Have you been researching on owning a Pizza franchise in your city? Does the growth prospects of food industry excite you, and do you want to be a part of popular pizza chain? But, which franchise to choose? Well, we have answer for this, and certainly after reading this complete article, you will be in a position to choose the best available franchise.
On popular demand and numerous ping, we have brought in an another interesting multinational pizza chain – Pizza Hut Franchise for you! We will be covering an in-depth article on Starting a Pizza Hut outlet in India with its capital required, cost, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
During our research, we found that there are several underserved article present over Internet that offers very little or irrelevant information on Pizza Hut chain. With a complete dedication and legitimate research, we are committed to provide a unbiased article and review on Pizza Hut franchise in India.
- Company: Pizza Hut
- Founded: 1958
- HQ: Wichita, Kansas, US
- Industry: Food & Beverage
- No. of outlet: 500 + in India
- Area served: Worldwide
- Franchise Fee: ₹20 lacs
- Space Required: Min. 800 sq ft
- Total Initial Investment: ₹ 60 lacs to 3 Cr
Table of Contents
Overview of Pizza Hut Franchise In India
Going back to history in 1958, when two brothers Dan and Frank Carney took $600 from their mom to open a pizza restaurant in Wichita, Kansas, Pizza Hut has certainly made an impact and became a renowned fast-food chains in the world.
Pizza Hut is a well-known, leading, and rapidly growing multinational food chain that specializes in serving varieties of regional flavor pizza, desserts, beverages, and much more.
Now, when we talk about India’s fast food market, which is certainly growing at rapid pace, has delivered exceptional return for its franchisee and Investors. In June 1996, Pizza Hut signed an agreement with Devyani International & Sapphire foods, A master franchise that also takes care of expansion for brands like KFC Franchise and Costa Coffee.
Pizza Hut entered into Indian market with a single restaurant in Bengaluru to pioneer this category with over 500 plus outlets across India.
The chain offers a range of exciting menu consisting of its signature pizzas, appetizers, pastas, desserts, and beverages across all its outlets. There outlets are present in almost every major cities in India.
Does this little snippet excite you to Become a franchisee of Pizza Hut store? Don’t hurry! we have a few more important topics to cover on Pizza Hut chain, and we believe that it will undoubtedly help you to understand and choose the best fast-food franchise.
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Pizza Hut – The Journey
Without any doubt, Pizza Hut is a leading and rapidly growing QSR chain that has partnered with India’s popular master franchise that helped them to grow and expand its outlets across Indian cities and its neighborhood countries. Their humble beginning started with foraying into indian market with a restaurant in Bangalore to being one of most popular and loved pizza house generating a revenue of ₹5,318 million is irrefutably inspiring.
Key facts about Pizza Hut
| Sr No. | Type | Private |
|---|---|---|
| 1 | Trade Name | Pizza Hut |
| 2 | Industry | Food & Beverages |
| 3 | Founded | 1958 |
| 4 | Founders Or Parent Company | Dan and Frank Carney, Operated by Devyani International & Sapphire Foods in India |
| 5 | Corporate Headquarters | Gurugram, India |
| 6 | Number of locations | Over 500+ |
| 7 | Area served | Worldwide |
| 8 | Model | Traditional & Non Traditional |
| 9 | Menu offering | Pizzas, Sides, drinks, Desserts |
| 10 | Revenue | INR 5318 Million |
| 11 | Website | https://www.pizzahut.co.in/ |
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How Much Does a Pizza Hut Franchise Cost in India?
Usually, An Indian fast-food franchise may requires a minimal investment with a floor area of a minimum of 200 sq feet to over 1000 sq feet depending on the model, and its entire cost may vary depending on the city, outlet’s geographical location, and amount of renovation required. Nevertheless, To become a Pizza Hut Franchise partner, one would at least require an initial investment of ₹60 lacs to ₹3 Crores with a min floor area of 800 – 1200 sq feet.
Additionally, the above-mentioned initial investment for Pizza hut business does cover the expenses or fees such as Franchise fees, Marketing Fees, Equipment charges, decor, and other necessary fees.
