Note: The information provided in this blog is only for the use of providing brand-related and franchise-related guidance and knowledge to the user. Khatabook does not claim the ownership of any brand-related word in this blog or any other blog on the website.
Mention the word ‘pizza’, and you see people drool, especially the younger generation. India is home to many pizza brands like Domino’s, Taco Bell, Papa John’s, Chicago Pizza, US Pizza, KFC as well as Pizza Hut. Each of these brands seems to be doing well in its individual capacities. School kids, young college students and even many adults enjoy a slice of pizza at some point in time. Every brand has its uniqueness in terms of varieties, delivery times, and overall customer experience. Many enthusiastic connoisseurs have set up franchisees of these various brands. Has it proved to be profitable is the moot question? To start any business, you need to be thoroughly familiar with the product or service in order to run the operations smoothly. The growth of the pizza franchise in India is dependent on the flawless functioning of the business. Pizza Hut is owned by the Yum! Group of businesses. It is the first international restaurant chain that started business in Bangalore, India, in June 1996.
Did you know? Pizza Hut has more than 500 outlets across India and is more profitable than the other two brands of the Yum! Group, namely Taco Bell and KFC?
Let’s go through the cycle of setting up a Pizza Hut franchise to understand what it entails.
What Is the Pizza Hut Motto?
Pizza Hut has always affirmed making the ‘perfect pizza’. They are known for training the staff to treat customers with the utmost courtesy. The brand has been globally acknowledged for its amicable and professionally safe environment by all its employees. The brand lives up to its motto of ‘Trust in every bite’ by ensuring the most hygienic cuisine preparation environment. The pizzas are baked at around 250 degrees. This temperature helps destroy all types of viruses. The brand is ingredients which are in sync with the guidelines laid down by the Food, safety and standards authority of India (FSSAI). A well-known fact is that the brand uses totally sanitised vegetables which are fresh, and every pizza is packed in a sterile box for delivery.
Why Pizza Hut Franchise?
With so many Pizza franchises already in India, one wonders what is special about setting up a Pizza Hut franchise isn’t it? The reasons are manifold. Pizza Hut is one of the oldest pizza brands which has a global dedicated clientele. This goodwill has also pervaded India and its many entrepreneurs who have evaluated the consistent growth potential of this brand. The brand offers a wide variety of exotic pizzas and believes in the best customer service. The brand serves as a sustainable business prospect which makes it a preferred choice to set up a franchise. The brand is acclaimed for its fine dining experience. It helps replicate the same across its outlets around the globe.
Also Read: What are the Best Pizza Franchises in India?
Experience Required
The experience required for establishing a Pizza Hut franchisee is not too demanding on anyone who is eager to set up one. Some of the prerequisites include:
- Prior successful experience – This could be in managing a restaurant or any retail enterprise or even experience in one’s own business.
- People’s person – Has a proven record of successfully managing a team in the past.
- Skilled in management practices and customer service.
- Should be passionate about the business and dedicated to the franchise's growth and success.
- Must be exemplary by way of virtues like hard work and honesty.
Terms of Agreement for Setting Up a Pizza Hut Franchise
Like all businesses, you must abide by the terms and conditions for setting up a Pizza Hut franchise. Some of these are as follows:
- Every franchise which holds a license to operate is entitled to run the business for five years.
- You will have to employ staff personnel who have the right mindset to serve with a smile at all times. They have to be mentally as well as physically fit to work under pressure (during festive seasons), ensure no breakages occur, and deal with the customers in the most amicable manner.
- Individuals employed at Pizza Hut have to sign a confidential agreement seeking their allegiance towards the protection of all trade secrets. This also includes strict confidentiality on the operations and other business information, which helps in the successful running of the business.
