Savor success with food franchise

With multi-brand portfolio and Master Franchise rights for Cinnabon, Dish Hospitality has successfully positioned itself to be the market leader in the niche segment of F&B. In an interview, Gaurav Batra, Director, Dish Hospitality Pvt. Ltd shares the future plans of his company.

Ramanjit Kaur (RK): Could you please shed some light on the inception of Dish Hospitality Pvt. Ltd?

Gaurav Batra (GB): Dish Hospitality was started in 2001. It is a part of Wadhawan Hospitality, which is the food and beverage arm of Wadhawan Enterprises. The vision of Dish Hospitality was to be the market leader in a chosen organised niche segment of F&B. We have a number of brands which includes Aurus, Tikka vs Hakka, Dish Central, Central Kitchen, Nashta Chai and Sanchos. We have also got the Master Franchise of Cinnabon to expand the brand in India. We have a portfolio of brands in the F&B segment and we have established flagship stores of all our brands. Now, we are looking at expanding the presence of our various brands across the nation.

RK: Is Dish Hospitality into franchising? What are the future plans of the company with respect to franchising?

GB: We have acquired the Master Franchise rights to open both company owned and sub-franchised Cinnabon Bakeries in India. But we are not into sub-franchising as yet though we are planning to start sub-franchising by April 2011. We are looking to expand Cinnabon into four new markets Pune, Bengaluru, Hyderabad and Chandigarh through franchise model. Currently, we have outlets in Mumbai and Delhi.

RK: What inspired the company to take the Master Franchise for Cinnabon in India?

GB: As the consumer is evolving and the new generation is compounded with loads of information about our products and services, so we wanted to introduce a brand which people can relate to easily. It is not like the traditional bakeries or sweet shops in India. This thought inspired us to take the Master Franchise for Cinnabon in India.

RK: What will be your criteria for selecting the franchisees for Cinnabon?

GB: Our franchisees will be on the same side of the table with us. So, what we want from ourselves will be required from our franchisees. They should have market knowledge, operation strength, and financial capability to operate the business successfully. We have plans to open one outlet in a single city so that our franchisees will have enough market space to grow the business profitably. Besides this, we require an average space of 600- 700 sq. ft to open the outlet. We also have kiosks format for malls, which requires a space of 300-400 sq. ft. As far as the investment is concerned, it depends upon the market which may range from 60 lakh to one crore.

RK: What kind of training and support a franchisee will get when partnering with you?

GB: We are going to provide them all the essential training and support that are required at the initial phase. We are going to provide them with the store layout design, local contacts of the suppliers for raw materials and products. These products are available at the same rate from all our outlets whether company owned or franchised.

RK: How many outlets Cinnabon presently have in India?

GB: Currently, we have four stores in Delhi and Mumbai, under our Master Franchise agreement. Four more stores are in pipeline and will be operationalised by March 2011.

RK: Any advice for the aspiring entrepreneurs?

GB: Franchising is a great model for learning to run a business. But it is very important to be committed to grow the business and compliment your franchisor by working hard to meet the respective objectives.