Haldiram Franchise: How to Open, Cost, Fees and Profit Margin

September 16, 2024

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Haldiram Franchise: How to Open, Cost, Fees and Profit Margin

Imagine walking into a place where you feel and smell the aroma of freshly fried samosas and mouth-watering chat with a sweet fragrance of hot Gulab jamuns and jalebis. A place where each bite carries irresistible taste, traditions, and trust. Welcome to Haldiram’s, where the art of Indian sweets and snacks is celebrated and has been perfected in taste and traditions over generations.

From a small shop in Bikaner to a global empire of authentic flavour and time-honoured recipes, Haldiram’s has paved its way to becoming a household name. Well, now the opportunity to be part of this iconic brand is within your reach by becoming a Haldiram franchise partner. Well, you’ll not just start your entrepreneur journey with the Haldiram franchise – you will be becoming the custodian of a legacy by bringing joy to families with every meal served and packed and sold from your store.

In this blog post, we’ll discuss the Haldiram franchise in India, and its franchise model, RIO. Profit margin, support from the Haldidram franchise team, and more. So, step into the world of haldiram, where modern entrepreneurship fuses with old traditions and where every spice tells a story of richness in taste and of India’s food heritage.

About Haldiram Franchise

Haldiram is India’s most iconic and one of the most renowned brands which is known for its wide range of sweets, snacks, and food products. Haldiram was established in the year 1937 and has grown small sweets and namkeen shops in Bikaner, Rajasthan, to a global empire now. Haldiram is primarily celebrated to be one of the iconic food brands that has kept traditional Indian snacks, sweets, and savory dishes alive through the generations.

Key Milestones in Haldiram’s History

Founding in the year 1937: Haldiram was founded in the year 1937 by Ganga Bishan Agarwal, famously known as Haldiram, in Bikaner. He started the business from a small shop selling Bhujia, which is a traditional Indian snack made from moth beans. The unique taste of the Bhujia, helped Haldiram to become popular quickly.
Expansion to Kolkata during the 1950s: After Bikaner, the brand’s second major base was established in Kolkata which helped Haldiram gain recognition in eastern India.
Growth in Nagpur and Delhi during the 1970s: The brand expanded its business to northern and central India, particularly in Delhi and Nagpur and each has its unique specialties. Haldiram based in Delhi was more focused on savory meals and snacks, while Nagpur became known for its sweets.
National and International Expansion during the 1980s-1990s: In these years, Haldiram speeded up its business by expanding its products to the Indian market as well as by exporting them to the international marketings of Canada, the USA, the UK, and in the middle eastern countries.
Present Day: Since the start of the 20’s era till today, Haldiram has paved its way to become a multi-billion-dollar company by having an extensive range of products which includes frozen foods, snacks, full-service restaurants, and sweets.

Haldiram Franchise Cost: 5 Different Franchise Models

Haldiram offers aspiring entrepreneurs five distinct franchise models that depend on the type of business, budget, and preferences. Well, each model is well established and has its loyal base with a variety of investment and space commitments. Below is an overview of the 3 different haldiram franchise models and their approximate cost.

1. Haldiram’s Quick Service Restaurant (QSR) / Kiosk

Description Of The Model: It’s an ideal model for food courts, busy commercial areas, malls, airports, railway stations, and other high-traffic areas as it comes in a small format.
Investment Required: ₹15 – ₹30 Lakhs
Franchise Fee: ₹5 – ₹10 Lakhs
Space Required: 250 – 500 sq. ft.
Menu: The model focuses on the grab-on snacks model like sweets, nankeens, and beverages.
Return On Investment: High footfall of customers and quick service can help in turning this model with good turnover.

2. Haldiram’s Casual Dining Restaurant

Description Of The Model: The model offers as a full-fledged restaurant offering a wide range of snacks, vegetarian meals, main course, beverages, and sweets.
Investment Required: ₹1 Crore – ₹4 Crores
Franchise Fee: ₹30 Lakhs – ₹40 Lakhs
Space Required: 1,000 – 2,000 sq. ft.
Menu: It offers all kinds of meals including the main course and the model goes beyond the ordinary snacks, meals, and chat items.
Return On Investment: This has high revenue potential and it requires significant investment due to staff requirements and larger space.

3. Haldiram’s Retail Outlet

Description Of The Model: The retail outlet model of haldiram’s sell’s pre-packed foods such as ready-to-eat products, sweets, and snacks. The model is usually good for high-traffic areas such as in shopping centers, malls, and high streets.
Investment Required: ₹50 Lakhs – ₹1 Crore
Franchise Fee: ₹10 Lakhs – ₹20 Lakhs
Space Required: 500 – 1,000 sq. ft.
Menu: All Kinds of packed foods related to sweets and snacks.
Returns On Investment: It offers a steady income without wastage of goods as it the focus is on consumer-packaged goods.

