Need views on Ice-Cream Franchise Business

By Abhishek Marwah on July 6, 2013 5 Comments / 2244 views

Hi Friends,

Please help me with your views on Premium Ice Cream Franchise Business.

My concerns are:

1. The Business – How does the prospects of the Ice cream business look in comparison to other QSR (Quick service restaurant) business like chicken roll/sand-witches/Chinese/momos etc. We need to look into this comparison with the back ground of India’s demographics, consumer pattern and seasonality angle (important aspect in the ice cream business. Another angle is the margins involved in these different business models.

2. Margins – Ice cream vs other QSR concepts.

3. Ticket Size (TS) vs Foot Falls (V) – Comparison between Ice cream and other QSR options. Considering that Revenue = TS*V. We need to compare Ice cream vs other QSR concepts. If the volume in Ice cream business is more/less than other QSR, does the ticket size in the business make up for the high/low volume. It would be great to identify the concept with both higher ticket size and volume, though it is rarely the case.

4. Brand V/s Non brand – Does it make it easier to go with an established brand for a QSR business or is it more attractive to start a fresh venture. This question is more relevant for non ice cream based QSR concepts.

5. Segmentation of the Brand – Is it more attractive to go for an exclusive brand like Baskins Robbbins or is it safer to go for a more massy brand like Kwality Walls Swirls in context of Delhi/NCR consumer especially North Delhi.

6. Seasonality Aspect – How important is the seasonality issue in the Ice cream business. Is there a significant variation in sales between the summer and winter season in the Ice cream business

7. Location – What kind of location is ideal for a mid budget Ice cream franchise business like Kwality Walls Swirls – A retail mall, an office cum retail complex, any other options. How imp is visibility of the location for an Ice cream business.

8. Franchise Issues – What are the things one should keep in mind while taking the franchise of a particular Ice cream Brand. Are the margins specified by the brand negotiable. Any other discounts/favors one can seek from a brand while taking its franchise.

Thanks in advance for helping me out.

Best Regards,

Abhishek Marwah

Comments

Abhishek Marwah

5 Comments

asha chaudhry July 6, 2013, 5:05 am

abhishek,

pls check this out – https://www.therodinhoods.com/forum/topics/anybody-who-can-help-in-my-icecream-startup-two-years-old
Abhishek Marwah July 6, 2013, 7:51 am

Thanks! Asha
Abhishek Marwah July 10, 2013, 4:56 am

Any thoughts ? Friends
Karan Pandhi July 10, 2013, 6:07 am

Hi Abhishek,

I would firstly point out your 1st point itself makes me put in a doubt . You are into Ice-cream biz not into food, thus your major competitors are Kwality Walls’ Swirl QSR, Baskin Robbins, Amul outlets, Natrual’s, and now upcoming Ice – Cream works by Cream Centre( currently in Mumbai) . These are your competitors not momos or chinese.

Margins will always be an eyeball catcher so you have to keep one eye on it.

Brand or Non-Brand : These are two different things and there will be contradicting views to mine. I would say building your own brand will take its sweet time. Yet there are options to take known brands and creating a QSR based model on it.

Segmentation : I read a few days back Chef Sanjeev Kapoor said “We look at Salads and we eat Samosa and chutney too” so you cant remove the Indian from an Indian, thus a produt like Kulfi can also be made a brand of (such as Chetna Kulfi).

Ice cream business too has seasons, in the north people may not have during monsoon and winters, as compared to west and south where only monsoon will only affect the business.(like when I was 5 year old, and I had been to Shimla during Jan, when the winter is at its peak, I was running to each outlet just as I wanted to have an Ice-cream and the vendor would laugh at me. I yet got a scoop of vanilla from somewhere and everyone was staring at me. This is one incident and I’m talking about early 90’s, thus again this my experience.)

For a QSR location is the most important thing.

Franchisee model works on royalty and deposit. All major brands have their terms and conditions.I don’t know any discount or favors will a brand provide, yet they do help in the know how, and employee skill, and may be during slack period you may receive offers and discounts.
Abhishek Marwah July 10, 2013, 8:22 am

Hi Karan,

Thanks for your views. I am asking how does the prospects of the Ice cream Franchise business look in comparison to other QSR (Quick service restaurant) Franchise business like Kathi rolls/Chinese etc.

What would be a better choice keeping all pros & cons in mind of both the businesses…