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What is the Cost of a Chor Bizarre and Tikka Town Franchise?

Investing in a Chor Bizarre or Tikka Town franchise presents an exceptional opportunity for experienced foodservice and retail operators, as well as investors looking to expand their portfolio. Below is a comprehensive breakdown of the costs and requirements associated with opening a franchise under the Old World Hospitality (OWH) brand.

Franchise Overview

Chor Bizarre and Tikka Town, managed by Old World Hospitality, offer unique dining experiences that blend traditional flavors with contemporary settings. These brands are known for their high standards of quality and value, making them attractive options for franchisees.

Basic Requirements

To qualify as a franchise prospect, you need to meet the following criteria:

• Commitment to deliver consistent value and quality.
• Full-time, on-premises owner/operator.
• Ability to secure necessary financing for the initial investment.
• Ability to obtain required permits and statutory approvals from local authorities.

Fee Structure

1. 1st Outlet: Rs. 15,00,000
2. 2nd & 3rd Outlet: Rs. 13,00,000 each
3. 4th and More: Rs. 12,00,000 each

Inclusive of:

• Site evaluation, concept adaptation to site interiors, kitchen facility planning.
• Support in execution and supervising, manufacture of furniture and specialized kitchen equipment.
• Menu merchandising and adaptation, formulation of standard recipes.
• Setting standard operating procedures, recruitment and training of personnel.
• Planning/marketing strategies, scheduling pre-opening activities, coordinating the grand launch.

Exclusive of:

• All actual expenses incurred locally, including travel (round trip air tickets for the director, interior consultant, project leader, etc.).
• Lodging and reasonable daily allowance for meals, commuting, and ancillary expenses during the pre-operational stage.
• Ongoing expenses for the training, traveling, and accommodation of management and staff of the franchisee at New Delhi.
• Liaison with designers, services consultants, local public relations and advertising agencies, HRD and legal advisors, local suppliers and vendors, and local government authorities.

Franchise Fees

• Franchise Fee: 5% of gross sales (exclusive of VAT and taxes) payable monthly for each outlet.
• Marketing Support Fee: 1% of gross sales (exclusive of VAT and taxes) payable monthly for each outlet.

Territory Franchise

An exclusive territory franchise can be granted for single or multi-unit development in a specific geographic area (usually a city, state, or zone). Franchise agreements are signed only with parties who have proven experience and meet OWH's financial and operational criteria.

Advertising and PR

Franchisees are required to spend 4% of gross sales (exclusive of VAT/taxes) on advertising within the franchised territory with OWH approval. In addition, marketing, promotions, and PR schemes in tandem with OWH, New Delhi, ensure market leadership.

Pre-Opening and Post-Opening Support

Pre-Opening Support includes:

• Area market survey, demographics, competition analysis, site selection, and approval.
• Concept and menu development, operating program, design, and architectural analysis.
• Operations and workflow program, kitchen design, and construction management.
• Staff selection, organization setup, and training program.

Post-Opening Support includes:

• Advertising and promotions, merchandising, management toolkit.
• Cost control (food/paper/labor/utilities/operating supplies), service standards.
• Quality, service, cleanliness, procedures and standards, training guidelines and standards.
• Equipment maintenance, ordering and inventories, safety and security procedures.
• Health and hygiene practices, evaluation of budgets vs. actuals, financial reporting/tracking system.
• CRM/loyalty program, development of incremental sales, market survey updates, vendor management.

Management Training and Development

The initial 6-week management training program covers all aspects of operations:

• Kitchen Operations: 2 weeks
• Kitchen Management: 1 week
• Service Operations: 2 weeks
• Service Management: 1 week

Trainees receive hands-on instruction from certified OWH trainers, utilizing manuals, study guides, visual aids, and hands-on experience. The training ensures that new managers develop the necessary skills to ensure the financial and operational performance of a Chor Bizarre or Tikka Town outlet.

Steps to Get Started

1. Franchise Application: Complete and submit the franchise application form.
2. Approval and MOU: Upon approval, the business module is explained in detail, and an MOU is signed.
3. Site Visit and Agreement: Conduct a site visit and, upon approval, sign the franchise agreement.
4. Project Work: Start project work with support from OWH's projects and pre-opening team.
5. Staff Training: Begin the screening, hiring, and training program for staff.
6. Grand Opening: Final inspection and grand opening of the outlet.

Conclusion

Investing in a Chor Bizarre or Tikka Town franchise offers a robust business opportunity with comprehensive support from OWH. The brand’s proven system and infrastructure allow franchisees to start their business with confidence and grow successfully.

For more information or to get started, contact: