About Food & Beverage Kiosk Business in India

COUNTRY REPORT

Street Stalls/Kiosks in India

Sep 2015 EXECUTIVE SUMMARY

TRENDS

 The street stall/kiosks are becoming more familiar in urban India mainly because of convenience and low- priced
menus when compared to full-service and fast food restaurants. These are of low rental and strategically located
for easy access to travelling commuters. The leading fast food chains also run street stalls/kiosks to gain
consumers’ attention during the review period.

COMPETITIVE LANDSCAPE

 In India, the majority of street stalls/ kiosks are unlicensed and the channel is highly fragmented. BurgerMan is
the only branded kiosk with a wider presence in India with 10% value share in chained street stalls/kiosks in
2014. The wider acceptance of the brand and first mover advantage in the kiosk format in Southern India helped
Burger Man to hold double-digit value share in the last three years of the review period in chained street
stalls/kiosks in India.

PROSPECTS

 The increasing numbers of shopping centres, infrastructure facilities across major cities in India and central
government of India’s planning of 60 smart cities will all fuel the growth of street stalls/kiosks during the
forecast period.

FRANCHISE INDIA

Good Profits Come In Small Kiosks

BY ABHA GARYALI
A large investment seldom guarantees high returns. Investment in a low-cost kiosk franchise may
be the best option in the present unpredictable business scenario. Read on to know more about this
unique format.
An investment in buying a big franchise cannot guarantee the success or failure of any franchise and neither
can the franchisor ever assure the success of franchising business outlets. In such circumstances selecting
a franchise becomes tough. Investing all your money in buying a big franchise is more of a risk as compared
to buying a low-cost franchise.

When aspirants, as well as new franchisees while looking for a select category do not find any low-cost
business category of their choice then taking a kiosk of that particular franchise is the most suitable option. In the present business
scenario, franchising is considered a boon to struggling entrepreneurs. Kiosks are small-sized shops, having a semi-permanent
fixture and are generally present within a larger establishment such as a mall, departmental store etc. The structure of a kiosk could
be designed as a standalone structure like a terminal, or a semi-enclosed booth. It offers a wide variety along with the advantage of
low investment. Let us have a look at the most popular kiosks formats:

Coffee kiosk franchise: With the coffee culture brewing up across the nation, the up rise of kiosks is also in full swing. Major
companies like Coffee Day Xpress, Brewberrys and Gloria Jeans Coffee etc have started their coffee kiosk which has gained
tremendous popularity. The key to any such venture is finding out a location that will give maximum benefits to the sales of coffee. A
location where people find it convenient to drink their favourite beverage is the ideal place for setting up a kiosk. To put it simply, the
larger the number of people, the greater is the opportunity for sales. Adding other items such as pastries, sandwiches etc also
promote your low-costing coffee kiosk. AG Puttaraj, President, Coffee Day Xpress said, “We have more than 900 coffee kiosks
presently. Other kiosk formats of fast food and other essential items also present a wide variety.” According to Puttaraj, “Area
required for setting up a kiosk is two to 25 Sq meters and the investment needed is from Rs 2-5 lakhs.”
Ice-cream kiosk: Ice-cream kiosks are yet another popular category which is doing wonders in franchising. Most of the major
players in this category have adopted kiosks and cartwheel formats due to their rising popularity. Kwality Walls, Baskin Robbins,
Vadilal’s, Amul etc are the main names in this category. RS Sodhi, Chief General Manager,Marketing, Amul informed, “Amul has
two formats under it - Amul Preferred outlet (APO) and Amul Scooping ice-cream outlets. These are in the kiosk format and we have
 been gaining profits by these concepts. The kiosks are helpful in promoting the brand visibility as well as developing direct contact
with our customers.” Quick service restaurant chain Nirula’s has recently launched its standalone ice-cream kiosk model.
Investment needed for taking up ice-cream kiosk franchise is from Rs 5 to 7 Lakh.
Chocolate kiosk: A chocolate kiosk provides the entrepreneurs with the right franchising opportunity to invest and gain
benefits. Very few chocolate kiosks can be seen till now as this is an up-coming concept but has great future prospects. Specialty
chocolate bars and box has become popular with chocolate kiosks.
Candy kiosk: The first thing that catches your eyes while visiting shopping malls, are the vibrant coloured candy kiosks. These
have come up recently and have become quite popular, especially among kids. Candy Treats, Sweet World etc are the main players
who have launched their kiosks in prominent locations.
Juice and cookies kiosk: A kiosk in the juice as well as cookies category is also a lucrative option for aspiring franchisees. Today
consumers have become very health-conscious. This awareness has led to the opening of many juice bars in the country. Similarly
branded cookies are also catching up with Indian preferences. Mr. Orange is a prominent player in the juice kiosk while Cookie Man
comes under the cookie section.

This appealing kiosk format has also been adopted by various other players especially in food franchise. Domino’s, Yo!China etc
have also come up with their kiosk to raise their success rate. Besides the food and beverage kiosks there are other kiosks as well.
Kiosks of beauty and wellness centres are also in demand. VLCC, a well-known slimming and beauty centre has launched its kiosk-
in-shop format to raise their sales.
Ideal location for kiosks
One of the factors necessary for the success of a Kiosk is the location. Some of the prominent places where kiosks are mostly
visible are:
 Shopping malls
 Theatre Chains
 Airports and railway stations
 Convenience stores
Having your kiosk in any of these locations would be the best way to earn maximum profits. To conclude it can be said that kiosks
are a low cost franchise business but high profit format.

Business Standard
KIT: Food kiosk market in India
Strategic tools for the practising manager
Technopak Advisors | New Delhi January 30, 2012 Last Updated at 00:09 IST

The organised food kiosk market in India at present is about Rs 800 crore and is expected to double to Rs 1,600 crore by 2015. This
growth is already visible with more and more brands and entrepreneurs opting for this model in the face of rising rentals and land
costs.

The advantages:
* It is a highly scalable and replicable format as it does not require too much space and capital to start with. It offers high portability
and flexibility in terms of location and placement
* It involves low cost and investments. Investing in a lot of kitchen equipment and elaborate seating space is not required
* It has relatively lower operational cost with limited menu and staff. The consumption of fuel, water and electricity is consequentially
less than in other formats
* Barriers to entry are low as one needs basic equipment and a small place to start off.

The challenges:
* Standardisation of offerings could be difficult if too much localisation is done
* Maintaining quality standards in all outlets is tough
* Menu choice is very limited and variations from it may not be possible for specific customer needs
* Stock out and spoilage due to improper storage is likely as there is not much bandwidth for a backup storage facility in the kiosks
While the unorganised
Kiosk market has been around for decades, the branded kiosks will find favour especially for consumers who look for small, quick
snacks without worrying too much about the quality and hygiene.