Restaurant franchises

It is widely reported that restaurant franchising in India is growing at the rate of 35-38 per cent each year with a market size of 7.2 billion US dollars. This figure is expected to reach 20 billion US dollars by the year 2013. In total, there are approximately 1,200 active franchise concepts in India and more than 100,000 franchisees. There are in the region of 200 restaurant franchising concepts across the country. Other important sectors using the franchising business model are beauty salons and cosmetics, business services, education, retailing, travel and tourism.

According to a survey carried out by Franchise India Holdings Ltd (FIHL), there are currently over 400 brand franchisors of which seventy per cent were concentrated in Delhi, followed by Western India with 386 brands, with the majority being from Mumbai and Gujarat. 250 brands were in the south, with the majority in Bangalore and Chennai and 58 brands in the eastern region, the majority being concentrated in Kolkata.

Although no official data yet exists on the number of green restaurant franchises, the green market is definitely growing, according to the International Franchise Association, the industry’s largest trade group. The association has seen an increase in inquiries about green restaurant franchises, as well as a bigger presence at trade events. The green phenomenon has been seen across the board, which is to say that existing franchises are becoming greener and also that new franchises are starting up who are basing their whole concept on being environmentally conscious. Although the green concept has been with us for at least 25 years, it is only in recent years that this trend has become mainstream.

However, it would be hard to beat the eco-friendly credentials of one new restaurant franchise, which has taken the whole green concept to a new level. All of its fixtures and fittings are environmentally friendly, from seat cushions made from soybean oil to counter-tops made from recycled detergent bottles. Utensils are made from potatoes and containers from cornstarch, both of which biodegrade in 30 days. Ninety-eight per cent of all food served is organic and discounts are offered to customers who return pizza boxes for recycling. The building even meets environmental standards created by the US Green Building Council. Whilst this may be an extreme example of eco-friendly restaurant franchising, all the trends point to more businesses following eco-friendly policies.

Environmentally sensitive practices are becoming increasingly important for many businesses and restaurant franchising is no exception. The environment is a hot topic and the public is becoming more vocal about what they expect from retailers, manufacturers and service providers alike. Environmental issues which are foremost in the public’s mind, and which restaurant franchises must now take into account, include energy conservation, recycling and organic locally sourced food.

In Britain, a government sponsored “Green Achiever Scheme” has been created to enable companies to demonstrate their environmentally friendly credentials to suppliers, customers and other bodies interested in green business. In the United States, federal tax incentives and recycling programs have been set up to facilitate those companies wanting to improve their green credentials. The number of restaurant franchises opting into such schemes in both countries has been steadily growing, as business owners take note of the public’s demands when it comes to the environment.

Consumers are becoming more aware of the environmental impact of their personal choices and, when it comes to opting where to spend their cash, are increasingly influenced by ethical business practices. Restaurant franchises have started to realize how important green credentials are to customers and investors alike. Environmentally friendly practices are gradually being introduced into every aspect of the restaurant franchising businesses. These practices range from installing solar panels, reducing carbon emissions and using non-toxic cleaning products to eliminating non-recyclable packaging and reducing the amount of all packaging used, filtering cooking oil for reuse and sourcing local, fair trade or organic produce.