Pizza Hut is renowned for its delicious food, enjoyable dining environment, and specialty pizzas. However, the Indian Pizza Hut franchise is not very profitable.
Domino’s has grabbed the majority of the market share in the pizza sector. Its exorbitant Royalty and Advertising Fee is one of the main causes of its decline. During the pandemic in India, more than 500 Pizza Hut franchise were forced to close.
In India, there are still more than 350 Pizza Hut locations. Let’s examine the Pizza Hut franchise’s costs and profit margins.
Cost of a Pizza Hut franchise
20 to 40 lakh rupees were required as an initial investment for a Pizza Hut franchise. In India, Pizza Hut offers three different franchise models.
The investment for the takeout model was 20 lakh rupees. The investment cost for the QSR model with reduced seating will be about 30 lakh rupees. The full-fledged 1000–1200 square foot dine-in model will need an investment of 50 lakh rupees.
Fee for Pizza Hut franchise
The Pizza Hut franchise fee varies by outlet type. Pizza Hut charges a 3,00,000–5,00,000 Rupee franchise fee.
You will be granted permission to sell Pizza Hut goods in a specific location in exchange for paying the franchise fee. The raw materials needed to make the substance will be given to you.
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Cost of Pizza Hut machinery and equipment
Costs for Pizza Hut equipment and machinery range from 8 to 10 lakh rupees and include kitchen utensils, ovens, bakeries, deep freezers, and several other items.
Cost of Pizza Hut’s interior, construction work, and furniture
Depending on the region, Pizza Hut’s interior, civil work, and furniture costs range from 5 to 15 lakh rupees. A minimum of 1000 square feet is needed to open a Pizza Hut outlet, of which 150 square feet will be set aside for the kitchen.
Building the kitchen and seating area will require civil work that will cost between 2 and 5 lakh rupees. Investment in furniture will cost between 3 and 10 lakh rupees, with the remaining 2 to 5 lakh rupees going for interior costs such as hoarding, signage, and LED TV, among other things.
Pizza Hut Additional Expense
The other expense for a Pizza Hut franchise is a 10 lakh rupee investment that covers costs for marketing, maintenance, licencing, maintenance and transportation as well as training.
Profit from Pizza Hut franchise
With the use of an illustration, we will examine the profit margin for the Pizza Hut franchise.
All costs will be subtracted from the gross sales. We’re estimating sales of 20,000 rupees per day, or 6,00,000 rupees.
|Gross Sales||6,00,000 Rupees|
|Food Cost @35%||(2,10,000) Rupees|
|Electricity and Water Supply||(25,000) Rupees|
|Salary of Workers and their Expenses||(90,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(25,000) Rupees|
Advertisement Fee @4.25%+GST
|Other expenses (Software, Maintenance and Misc)||(40,000) Rupees|
|Net Profit||45,000 Rupees|
We can infer that the Pizza Hut franchise’s profit margin is 7.5% for sales of 6,00,000 Indian rupees.
Although the restaurant may not make much money at first, Indian food will eventually become very popular and in high demand. Following effective local marketing and branding, sales will rise to 9 lakh rupees per month, with a 20% profit margin on those sales.
Along with food quality and service, location is a highly important aspect in the success rate of a franchise. The area ought to get a lot of foot traffic. It need to be near the neighborhood’s primary marketplace. The best possibility is a corner outlet. You can set your shop close to campuses, businesses, or any other location where young people enjoy pizza and quick food.
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How can I obtain a Pizza Hut franchise?
You must complete the Google form below in order to apply for a Pizza Hut franchise, after which we will assign you a franchise expert who will provide the finest guidance. However, we are not authorised to sell Pizza Hut franchises in India; such authority belongs to Sapphire Co. We can only direct you.