written by | October 12, 2022

Business Opportunity in the Fast Food Franchise- Samosa Junction

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Table of Content


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.

India, one of the world's most colourful countries, surprises us with its delightful delicacies. The concept of ‘Chai-Samosa’ traces back to old times; today, this entire concept has changed into a business venture. Samosa Junction is a must-go for millennials on weekdays or weekends as a part of the business. 

Samosa Junction in India is a staple snack corner for most people. Indian people always strive to connect with their roots, and food is the easiest way. Samosa eating is not new for Indians but having a business junction is both pleasant and profitable.

Did you know that the Food Service industry is growing at an annual growth rate of 25% - 30%? 

QSRs and Fast-Food Junctions in India

India’s economic growth story continues to attract attention globally, the latest being it's becoming the 5th largest economy. The changing socio-economic condition has brought about paradigm changes in living standards, education, and food habits, to name a few. The growing middle class, the millennial generation - all with higher disposable income tend to eat out regularly. The food service industry has responded to this phenomenon by offering young Indian Quick service restaurants (QSRs), also known as fast food chains. Nirula's, Café Coffee Day, Bikanerwala, MTR Foods, Saravana Bhavan, Leon Burger, Samosa Junction, and Wow Momos – are all Desi Fast Food chains. 

Gaining rapid popularity, many of these restaurants have adopted the franchise model to expand across specific regions and nationwide quickly. Although the sector was hit during the pandemic, most survived fast-evolving by varying their business models, like expanding home deliveries. Quick service restaurants (QSRs) are here to stay, and one can expect the sector to embrace technology and business models to meet changing expectations of an aspiring generation. 

Also Read: Food Business in India - Steps to Follow for Starting A Successful Food Business in India

Advent of MNC Food brands in India

The 90s saw the advent of multinational brands like McDonald’s, KFC, Domino’s Pizza, and Subway, beginning with Delhi & Mumbai, before expanding to other metros. Today most of these MNC fast food eateries have their presence in smaller cities and towns. Indian companies interestingly match this trend in the QSR space. There is a recent trend for today’s generation wanting traditional food like Dosa, Samosa, and Vadas offered as small dine-in or Take-Away options. With their wide reach, the Food delivery aggregators like Swiggy and Zomato offer consumers and Indian QSRs another attractive and competitive business option to expand.

Samosa in India and its origin

Regarding traditional Indian snacks and their business potential, Samosa is the only popular snack. Samosa is believed to have originated from the Middle East. It is known as Sanbusak or Sunbusaj in Lebanon, Egypt, and Syria. Studies reveal references to Sanbusak as a thin envelope of wheat stuffed with minced meat, pistachios, onion, and spices – deep fried in ghee. All ordinary people and royalty savoured them. In current times Samosas have evolved into deep-fried pastries with fillings ranging from mincemeat with herbs and spices to vegetables like potatoes and cauliflower. Whichever the filling, Samosa remains a popular snack- an ideal accompaniment to a cup of Chai.

How to start a Samosa business?

Samosas remain a popular snack choice for both children and the elderly. This makes it a business proposition with excellent profit and growth potential. 

Some of the key considerations to be factored in for starting a samosa business include:

  • Understanding that Samosa is a very affordable snack, affordability and value-for-money perceptions are critical.
  • Strategic location with potential for good footfall is vital (Eg: Markets, Campus, and shopping areas)
  • Utilize and leverage the potential for expansion through ‘ word of mouth.’

Samosa Junction in India

After deciding to start a Samosa business, it is important to check and consider the merits of taking up a franchise of an established Samosa brand. The advantage of taking up a franchise of the existing Samosa business brand is that one can quickly leverage people’s brand awareness and brand loyalty to attract customers, develop demand and scale up accordingly.  Although it comes at the cost of paying royalty and fulfilling the Franchise owner's requirements, in the competitive food industry, it may be worth the investment considering lead time and overall profit margins. 

Also Read: Starting a Vegetable Business - Here's a Step by Step Vegetable Business Plan for You

Samosa Junction- An overview

Samosa Junction is a very popular Indian fast food chain that sells freshly prepared and hot Samosas. Brand Promoters Pvt Ltd is the company that owns this brand, which chose to focus on the very popular snack- “Samosa”. The promoters recognized the immense potential of Samosa’s business when they commenced operations in the year 2008. Their first outlet started in Ludhiana, Punjab, and has since then rapidly expanded to 22 Samosa junction outlets.  The company’s vision is to provide every Samosa lover with the best of Samosas, which is the spirit behind its ambitious plans to roll out 500 retail outlets across the country in the next few years.

Key features of Samosa junction:

  • Samosa junction offers its customers an aesthetically designed sit-down family restaurant.
  • Serves 22 different types of mouth-watering vegetarian and non-vegetarian samosas
  • Best quality ingredients and healthy refined oil ensure a protein-rich and low-fat Samosa. 
  • The brand takes pride in well-maintained, modern, and hygienic outlets with kitchens that dish out hot Samosas without preservatives.
  • The brand’s research team keeps experimenting with various combinations of spices and herbs to bring out the best and newer variety of Samosas to meet the changing taste buds of customers.

Samosa junction and expanding menu:

The brand believes eating out is much more than food. It is an experience that customers seek. In line with this thinking and to keep pace with changing taste and snack preferences of its clientele, especially today’s generation, Samosa junction’s menu is continually evolving. While retaining the focus on the Samosa, today it also offers Veg and Non-veg Pizzas, Sandwiches, Chicken Kebabs and Nuggets, Chilly chicken, Rolls & Wraps, Burgers, Sweet pastries, Puffs, Salads, Cool drinks, and Cold Shakes.

