Introduction
KFC is one of the most popular and successful fast-food chains in the world, with over 23,000 outlets in more than 140 countries. In India, KFC has more than 400 outlets across 100 cities, serving millions of customers every year. If you are looking for a profitable and rewarding business opportunity in the food industry, then the KFC franchise might be the right choice for you. In this blog post, we will tell you everything you need to know about starting a KFC franchise in India, including the cost, process and requirements.
KFC, or Kentucky Fried Chicken, was founded by Colonel Harland Sanders in 1930 in the USA. He developed a secret recipe of 11 herbs and spices that gave his fried chicken a unique and delicious taste.
Since then, KFC has expanded its menu to include other items such as burgers, wraps, rice bowls, snacks and desserts. KFC is known for its high-quality food, excellent service and innovative marketing strategies.
KFC entered the Indian market in 1995 and has since become one of the leading fast-food brands in the country. Its offers a variety of products that cater to the diverse tastes and preferences of Indian consumers, such as hot and crispy chicken, zinger burger, popcorn chicken, chicken bucket and veggie options. KFC also adapts its menu to suit the local culture and festivals, such as introducing special items during Diwali, Holi and Ramadan.
Its operates on a franchise model in India, which means that it partners with local entrepreneurs who own and operate the outlets under the KFC brand name. KFC provides them with training, support and guidance to ensure that they deliver the best quality food and service to the customers. KFC also helps them with site selection, store design, equipment procurement, marketing and promotions.
To start a KFC franchise in India, you will need to invest around Rs. 1 crore to Rs. 2 crore depending on the location, size and type of the outlet. This includes the franchise fee, which is Rs. 30 lakh for a dine-in outlet and Rs. 20 lakh for a delivery-only outlet. The franchise fee is non-refundable and valid for 10 years.
You will also need to pay a royalty fee of 6% of the net sales and an advertising fee of 4% of the net sales to KFC every month. These fees are used to cover the costs of brand development, research and development, quality assurance and marketing campaigns.
You will also need to bear the expenses of rent, utilities, staff salaries, taxes and maintenance of the outlet. You can expect to break even within 3 to 4 years of starting the business.
How to Apply for a KFC Franchise in India Online?
If you are interested in applying for a KFC franchise in India online, you will need to follow these steps:
- Visit the official website of KFC India at https://online.kfc.co.in/
- Click on the “Franchise” tab at the top right corner of the homepage.
- Fill out the online application form with your personal details, contact information, business background and preferred location.
- Submit the form and wait for a response from the KFC team.
- If your application is shortlisted, you will be contacted by a KFC representative who will conduct an interview with you and evaluate your suitability for the franchise.
- If you are selected, you will have to sign a franchise agreement with KFC and pay the franchise fee.
- You will then receive training from KFC on how to operate the outlet according to their standards and guidelines.
- You will also receive assistance from KFC on finding a suitable site, designing the store layout, procuring the equipment and supplies, hiring and training the staff and launching the outlet.
- You will be ready to start your KFC franchise business in India.
Why Choose KFC Franchise Business?
There are many reasons why you should choose KFC franchise business over other fast-food brands in India. Some of them are:
- It is a globally recognized brand with a loyal customer base and a strong reputation for quality and innovation.
- It has a proven business model that offers high returns on investment and low risk of failure.
- It has a wide range of products that appeal to different segments of customers across age groups, income levels and regions.
- It has a dedicated team of experts who provide continuous support and guidance to the franchisees on every aspect of the business.
- It has a robust supply chain network that ensures timely delivery of fresh ingredients and supplies to the outlets.
- It has an effective marketing strategy that creates awareness and demand for its products through various channels such as TV, radio, print, digital and social media.
Points to Know Before Starting a KFC Franchise in India
Before you start a KFC franchise in India, you should be aware of some important points that will help you run the business smoothly and successfully. These are:
- You should have a passion for the food industry and a commitment to customer satisfaction.