Also Read: Smart Franchise business opportunities in India
Investment Details for Setting Up a Pizza Hut Franchise
There are various expenses associated with the setting up of a Pizza Hut franchise in India, depending on the type of franchise you want to set up for, e.g. a low-cost business franchise. Investments vary across India's geographical regions as it depends on the prevailing value of the real estate, cost of labour, transportation, and a host of other local factors. These include the following:
- Restaurant model – This type of franchise involves carry-out as well as dine-in services. Several individuals choose to consider ownership of the franchise where they can offer this highly feasible carry-out as well as dine-in services. In these cases, the investments amount to about ₹30 lakhs.
- Delivery or carryout restaurant – The sale of pizzas involves only a carryout service feature, and this includes an approximate cost of ₹15 lakhs.
- Delivery-based restaurant – Involves sale of pizzas through dine-in, delivery as well as carry-out services. The investment in this type of franchise is about ₹20 lakhs.
- Compensation fee – A monthly payment of 6% of the net sales value is mandatory for every franchise.
- Advertising fee – An initial fee of approximately 4.25% of the net sales is obligatory upon the franchise owner.
- Royalty fee – This amounts to almost 6.5% of the overall profits. This is primarily for using the brand name and products over which Pizza Hut holds all copyrights.
Space Requirement Details
Some of the key considerations with regards to the area are:
- A franchise owner of Pizza Hut must own or rent a space that measures between 1000 and 1500 square feet. A large space provides the dining experience that the brand offers at each of its outlets worldwide.
- The location should be suitable to drive the desired number of customers. It should be either in a developed area free of competition or can be in an upcoming neighbourhood which is likely to boost the business.
Location of Operation
The brand is very particular about the exact location of operations as that makes a considerable difference to the overall business revenues. The ideal locales requested by the brand include the following:
- Residential neighbourhoods
- Entertainment premises – theatres, malls
- Airports
- Stadiums – are known to host many key sporting events throughout the year
- Business centres
- Commercial spaces
- Travel centres
- Academic spaces like Colleges and Universities
Making a Proposal to Set Up a Pizza Hut Franchise Involves the Following Steps
- Visit the official website, i.e., www.pizzahut.co.in.
- Click on the franchise enquiry form and go through all the details.
- Complete all the formalities like furnish all your details correctly – this includes personal as well as official.
- Submit the form, which will be minutely studied by the concerned authorities before they revert.
- The brand organises a thorough background check on some of your shared details.
- A couple of offline interviews follow this.
Also Read: Domino's Franchise in India: Requirements, Responsibilities and Profits
Approval Process Time
The entire activity of your application being processed and reviewed and the interviews that follow take about 10-12 weeks. You will be intimated about the approval of your application. Post the approval, and it takes about 90-270 days to set up the store, depending on the location as well as the size of the outlet.
Training Details
Pizza Hut provides all requisite training. This includes training for the Franchisor as well as the staff. The on-the-job training for the staff enables them to understand the requirements of various details regarding the operations as well as customer service. It ranges from social etiquette and placing orders as well to deal with complaints with the utmost courtesy and respect. This in-depth training stretches across 8-12 weeks. The franchise bears all commuting costs for the staff. In the case of outstation staff, the franchise also fulfils their accommodation needs. Some of the training modules include the following:
- Restaurant – Includes special programs for staff head, assistant manager, and area coach.
- Prep 1- Relationship-building, understanding the brand value and fulfilment of the brand requirements.
- Prep 2 – Marketing, innovation in cuisine, cultural practices and understanding behavioural patterns of diverse clients.
- Franchise onboarding – Meetings with the other designated functional personnel.
Contact Details
For all business enquiries, you can always write to: HutCares@yum.com. You can visit the official website, and depending on the city you reside in and wish to start a business, you can contact the said number shared on the website. You can also visit https://franchise.pizzahut.com/ for more details. The toll-free number for Pizza Hut is 1800-202-2022.
Conclusion:
Since its launch in 1996 in India, Pizza Hut has proved to be the preferred choice of yummy pizzas across age groups. The variety of pizzas, service as well as staff and delivery systems are of impeccable quality. This article helps you understand the procedure for establishing a Pizza Hut franchisee and the various requirements it entails.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
