Key drivers for the beauty and wellness Franchise Business

In this era, when beauty, wellness and healthcare have gained a universal appeal in urban India, franchising offers huge business opportunities to these sectors. In a recently held event, in Mumbai, experts from these fields shared their views on the rising trends of franchising in beauty, wellness and health sectors.

One of the main reasons of the popularity of these sectors is the rising disposal income and changing lifestyles of the Indians. In an age where looking and feeling beautiful is given prime importance, these sectors have ushered to meet this rising trend. The beauty services industry, largely unorganised is steadily taking the organised route through franchising.

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American Food Franchise Sizzler looking for better things in 2010

After two years of halted growth, the more than 50-year-old Sizzler chain is setting the stage for a franchise push with a new restaurant design, an upgraded menu and a new management team — the head of which actually wants to buy the chain. Kerry Kramp, president and chief executive of the Culver City, Calif.-based Sizzler USA, said in an interview with Nation’s Restaurant News that he has spent the past 18 months revamping the 191-unit “family casual” chain to become “recession proof.” He now wants to buy Sizzler from its current owners, if or when the economy improves and funding becomes available.

“We think we’ve captured what today’s consumers want,” Kramp said during lunch last week at a Sizzler restaurant in the Inglewood neighborhood of Los Angeles. “Better food, more reasonable prices and more oriented to family.” He added in a later interview this week: “My goal is to buy the company and have it be owned by management.”   

Today, Sizzler is owned by Australia-based Pacific Equity Partners, or PEP, which brought Kramp on as chief executive in 2008. PEP had then been considering the sale of the brand, but shelved those plans because of declining market conditions. PEP also owns Sizzler International, which includes 83 locations in Australia, Japan, South Korea, Taiwan, Thailand, Singapore and China.

Since Kramp took the helm, about 30 underperforming Sizzler locations have been closed. Kramp said Sizzler USA’s sales have remained positive through the economic downturn, however, despite the fact that many of the chain’s units are located in the hard-hit market of Southern California. For fiscal 2009, Sizzler booked systemwide sales of $252 million and boasted an average unit volume of about $1.8 million among units sized between 5,000- and 6,000-square feet. The chain’s average check totals $11.82. Of the chain’s 191 units in 14 states and Puerto Rico, 159 are franchised and 32 are company-operated.

To boost sales and prepare for brand growth after two years of regrouping, Sizzler has developed a new prototype design and debuted a new menu. Two locations — the Inglewood location and another in Hesperia, Calif. — have been remodeled and saw sales increase by more than 20 percent, Kramp said. The new prototype includes a more “Americana” look, with light and dark woods, earth tones and stone walls. Colorful photos on the walls aim to reflect the specific neighborhood, and large flat-screen TVs hover over the dining room.

The cosmetic changes were designed to work easily as restaurant conversions in spaces that may previously have been an Applebee’s, for example, or even a Blockbuster video store, Kramp said.Indeed, Sizzler is hoping to take advantage of casual-dining locations that have closed and might be suitable for conversion. To help spur that growth, Sizzler has hired Mark Lyso as director of franchise development. Lyso previously spent 14 years with Famous Dave’s of America, helping that brand grow from two units to 175 locations.

Lyso joins a management team that includes Dennis Scott, who initially aided the brand as a consultant and last year was named chief of strategic development. Scott is co-founder of Buffets Inc., parent to the Old Country Buffet and HomeTown Buffet brands, where Kramp once served as chief executive. Sizzler also hired Steven McDermott, another Buffets Inc. alumnus, as chief financial officer last year. Michael Branigan, who has been with Sizzler USA for about 20 years, remains as vice president of marketing. In addition to its prototype and growth plans, Sizzler also is rolling out a new menu, which has been simplified and updated and includes new value-focused pricing. There are over 100+ Fast Food Franchise Opportunities, Food and Beverage Franchise Opportunities and Restaurant and Cafe Business Opportunities.  

The number of items was reduced by about 25 percent, and existing items, including the signature Malibu Chicken, have been updated or improved, Kramp said. Steaks, shrimp and salmon remain core items, but the new menu includes a grilled pork chop and value-focused combination meals. For example, steak, lobster, a baked potato and one trip to the salad bar is priced at $17.99 per person. Sizzler moved away from an all-you-can-eat buffet format years ago, but the extensive salad bar remains a key selling point at a time when consumers want more for their money, Kramp said. The salad bar includes hot appetizers, such as tacos and chicken wings, while the sundae bar features soft-serve ice cream, toppings and other desserts.

