KFC is the American fast food restaurant has developed across 140 countries with more than 40,000 outlets. The first outlet was established in 1952 in USA’s Utah. The KFC establishment cost in India is more than the expense of opening a McDonald’s establishment outlet, maybe on the grounds that they have a superior standing.
The KFC has more outlets and a success story. KFC provides its franchise to the dedicated investors in India. It is one of the most pursued franchise choices that are difficult to get in India.
How KFC Franchise works in India ?
In India, KFC operates under both equity-owned and franchise-owned models. Currently, KFC directly operates only 10% of its 400 outlets in India, with the remaining 90% being operated through the franchise model.
KFC is the largest brand of Yum! in India, followed by Pizza Hut and Taco Bell. Yum! operates in India through three franchise partners, which are Sapphire Foods, RJ Corp-owned Devyani International, and Burman Hospitality.
Burman Hospitality is the master franchise for the Taco Bell brand, while Sapphire Foods and Devyani International mainly focus on KFC and Pizza Hut brands. These two franchise partners operate approximately 800 KFC and Pizza Hut restaurants throughout India.
However, it is not easy for individuals to obtain a KFC franchise in India due to the limited number of directly owned outlets and the dominance of established franchise partners.
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Benefits of Investing in a KFC Franchise
The ownership for KFC franchise can have many benefits. The organization’s strong brand value, which fundamentally supports market, deals. It is the primary benefit of an investor from the KFC franchise.
- It has a good return on investment.
- KFC introduces new innovative products.
- They execute a conveyance that makes routine works more simple and bother-free.
- The KFC supports online food order and cash-on-delivery option.
- To run a KFC franchise, no earlier business experience is essential.
- Franchisers often provide all types of support systems to run the business.
- The KFC chain has gained more progress than any start-up business.
Eligibility Criteria for a KFC Franchisee:
If you want to open your KFC outlet then you must have following eligibilities-
- The investor must have a good business plan and able to face business challenges.
- The investor must dedicate to the brand and love to work with.
- Willing to attend the comprehensive training regarding the business.
- The customer satisfaction is the prime thing. The franchises must have a strong customer service orientation.
- The franchise need to maintain its own standards in food, ambiance and service. The investor should have the ability to maintain high standards of quality.
- Need good financial management skills to run the business.
Requirements for a KFC Franchisee in India
If you want to set up your KFC outlet in India then you must fulfill the following requirements-
- KFC franchise is costly so, you must have enough funds approx. 1-2 crore rupees for one outlet.
- Require minimum area of 1000 – 1500 sq. ft in any main area of the town.
- The investor must have basic educational qualification with proper academic certificates.
- KFC need not require any previous business experience but it is preferable to have experience in the food and beverage industry
- Though KFC is a leading fast-food brand but you should have the ability to invest in marketing and promotional activities.
- The investor should belong to that city. It helps to understand the local market.
- To run a KFC store successfully you have to recruit 5-7 staffs.
KFC Franchise Cost In India:
KFC is more costly and require high investment to open a KFC restaurant. The KFC Franchise cost in India grants only multi-unit franchisees because of its costly venture. If anyone wants to set up a KFC restaurant then he should have a high financial ability to invest. The investor should have solid retail and land participation. A successful entrepreneur who has proven experience running a business successfully throughout the year is also important. You’ll need to be committed to keeping customer satisfaction high on your priority list, and be able to adapt to both positive and negative situations.
The cost of investment to become a KFC franchise owner varies depending on the type of store you want to open. The KFC franchise cost in India will be around 1-2 crores depends upon the location and city in India. For a traditional KFC Chicken store around 50 Lakhs rupees and for non-traditional stores, around 1 crore rupees is required to become a KFC franchise owner. And there will be a 4-5% royalty charge on the total sales or it may above.
The above given information about the KFC franchise cost in India may vary so to know actual amount to open a KFC outlet you need to visit their official KFC franchise website or contact to the company directly.
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Space required for the KFC franchise in India:
The space requirement for a KFC franchise in India varies depending on the type of franchise model and the location. For a retail cafe franchise, a minimum of 1000 to 1500 square feet of space is required, with a seating capacity of 30 to 40 customers. The space should have good visibility and accessibility for customers and must be located in a high-traffic area.
It is important to note that these space requirements are just an estimate and can vary depending on the specific franchise model and location. Before starting a KFC franchise, it is recommended to get a detailed space requirement estimate from the company.
Documents require for the KFC franchise:
If you want to open your KFC franchise outlet then you have some mandatory documents. All the documents are required to start a KFC franchise in India are given below:
- Financial statements for the past 3 years
- Income tax returns for the past 3 years
- Personal resume
- Bank statements for the past 6 months
- Photographs of the proposed location
- Letter of intent
- Franchise agreement
- Training certificate
- Legal documents
- Other documents (license, permits, etc.)
KFC Franchise Profits & Margin:
KFC is a branded fast-food company and in India it is very popular. Investors are willing to join the franchise mode of KFC.
The profit margins for a KFC franchise in India may vary depending on many factors, such as location, size, and expenditures required in running the outlet. But, I’ve provided an estimate of the profit margins for a franchise of KFC below:
|Gross Sales||Rs. 6,00,000/Month|
|Food Cost @35%||Rs. 2,10,000|
|Electricity and Water Supply||Rs. 27,000|
|Salary of Workers and their Expenses||Rs. 1,00,000|
|Aggregator Commission (Zomato, Swiggy)||Rs. 20,000|
|Royalty Fee @5%+GST||Rs. 33,000|
|Other expenses (Software, Maintenance and Misc.)||Rs. 40,000|
|Net Profit||Rs 60,000|
We can conclude that the profit margin is 600000(total sales) x 10% = 60,000/Month. In starting days the profit will less but after some times the profit will be 20% of total sales.
