Analysis of entry barriers to food franchise sector

The barriers to entry in food industry are high for new players, well-established companies have achieved tremendous popularity and they dominate distribution channels as well. Huge investment will be required for infrastructure set up; moreover marketing is also significant factor that must be considered.Majority of food franchise store fails within first year of business so it is critical to evaluate problems occurred.

Consumers bargaining power: Food industry is not limited to only few restaurants, in fact there are plenty of small, medium and large scale brands that offer wide range of dishes. Bargaining power of consumers is high they can easily switch to another brand if particular brand don’t satisfy their taste buds. In order to retain customers, companies must take feedback to improve on-going service and menu.

Local laws: When multinational food franchise chains across native border to appoint franchisees in different geographic location they had to face challenges and domestic opposition. Apart from this, it is also mandatory to follow rules and regulations such as hygiene, labours laws, standard operating procedures, etc.

Employees: In order to maintain in each store, you need to hire right team and chef. In many locations, challenges may arise due to non-availability of skilled manpower. No doubt restaurant industry is highly competitive and every year new restaurants pop up to deliver better services.

Rates of rental property: A good location is important for success of food franchise restaurant but increasing rental property rates is major concern these days. Excellent locations can pull large number of customers, one must find out best place for new store establishment.

High start-up cost:Establishment of restaurant could be an expensive venture and it is one of the significant barriers to entry in foodservice industry. For example, popular brands are offering high investment franchise models which are not cup of tea for every individual.

Marketing: In this global business environment, companies are investing huge amount on marketing to create brand awareness. Both money and time required to develop an effective marketing strategy.  Moreover digital marketing must be considered as modern-day customer prefers social media platforms.

Over past few years, demand of food franchises is increasing as individuals are choosing entrepreneurship instead of 9 to 5 job. Chatar Patar is major player in India when it comes to delicious street foods; it is one of the fastest growing food franchises that offer low investment business models. Before you choose a model, you must analyse current market condition in your geographic location. On the other hand barriers to entry will definitely enhance in the coming future because new players are consistently entering the Indian marketplace and also face problem at the same time.

Chatar Patar’s franchise model

Irrespective of barriers, Chatar Patar is offering lucrative franchise opportunities. if you want to become boss of your own business, bet on models offered by street food franchise. Benefits of Chatar Patar’s franchise:

1. Low investment: Chatar Patar is perfect solution to high start-up cost barrier. A nominal investment of around 7 to 20 lakhs is required to develop a store in any location across the country.
2. Cost-effective marketing: In short time period of 5 years, 100+ outlets opened successfully in India. The brand use low cost marketing strategies and utilize latest technologies to maintain a competitive edge. To start a success food business you must:
3. Focus on latest trends and opportunities
4. Meet certain rules and regulations
5. Select best location where customers can easily reach
6. Maintain standard operating procedures
7. Hire skilled staff members to create effective dining experience for customers.

How customer buying behavior affect food franchises in India

Changing consumer taste, increasing demand for natural ingredient-based cuisines and emerging technologies are significant factors that play essential role in progress of food service sector in India over past few years. Not surprisingly, food franchise players offer wide range of delicious cuisines at reasonable rates but it is essential to know customers demand and how they spend money on snacks away-from-home. Buying behaviour of consumers is mostly affected due to increased income level, brand awareness, urbanization, and changes in lifestyle, price and technologies. Significant rise in income of lower and middle-class families have encouraged food franchise players to create better food service destinations for customers. For instance, Chatar Patar foods Pvt. Ltd. is well-known panipuri franchise brand based in Indore which has introduced standardized foodservice formats to offer hygiene and fresh cuisines like panipuri chaats, and bhels. To establish food franchise outlet you must consider few things:

1. Demographics: India is a vast country so it is necessary to find out right target audience. The success of QSRs will continue to motivate new food franchise players; moreover India is emerged as one of the ideal nations for food business establishment.
2. Quality services: Chatar Patar leads the street food franchise market with awesome and creative concepts. Quality food and services is what customers are looking for these days.Young generation is more health oriented and hygiene conscious it can also be considered.
3. Promotions: In order to engage with customers several food franchise operators implement strategies like free home delivery, free gift and coupons, combo meals, discounts, special offers, etc. Indian consumers are price sensitive that’s why companies have created such type of promotional strategies.
4. On-going trends: Modern-day consumers are always searching for quick, convenient and affordable snacks. Customer buying behavior decides future of any food brand, so one must acknowledge latest trends.

Cost-effective marketing strategies in food franchise segment

The demand of street foods in India is increasing effectively as large portion of population is middle class. Rather than going to gourmet restaurants they prefer low cost foods, various companies saw tremendous potential in street food segment and have developed low investment models where individuals of all age group and income level can satisfy their taste buds. Chatar Patar foods Pvt. Ltd is top-notch food franchise players in India which has developed wide range of cuisines and prices are fair enough, for example one order delicious chaatizza at INR 70, zaapi, aloo chakri and various panipuri flavours. Chatar Patar is emerged as most valuable and cost-effective food franchise brand. We are discussing marketing strategies adopted by it to influence customers.

1. Hygiene: All products prepared by natural ingredients, and cooking techniques are highly standardized to maintain hygiene. Chatar Patar has always promoted products as freshly and hygienically oriented, moreover all products are ready-to-serve.
2. Advertisement: Before opening of new store in any location, both online and offline advertisements are necessary to create awareness among people. Apart from this, grand opening day is best opportunity to showcase your products or services.
3. Quick services: A happy customer can bring two customers and this will happen only when food restaurants give preference to quick services. It is one of the cost-effective marketing techniques that can be implemented easily by giving proper training to staff members.
4. Social media: In today’s technology-driven business world, digital technologies must be utilized to create better dining experience for customers. One can promote products or services, develop plan for pre-launch and launch of new products on social media platforms.

It goes without saying that food franchise sector is growing steadily; you can boss of your business by taking advantage of Chatar Patar low investment business models.

Street food franchise is growing faster than other food segments

The food service industry has shown unprecedented growth rate and is expected that it will drive significant revenue in foreseeable future. The increasing demand for ready-to-serve snacks such as samosa, chaat, bhel, etc. has encouraged registered players to develop more delicious recipes. In India, people are fond of inexpensive street foods in organized food service formats. In metros, mini-metro, tier 2 and 3 cities, development of standard food courts have created better dining experience for customers. No doubt small pocket consumers spend less at high-priced restaurants; it means they are searching for cost-effective destinations to quench their hunger. Certainly, street food franchise sector has outpaced rest of food franchise categories in terms of profitability and market share. Young generation is major factor that contributes effectively to progress of innovative business models.

Chatar Patar foods Pvt. Ltd. is market leader when it comes to street foods, it has developed widespread franchise network throughout the country. Off course, young population is looking to explore adventurous products; therefore, it is essential to satisfy their taste buds. Digitization has changed everything from meal delivery to food ordering and mobile applications help organizations to reach maximum customers. Chatar Patar is planning to appoint franchisees in Pan India location; you can easily become part of street food franchise family. With standardized operating procedures, delicious menu and extensive support, franchisees can pull huge customers. It goes without saying that food industry is highly competitive hence one must focus on latest trends to entertain customers.

If you are interested to start own food franchise outlet, Chatar Patar is ideal brand. For inexperience investors, low investment business models such as café, kiosk, hybrid and mega can be beneficial. At present café model is successfully run at Berhampur (Orissa), Uttam Nagar and Rajouri Garden (Delhi). You can also apply for franchise unit and start new business venture.