- You should have a minimum net worth of Rs. 3 crore and a liquid capital of Rs. 1 crore to invest in the business.
- You should have a minimum floor area of 1000 sq. ft. for a dine-in outlet and 300 sq. ft. for a delivery-only outlet.
- You should have a prime location with high footfall and visibility, preferably in a mall, market, highway or residential area.
- You should have a good understanding of the local market, consumer behavior and competition.
- You should be willing to follow the KFC policies, procedures and standards strictly and consistently.
- You should be ready to work hard and long hours to manage the day-to-day operations of the outlet.
KFC Franchise Cost in India
The cost of starting a KFC franchise in India varies depending on the location, size and type of the outlet. However, here is an approximate breakdown of the expenses involved:
Expense |
Amount |
| Franchise fee | Rs. 20 lakh to Rs. 30 lakh |
| Royalty fee | 6% of net sales |
| Advertising fee | 4% of net sales |
| Rent | Rs. 2 lakh to Rs. 5 lakh per month |
| Utilities | Rs. 50,000 to Rs. 1 lakh per month |
| Staff salaries | Rs. 1 lakh to Rs. 2 lakh per month |
| Taxes | As applicable |
| Maintenance | Rs. 50,000 to Rs. 1 lakh per month |
| Total | Rs. 1 crore to Rs. 2 crore |
KFC Franchise Training Overview
Its provides comprehensive training to its franchisees on how to operate the outlet according to their standards and guidelines. The training covers the following aspects:
- Product knowledge: The franchisees learn about the ingredients, recipes, preparation methods and quality standards of the KFC products.
- Service skills: The franchisees learn how to greet, interact and serve the customers in a friendly and professional manner.
- Hygiene and safety: The franchisees learn how to maintain cleanliness and sanitation in the outlet and follow the food safety regulations.
- Inventory management: The franchisees learn how to order, store and manage the inventory of ingredients and supplies.
- Financial management: The franchisees learn how to record, monitor and analyze the sales, expenses and profits of the outlet.
- Marketing and promotions: The franchisees learn how to implement the KFC marketing campaigns and promotions in their local area.
The training is conducted by experienced KFC trainers at their regional training centers or at the franchisee’s outlet. The duration of the training varies from 2 weeks to 2 months depending on the type of outlet.
What are KFC franchise agreement and renewal terms?
The KFC franchise agreement is a legal contract that defines the rights and obligations of both parties involved in the franchise business. The agreement covers various aspects such as:
The term of the agreement: The agreement is valid for 10 years from the date of signing.
The territory of operation: The agreement grants the franchisee an exclusive right to operate the outlet in a specified area.
The fees and payments: The agreement specifies the amount and frequency of the franchise fee, royalty fee, advertising fee and other charges payable by the franchisee to KFC.
The obligations of KFC: The agreement specifies the support and assistance that KFC will provide to the franchisee such as training, site selection, store design, equipment procurement, marketing and promotions.
The obligations of the franchisee: The agreement specifies the responsibilities and duties that the franchisee will perform such as following the KFC policies, procedures and standards, maintaining quality and service levels, reporting sales and financial data, paying taxes and fees etc.
The termination clauses: The agreement specifies the conditions under which either party can terminate the agreement such as breach of contract, non-payment of fees, poor performance etc.
The renewal terms of the KFC franchise agreement are subject to mutual consent between both parties at the end of the initial term. The renewal may involve changes in the fees, terms or conditions depending on the performance and market conditions.
Conclusion
KFC is one of the best fast-food franchises in India that offers a lucrative and rewarding business opportunity for aspiring entrepreneurs. With its global brand recognition, proven business model, wide product range, strong support system and loyal customer base, KFC can help you achieve your dreams of owning a successful food business.
If you are interested in starting a KFC franchise in India, you can apply online through their official website or contact them through their toll-free number or email address.