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Manhattan Fish Market Franchise now in Five Countries

31st January 2010: Wahono Saputra was on a trip to Singapore with his wife, Sally Dewi Mulyadi Tan, a few years ago when they saw chefs at a restaurant prepare the dish in such a way that it burst into flames. The preparation was done in front of the guests. He was intrigued by this, and he and his wife both fell in love with the first dish, later deciding to open their first franchise in Jakarta, which they called the Manhattan Fish Market.

Food enthusiasts in Jakarta can now also watch their dishes get the flamb* treatment at the restaurant. But the flaming attraction aside, people visit the restaurant principally for the food. Here, the restaurant offers an array of dishes that include starters and appetizers, soups, salads, Manhattan Favorites, pastas and classic choices, house platters and combos, Strictly for Sharing, sides and Sweet Ocean.

To begin the fish exploration at the Manhattan Fish Market, the starters and appetizers offer up, among others, Garlic Herb Mussels (poached mussels in a creamy garlic herb sauce), while the Manhattan Favorites includes the Grilled Catch of the Day, usually dory. Strictly for Sharing consists of really big meals such as the Manhattan Seafood Platter for Two or the Giant Flaming Whole Lobster; Sweet Ocean is the dessert selection, which includes the Manhattan Mud Pie. The most popular item on the menu in the Manhattan Seafood Platter for Two, and it's easy to guess why. Served flamb* in front of the guests, the meal is a delicious combination of fried oysters, calamari, dory and prawns, with garlic rice or French fries.

The oysters are sprinkled with lemon juice before being fried, and the prawns get a layer of mayonnaise and sugar that caramelizes after the flamb*, so the dish offers up a juicy and sweet treat big enough for two to enjoy (or one if you've skipped breakfast). Wahono says he imports most of the ingredients, such as the mussels from New Zealand and salmon from Norway, because he wants the best quality. "We also import the dory from Vietnam because they come in the right size, between 170 and 200 grams each, and taste fresh, without the slightest taste of earth," he says.

He adds the Manhattan Fish Market also offers Indonesian dishes, such as boneless bandeng (milkfish), which is wrapped in aluminum foil, sprayed with sauce and grilled. There is also the kerapu (grouper), which is cut into a butterfly shape, deep-fried and served with sauce. "We can print the new dishes on the menu, but we have to consult first with the license holder, because we want to maintain quality and taste," Wahono says. The dishes go for between Rp 50,000 (for the garlic herb soup) and Rp 399,000 (for a 3-kilogram lobster). The beverages, such as Coke and Sprite, are a bit on the pricey side at Rp 19,000 each, but Wahono points out they are free-flow. 

The Manhattan Fish Market is one of the few food franchise opportunities that have been performing well. The Manhattan Fish Market is a Singapore-based seafood restaurant that specializes in American-style seafood. Opened in November 2002, it now has 38 outlets in five countries: Singapore, Malaysia, Thailand, Saudi Arabia and Indonesia. As the name implies, the restaurant is inspired by the fish market on Fulton Street under the Brooklyn Bridge, where the finest and freshest seafood are put on offer. With Manhattan as the theme, the interior decoration features a picture of the Brooklyn Bridge and old maps of Manhattan on the tables. Wahono says he has committed with the license owners to open six new outlets within 56 months. He plans to find new premises for the second and third outlets. "We want to focus our business development in Jakarta for now," he says. 

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Forest Secret Malaysia to spread wings overseas

31st January 2010: 

Forest'Secret, a herbal-based wellness and beauty brand developed and managed by Forest'Secret Sdn Bhd, will score a first when it spreads its wings to Middle East, China and Hong Kong this year. 

The company is optimistic its foray into the international market will be a productive venture as it will introduce and heighten awareness of Malaysian herbal-based products.

Forest’Secret Sdn Bhd, a wholly-owned subsidiary of Malaysia International Franchise Sdn Bhd (MyFranchise), uses only local herbs in its range of products. 

"As for China, we are looking at dividing the distribution to two regions. We have identified a dealer in China so far and recently participated in a trade show along with them in China.

