Thinking of starting a Pizza Hut Franchise in India? If yes, you have landed at the right place. Here in this article, we provide you with all the information needed to open a Pizza Hut franchise.
Pizza Hut has been serving pizza in the United States since 1957. It was just two years later that they started offering franchises and it has been growing ever since. Presently there already exists over 16,796 stores worldwide.
At present Pizza is a very popular food item for food lovers. Pizza Huts provide an excellent business opportunity for individuals who are looking forward to starting a food retail business.
Yum! Brands has had much experience in providing franchisees with the excellent support that is needed to start and grow their various franchise businesses.
Read: Top Pizza Franchise Opportunities
Without further ado here’s everything that you need to know about pizza hut franchise business.
Company Overview
Pizza Hut is an American restaurant chain and international franchise founded in 1957 by Dan and Frank Carney. The company is known for its Italian-American cuisine menu including pizza and pasta, as well as side dishes and desserts.
Pizza Hut has 16,796 restaurants worldwide as of March 2018, making it the world’s largest pizza chain in terms of locations.
The Brand was founded in June 1958 by two Wichita State University students. Brothers, Dan, and Frank Carney, as a single location in Wichita, Kansas.
Pizza Hut Franchise History
Pizza Hut made its foray into India with a restaurant in Bangalore in June 1996. It was the first international restaurant chain to enter this category. They can be credited with pioneering the pizza market in India.
They have plans to double their store count to over 700 in the next five years. Pizza Hut considers India to be one of its most important markets.
Five to six years ago, the western food format stood third in preferences after Indian and Chinese, and within that pizza was the highest.
Recent studies show pizza is the biggest category and has become the most accepted food across all consumer categories.
Is Pizza Hut Franchise Business Profitable?
India is the second-fastest-growing market for Pizza Hut with 22% system sales growth for the April-June quarter. It has 396 stores in India and is bigger than KFC and Taco Bell, the other two brands that Yum owns.
Its great-tasting pizzas and trademark dining experience have made it possible for the company to have double-digit growth rates. YUM has begun the turnaround of domestic Pizza Hut.
They attempt to stabilize results to reduce drag on earnings as said by Stifel analyst Chris O’Cull.
Pizza Hut has already launched a loyalty program and announced that it will hire 14,000 delivery drivers by the end of 2019.
How Much Does it Cost to Start Pizza Hut Franchise in India?
Pizza Hut currently offers franchises to operate three types of Pizza Hut-branded units at specific locations:
Restaurant-Based Delivery (RBD) System Restaurants. From which “Pizza Hut” pizza and other products approved by PHLLC are sold for dine-in and carryout consumption and may be delivered for off-premises consumption;
Delivery/Carryout” (Delco) System Restaurants. From which approved products are sold for carryout and are delivered, all for off-premises consumption; and
Delivery Based Restaurant” (DBR)/Fast Casual Delco (FCD) System Restaurants. From which approved products are sold for dine-in and carryout consumption and are delivered for off-premises consumption.
- Restaurant-Based Delivery (RBD) System Restaurants – 25 – 30 lacs
- Delivery/Carryout” (Delco) System Restaurants – 15 Lacs
- Delivery-Based Restaurant – 20 Lacs
Area Required to Start a Pizza Hut Franchise
While there are no direct stipulations provided by Pizza Hut on the space requirements. Going by the market standards we would indicate at least 1000 Sq Ft. to 1500 Sq Ft. as a reasonable space requirement would follow.
This would also vary from City to Suburb. The market is saturated in the developed areas of cities. But not so in the developing and expanding areas of a city.
The rural Indian population is likewise quickly getting habituated to a cosmopolitan lifestyle. These include expanding interest in western foods.
Pizza Hut Franchise Training
Pizza Hut provides its Franchisors with trained staff. The Pizza Hut staff training regiment is a bit different than most others.
Most places require a combination of classroom and on-the-job training whereas Pizza Hut skips the classroom training altogether and extends the on-the-job training. The company usually provides eight to twelve weeks of training at your location.
Pizza Hut Franchise Support
Pizza Hut like most franchises offers 2 types of support. The first is ongoing business support like newsletters and conventions.
You can attend conventions with other franchisees to learn tips and tricks of the trade. As well as a grand opening, a toll-free line, and online support.
The second is marting support. Having the backing of an International Brand is hugely beneficial and a great marketing tool. Pizza Hut will also help with a loyalty program, an app, co-op advertising, and advertisement templates.
Profit Margins in Pizza Hut Franchise
Above all the profitability of an outlet is dependent on many factors, including the quality of the location, competition, sales volume, rent, management, and the type and amount of financing.
Profitability is ultimately a matter within the control of each franchise.
Franchise Fees
An initial fee is payable for every unit opened. Fees vary for each individual outlet type.
The franchisee also pays a monthly royalty, advertising contribution and finally purchasing contribution. Furthermore, all of these are based on a percentage of sales.
Additional fees are required in the event of renewal or an approved transfer of the franchise to another franchise.
In some markets, additional fees may be payable for services performed by Pizza Hut.
Approval Process
Owning a Pizza Hut franchise is not difficult. The company has grown tremendously over the years and it has got good recognition.
Initial qualification involves a series of background checks and interviews and generally takes 10-12 weeks. After that, trade area selection and approval can take three to nine months but depends on several factors including when you identify a trade area to pursue.
You would have to fill out a request form from the address given below.
https://franchise.pizzahut.com/request-information/
Contact Details
Pizza Hut Head Office Address:
- 12th Floor, Tower D, Global Business Park, Gurgaon, Haryana, India, Pin code: 122002
- Pizza Hut Office Phone Numbers: +91-124-4025100
- Official Website: www.pizzahut.co.in
- Twitter ID: twitter.com/pizzahutin?lang=en
- Location: Gurgaon, Haryana
This might be your first step toward becoming a part of the world’s largest pizza chain. We hope you found all the information that you were looking for in our comprehensive Pizza Hut Franchise Guide.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.