The barriers to
entry in food industry are high for new players, well-established companies
have achieved tremendous popularity and they dominate distribution channels as
well. Huge investment will be required for infrastructure set up; moreover
marketing is also significant factor that must be considered.Majority of food franchise store fails within first year of business so it is critical to
evaluate problems occurred.
Consumers bargaining power:
Food industry is not limited to only few restaurants, in fact there are plenty
of small, medium and large scale brands that offer wide range of dishes. Bargaining
power of consumers is high they can easily switch to another brand if particular
brand don’t satisfy their taste buds. In order to retain customers, companies
must take feedback to improve on-going service and menu.
Local laws: When
multinational food franchise chains across native border to appoint franchisees
in different geographic location they had to face challenges and domestic
opposition. Apart from this, it is also mandatory to follow rules and
regulations such as hygiene, labours laws, standard operating procedures, etc.
Employees: In order to
maintain in each store, you need to hire right team and chef. In many locations,
challenges may arise due to non-availability of skilled manpower. No doubt
restaurant industry is highly competitive and every year new restaurants pop up
to deliver better services.
Rates of rental property:
A good location is important for success of food franchise restaurant but
increasing rental property rates is major concern these days. Excellent
locations can pull large number of customers, one must find out best place for
new store establishment.
High start-up cost:Establishment
of restaurant could be an expensive venture and it is one of the significant
barriers to entry in foodservice industry. For example, popular brands are
offering high investment franchise models which are not cup of tea for every
individual.
Marketing: In this global
business environment, companies are investing huge amount on marketing to
create brand awareness. Both money and time required to develop an effective
marketing strategy. Moreover digital
marketing must be considered as modern-day customer prefers social media
platforms.
Over past few
years, demand of food franchises is increasing as individuals are choosing
entrepreneurship instead of 9 to 5 job. Chatar Patar is major player in India
when it comes to delicious street foods; it is one of the fastest growing food
franchises that offer low investment business models. Before you choose a
model, you must analyse current market condition in your geographic location.
On the other hand barriers to entry will definitely enhance in the coming
future because new players are consistently entering the Indian marketplace and
also face problem at the same time.
Chatar Patar’s franchise model
Irrespective of
barriers, Chatar Patar is offering lucrative franchise opportunities. if you
want to become boss of your own business, bet on models offered by street food
franchise. Benefits of Chatar Patar’s franchise:
1.
Low investment: Chatar Patar is perfect
solution to high start-up cost barrier. A nominal investment of around 7 to 20
lakhs is required to develop a store in any location across the country.
2.
Cost-effective marketing: In short time
period of 5 years, 100+ outlets opened successfully in India. The brand use low
cost marketing strategies and utilize latest technologies to maintain a
competitive edge. To start a success food business you must:
a. Focus on latest trends and opportunities
b. Meet certain rules and regulations
c. Select best location where customers can easily reach
d. Maintain standard operating procedures
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