Can't get over the lingering taste of Kaju barfi? Does Ratlami sev make your mouth water? In India, we nibble in between meals and enhance the shaam ki chai experience with a plateful of goodies. No celebration here is complete without an assortment of sweet and savoury dishes.
The market for sweets and savouries, especially the packed variety, is rising across major cities and other urban areas of India. A growing market demands a broader network and impulse food sells best over the counter.
A Haldiram's franchise is an excellent opportunity to handle a big brand for those familiar with the food business. This article explores how a Haldiram’s outlet at the correct location can be a rewarding business, and how much does it cost to set up a Haldiram's franchise in India.
The beginning of Halidram's
Knowing the background of a company is important when planning an association.
The story of Haldiram’s started in 1937 with a small savoury shop in Bikaner run by Sri Ganga Bishan Agarwal (also known as Haldiram Ji). The shop quickly gained popularity with the local customers for their excellent namkeen, prompting the enterprising family to scale up the business. As the products continued to gain popularity, the family expanded operations to several cities and started a modern manufacturing unit at Nagpur in the 1970s. Besides making various types of sweets, namkeens, and beverages, the company introduced popular cooked snacks in the QSR format. A casual dining restaurant followed, and the brand of Haldiram's got firmly ingrained in the minds of consumers.
The brand also made a successful foray into a global business, and today, the Directorate General of Foreign Trade (DGFT) recognises Haldiram's like a star export house.
The current Haldiram's enterprise has split the business among three separate entities:
- Operating out of Nagpur managing West and South India operations
- Operating out of Delhi managing North India
- Operating out of Kolkata, covering mainly West Bengal
The group primarily follows a direct operational model for the dining setups and a distributor/dealer route for the packaged items.
No policy indication for appointing franchises, however, is available for the other two units. Hence, we will focus on The Nagpur unit has plans on franchise arrangements in selected cities.
While no specific details are available for the other units, direct contact will clarify the issue.
In the context of today's competitive business scenario, every company would like to expand fast, and the franchise route is a tested strategy for quick gains.
Let us look at the various franchise-related Issues-
1. Location and area
The location and area are critical factors that can influence the choice of a franchise setup considerably. Generally, companies or brands that take the franchise route have a strategic plan for future locations. Moreover, you can also check the official website of the company and find out where Haldiram’s is looking to expand.
There are three models of operation practised at Haldiram's:
- Kiosks—Haldiram's Express
- Quick Service Restaurants (QSR)
- Casual dining
2. Haldiram's franchise cost in India
The total investment depends on the cost of the premises (owned/rented/purchased), the type of interiors planned, the scale of operations, and more. The one-time and monthly franchise fees should also be taken into account.
It is important to note that Haldiram's do not accept online payments for their franchise. Beware of frauds.
The company provides assistance and training to the staff for the smooth running of the outlet. In addition, they guide the franchisee in setting up the operational system, including sales, inventory, billing, supply-chain management, and IT.
4. How to proceed?
1. Formalise your plan
- Decide on the type of setup ( retail outlet, Kiosk, QSR, or Dining )
- Location and Property (city / area / space available)
- Your expected Investment –initial and for working capital
- Estimation of Sales, Profitability, Breakeven
- Your list of business references
2. Approach the company
There are two ways of moving forward:
- Responding against a specific call for franchise appointment if available.
- A direct approach with your proposal. Several companies finalise their channel partners through soft application and subsequent discussions.
What information will be required by Haldiram?
A potential franchisee can apply online to become a part of the Haldiram family.
Some questions the online application will ask are:
- Personal details
- Contact numbers
- Business Experience
- Type of business
- Length of experience
- knowledge of the food sector (if any)
- Details of your proposed property
- (ownership / rental/ leased, location)
- Your Investment plan
- The source of funds
- Operational Plan and estimated profitability
Use your business plan as a resource when you speak to the company directly.
3. Contact details of Haldiram's offices
You can also directly contact the Haldiram offices at these addresses.
Is Haldiram's franchise in India a profitable option?
Haldiram's is among the best-known brands in India in the sweets and namkeen category. Their products enjoy the customer's trust, and the company is conscious about maintaining the overall standards of hygiene, quality, and packaging for their entire range of items. In addition, the manufacturing units follow international best practices and have the necessary certifications.
The company offers support in promotion and includes all outlets in their macro-level plan for a city. However, area-specific promotion is the responsibility of the respective outlets. The commission charges payable and ROI are bilateral issues and should be clarified by direct contact.
Any business comes with an associated risk. It is your judgment, strategy, and efforts that lead your business to success. It is best to undertake a market survey to understand the prospects of the products in the area of your proposed franchise location.
A few basic checks on franchise arrangement is also an excellent way to proceed. Analyse that your plan based on the answers to these questions:
- Who decides on the location, and what are the factors behind choosing a particular area?
- What are the product-wise profit margins? Which are the best-selling products? How is the supply position for the bestsellers?
- Are there other outlets in your locality of the same company? What is the company policy regarding the number of franchises in an area/city?
- How much support do you get from the franchise? Is it possible to contact other franchisees? Do the standard operating practices suit your style of operation?
- Finally, the exit clause—will the parting be smooth in case of any eventuality?
Your carefully considered decision will pave the way for one more Haldiram outlet!
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Q. Are all Haldiram's items profitable?
Ans. The profitability of your business will depend on your ability to manage stocks, attract customers and handle them satisfactorily.
All manufacturers price their products with profit. In a business such as Halidram’s that has a great assortment of products, some will have higher margins, and few others will be fast sellers.
Q. Is it permitted to sell items other than Haldiram's products in the same outlet?
Ans. No, selling additional products from the same outlet will be an unethical business practice.
A company franchise is an extended arm of the brand itself. The customer does not differentiate between a company-owned outlet and a franchised one. Stocking other products, even non-food items, will be a breach of trust with your Halidram’s customers. No company will allow a franchisee to deal in other articles.
Q. Is Haldiram's casual dining a better option than the Quick Service Restaurant format?
Ans. Any business is good if there are enough customers for the products/ services of that company. A retail setup is location/area dependent, and you have to estimate the potentiality of the location of your outlet for the various choices you may have. You need to consider the menu Haldiram offers for casual dining and match it to the kind of customers likely to visit your place.