"Talks are going on to determine single or multiple dealership. We are thinking of using the same party for distribution in the Hong Kong market," said chairman of MyFranchise Datuk Ahmad Shalimin Ahmad Shafie in an e

xclusive interview.

He said the company had interested parties from Middle East who have come forward for negotiations. 

"We are planning to tap the market in Jeddah and Abu Dhabi as we believe there are openings for herbal-based products," he said. 

Currently, the company, with 10 outlets, aims to invest RM2 million to open another six to eight outlets by year-end. There are several other Indian companies in the health and beauty space. 

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Lifeline Group acquires Medicine Shoppe franchise rights in Middle East

Lifeline Group LLC of Abu Dhabi has acquired the master franchise rights for The Medicine Shoppe pharmacy chain for the Middle East. This will compliment the region with the best pharmacy practices from across the globe. The agreement was signed between Bruce Burnett, Vice President International for Medicine Shoppe and Dr. Shamsheer of Lifeline Group LLC.

The Medicine Shoppe is the world's leading franchisor of independent pharmacies, and has a proven track record in pharmacy practices and operating systems across the world. The Medicine Shoppe was established in 1968 and is ranked the 33rd largest international franchise by the Entrepreneur International Magazine. With over 1,100 pharmacies spread across 6 countries the Medicine Shoppe is expanding in the international market.

The Lifeline Group includes hospitals, pharmacy, pharmaceuticals, organic food, and medical conference organizing and advertising agency. Bruce Burnett, Vice President International for the Medicine Shoppe said, "Medicine Shoppe International is looking forward to our relationship with the Lifeline Group. Medicine Shoppe's pharmacy model for providing superior customer service together with Lifeline's commitment to excellent healthcare will bring a higher level of patient care than what is currently experienced in the Middle East market".

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The Little Gym USA Signs Master Franchise Agreement For Middle East

19 Jan 2010 - The Little Gym International, franchisor of gyms providing curriculum-based, non-competitive motor skills development programs to children aged 4 months to 12 years old, has entered into a master franchise agreement with an existing franchise owner in Kuwait City, Kuwait, to develop at least 15 and as many as 50 locations in the Middle East over the next decade.

Husband-and-wife team Adel Al-Bader and Khaldah Al-Ghanim, who opened their first The Little Gym in Kuwait City in 2003, will continue operating that location and developing more sites throughout Kuwait. In addition, they will now seek prospective single- and multi-unit franchise owners to develop The Little Gym locations in the United Arab Emirates, Saudi Arabia, Lebanon, Egypt, Bahrain, Syria, Oman, Qatar, Iran, Cyprus, Jordan, Morocco, Algeria, Mauritania, Tunisia, Libya, Sudan, Iraq and Yemen. They will also assist those who join the franchise in opening and operating their locations, providing business training, site-selection and site-design assistance, operational consulting, market adaptation, marketing support, translation assistance and other ongoing services, with support from The Little Gym International.

Both individuals have significant business and franchising experience. Mr. Al-Bader has a degree in Business Administration and worked in human resources for Kuwait Airways for 14 years and was a branch manager for Quality Tools Franchised Co., a SNAP-ON franchisee, for five years. His wife, Khaldah Al-Ghanim, has a degree in English Literature and taught English at Kuwait University until 2000. Both have been full-time franchisees since joining The Little Gym in 2001.

The Little Gym currently has 301 locations in 19 countries worldwide, including 261 in the United States. Widely recognized as the leading developer of motor skills in young children, the chain was recently named #1 in the children's fitness category for the second consecutive year by Entrepreneur (January 2008), capping off a year of milestones and accolades that included being named a "Hot Retailer" by the International Council of Shopping Centers (ICSC) and one of Inc. magazine's 5,000 fastest-growing private companies in the United States (September 2007). The company also recently opened its 250th U.S. location, 300th worldwide gym and first site in Manhattan.

With a presence in Asia for the past 13 years and a solid foundation throughout Europe, The Little Gym now has a strategic vehicle in place to expand in another key region of the international market, according to Vice President of Franchise Development Ruk Adams.