Samosa Junction and Expansion Plans:

Like any other growing enterprise, Samosa Junction has ambitious growth plans to open up to 500 retail outlets across various cities in 4-5 years. It is open to and actively seeks business partners keen to become brand franchisees. 

Also Read: Instant Food Mix Business - How Can You Start A Business By Selling Pre Cooked Food Mixes

1. Samosa franchise-business model:

The business model currently offered to franchise business partners is Restaurant –Base Kitchen. The prescribed requirements include:

1

Area

1000 to 1200sq ft

2.

Products

22 different types of Samosas - both Vegetarian and Non-Vegetarian 

Samosa platter, Samosa chat, 

Vegetarian and Non-Vegetarian Burger, 

Potato Fries, 

Chicken Nuggets, 

Vegetarian and Non-Vegetarian Sandwich, 

Milk and fruit Shakes, different flavored Ice creams, and cool drinks 

Hot beverages like Tea, and Coffee

3.

Kitchen facility

The Kitchen should be equipped to prepare samosas. The Kitchen can be attached to the restaurant - either inside or outside of the restaurant

4

Serving Method

Samosa Junction follows the concept of "Prepare on Order", which means planned and regulated cooking at the outlets. 

The Samosas are to be deep fried and served with special sauces

5

Electricity and Fixtures

Chiller, Freezer, Electric Fryer, Adequate Lighting, and good water drainage

6

Franchisor

Brand Promoters Private Limited

7

Franchisee

Min 120 square feet

8

Nature of operation 

By Franchisee, along with Base Kitchen that  supply food for passengers travelling in express and premium train

9

Royalty to Franchisor / Advertisement Share

2%-3%; up to a maximum of net sales (Gross sales minus sales tax and applicable VAT)

To be paid by the 10th of the next month, after submission of certified sales report

10

License term duration

Up to 9 years, and thereafter on mutually agreeable terms.

11

Interiors & Kitchen equipment

Franchisee will provide all infrastructure including necessary kitchen equipment with power backup, including any required up-gradation 

12

Opening and Advertising Cost

Approx ₹ 2 lakhs

13

Running & Operating costs

Franchisee will bear all operating and running cost like rental, salaries, electricity charges

14

Licenses

Franchisee will obtain all required statutory Licenses

15

Technical Requirements & Site Preparedness

Shall be provided by the Franchisee. This includes civil works, electricity supply, drainage, and water supply 

16

Agreement

The prescribed license agreement has to be signed before the commencement of the operations

17

Role of the Company

Franchisor will provide all necessary assistance like:

  • Snack Recipes 
  • Training for manpower, 
  • Marketing material 
  • Material for Packaging 
  • Billing software
  • Advertisement support 
  • Technical know-how and processes
  • Kitchen equipment specifications 
  • On-site support.

18

Contact for further details

Mobile:  91 95010 10111; 91 81468 55477

     

2. Samosa Junction – Investment and Profits:

The promoters of Samosa Junction invite entrepreneurs to take up franchising with the lowest possible investment. Some key features of the Samosa franchise model are:

  • One does not need any specialized skills to take up the venture. With adequate training provided by the Franchisor, franchisees have to manage the outlet as per the framework while bringing their unique individual design and operations
  • The franchisor will provide training, business advice, and marketing, branding, and sales promotions support. 
  • Franchisees will also be supported in negotiating the cheapest possible rent.
  • Franchisees are encouraged to bring in their creativity to individualize the design and operations of the Outlet.   
  • The franchisor will not interfere in the operations and financials of the franchisee, except for providing training and advice as and when needed.

3. Samosa junction franchise cost and related aspects:

Samosa junction's paramount goal is to help franchisees be profitable. They seek to achieve this by:

  • Being innovative and proactive 
  • Keeping the joining fee and ongoing costs at minimal levels
  • Provide high-value support

Franchisees get several great benefits which include the following:

  • Low investment (entrepreneurs with low start-up capital)
  • Low-risk factors
  • High income
  • Experience the return of investment in months
  • Ease of operation and management
  • Full training 
  • Assistance with rental lease negotiations
  • Access to all recipes
  • Regular supply
  • Marketing, branding, and Point of sale assistance 

Business partners get to know the actual investment required and possible operational costs during the pre-agreement stage. However, one can expect a figure of ₹ 15-20 lakhs for Kitchen, Restaurant, Delivery vehicles, branding, and advertisements. This is besides the operational expenses depending upon the location and personnel engaged.

Also Read: 14 Famous Street Food of Tripura You Must Try in 2022

Conclusion:

The fast-growing food service industry offers exceptional business opportunities to entrepreneurs. Amongst others, fast food joints based on the popular snack Samosa have good business potential. Entrepreneurs keen on the food service business should actively consider the franchise model of the successful brand- Samosa Junction. 

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FAQs

Q: What are the royalty fees charged by Samosa Junction?

Ans:

Franchisees have to pay a maximum royalty of 5% of gross revenues.

Q: What is the required initial investment?

Ans:

The investment to build a 1000 square ft. restaurant is estimated at approx ₹12,50,000, which includes the franchise fee, plus branding/advertisement and operational costs.

Q: What support will I receive from the Samosa Junction franchisor?

Ans:

Franchisees will receive the following:

  • training at Samosa Junction’s corporate restaurants
  • Pre-opening help at the retail location
  • Design and construction assistance and ordering supplies
  • access to all company trademarks and proprietary recipes
  • operations manual to help run the business.

Q: Is prior experience in the food service industry necessary to take up the Samosa junction franchise?

Ans:

Experience in food service isn't necessary, but one should have a flair for managing people & customer relations, besides the required amount of capital investment. Required training and hand-holding support are provided.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.