WAFFLES DO WONDERS

Waffles have become a staple for metro’s youth brigade. This change is brought about as waffles moved ahead of being just a dessert, and transformed into a savoury snack to satiate the between-the-meals cravings. “Waffle as dessert had limited demand; however, as a savoury item consumers are readily ordering waffles for their between-the-meals cravings. We have observed high demand in last 2-3 years with per customer spending of Rs 150-200,” explains Parind Mody, Director, World of Waffles.

BUSINESS MODEL

According to Mody, a waffle outlet calls for an investment of Rs 14-18 lakhs, which includes interiors worth Rs 6-7 lakhs and kitchen equipments like waffle machines, pancake machine, deep freezer and blenders at roughly Rs 2 lakhs, and franchise fee of Rs 4 lakhs plus taxes. World of Waffles also demands Rs 7 lakhs as refundable security deposit.

Brands prefer stores at high footfall locations but cautions that the monthly rents must not exceed Rs 60,000-70,000 in order to establish a sustainable franchise. Roughly, 2-3 staff with average salaries of Rs 10,000 per person is required to run the show. Rs 20,000-25,000 are spent on electricity and miscellaneous bills. Most of the brands expect 7% royalty on monthly sales after six months of store establishment.

Mody says that typical sales may be in the range of Rs 3.5-5 lakhs per month and overall margins could be 30-35% in rented store and up to 60-65% in case of owned space. “Provided the owners devote 100% focus and time, a franchise store can easily break-even in 25-30 months,” he adds.

EXPANSION PLANS

Waffle Wallah, which has over 22 outlets, has plans to have over 100 stores by 2019-end. “We are targeting states like Gujarat and Karnataka,” adds Tandon. Further, World of Waffles has over 28 stores in cities like Mumbai, Bengaluru, Kolkata, Surat, Mohali, Rajkot and Kathmandu. “Now, we plan to strengthen our presence in Tier II cities and are also opening stores in Dubai and Singapore soon,” shares Mody.

STARTUP COST - 14-18 lakhs

OPERATIONAL EXPENSES - 2-3 lakhs

MONTHLY REVENUES - 3.5-5 lakhs

GROSS PROFITS - 1.5-2 lakhs

BREAK-EVEN TIME - 25-30 months

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