Pizza Hut Franchise Fee in India
The franchise fee for Pizza Hut is around ₹20 lacs. Furthermore, to qualify financially, franchise candidates and their partners/investors should have at least a minimum net worth of ₹ 5 Crores with available liquidity of ₹ 2.5 Crores.
Additional Cost for Pizza Hut
Typically, to run and maintain a fast food franchise like Pizza Hut, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.
The ongoing royalty fee for the Pizza Hut franchise will be approximately 6% and ad royalty fee of 4.75%, which would be paid by the Franchisee on their monthly gross sales.
| Type of Fee | Cost and Other Details |
|---|---|
| Franchise Fee | ₹ 20 lacs |
| Floor Area | Min. 800 -1200 sq. ft. |
| Royalty Fee | 6% |
| Ad Royalty Fee | 4.75% |
| Store Ambiance & Interiors | ₹10-12 lacs |
| Machinery & Equipment | ₹15-20 lacs |
| IT Support & Online Platforms | 1 lacs |
| Agreement Period | 20 Years, Renewable |
| Total Initial Investment | ₹ 60 lacs to ₹3 Crores |
Additionally, the cost of opening a restaurant model Pizza Hut outlet will be around ₹2 Cr to ₹3 Cr.
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Is Pizza Hut Franchise Profitable In India?
Absolutely, Yes! but, it certainly depends on several factors such as outlet’s geographical locations, city, and capability of franchisee to control its expenses.
Nevertheless, Considering the exponential rise in the food industry, moderate investment with high ROI, proper supply chain, robust presence in market, loyal customer base, training & support, and regular food innovations, one may anticipate a gross profit margin of 65-75% and over 17-25% of net profit margin per month.
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Pizza Hut Franchise Profitability Explained
Interesting facts
Average Daily Sales(ADS) for Pizza Hut outlet stood at ₹43,000 per store, representing 45.4% SSSG over FY2021. Isn’t a staggering figure.
We will try to explain more about the profitability of Pizza Hut with a simple example, and yes, it could vary depending on the chosen model and city. Assuming, you have opened an outlet in a good area and with given expenses, achieved these numbers throughout the years;
| Type of Cost | Amount |
|---|---|
| Sales/month | ₹ 12,00,000 |
| Raw Material Cost (Max 35%) | (₹ 4,20,000) |
| :Gross Profit | : ₹7,80,000 (65%) |
| Rent | ₹1,50,000 |
| Employees salary | (₹ 60,000) |
| Utilities | (₹ 50,000) |
| Misc. | (₹ 35,000) |
| Marketing | (₹ 35,000) |
| Aggregator | (₹ 40,000) |
| Discount/Promos | (₹ 40,000) |
| Royalty(6%) | (₹ 72,000) |
| Royalty(4.75%) | (₹ 57,000) |
| :Net Profit | ₹ 2,41,000 (~20%) |
Benefits of Owning a Pizza Hut Franchise
- Flexible franchise model:
- Interested prospects can take up a Pizza Hut outlet with an initial investment of 60 lacs and can start their entrepreneurial journey with India’s renowned pizza house
- Leverage the loyal customer base:
- Being a leader in the fast-food category enables unit holders to leverage brand’s well-established loyal customer base and help them in generating revenue from day one itself.
- Variety & Affordability
- Pizza Hut provides a wide range of pocket friendly and delicious food ranges filled up regional flavor to its consumers, enabling them to garner customers from every categories.
- Online and Offline Marketing Support:
- Its master franchise – Devyani International Or Sapphire foods may provides an extensive support to its outlet holders by offering industry standard online and offline marketing support.
- Extensive training support:
- Pizza Hut offers comprehensive training and support to its franchisees, including assistance in site selection, Interior decor, and other necessary stuff.
- High profit potential:
- The franchise offers highly profitable franchise model, and with right location and marketing strategy, Pizza Hut outlet holder may generate an impressive profit margin of 20-25%.
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What does it require to become a Pizza Hut Franchisee?