"This is a very significant development for us on the international stage," said Adams. "It places an experienced entity with a vested interest in growth and a proven success in our system in the Middle East to oversee the selection, recruitment, inauguration and ongoing support of additional franchise owners there, and will allow our development efforts to move forward with full force. In fact, we have already contacted some 20 prospects who previously expressed interest in The Little Gym in Saudi Arabia, Dubai/United Arab Emirates, Jordan, Oman and Cyprus, and we plan to meet with some of them early in 2008."

The Little Gym faces a warm reception throughout the region, said Ms. Al-Ghanim. "The Little Gym is unique in its structure, use of music, individual focus on each child, and the way its themes and fun lead to increased self-esteem. Parents in Kuwait believe in The Little Gym because they noticed a difference in their children, and we're confident that feeling will spread to other locations as we fulfill our development agreement," she said.

The Little Gym Franchise is yet to expand in the Indian subcontinent. Childcare Franchising is on the rise in India, which began initially with preschools like Bachpan and many others. 

The Coffee Bean and Tea Leaf Franchise to open its fifth outlet in India

20 Jan 2010: Blue Foods leading coffee chain The Coffee Bean & Tea Leaf (CBTL) is all set to open its fifth outlet at Blue Heaven, Linking Road, Bandra West in Mumbai on January 21. According to the company's spokesperson, it is the third outlet of CBTL in Mumbai with the other two present in CR2 Mall, Nariman Point and Sobo Central mall,Tardeo in Mumbai.

Founded in 1963, The Coffee Bean & Tea Leaf is the privately-held chain of specialty coffee and tea stores in the United States. In India, the company has a master franchisee relationship with the Kishore Biyani foodservice venture in India – Pan India Food Solution, the joint venture between Pantaloon Retail and Blue Foods.

Further, the company plans to launch nearly 40 coffee outlets in the next three to five years. Coffee Shops is another lucrative business opportunity that entrepreneurs cannot afford to ignore, already there are a dozen off coffee brands in India, with tens of thousands of locations already.  

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LA SlimWrap Mineral Body Wrap Business Opportunity Now Available in Singapore

Jan 26, 2010: LOS ANGELES, CA -- Just as North Americans are beginning to understand and embrace the more natural, wellness-based health and beauty treatments of the East, Asian men and women are clamoring for the more modern treatments now popular in the United States and Europe. 

ONLY Aesthetics is a chain of beauty clinics in Singapore who offer the latest and most comprehensive treatments in medical aesthetic technology including Laser Hair Removal, Chemical Peels, Anti-Aging Treatments, Liposuction, and Acne and Scar Removal. As Asia's largest and fastest growing aesthetic franchise, they currently have four locations in Singapore, with a fifth location to open soon in Indonesia. 

Jermaine Teo, of ONLY Aesthetics, recently contacted  Afsi Naim, owner of LA SlimWrap to inquire about the mineral body wrap her clients were requesting after seeing the process on internationally aired programs such as Tyra Banks, The View, Rachael Ray and many others. LA SlimWrap is a mineral body wrap that incorporates a proprietary mineral solution with specialized wrapping techniques to detoxify the body, tighten loose skin, give exceptional inch loss, lift and shape the body, and is excellent for reducing the appearance of cellulite and stretch marks. 

When Ms. Teo first contacted Ms. Naim for information, her primary question was, "What makes your product different from or better than the other body wrap products on the market?" Rather than bragging about how great LA SlimWrap is, Ms. Naim told her, "Do your homework." Ms. Naim states, "I can tell people how well my product works, that it is safe, it is manufactured in an FDA approved laboratory, that it lives up to and even exceeds all expectations. I can point out the pros and cons of buying into a licensed or franchised business versus being completely independent with my product. In the end, I want all of my customers to feel confident they have made the right choice and they can only do that through research and investigating all of their options." 

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Dubai Conference helps International food chains franchise in Middle East

25 Jan 2010: Uno Chicago Grill, Pizza Hut, Round Table Pizza and California Pizza Kitchen are just a handful of food franchise brands that have recently researched expansion in Dubai and other key Middle Eastern markets. Now their executives and others looking to get in on the hot nontraditional market have both a trade show and interactive conference tailored to the area’s food and beverage sector. In response to overwhelming demand, Gulfood, Dubai’s largest trade exhibition for food, drink, food service and hospitality equipment, is launching the inaugural Gulfood Conference, according to a company statement.

