What is the Cost of Setting Up a Pizza Hut Franchise in India?

. 6 min read
What is the Cost of Setting Up a Pizza Hut Franchise in India?

Pizza Hut's business model focuses on the company being an affiliate of international parent Yum! Brands. The global franchise giant has established its name in no time. It has a stronghold among the top ten food chains in the world and invites people to work with it as entrepreneurs and serve people across the globe.

Pizza Hut's franchise is top-rated in India, considering how it serves its customers with the best items and charges them minimum prices. Starting a Pizza Hut franchise in India is indeed a fantastic idea, but you need to follow the right steps.

Determining Profits of the Franchise

Doing business and making a profit from it is not always the same. Several business ventures promise big profits but unfortunately fail miserably in achieving these. But very few business ventures can be profitable to start, for which anyone willing to create them should have complete faith in the ventures they have chosen. Several factors contribute to the success of a business venture, and branding is one of them.

Franchising is one of the fastest ways to start your business. You do not have to think about stocking or maintaining inventories, and you already know that you have your franchisee paid for as long as you run the business. Even more appealing is that you don't need any previous experience to run a successful franchise in India.

Pizza Hut's franchise is one of those valuable franchises that can never let you down. The success of Pizza Hut India is entirely dependent on its advertising strategy. The start of the enterprise was indeed a terrific milestone in the market. Pizza Hut has numerous unique features that have made it skilful at dealing with so many products in a single store. The profit generation of the franchise solely depends upon the individual performance of the storefront.

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Cost of the Pizza Hut Franchise in India

The investment will vary regionally depending on the overall cost of operations and the economic condition of that particular area. It is worth noting that once you are the store owner, you can directly sell your product to customers and get the same price as that offered by Pizza Hut India.

Pizza Hut India India currently offers three different types of franchise options based on investment and the level of risk one is willing to take. They are as follows:

Type of Pizza Hut franchise

Cost of setting it (INR)

Traditional restaurant franchise

10-20 lacs

Pizza Hut delivery franchise

15 lacs (approx)

Pizza Hut drive-through

12-15 lacs (approx)

Traditional Restaurant Franchise:

This type of franchise investment ranges from Rs 10 to 20 Lacs. It includes the cost of the land, construction, furnishing and equipment, and startup expenses such as staff recruitment and training, along with the royalty charges payable to the company.

1. Pizza Hut Delivery Franchise

A delivery franchise in Mumbai costs approximately Rs 15 Lacs, including the monthly royalty fee for 10 years. The cost of opening a delivery store in India depends on various parameters such as area.

2. Pizza Hut Drive Through

Under this type of franchise, one gets to open a new restaurant at any convenient place. The opening cost per restaurant is estimated to be around Rs 12-15 Lacs.

Area Required to Start the Franchise

Knowing the space requirements is essential. An applicant must meet standards and follow specific guidelines set by the franchisor. One needs to be aware of several parameters to start a franchise. The available areas in a city will decide the number of outlets.

Type of Expenses

The cost of starting a franchise model in India varies from one location to another based on factors like the cost of real estate, the number of staff required for the operations, etc.

  • Compensation fee for a Pizza Hut outlet is approximately 6% of the net sales value per month.
  • An upfront fee needs to be paid to attain the franchise's ownership as the advertising fee, which accounts for 4.25% of the net sales of the franchise.
  • One has to pay a franchise fee to start a restaurant in a particular place. The price can be a fixed amount or can be a percentage of the net sales.

How to Get a Pizza Hut Franchise

The process for acquiring a pizza franchise in India is relatively straightforward. First, a prospective franchisee will need to fill an application form for a particular number of outlets or restaurants across India. Next, an evaluation is done based on operational needs, revenue and profits generated.

Once an application is complete, the authorities are given responsibilities for carrying out due diligence on the prospective franchisee — this could take quite some time, depending on the size and complexity of the organisation.

The process for applying for a franchise of any food establishment is as follows:

Step 1: Obtain information about the company

Step 2: Obtain information about the proposed restaurant concept

Step 3: Complete the application form for the franchise

The approval process for a new branch may take several months after the initial application is submitted. While it may seem like an eternity, the main reason you need to be patient with this process is that it doesn't matter how fast you try to open a new store. You will never be approved if you aren't willing to take the time and effort to properly apply for a franchise license.

Starting a pizza restaurant is more than just opening a place on the ground floor of a building. It requires proper infrastructure, workforce, office space and everything needed to run such a business.

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Type of Support Provided to the Franchise

Marketing support entails training franchisees in how to reach out to customers and generate demand through direct or indirect sales and promotion efforts.

Business support of the company is rendered in two forms, i.e. equipment acquisition support and operational support. Typically, the training lasts between 8 and 12 weeks.

Wrapping Up

Before you go ahead with your plan to invest in a Pizza Hut franchise, get all the relevant information you need. Budgeting your initial investment is a crucial thing while setting up your restaurant.

For more such informative articles keep visiting OkCredit and read our other blogs as well to get ideas about startups or small businesses.

Also read:

1) Domino’s Pizza Franchise Cost in India
2) Starbucks Franchise Cost in India
3) Burger King Franchise Cost in India
4) Amul Franchise Cost in India
5) OkCredit: All you need to know about OkCredit & how it works.

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Q. What's the objective of the company in terms of growth and expansion in India?

Ans. Pizza Hut India aims to increase its market share by 2026 and collaborate with more delivery outlets across the country.

Q. How will OkCredit help secure the entire investment process for setting up a Pizza Hut India franchise?

Ans. We can streamline the entire process, from the initial investment to the additional expenses incurred while establishing the franchise. Regarding maintaining the records, transactions are tracked and profit margins calculated. You can also track the attendance of your staff through our app OkStaff.

Q. What is the total investment cost for establishing a franchise?

Ans. The total investment cost of building a franchise can be Rs 20-35 Lacs.