How to Start a Pizza Hut Franchise in india, Cost, Investment, and Profit
Pizza Hut Franchise in India: If anyone is a pizza fan and wants to capitalize on a pizza company, they have arrived at the right place.
Presently, people around the world are in a view to have various cuisines and not just their local cuisine. They like to enjoy a taste of all types of food from various places of the world. And globalization has made it promising for people to eat the food of different regions while still be sitting in their home country. This has caused various cuisines to become prevalent around the world. One such type of cuisine is Italian. When it comes to Italian food, pizza is one of the most widespread dishes out there. And this is where Pizza Hut comes in. Pizza Hut is one of the most believed Pizza selling companies in the sphere. With their exotic tastes and delicious formulae, they have achieved to win the hearts of a lot of pizza fans across the world. So, it is a boundless option if one plans to invest in a pizza company.
Details about the company
Pizza Hut, which was founded in 1958, is an American chain of eateries. The company was initiated by Dan and Frank Carney in Wichita, Kansas. Pizza Hut is a subordinate of one of the largest restaurant corporations in the world, Yum! Brands, Inc. The company is well-known for its Italian-American cuisine and sells pizza and pasta including side dishes and desserts. As of 2018, Pizza Hut has around 18,431 restaurants across the globe.
Pizza Hut was attained by Pepsico in the year 1977. After 20 years in 1997, Pizza Hut, along with Taco Bell and Kentucky Fried Chicken, became part of a company known to be as Tricon Global Restaurants, Inc. which was changed to Yum! Brands, Inc. in May 2002. The company’s logo called the ‘Red Roof’ is also one of the accustomed logos of a brand to the public.
Today, Pizza Hut has restaurants in various countries like Saudi Arabia, Hong Kong, the United Arab Emirates, South Korea, the United Kingdom, India, Finland, Germany, Spain, and Costa Rica, etc.
A step-by-step guide to Pizza Hut Franchise In India
Business plan for starting Pizza Hut Franchise in India
Pizza Hut has accepted a business model in which it functions through three different restaurant formats. The first and the most known one is the family dine-in locations where people can eat the food sitting there. The second is the storefront delivery and takeaway locations where people can order food and take it away as well. The third is the hybrid locations which comprise all three – the carry-out, dine-in, and delivery opportunities. Some Pizza Hut places also host a lunch buffet. But only through the three formats mentioned above is the major revenue source.
Procedure to start Pizza Hut Franchise in India
Pizza Hut initiated its first store in India in the year 1996 in Bangalore city. Since then, it has planned to increase growth at a rate of 40 percent yearly. Today, Pizza Hut has greater than 400 stores in the country and plans to increase the number in the next coming years. Another motive of Pizza Hut is to appoint more than 14,000 delivery people by the end of 2020.
Today, Pizza Hut stands as the second biggest pizza company in India with a market share of around 27 percent. All the above-mentioned figures and goals are pointers that it is a good judgment to invest in a Pizza Hut franchise.
Requirements to start Pizza Hut Franchise in India
Similar to any other franchise, few necessities are to be fulfilled by any person to be eligible for a Pizza Hut dealership. The requisites are as follows:
Area: Although no specific number has been stated by the company, after thorough market research, a minimum of 1,000- to 1,500 sq. ft. of the area or outlet space is sufficient to set up a Pizza Hut franchise.
Investment required for starting a Pizza Hut Franchise in India
Next comes to the cost of investment. If you are anxious to know the Pizza Hut franchisee cost in India? Yes, the amount of investment needed is based on the type of franchise that an individual plans to invest in. There are mainly 3 types of franchises that Pizza hut offers. They are stated below:
Restaurant-based delivery system Pizza Hut restaurants: In this type of franchise, Pizza and other products approved by PHLLC are consumed for dine-in and takeaway as well. To have this type of franchise, an individual must invest around 25 to 30 lakh rupees.
Delivery/carryout (Delco) system Pizza Hut restaurants: Carryout service is the only means through which the products are purchased in this type of franchise. To get a franchise here, an investment of around 15 lakhs is needed.