 

The Conference, titled “Global Trends in Food, Beverage and Processing,” will run alongside Gulfood, which takes place from Feb. 21 – 24, 2010, at the Dubai International Convention and Exhibition Centre.“Gulfood is the largest trade exhibition in the Middle East and is the gateway for penetration into the entire Middle East, North Africa and India regions,” according to Tara Rogers, spokesperson. “The highly developed infrastructure in Dubai in terms of logistics, trading platform, minimal bureaucracy, low taxation and geographical proximity makes the city an attractive and highly successful hub.”

The Middle East market offers several franchise and opportunities for Indian Entrepreneurs especially for education and food franchise brands. The four-day conference and knowledge exchange forum will offer delegates unprecedented access to the experts, analysts and visionaries who are shaping the business and developing the marketing strategies that will lead food, beverage and hospitality businesses into the next decade. “In addition to being the most important trade exhibition in the region for the food, beverage and hospitality industry, which showcases the latest products, services and technological breakthroughs, the Gulfood Conference has enormous value for companies who want to meet and learn from the experts, business leaders and the market analysts,” said Helal Saeed Almarri, CEO, Dubai World Trade Centre, organizer of Gulfood. “Not only will the Gulfood Conference provide valuable industry insight to allow companies to build a more profitable business, it will also offer practical tools for invigorating, expanding and launching new business channels.”

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McDonald’s Middle East Franchise reports a 3.4 percent surge in sales

Jan 25th, 2010

McDonald’s has reported a 3.4 percent increase in sales in the Middle East and Africa, reflecting a year of strong worldwide growth in which the fast food giant served 60 million customers a day - two million more than in 2008. Growth in the MEA region was greater than that in the US, where sales rose by 2.6 percent. Turnover in Europe grew by 5.2 percent in 2009, far exceeding the average global rise in sales of 3.8 percent. News of the fast food giant’s increasing popularity is likely to raise some concern among professionals gathered at the Arab Health 2010 exhibition, which starts today.

The Middle East has some of the highest worldwide rates of potentially fatal conditions such as obesity, diabetes and heart disease. Some have pointed to the growing popularity of fast food as being a factor in the looming health crisis in the region. Many fast food chains - including McDonald’s, Pizza Hut, Burger King - operate in the Middle East.

According to estimates, 71 percent of the Emirati adult population is obese - and the World Health Organization (WHO) forecasts that the number of obese Emirati women will rise to 81 percent by 2015. More than 50 percent of children in the UAE are obese. Diabetes prevalence in the Middle East is among the highest in the world. In Saudi Arabia, around 24 percent of the population is affected by diabetes. WHO figures suggest that more than 2.5 million people living in the Kingdom could have the disease by 2030. The WHO has said that the consequences of nutritional disorders in the region were “too grave to be ignored”, calling for urgent action to combat obesity and diabetes.     

Aside from diet, other factors - such as lack of exercise, smoking and genetic disorders - also contribute to health problems.

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India Pepsi Franchisee set to secure franchise rights for Sri Lankan Bottling Business

26 Jan 2010

NEW DELHI: RJ Corp, the diversified conglomerate owned by serial entrepreneur Ravi Jaipuria, is about to clinch a deal that will in one stroke hand it all of PepsiCo's bottling operations in Sri Lanka and expand its global footprint further.

RJ Corp is in advanced talks to buy the franchisee bottling rights of PepsiCo from Ole Springs Bottlers, the only bottler, distributor and marketer of the beverage and foods maker in the Lankan market, where Coca-Cola and local brand Elephant are also present. The deal gives RJ Corp access to the lucrative soft drink market in Sri Lanka, estimated at about Rs 1,200 crore and growing at over 30% annually.

"We expect to close the deal shortly," said Mr Jaipuria, who had no comment on the valuation of the deal and other financial details. RJ Corp, which owns PepsiCo India’s biggest franchisee bottling business and franchisee rights for Yum Restaurant International’s KFC and Pizza Hut restaurants, has been targeting a global spread for some time. Plans are afoot to set up dairy businesses in Rwanda by the yearend and in Tanzania by mid-2010 through buyouts or greenfield ventures.

