South India Served Fresh since 1986 Overview Presentation for Potential Franchisees FOR SAGAR RATNA FRANCHISE INFORMATION CALL 9315185354, 9555648810
Key contents
• About Sagar Ratna • Sagar Ratna’s focus on Franchisees • What does Sagar Ratna provide as a Franchisor? • What are our expectations from the Franchisee? • Commercial overview • Recent partnerships
Key contents • About Sagar Ratna • Sagar Ratna’s focus on Franchisees • What does Sagar Ratna provide as a Franchisor? • What are our expectations from the Franchisee? • Commercial overview • Recent partnerships
About • Started in 1986 by Mr. Jayaram Banan, with the first outlet at Defence Colony, New Delhi • Currently the largest Indian restaurant chain – 90 + restaurants (38 owned & 50 +franchisees) • Predominantly serves South Indian cuisine (Limited North Indian & Chinese cuisine) • Has won every possible award in India - Continues to be the most preferred South Indian restaurant in NCR and North of India
Our vision & mission
Vision “To help people eat fresh & healthy and hence live better”
Mission “To serve great tasting & good quality food along with memorable service in a clean & simple ambience so that the customer comes back again for the same”
Product glimpse
Our latest innovation – fusion dosas
Awards & Recognition
Interesting facts About US … • Every week, we cater to over 650,000 customers across the chain. •
We are very much present in digital platform like Facebook.
•
Most products are cooked fresh many times in a day to ensure great taste and freshness; ✓ Coconut chutney is freshly prepared every 3-4 hours at each of our outlets
✓ At our base kitchens, the work starts at 4:30 am – Fresh masalas are ground on a daily basis for preparation of Sāmbhar etc.
Key contents • About Sagar Ratna • Sagar Ratna’s focus on Franchisees • What does Sagar Ratna provide as a Franchisor? • What are our expectations from the Franchisee? • Commercial overview • Recent partnerships
Why focus on Franchisees? •
Huge business opportunities exist, which we want to explore and capture at
the earliest ✓ Doubled company-own outlets in last 2 years
•
Already existing large footprint of franchisees across India – J&K, Punjab, Himachal
Pradesh, UP, Uttaranchal, Haryana, MP, Assam, Bihar, Chhattisgarh. ✓ Keen to go across to all other major Indian cities in the next 1 year ✓ Open to exploring international expansion opportunities
•
Franchisees bring in local market knowledge; also, help fulfill Sagar Ratna’s
ambitions of achieving rapid footprint expansion
Key contents • About Sagar Ratna • Sagar Ratna’s focus on Franchisees • What does Sagar Ratna provide as a Franchisor? • What are our expectations from the Franchisee? • Commercial overview • Recent partnerships
What does Sagar Ratna provide as a Franchisor (1) – UPFRONT SUPPORT • Brand usage rights for a period of 9 years ✓ Brand design & templates for usage
• Know-how to set up the restaurant • Key manpower in the kitchen trained at Sagar Ratna
• On-boarding of all staff • Launch support staff for a period of 1 week (Boarding & lodging cost to be borne by Franchisee) • ERP system on POS (only Software, hardware to be procured by Franchisee)
What does Sagar Ratna provide as a Franchisor (2) – ON-GOING SUPPORT • Single point of contact from Sagar Ratna for any issues / concerns • Clearly defined escalation matrix in case issues are not getting resolved • On-going training of all staff
• Review/Audit of Operations as and when deemed fit • Sharing of new improved business processes / templates • Marketing creatives as and when needed
Expectations from a Franchisee (1) • Prefer if the site is owned and not leased, site visit expenses to be borne by the franchisee.Proper parking should always be focussed upon. •
Restaurant to be set-up as per specifications - Investment in accordance to Sagar Ratna specifications.
•
Management on regular basis to improve Operations as a whole
•
Maintain the restaurant as per Sagar Ratna standards & comply with all legal
requirements •
Allow access to all information and audit of location in detail
•
Should open within 90 days of LOI signing ideally
Expectations from a Franchisee (2) • Pay all employees as applicable by law and as hired by Sagar Ratna for the key Skills by 10th of every month. •
Procure uniform for all staff as per defined standards
•
No change in Menu items without prior approval from Sagar Ratna
•
Menu pricing to be approved by Sagar Ratna
•
Should maintain all books of accounts and pay taxes on time
•
Cannot open another outlet of same cuisine
Key contents • About Sagar Ratna
• Sagar Ratna’s focus on Franchisees • What does Sagar Ratna provide as a Franchisor? • What are our expectations from the Franchisee? • Commercial overview • Recent partnerships
Commercials • Franchisee fee ✓ Rs.45 Lakh one-time fee + all applicable taxes ✓ Period of Franchisee is 9 years
✓ Not applicable for any other product or service except the restaurant ✓ Pay a non-refundable amount of Rs.25 Lakh at the time of LOI signing.
• Franchisee commission of 10% +GST (applicable taxes)on Net sales payable every month
Possible investment @ site S.NO 1 2 3 4 5 6 7 8 9 10 11 12
Expense head
Figures in lacs Remarks
Kitchen Equipment Interior @ 1500sqft Genset Furniture Computer Utensils Signage Kitchen Ducting Gas Pipeline Uniforms
8.0 30.0 6.0 3.5 1.0 3.0 1.0 1.5 0.5 0.5
Menu cards RO
0.2 0.5
Total investment
55.7
Tax on franchise fee Franchise fees Grand Total
Variable 45.0 100.9
2000sqft 62KVA 100seating
Approx approx approx 35 nos staff 50menus+10000fliers
Approx 1CR
Investment depends on geographic location normally upwards of 6 lakhs. All cost are indicative and nowhere to be considered as actual.
Potential returns • Possible Opex breakeven @ Restaurant level EBIDTA in 8 to 12 months (Budget for losses in the initial period)
• Possible stable margins range from 12 to 18% depending on town & site
• Sagar Ratna doesn’t guarantee any returns – Franchisees are advised to carry out their independent assessment
Key contents • About Sagar Ratna • Sagar Ratna’s focus on Franchisees • What does Sagar Ratna provide as a Franchisor? • What are our expectations from the Franchisee? • Commercial overview • Recent partnerships
Franchisee Outlets Opened in Last Financial Year
Kanpur, UP
Aliganj,Lucknow
Muzaffarnagar, Mansurpur Khautauli
Raipur, Civil Lines
Raipur, Telibandha
Meerut, Bagpat Rd.
Patna, Frazer Rd.
For any query… Please write to us at
[email protected] or contact the concerned person (details below) NITIN JAISWAL HEAD FRANCHISE OPERATIONS & BUSINESS DEVELOPMENT Mobile: +91 7042644155/9990202590 ! Land Line: +91 1147377349 E-mail:
[email protected] ______________________________________________________________________ C-7, 3RD FLOOR, MALVIYA NAGAR, NEW DELHI 110017
Thank you for considering us… Let’s begin a new relationship… FOR SAGAR RATNA FRANCHISE INFORMATION CALL 9315185354, 9555648810