Written By: Nikita Janiya

The smell of freshly baked pizza, the warmth of a juicy burger, and the delicious taste of crispy fried chicken? These are just a few of the sensory experiences that define the magic of QSRs in the QSR franchise for aspiring entrepreneurs. The investment offers a compelling opportunity to be part of this exciting growth story.

This blog analyses the key drivers of the QSR franchise market in India. It also explores why 2024 a QSR franchise could be a worthwhile investment for you.

Why is QSR Franchise becoming a Big Success in India?

• Rising fast-paced lifestyle
• Increasing disposable income
• Expanding food delivery services
• Urbanization
• Consumer preferences for change

Statistics of QSR Industry in India

The Indian QSR industry is formidable, tempting investors and entrepreneurs with its rapid growth and immense potential. To truly understand this dynamic market, we need to dig deeper than just trends. Let’s digest some key figures that show the strength of the industry:

• Market Size and Growth:  The Indian QSR market size is estimated to reach a massive US$₹25.46 billion by 2024, according to Mordor Intelligence. This indicates a robust tourism sector, projected to peak at ₹38.71 billion USD by 2029, growing at a steady CAGR of 8.74%.
• Revenues & Profits:  The industry witnessed a healthy growth trajectory, with revenue collections by domestic QSR players jumping a remarkable 54% in FY22 and 33% in FY2023 It could be due to certain factors.  While profit margins vary depending on location and operational efficiency, statistics show that QSR franchises in India can achieve profit margins ranging from a happy 10% to a truly satisfying 20% ​.
• Customer Preferences and Applications: The Indian love affair with pizza continues! According to Mordor Intelligence, pizza is estimated to be the fastest growing QSR segment in India, with a CAGR of 11.21% in terms of value over the forecast period 2023-2029 [3 The sheer number of orders tells the story – a staggering 120 million pizzas were eaten in India alone by 2021.
• In the QSR segment, meat-based foods reign supreme, with a large portion of the menu consisting of fried chicken, lollipops, burgers, and spring rolls, This coincides with the rise of meat consumption in the country, which in 2019 was 6.15 per person kg increasing to a healthy 6.82 kg in 2022.

Benefits of owning a QSR franchise

While the QSR industry itself offers great potential, there are key advantages to choosing a franchise model:

• Reduced risk
• Brand recognition
• Extensive support
• Standardized Operations
• Increased economies of scale
• Potential for rapid growth

Choosing the right QSR franchise

With so many QSR franchise options available in India, careful research and due diligence are needed before investing. Here are some key considerations when choosing a QSR franchise: Brand name: Choose a franchise with a strong brand name and loyal customers.

Financial strength and transparency: Monitor the financial health of franchisees and ensure transparent disclosure of franchise fees, ongoing royalties, and other associated costs.

• Growth potential: Choose a franchise with a clear growth strategy and a proven track record of success in the Indian market.
• Franchise Support System: Review the franchisor’s support system to ensure comprehensive training, marketing support, as well as business guidance are provided to their franchisees.
• Menu and target market: Choose a franchise that offers a menu that matches your target market and personal tastes.
• Franchise fees and royalties: Understand pre-requisite investments, including franchise fees, royalty fees, and marketing contributions.
• Franchise Agreement Duration: Review the terms of the franchise agreement carefully, including the initial term, renewal options, and termination provisions
• Geographic jurisdiction: Understand the geographic area assigned to you by the franchise agreement.
• Business Requirements: Determine the business needs of the franchise, including staffing needs, equipment requirements, and supply chain management.
• Compliance: Ensure that the franchise complies with all relevant laws and regulations in India.

While the factors above provide a solid framework for choosing the right QSR franchise, here are some additional considerations to keep in mind:

• Your passion and passion: Owning a franchise requires dedication and hard work. Choose a brand that matches your taste and passion for cooking.
• Market Analysis: Conduct a comprehensive market analysis to understand the local demand for the specific QSR concept you are considering.
• Competition: Analyze the competitive landscape in your chosen industry and also identify any potential challenges.

Franchise market share and investment:

The future of QSR depends on franchising.

Beyond the numbers: A vision of the future

The Indian QSR industry is not just about numbers – it’s about taste, convenience, and also community.

• Product expansion: Constantly innovating and expanding their product offerings to meet changing customer preferences ensures that franchises remain competitive and relevant.
• Omnichannel Retailing: Growing QSR chains are integrating online as well as offline channels to provide a seamless customer experience
• Focus on technology: Embracing technology is key. QSR chains can also invest in automation and digital solutions to streamline operations and improve customer service.
• Healthy Factors: While relaxation is a big part of the QSR experience, there is an increasing demand for healthier options. Forward-thinking franchises are likely to address this trend by introducing more balanced as well as healthy ingredients to their menus.

Therefore, understanding the current statistics and future trends will enable you to make an informed decision about investing in a QSR franchise in India. This dynamic project offers a recipe for success, just waiting to be devoured by the right entrepreneurs.

Also Read: Profitable QSR Franchise Opportunities In India

Conclusion

The Indian QSR industry is a hot pot of opportunity, with bubbling growth potential. Moreover, this is fueled by the country’s love for convenience as well as delicious food. The numbers speak for themselves. A rapidly expanding market size, rising consumer spending, as well as growing preference paint a promising picture for investors and entrepreneurs.

When you choose a QSR franchise, you benefit from a proven business model, established brand recognition, and extensive franchisee support. Therefore, carefully consider the factors discussed in this blog. Moreover, conduct thorough research, and choose the franchise that matches your interests as well as local market demands. With dedication and strategy, you can be part of the exciting growth story of the Indian QSR industry.

Contact us at Franchisebazar to get your QSR franchise.

FAQs

Q1. Question. What are the benefits of investing in a QSR franchise in India?

To sum up, owning a QSR franchise comes with many benefits. Reduced risk through a proven business model: Franchises offer far less risk compared to starting an independent restaurant from scratch. You benefit from a pre-established brand, a management system, and also a clear path to success. Brand Recognition and Established Customer Base: You will immediately build your loyal customer base and reputation. This is a huge advantage in comparison to identifying new restaurants as brands.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.