The company has had a long relation with Pepsi-Co; it is the cola maker’s top franchisee bottler in India and owns the franchisee rights in Nepal and Africa too. RJ bought PepsiCo's bottling West Bengal operations last year, the first time a company plant went to a bottler, and a controlling stake in Pepsi’s Guwahati-based franchisee bottler, North East Pure Drinks, in 2008. PepsiCo, whose Sri Lanka operations fall under the Indian offshoot, had entered the island nation in 1986 by roping in stateowned Ceylon Cold Storage Co (CCS) as franchisee.

The association lasted only till 1988-89 after PepsiCo ended the deal blaming weak bottling operations. PepsiCo soon signed an exclusive bottling agreement with Ole, owned by Capital Maharaja Organisation, a private sector conglomerate with interests in pharmaceuticals, shipping, chemicals, etc.

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Malaysian Entrepreneur wins Lawsuit solicits overseas Franchising Inquiries

22nd January 2010: Meet the man who took on McDonald’s and won. P Suppiah, a Malaysian born in Tamil Nadu, runs McCurry in Kuala Lumpur. McDonald’s sued him for trademark violation. What followed was a remarkable story of big MNC vs small entrepreneur. Now he gets fan mail from India all the time. You can’t have fries with that and no, you can’t supersize it either. But yes, it is called McCurry. In the heart of Malaysia’s capital Kuala Lumpur, within spotting distance of the landmark twin Petronas Towers, stands Restoran McCurry.

The restaurant serves Tosai Masala (masala dosa, as we know it) for 2.50 Malaysian ringgit, Roti Canai (an adapted Chennai parotta) for RM 1.00, Ghee Uttapam (RM 1.70), and even Chicken Tikka (RM 6.00) and Aloo Paratha (RM 2.50). 

It is Indian fast food, unmistakably, but the menu is not its claim to fame.

McCurry hit headlines around the globe last year-end for delivering a legal thrashing to the global fast food giant McDonald’s in a trademark infringement case in Malaysia’s highest Federal Court. The one-outlet McCurry thus retained the right to use the ‘Mc’ identifier in its name.

It was a battle that captured the imagination of Malaysia, a country dominated by Malay Muslims but home also to Chinese and ethnic Tamil Indians. Now its victorious owner P. Suppiah, 55, a third-generation Malaysian who traces his roots back to Tamil Nadu — his grandfather came to Malaysia 100 years ago to work on rubber plantations and he himself was born in Tiruchirapalli — says he wants to go global with McCurry.

Fresh from the legal triumph, Suppiah, who dabbles in Malaysian real estate market, runs a bistro and dips into the running of his family’s palm oil plantations, says he is already talking licensing arrangements with partners in Sri Lanka, Australia and Indonesia. Since the landmark win against McDonald’s, likened by the global media to a David versus Goliath battle, McCurry has become a tourist hot spot. More importantly for Suppiah, the victory has also brought a flurry of overseas franchising inquiries, some 53 from 21 countries at last count.

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First Pizza Inn restaurant Franchise opens in Bangladesh

Pizza Inn has continued its worldwide franchise expansion with the opening of its first location in Bangladesh. The USA-based pizza restaurant chain has opened its first Bangladesh franchise in the capital city Dhaka. The Bangladesh restaurant is owned and operated by the Pizza Inn Master Franchise Owner S.A.K. Edramuzzaman of Mohammed Food & Allieds Private Limited.

Charlie Morrison, CEO of Pizza Inn, said: "We're excited about our expansion into Bangladesh as well as the entire Asia and Middle East region. It is a pleasure to provide our freshly made pizzas, pastas and other popular menu items to the local residents at affordable prices in one of the largest restaurants in our system."

Each Pizza Inn restaurant provide customers with a variety of specialty and traditional handcrafted pizzas, pastas, salads and desserts in a dine-in buffet format with additional delivery and carryout options

Humayun Hyder, Project Manager for the Pizza Inn Bangladesh Master Franchise Owner, said: "It is with immense pleasure that we have opened the first Pizza Inn in Bangladesh and our opening was greeted with great coverage from the television and print media. The opening was inaugurated by the Honorable Minister of Civil Aviation and Tourism of the Peoples' Republic of Bangladesh and attended by many of the country's elite and prominent businessmen." 

