An analysis of average income for food franchise owners

A substantial amount is required to set up a new food franchise business, for instance around 20 to 30 lakhs would be minimum investment these days. Over a decade phenomenal increment registered in foodservice sector, especially franchise model has been utilized enormously to expand business in new geographic locations. A food franchise owner looks all operations of store, food preparation, staff management, storage, marketing and inventory. However, in COFO model whole operations handle by company but here we’re focusing on income of food operators (FOFO). It is critical for a business owner to understand basic terms such as sales, profit (or Net income) & loss, gross sales or gross revenue, ROI, & breakeven. According to reports average income of franchise owners may around US $ 50000 (yearly);this figure is for restaurants where customer foot fall is good. Income level depends on:
    Brand popularity & awareness
    Customer footfall
    Profit margin
    Utilities cost
    Store size, investment, location, single unit or multiunit
It is not possible to calculate exact average of all restaurants. Additionally income level also relates to store location, marketing & promotions. Chatar Patar, India’s first panipuri brand has claimed for ROI within 6 months. Franchisees enjoy flexible policies of company and also explore new ways to attract customers. In a recent survey, average income generated by food franchise owner in U.S. was approx. US $ 128,000. To add more, different models have different income level, for example Chatar Patar’s Café model investment is 25 lakh which is low as compared to lounge 35 lakh.
Income by area or region
Geographic location also matters the most, for instance income level of people in metros, tier 1 & tier 2 cities is high. In addition urban areas are more developed rather than rural. Thus people who want to start own food business should focus on different concepts or metrics.