Additional Costs:

Interiors and Equipment: The costs vary based on the size of the outlet depending on the franchise model.
Marketing Fees: Some models may require extra effort in marketing, which could be locally or nationally.
Royalty Fees: Around 4%-8% on the monthly sales, all depending on the chosen franchise model.

Haldiram Franchise: Understand the Profit Margins of each Model

Haldiram franchise cost and profit margins can simply vary depending on the franchise model, location, and operational efficiency. Below is a breakdown of the potential profit margins of different models of Haldiram’s.

1. Quick Service Restaurant (QSR) / Kiosk:

Profit Margin: 20-25%
Details: The Quick service restaurant/ Kiosk requires a low staff and space; it has the potential to provide good returns. The outlet services beverages and snacks with quick turnover which allows more frequent customer transactions and the margins may increase due to the high footfall of customers.

2. Casual Dining Restaurant:

Profit Margins: 10% – 15%
Details: A full-fledged family dining restaurant has high operational costs which include rent, electricity bills, space, staff salaries and utilities. However, Haldiram’s casual dining restaurant does have the power to generate high revenue from meal orders. Although, the profit margins can still be relatively low because of high operational expenses.

3. Retail Outlet:

Profit Margins: 25% – 30%
Details: The retail outlet model of Haldiram sells pre-packaged products which tend to have high sales and high margins as well. The packaged goods generally have low overhead costs as compared to restaurants or kiosk models which is further driven by high product turnover and low staffing needs.

Key Factors Behind Haldiram’s Franchise Success

Strong Brand Reputation: Its 80+ years of loyalty and trust of consumers have helped Haldiram to gain immense customer loyalty, further making it easier for franchises to attract customers without any strong marketing.
Diverse Product Range: From Indian snacks to sweets and meals, Haldiram offers a broad selection that appeals to a wide audience and it also caters to broad customer base. The diversity in products does help multiple market segments which cater to dine in customers as well as the retail buyers.
Proven Franchise Model: Haldiram’s franchise model is tested by offering multiple formats like casual dining, Quick service restaurants, and retail outlets. The flexibility in choosing different models as per different investment and growth plans allows franchises to choose as per their capacity.
Consistency in Quality: Haldiram places a high emphasis on maintaining strict control of the quality on all levels. Franchisees benefit from the quality and commitment which ensures that customers receive authentic taste no matter whichever outlet they go to.
Ongoing Product Innovation: Haldiram constantly expands and innovates its product range by adding new flavours which are healthier and ready to eat. The innovation keeps changing consumer preferences and helps ensure steady flow of variety for the new customers.
Marketing and Brand Recognition: Haldiram invests heavily in marketing and advertising across traditional media and digital platforms. Franchisees benefit from these national-level campaigns, which increase brand recognition and draw in new customers without requiring extensive local advertising efforts.
Global Expansion and Appeal: The brand has successfully expanded beyond India, catering to international markets with its unique and authentic Indian products. Franchisees, especially in international locations, benefit from this global appeal and the demand for Indian snacks and sweets among the Indian diaspora and other international customers.

Haldiram Franchise Eligibility: Ideal Profile of a Haldiram Franchise

Age and Qualification: It is necessary for the franchisee to be at least 21 years old with a minimum qualification of 12th grade from any university.
Financial Stability: A strong financial background with the ability to invest a minimum of 30 lakhs is required to manage operational expenses.
Business Acumen: An ideal franchisee must have familiarity with the management of the business as well as its operating. It would be advantageous if they had experience in the food, beverage, or retail industry.
Strong Local Market Understanding: Knowledge of the local market and customer base to cater to regional preferences.
Location Requirement: The franchisee must have the understanding to secure a high-footfall location that can match the brand’s criteria. The popular areas can include commercial centers, shopping malls, well-connected highways, and busy markets.
Long-Term Commitment for Franchise: Franchisees must be committed to running the Haldiram franchise as most of the agreements last between 5-10 years.
Commitment to Brand & Quality Standards: Willingness to follow the brand’s operational, quality, and hygiene standards to ensure consistency in customer service.