All the data is not accurate, we are providing this as per the assumption, because it completely depends upon the area, location and city of the outlet. If the outlet earns 20,000/day that means earns 600000/Month. So for more accurate information please contact to the KFC company.
KFC Franchise Training & support:
There are different types of training, seminars and workshops provided by the KFC company to their franchisees. Let’s see the details-
- According to the KFC agreements, the franchisees or a control person should go to the training program given by KFCLLC. In this training the franchise can get knowledge how to operate the outlet.
- KFC Company provides training to the key person to operate the restaurant. This training is known as” Key Operator Restaurant Training Program”.
- Under the company’s direction and guidance, different workers of the franchisees should go to the staff training program and should finish it for the KFC franchise.
- All the training programs are planned according to the need and they will be finished at KFCLLC’s assigned national, regional or divisional offices or different places where the franchisor of KFC may assign.
- All KFC training programs are computer based training programs through its Learning Zone program, written notes, and in-service training program at different KFC Outlets.
- The individual who completes the “Key Operator Restaurant Training Program”. given by KFC will train other workers at their outlet.
Some Points to keep in Mind before opening KFC Franchise In India:
- If you want to open a KFC franchise in India, then few things to keep in mind. First, you’ll be operating in a highly competitive fast food industry, with many established brands already present, such as McDonald’s, Subway, and Domino’s Pizza.
- Additionally, India is a diverse country with different dietary habits and tastes, so KFC will need to tailor their menu to suit local preferences, which may not necessarily be the same as their global menu.
- There may also be challenges in sourcing quality ingredients and managing distribution due to the still-developing infrastructure for supply chain management in India.
- The investment required to open a KFC franchise in India can be costly. The franchisee will need to invest in space, equipment and marketing to establish the brand in the market.
How to apply for the KFC Franchise in India ?
If you want to start your own business through KFC franchise in India and do not know how to apply then follow the steps-
- Visit the official site of KFC https://www.kfc.com/about/franchising
- At the right bottom of this page you can see ”Join Us” option, click to open the page.
- https://www.kfc.com/franchising/join-us it is the shortcut link of that online application page.
- Select the franchise option.
- Fill-up all the mandatory details in the form and submit the form.
In the franchise form following fields need to fill-up-
- Space available
- Investment amount
- Name of the owner/s of the property
- Contact details of the owner
- Address of potential KFC outlet
- Photographs of the location
- Parking space details
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KFC Franchise Contact Details:
If you have any query related KFC Franchise in India then you may contact to the company via given details as I’ve mentioned below:
KFC India Website- https://online.kfc.co.in
KFC India Support No.- 080-4275 4444/ 0124-4025100
KFC not only offers delicious, yummy chicken, it also provides strong profitable franchise opportunity to investors. Furthermore, it franchises under KFC Corp. (KFC LLC). KFC is one of the best fast food franchises in the world. Many investors are investing in this company due to its brand value and benefits. KFC supports fully the new investors and provide comprehensive training to run the business successfully. But starting a KFC franchise in India can be a challenging but potentially rewarding venture. However, with the right investment and strategic planning, a KFC franchise in India can offer an opportunity to tap into a growing market and establish a profitable business.
FAQ(Frequently Asked Question):
Q. What is KFC?
Ans: KFC Stands for ‘Kentucky Fried Chicken’. Kentucky is the south-eastern state in the USA. KFC is a fast food restaurant chain that specializes in fried chicken. The company was founded in 1930 and has since grown to become one of the largest fast food chains in the world.
Q. Can I take a KFC franchise in India?
Ans: Yes, KFC offers franchise opportunities in India for individuals or businesses who are interested in opening their own KFC Franchise restaurant.
Q. Which company has authority to provide KFC franchise in India ?
Ans: KFC is the largest brand of Yum! in India, followed by Pizza Hut and Taco Bell. Yum! operates in India through three franchise partners, which are Sapphire Foods, RJ Corp-owned Devyani International, and Burman Hospitality. Burman Hospitality is the master franchise for the Taco Bell brand, while Sapphire Foods and Devyani International mainly focus on KFC and Pizza Hut brands. These two franchise partners operate approximately 800 KFC and Pizza Hut restaurants throughout India.
Q. What are the benefits of taking a KFC franchise in India ?
Ans: The benefits of taking a KFC franchise in India include access to a well-established brand, training and support from KFC, and the potential to earn a significant return on investment.
Q. What are the requirements for taking a KFC franchise in India?
Ans: If you want to take KFC Franchise in India then you must have a minimum of three years of business experience, a minimum net worth of INR 3 crores, and the ability to invest INR 2.5-3.5 crores in the franchise.
Q. How much does it cost to take a KFC franchise in India?
Ans: The KFC franchise cost in India may vary depending on many things such as location, size of the restaurant, and other expenses such as equipment and staffing. Generally, the investment required to take a KFC franchise in India ranges from INR 2.5-3.5 crores.
Q. Is company charge any royalty fee ?
Ans: Yes, the company charge some (4%-5%) royalty fee to use their brand name and to provide ongoing and management support.
Q. Is KFC Franchise profitable in India ?
Ans: Starting a KFC franchise in India can be a challenging but potentially rewarding venture. KFC not only offers delicious, yummy chicken, it also provides strong profitable franchise opportunity to investors. It has a global brand value with specializes in fried chicken. So, it is a very strong point to attract the customer to KFC outlet. So, you can say it is profitable.
Q. What is the process for taking a KFC franchise in India?
Ans: The process for taking a KFC franchise in India involves submitting an application to KFC, attending an interview with the franchise team, and signing a franchise agreement. Once the agreement is signed, the franchisee will receive training and support from KFC to set up and operate their restaurant.
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