Exclusive Himalya Fresh QSR & Store will sell wide basket of Himalya Fresh products details of which can be viewed here.

The Exclusive stores will have display freezers & shelves for frozen & canned products for sale. The retail margins are up to 25% with additional 5% for promotions during the 1st year of operations.

The stores will also serve most of the products for consumption within the store or for takeout. The average margins on the Menu items for serving are 50%.

The Menu for QSR can be viewed here

  • The Franchisee will have access to 50 SKUs, including ready-to-eat frozen snacks, french fries & masala fries, premium ice creams & smoothies, mushroom & vegetable soups.
  • The Franchisee can start the business in a small outlet, initially with a capital investment of Rs.12 Lac for a 300-sq-ft area, only out of which up to 80-90% can be availed as loan & Government subsidies, the rest of the 10-20% will be the promoter equity. Depending on the size of the outlet, the initial investment can be to the tune of Rs.20 Lac for a 500-sq-ft area.
  • The project will also generate employability for at least one more person.

Under this model, the payback period is around 8 months.

Under this model, break-even sales is achievable with the sales of 3.5 lac per month.

Sales volumes are expected to grow at 20%, while the prices are kept constant. This will directly increase the revenues by 20%. Majority of the costs, being variable, are also expected to rise by 20% year-on-year. The manpower cost is expected to rise at 10%. The assets are depreciated using straight line method with a useful life of 7 years. The residual value is assumed to be zero. In general, the outlet has a useful life of more than 7 years. The base case scenario gives an annual profit of Rs.24 lac in the first year of operations.

  • Franchisee fee is Rs.200,000 and is converted into a soft loan, payable in five years, to be paid after two years of successful operations.
  • Franchisee fee is free for first 100 entrepreneurs.
  • Royalty free for first 100 entrepreneurs.

The amount required varies from Rs.12-22 lac. Out of the total amount, Rs.8-16 lac is used for the outlet with all the furnishings. Rest of the amount, i.e., Rs.4-6 Lac is for working capital requirements. The Franchisee is expected to bring in a minimum of 10% and balance will come as bank loan and eligible incentives. The loan is repayable within 7 years. The repayments are expected as per the bank norms. The Debt Service Coverage Ratio is very comfortable throughout the loan tenure.

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