Starting one’s own business can be tough & cumbersome task. What better way to keep it chill (pun intended) & relaxed, than to have one’s ice-cream retail outlet.
Though the ice-cream industry came to India relatively late in 1956 than its counterpart, yet India has managed to be the 3rd largest producer after US & Japan.
“ifruit ice-cream” which serve premium quality products, is a comparatively new entrant in this market. It is owned & operated by AVI Products India LTD. The brand is based in Mumbai but has about 43 stores in different regions. The brand aims to be the largest producer of non-cold chain supported ice-cream & dessert retail business over the span on of coming 5 years.
Unique Selling Proposition
Wide Variety Of Products
The brand not just provides with a wide variety of products but in a variety of flavours too. Some unique products the brand deals in are as follow:
- Ice Cream Rollies
Here, different flavours are put on a cold metal plate
( -20OC) & mixed to make fresh & customized ice-creams.
- Popsicle & Kulfi
These are made fresh using the juices or premix provided by the brand, one can make 40 of these within just 15 minutes.
It is a flavoured frozen water dessert.
- Ice-cream Floats
It’s Ice cream soda which consists of ice-cream in a flavoured drink or soft drink.
The other products that the brand deals in are:
Juices, Sundaes & Fusions, Smoothies/Frosties/Milkshakes, Belgium Waffle, Yogurt, Stuffed Waffle Sticks, Gelato.
Non Cold Chain Support
A cold chain system refers to a temperature controlled system of storage. It helps increase the shelf life of products but Ifruit uses the non-cold chain supported process. So, the product is produced in accordance with the demand, so there is no wastage. Also, in this process the shelf life of the product is reduced hence we can expect the products to be always served fresh.
Benefits Of Owning iFruit Franchise in India
Low Investments & High Returns
For this brand, one doesn’t require a very large area. So, the rental cost is comparatively low, which helps to keep one aspect of the total cost low. Also, this brand provides different investment option starting
Rs. 4.25 lakh, these options vary in monetary value depending on the machines included in that option.
The brand claims to have a gross margin of about 80% as only 20% of the price of the commodity accounts to the cost of the product & hence the franchise owner can earn good returns over time.
No Annual Franchise Fees
Since it’s a new brand it plans to not charge any annual fees from its first 100 franchise. Also, the brand does not charge any royalty or commission over the profits or sales.
Provides With Complete Equipment Set
Ice cream sector continues to be a small scale industry in India, the reason why its supporting industries like machinery sector hasn’t developed in India. Which causes a problem, as one has to import them. It is very costly but if one is associated with a franchise, they can order in bulk & hence reduce the cost to some extent, the benefits are hence enjoyed by both the brand & franchise owner.
The brand provides with an open menu, meaning that the prices & the products can be changed by the franchise owner, in accordance to the cost of living at that place & the tastes & preference of the consumers.
This way the owner by analyzing the tastes of its customers can introduce new products to increase its profitability. It also provides the owner with a sense of freedom & belongings at the same time as they can implement changes by themselves.
Requirements Of Starting An ifruit Franchise In India
The minimum requirement for the area is 100 sq. ft.
The brand allows the franchise owner to choose the interiors, according to their liking. Providing them with the flexibility to expand the area & design it according to the requirement & hence help in improving the customer experience for the better.
The brand doesn’t look for a person from any particular field or with any particular set of qualifications. Anyone with basic skill or knowledge can be a franchise owner.
The fact that it does not require any particular theoretical knowledge, it caters to a wide mass in India. Who might have the funds & skills, who are looking to start something but might not have a very strong educational background.
Regions of operation
The firm has its outlets in Mumbai (Ville Parle & Mahavir Nagar) apart from this the brand has its franchise in other parts of Mumbai, Hyderabad,
Andra Pradesh, Indore, Bhopal, Pune, Goa,
Bengaluru, Karnataka, Gujarat & it’s in process in cities like Chandigarh, Guwahati & Hyderabad.
Upon the opening of a new franchise, one official from the ‘ifruit’ team visits the location for a week. They train the workers about their basic work of making the products within 2 days, the rest of the week they facilitate the working of the outlet & help in further on the job training.
The fact that the trainer visits the place, makes it convenient for the franchise owner to start its outlet, without having to worry about work being interrupted or delayed, due to the training process. Rather in this way, it is easy for the workers to learn, as they don’t have to travel anywhere far. Also, they can practice the skills inculcated simultaneously.
The staff is required to be physically & mentally fit so that they can easily handle the equipment & can be easily trained about the task. A minimum of 2 people are required as the staff to run the outlet properly.
How Much Does it Costs to Start an iFruit Franchise in India?
The brand provides with mainly 5 types of investment options ranging from Rs.4.25 lakhs to Rs. 7.25 lakhs. The differences in the amounts are due to the difference in the equipment set provided with each option.
THERE ARE NO ANNUAL FRANCHISE FEES CHARGES FOR THE FIRST 100 FRANCHISES
To be convinced to start a business or invest in an existing one, it is very important to plunge into the money matters.
Now that we have got a fair idea about the investment cost, we’ll now be looking into the cost incurred in the everyday process of running the business. Let’s consider the following hypothetical situation to get a better hang about the profitability.
Let’s say there’s one Ms A who decides to take up a franchise of ifruit Ice-creams & set it up on a rented plot of area 150 sq. ft. where the rent amounts to Rs. 15,000. She hires a manager & a worker; she pays them Rs. 30,000 & Rs. 15,000 respectively. The miscellaneous costs amount to let’s say Rs. 8,000 on average.
According to the pricing the average order amount of one customer equals to Rs. 100.
Now if Ms. A aims to earn at least Rs.1 lakh every month then at least 75 customers should do purchases from the store every day.
Total Revenue = 75* 100* 30 = Rs. 2,25,000
Material cost (25%) = Rs. 56,250
Cost incurred (apart from material cost) = Rs. 68,000
Total Cost = Rs.1,24,250
Profit = 2,25,000-1,24,250= Rs.1,00,750
All these cost values will vary from area to area, state to state. This calculation is to give a rough idea as to how the franchise owner can analyze the situation based upon the footfall (average people visiting the outlet) & costs.
Now that we’ve come to the end of our article, it’s important to quickly throw some light on the positives & some concerns. So that it helps you decide better. The basic concerns are regarding the nature of the product are that it’s a seasonal product which might lead to non-uniform income & so one should choose the location very carefully. Also, non cold chain process can be both a concern & a positive point. It can be a concern in places where weather is so extreme, that goods get spoiled quick hence leading to unnecessary losses. It can be a positive where weather is supportive & hence product can be supplied concerning the demand rather than making excess product in advance.
For the positives, the brand is very flexible whether it’s the interiors, the menu, pricing or products. This is one of the highlight features of this franchise. Usually, franchises in trying to maintain uniformity in terms of ambience & products lead to fall back in customer experience because all those things are based on generic demand. Due to customization, the franchise owner can offer additional products based on the customer taste & preference in a particular region.
example- if one wishes to expand in Dehradun. They can offer different types of teas & coffee to keep the business income uniform in winters too hence combating the problem of seasonal demand.
This flexibility & customization also makes the owner feel respected (as they are being heard) & avoids the business from taking the monotonous route (owner is keen on observing customer behavior, to offer them what they require to boost sales). Also one should always keep in mind the profitability factor & hence choose the location & maintain the ambience such that it goes with their expected returns.