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Franchising Begins to Bite in India By Rod Young

FORMER INDIAN Finance Minister P Chidambaram's policies of economic deregulation and general reform during the early '90s have proven not only the catalyst for consistent and sustained world-leading GDP growth rates, but also a change in the psyche of the swadeshi (home-grown) business community and educated middle class in India. From the centuries-old Indian tradition of family-owned and operated organisations content with generating enough to support the extended family, the prevailing attitude has undertaken a shift towards conducting business as a science - a process of thorough planning, execution and refinement. Whereas growth was previously a phenomenon of chance and the grace of God, it is now the mantra for even the most modest business.

An increased willingness to explore all avenues of growth has led to the increased awareness of business models that will propagate a founder's vision, maintain the quality of products and services and standardise the customer experience across the network. Particularly for retail businesses, franchising is increasingly viewed as the model through which to achieve these goals in India. Since its beginning in the early '90s, franchising in India has grown in leaps and bounds and there is still much to explore, based on the successful growth of many franchised brands already present. The future of franchising in India will continue to show a rapidly increasing trend line. It is estimated that India has over 25 million businesses operated mainly by individual proprietors or family members. Of these, over 14 million are retail businesses and the vast majority fall into what is described as the unorganised retail sector.

The emergence of branded chains, (organised retailing) is just beginning. At the same time, an emerging aspirational consumer middle class, fuelled by the socio-demographics of India with 54 per cent of India's population under the age of 25, is looking for opportunities and a retail experience. As a result the opportunities for franchise networks to grow in India are enormous. For the uninitiated, a franchise is often just seen as fried chicken and hamburgers. This impression has been created because the likes of McDonald's, KFC and Subway are some of the more renowned examples of global franchised businesses.

Australian franchises in India 
However, the concept and essence of franchising can be applied to almost any business in practically every industry. In Australia alone, businesses as diverse as ANZ Mortgage Solutions (home loans), Jenny Craig Weight Loss Centres, Life Resolutions (professional psychology services), Terry White Chemists, Forty Winks and RedClean (commercial cleaning services) have implemented franchise models in their quest to become the number one brand in their category. Australian franchise companies are only just emerging in India. A pioneer of Australian franchising in India is Cookie Man. This company had discovered that there is a well developed demand for sweet biscuits across India, and it has been operating in India since January 2000 as an Indo-Australian joint venture establishing both company owned and franchised locations.

Cookie Man now has 19 stores across India and is the leading branded retailer of fresh baked cookies. Some of the highest volume Cookie Man stores in the world are now located in India. Newer entrants such as Gloria Jean's now have five stores established under a master franchise arrangement to Citymax, a leading Indian hospitality, leisure and food retail company, and they expect to have 10 stores trading in India by the end of 2009 - just 18 months after opening their first store. Just Cuts has granted a master franchise to an Indian lifestyle and leisure company and established its first location in 2008 with several more to follow as the concept is proven in the Indian market.

While this may seem a modest beachhead for Australian franchising, the opportunities are evident. EXPORT INDIAIn spite of its 1.1 billion inhabitants, business success in India is not a birthright. A dilettante will always miss the forest for the trees. The apparel retail, food and beverage retail, education, health and beauty and real estate sectors are likely to witness a lot of activity in the form of a significantly increased presence of Australian franchised businesses. Even during these early stages of franchising in India, many successful Australian franchised businesses such as LJ Hooker, Fernwood Women's Health Clubs, Boost Juice bars, Cookie Man, Just Cuts and Gloria Jean's Coffees have selected growth in India as a pillar of their international expansion strategy.

The Indian business environment poses challenges similar to those faced domestically by Australian businesses, among other things: high rents, complex customer preferences (it took Domino's three attempts before its pizzas became popular in Australia) and geographical challenges. It is commonly noted that Australian businesses which overcome these challenges are some of the better managed brands on a global basis. With this in mind it would appear that Australian franchised businesses that include international expansion as a vital component of their growth aspirations, will find it easier to gain market share in India, compared to many of their American and European competitors. Over the previous decade many global brands have sought to grab the first mover advantage by rushing to India. During the early stages of this gold rush the common perception was that the owner-operator effect, when combined with the local knowledge of franchisees, would guarantee success. However, inadequate consideration of complex cultural and social dynamics and supply chain issues served to thwart many initial forays. Yum Brands, with its KFC outlets, was one of the more prominent early failures due to a combination of the above factors as well as the selection of an inappropriate Master Franchisee.

