It is true that the metro and Tier 1 cities in India has seen the saturated market from last couple of years, but it does mean that the business have lost their charm in these markets. If there is competition in market, it is the competition which is creating business opportunities for other business as well. Like, when Café Coffee Day explored the café market in India, it created opportunities for Starbucks and other coffee café brands like UniqueBrew cafe, Coffee Day Express. Not just food, it goes same for other industries, Tours and Travels market is still dominated by Make My Trip & Thomas Cook, ezeego1 but it created space for Yatra, Expedia and other small Travel and Tours brands also. This is why we cannot say that Metro and Tier 1 cities do not possess space for new businesses.
In this blog we will discuss about the franchise opportunities in Metro and Tier 1 cities of India like Delhi, Mumbai, Chennai, Bangalore, Calcutta, Ahmedabad, Pune, Lucknow, Patna, Hyderabad, Bhubaneshwar, Thane etc. According to report published by World Bank, Delhi has topped the chart for starting a new business in India. As per the report, India has been ranked 134th globally in terms of ease of doing business, presented by World Bank and International Finance Corporation. After Delhi, its Patna, Jaipur, Hyderabad and Bhubaneshwar in terms of ease in doing business. On March 31, 2015, our Prime Minister, Mr. Narendra Modi focussed on implementation and enforcement of single window clearance institutional mechanism for starting up of business, pushing ‘competitive federalism’ along with ‘cooperative federalism’. This will impact the franchise businesses too.
If we talk about the Northern part of India, Delhi is most preferred destination for the brands who want to do business expansion PAN India. The reason is, Delhi always attracts new themes and new businesses. Burger King opened its first outlet in India, New Delhi. US based Burger King is planning to roll out 12 outlets in 2015, six each in Delhi and Mumbai. There are various reasons behind the international brands interest to open their first outlet or centre in Delhi. One, Delhi is capital of India. Second, people in metro cities like Delhi have welcoming attitude towards new brands. Third, people in Delhi have high national disposable income as compared to Tier 1 and cities.
The business culture of Mumbai is more like the magnitude of work and business culture of Manhattan and Tokyo. The Deeply ingrained work culture as reported by Economic Times! Mumbai has Central business districts like Lower Parel, Bandra-Kurla Complex, Andheri, Thane, Navi Mumbai. Mumbai is said to be the ‘Game Changer’ in business world. Sbarro, a chain of Pizza restaurants, headquartered in Columbus (Ohio), which is known for its NewYork Style Pizza & Italian-American Cuisine, opened its first outlet In Mumbai when it first entered into India. Sbarro opened its outlet in Mumbai on 13 March, 2015. Sbarro also has its regional franchisees in Eastern, Western, Northern and Southern part of India. Apollo Tyres, a very well-known name in Tyre industry, has also opened Apollo Retread Zone recently in Mumbai to offer services to their customers in Western India. Starbucks opened its first store in Mumbai in 2012.
Out of all the businesses, Hyderabad has seen remarkable growth in the segment of real estate. Hyderabad has the large academic population from all over India. Understanding the fact that, India has a huge market for leisure activities, Lama Tours has launched Lama Exppress Visa in India. They started with Delhi, Chennai, Calcutta, and then Mumbai. Now, they will do road show in cities like Hyderabad, Pune, Ahmedabad and Amritsar. Naturals, one of the well-known names in Salon Industry, has launched a franchised Naturals Family Salon and Spa in Pragathi Nagar (Hyderabad) on 5th March 2015. Jumboking has also seen Hyderabad as one of the best performing franchise outlets. Jumboking has various outlets. Delhi is also a big market for Jumboking. Bangalore, Mysore, Delhi, Gurgaon, Indore, Raipur, Hyderabad and Lucknow.. They are also planning to open more outlets in Nagpur.
Bangalore is called a food’s paradise because of its foodies culture which depicts that there is lot of growth and business opportunities for ‘foodpreneurs’, ‘food and beverage brands which are looking for further franchise expansion’ or people who want to own franchise of food and beverage brands. There is lot of scope of brands which are into consultancies, preschool education, Travel and Tours, retail etc. Bangalore is also referred as ‘Pub Capital of India’, which has given immense opportunities to various pubs and café to grow.
Not to forget that, Apart from the above described cities, Nagpur, Ahmedabad, Patna, Lucknow and tier 2 cities of India has lot of business opportunities to cater. Laziz Pizza, Exppress Car Wash etc. are offering franchise opportunities PAN India including metro and tier 1 cities.