Delivery-based restaurant (DBR) / Fast-casual Delco (FCD) system Pizza Hut restaurants: In this type of franchise, products are sold for all three purposes like dine-in, takeaway, and delivery purposes. An individual fascinated with becoming the owner of such a type of franchise must invest an amount of around 20 lakh rupees.
Royalty: Besides, one also has to pay a monthly royalty which will be equal to 6 percent of the gross sales of the franchise to the company in that month.
Advertising fees: If an individual wants to become an owner of a Pizza Hut franchise, he or she has to spend advertising fees on the company which is approximately 4.25 percent of the gross sales of the franchise.
Profit in Pizza Hut Franchise business in India
Although the profitability of any franchise is determined by the performance and people, as an estimate an individual can still have Rs. 20,000 per month.
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How to start Pizza Hut Franchise in India?
The procedure to obtain a Pizza Hut franchise in India is very easy. An individual must visit the company’s website and fill an application form to apply for the franchise. Many key and personal information will be required to be filled by the individual to avail the dealership.
To solve any Pizza Hut dealership questions, one can simply have the following information:
Pizza Hut Head Office Contact Details:
12th Floor, Tower D, Global Business Park,
Gurgaon, Haryana, India.
Pin code: 122002
After the submission of the application form, the support staff of the company examines the application form. An individual has to go pass through a series of background checks and conversations. The whole method will consume around 10 to 12 weeks. If the candidate gets accepted, it will consume about 3 to 9 months to start the store based on the size and location area of the business.
Training and support required to start Pizza Hut Franchise
Pizza hut will take care of the training for the staff of the franchise. Instead of classroom training, the company provides on-the-job teaching to the workers which will be for 8 to 12 weeks. The company provides support in two ways. First is the ongoing business support. In this, a franchisee can attend agreements with other franchisees and get some inside information. The second type of support is the marketing help through which a franchisee gets the benefit and utilizes the advantage of the brand name of Pizza Hut.
Conclusion of Starting a Pizza Hut Franchise in India
When it is heard about pizzas in a country like India, it does not get better than Pizza Hut. With the company’s goals of amplifying its outlets in the coming five years and having more than 14,000 delivery drivers, it is not difficult to see the path of success that Pizza Hut is on and they have no plan of discontinuing or slowing down. So, if an individual has a passion for pizzas and has savings to invest, Pizza Hut is certainly the best opportunity. Hence, we have added all about Pizza Hut Franchise India. We hope we could aid with all the aspects like Pizza Hut Franchise cost in India, profit margin, etc. Are you having any questions, feel free to write us.
Commonly asked questions about Pizza Hut Franchise in India
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1. What is the area or outlet space required to open up a Pizza Hut Franchise?
Answer: Although Pizza Hut does not mention any specific necessities, an area of around 1,000 to 1,500 square feet is needed for the store.
2. How to get a Pizza Hut Franchise in India?
Answer: The procedure is very easy. An individual must visit the official website of Pizza Hut and fill out an application form required for an application for a Pizza Hut dealership. Several personal and official information is asked by the individual in that form.
3. Is the Pizza Hut Franchise profitable?
Answer: Yes, the Pizza Hut franchise is very money-making. Although the profit of a franchise is based on its performance and number of clients, an individual can still estimate a gain of 20,000 rupees per month.
4. Who is the owner of Pizza Hut Franchise in India?
Answer: Virag Joshi is the CEO of Devyani International Limited who runs and owns Pizza Hut in India.
5. What is the cost of the Pizza Hut Franchise in India?
Answer: The investment is based on the type of franchise an individual wants plans to take up. For restaurant-based delivery system restaurants, around 25 to 30 lakh rupees is needed. For delivery/takeaway system restaurants, an individual must spend a sum of around 15 lakh rupees. For delivery-based restaurants, a person should invest around 20 lakh rupees to own the franchise.
6. Does one have to pay any royalty to become an owner of a Pizza Hut Franchise?
Answer: Yes, royalty has to be paid every month to the company. The royalty is calculated as 6 percent of the gross sales of the franchise per month. Apart from royalty, advertising fees are also paid by the franchisee to the organization which is around 4.25 percent of the gross sales.