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Booster Juice plans to have 40 outlets by 2010-end

22nd January 2010: Smoothie and juice bar chain ‘Jus’ Booster Juice has announced plans to open five more outlets by March 2010. The Canadian brand entered India through its master franchisee Brand Calculus and currently has nine outlets and further plans to have around 40 outlets pan-India by the end of 2010, ImagesFood has reported. “Booster Juice plans to extend its offering pan-India by opening five more outlets in next 45 days. By the end of the year, we plan to have around 40 Booster Juice outlets across the country,” quoted Anoop Sequeira, CEO, Brand Calculus in the report. 

According to the report, the company is planning to open two outlets in Hyderabad and one outlet each in Delhi, Chennai and Bangalore. It also has plans to extend to other metros including Mumbai in their second phase of expansion. Commenting on the investments, Sequeria said, “We are extending through two kinds of model in India. They are kiosks which are around 250 sq ft and standalone, which are sprawled over 750 sq ft. 

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CEAT registers 29.8% topline growth over Q3 LY

RPG group company, Ceat has clocked a 29.8 per cent jump in its net profit in the third quarter of FY09. January 22, 2010: RPG Group’s flagship company CEAT Ltd., a leading tyre manufacturer, continues its strong performance in its net sales over the same period last year. CEAT reported a net profit of Rs 24.02 crore for the third quarter in the current financial year. PBT for third quarter this year stood at Rs 33.1 crore compared to a loss of Rs 21.8 crore during the third quarter last year. 

Announcing the results, Mr. Paras K. Chowdhary, MD, CEAT Ltd. said, “Despite a steep hike in raw material prices, we have managed good numbers because of improved sales mix and operational efficiency. We are hopeful of posting our best ever results in the current year.” 

ABOUT CEAT 

CEAT Tyres, the flagship company of RPG Enterprises, was established in 1958. Today, CEAT is one of India’s leading tyre manufacturers and has a strong presence in both domestic & international markets. The company manufactures over 10 million tyres every year and enjoys a major market share in the light truck & truck tyre market. CEAT tyres, tubes and flaps are renowned for their superior quality and durability. CEAT offers the widest range of tyres to all user segments and manufacture world-class radials for all Indian vehicles including: Heavy-duty Trucks and Buses, Light Commercial Vehicles, Earthmovers, Forklifts, Tractors, Trailers, Cars, Motorcycles and Scooters, Auto-rickshaws. 

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Edible Arrangements Experiences Strong Growth in 2009, Considering India Expansion

21st January 2010: Edible Arrangements, the pioneer and leader in hand-sculpted, fresh-fruit arrangements, has experienced strong growth in 2009 with the opening of 74 new stores and franchise agreements for more than 85 locations in the U.S. and internationally. Currently, Edible Arrangements has over 940 locations with the goal to reach 1,000 units by the end of 2010. In addition to its strong franchise sales, Edible Arrangements also experienced an unprecedented year with double digit growth in the U.S. and Canada. The company's unit growth was concentrated in Texas and the Midwest with stores also opening in California, Massachusetts, Pennsylvania, Virginia along with other markets across the country. In addition, development agreements have been signed with new and existing franchisees for the opening of more than 85 stores in the U.S., Rome, Hong Kong and Turkey.

"We celebrated our 10-year anniversary in 2009, and it is remarkable to see how much the company has grown in the past decade, particularly in a year in which many businesses struggled, our company was still able to prove its universal and widespread appeal to both franchisees and consumers," said Tariq Farid, Founder and CEO, Edible Arrangements, Inc. "Our proven franchise system and healthful high-quality products are the keys to our success, and we look forward to continuing to grow and evolve our company and brand in 2010."

As part of the company's aggressive growth strategy, Edible Arrangements is seeking to add several new development agreements in the Pacific Northwest, Midwest, and other areas of the United States, while expanding its presence to India, Brazil, Mexico, Spain and Canada. Most recently, Edible Arrangements announced a new enterprise development program and the company's evolution into multi-unit franchising. A central component of the new strategy is Frutation by Edible Arrangements®, a grab-and-go concept paired with the traditional Edible Arrangement concept, offering customers fresh-fruit smoothies and juices, dipped fruit, signature fresh fruit salads and a variety of other fresh-fruit products. To support the national launch of Frutation, Edible Arrangements hired a corporate chef to create new products, new production procedures and new recipes.

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