Licenses and Permits Required to Run a Haldiram Franchise

The following licenses and permits are required to run a Haldiram franchise:

Business Incorporation Documents: Register your business entity as a Private Limited Company or Limited Liability Partnership or Sole proprietorship with the appropriate authority.
FSSAI License (Food Safety and Standards Authority of India): To ensure that the business follows food safety compliance.
GST Registration: To comply with tax regulations.
Trade License: Issued by the local municipal corporation.
Fire and Safety Permit: To ensure the outlet meets safety standards.
Health Permit: To ensure hygiene and health standards are maintained.
Shop Agreement: Lease terms and conditions of the shop building.
Sale Deed: Ownership proof of the property or lease agreement of the place of business.
MSME Certificate: If the business qualifies then the Micro, Small, and Medium Enterprises certificate.
Outlet Trade License: Licence to trade as a food business.
Income Tax Returns (ITR): Proof that you are financially sound and compliant to run a franchise operation.

How to Apply for Haldiram Franchise

You need to follow the below steps to apply for a haldiram franchise:

1. Research on Franchise Models

Types of Haldiram Franchise:

Quick Service Restaurant (QSR)
Casual Dining Restaurant
Retail Outlet
Distribution Franchise

Decide on which models fit you the best as per the space, budget, and location.

2. Check Eligibility

Ensure that you meet the investment requirement for your chosen model. Next, identify the space as per your budget and model that can cater high footfall area.

3. Contact Haldiram

Next, apply for a franchise by contacting Haldiram’s team through the following medium:

Official Website: Fill on the haldiram’s official site and inquire for the franchise and your preferred model.
Email: Send your franchise inquiry and detailed business plan to the official mail of Haldiram. Contact the relevant branch (Delhi, Nagpur, Kolkata) depending upon your location.
Phone: Call on to Haldiram’s customer service as per the specific branch franchises.

4. Submit Application

Fill in all your personal details, proposed location, business experience, and investment capacity in the franchise form.
You can also provide documentation about the financials and the potential location.

5. Franchise Evaluation

After submitting your inquiry, Haldiram’s team will review your haldiram franchise application. If you meet their criteria they will connect with you for further discussions. The team will also evaluate your proposed plan and the location and will ensure that it aligns with their target market and the expansion strategy.

6. Meeting with the Haldiram Team

Once your application is shortlisted, you will be called for a meeting with the Haldiram team to discuss further business terms, royalties, franchise costs, and the operational guidelines. You will also learn about the training program and operational and ongoing support the Haldiram team provides.

7. Sign Franchise Agreement

After agreeing on the terms proposed by Haldiram’s team, you will sign Haldiram’s franchise agreement and will proceed with the setup. The agreement typically lasts up to for 5-10 years with options for renewal.

8. Site Setup and Training

Once the Haldiram’s franchise agreement is signed, you will receive support from Haldiram to set up the outlet, and further the team will provide your training on the guidelines of food taste and quality stands and support in setting up the outlet as per Haldiram’s standard.

9. Launch your Haldiram Franchise

Once the setup is done and is ready. Haldiram’s team will assist with the initial opening and marketing activities which will benefit you to start your operations smoothly in the local market.

Frequently Asked Questions of Haldiram Franchise

Here is the list of Frequently Asked Questions:

1. What is the cost of haldiram franchise?

The cost of the haldiram franchise depends on the below models:

Quick Service Restaurant (QSR)/Kiosk: ₹15-30 lakhs
Casual Dining Restaurant: ₹50 lakhs-4 crores
Retail Outlet: ₹50 lakhs – ₹1 crore

Well, these are just the cost of opening the franchise of Haldiram’s based on your chosen model. The haldiram franchise fees further range from 5-50 lakhs and the range of royalty fees can depend on 4%-5% of monthly revenue.

2. What is the space requirement for each franchise model of Haldiram’s?

The space requirements depend on the below:

Quick Service Restaurant (QSR): 250-500 sq. ft.
Casual Dining Restaurant: 1,000-2,000 sq. ft.
Retail Outlet: 500-1,000 sq. ft.

3. How Long is the franchise agreement?

The franchise agreement of Haldiram typically lasts up to 5 to 10 years all depending on the type of franchise you may choose. After the completion of a certain period, franchises may have the option to renew it based on the mutual agreement.

4. Is prior experience in the food industry necessary to open a haldiram franchise?

A prior experience in the food industry is always an advantage but it is not mandatory. However, having a local understanding of the industry is always beneficial.

5. Can I open a haldiram franchise outside India?

Yes, haldiram’s franchise can be opened outside India and it is distributed internationally. However, the process and the investment requirements may vary based on local regulations.

6. What is the expected return on investment (ROI) for a haldiram franchise?

The Rate of return on the investment in Haldiram franchise depends on factors such as franchise model, location, and customer footfall. Generally, the franchise gives a good return on investment with the profitability seen within 2-3 years.