- First and most important – One should have the required funding to partner with a Pizza Hut outlet, that is one should be ready to invest anywhere between ₹60lacs to ₹3 Crores.
- Interested applicants are advised to dedicate themselves to the Pizza Hut business and follow the company standards and maintain their legacy.
- Interested applicants must undergo and complete the necessary training program offered by its master franchise team.
- Interested franchisees should have a passion to work in the fast-food industry and should possess the leadership and financial skills to operate a Pizza Hut outlet.
- Applicants are advised to secure a suitable location that meets Pizza Hut’s requirements, such as high visibility and easy accessibility.
What is the Support offered by Pizza Hut to Setup a store?
- Site Search and Analysis
- Store interior & exterior layout planning
- Necessary IT support
- Marketing Support
- Regular product launch & innovations
- Quality checks and Complete support for supply chain
- Staff Training Support
- Marketing & Sales growth strategies and guidelines
- All Hands Meetings to improvise the business
- Location-specific promotions during the opening and planning of the launch
Documents required to own a Pizza Hut Franchised outlet
- Personal Documents – Aadhar and Pan Card
- Passport Size photographs
- Outlet rental agreement- if rented
- Bank Passbook
- PD cheques – If necessary
- GST License, ITR doc, and other necessary stuff
- FSSAI & Nagar Nigam license
- Brand agreement
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How to Get a Pizza Hut Franchise in India?
Irrefutably, becoming a Pizza hut outlet owner requires a moderate investment that may offers an impressive gross profit margin. Additionally, the Pizza Hut chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.
One can avail this franchise using below mentioned steps;
- Visit its Master Franchise’s official website – Devyani International Or Sapphire foods, and fill out the necessary form or you may directly call them at their number provided on its website.
- Official Address: Devyani International Ltd, Plot No.18 | Sector 35
Near Hero Honda Chowk | Gurugram
Haryana – 122001 | India
Final Takeaway
Finally, we all as an food lover, don’t need any kind of introduction to Pizza Hut chain, and its impact and significance on Indian fast food market. Undoubtedly, the chain has come a long mile and through its sheer expertise and expansion plan, it has provided a consistent growth & profit to its outlet owners.
Pizza Hut boasts over 500 plus franchised outlets across Indian cities and more outlets planned to release in the domestic market in the upcoming years will create tremendous opportunities for interested candidates to grab THIS deal in this ever-growing market.
With an Initial investment of ₹ 60 lacs to ₹ 3 Crores, the Pizza Hut chain may offer an outstanding profit margin to its stakeholders and one may anticipate an exceptional net profit margin of 15-25%. Nevertheless, Interested applicants are advised to speak to 4-5 Pizza Hut outlet owners before applying for its franchise.
The Bottom line – In case you are interested in the fast food industry and want to take advantage of the opportunity with a moderate investment, then you can apply for a Pizza Hut outlet in India. With its immense legacy, expertise, and robust supply chain, one may experience stable and steady growth in their entrepreneurial journey.
So, what are you waiting for? Go and start your entrepreneurial journey with Pizza Hut!!
Good Luck!! Happy Franchising!!
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FAQ
How much does it cost to start a Pizza Hut Franchise?
Ans: The initial investment for Pizza Hut will range from ₹60 lacs to ₹ 3 Crores for a floor area of a minimum of 800 – 1200 sq feet. This investment involves costs like Franchise Fees, Equipment Fees, Marketing and other expenses.
How much does a Pizza Hut Franchise Owner make?
Ans: On an average, Average Pizza Hut outlet generates a revenue of ₹43,000 per day, that makes around ₹12 lacs per month. Hence, considering the Pizza Hut chain’s growth, immense marketing & training support, one may anticipate an earning of ₹2 lacs to ₹ 3 lacs per month*.
Who owns Pizza Hut In India?
Ans: Pizza Hut is a public listed company that primarily operates in fast food industry, and specializes in lip-smacking regional flavored pizza. In India, It is currently operated by its Master franchise – Devyani International or Sapphire foods that care of entire franchising job.
