Pizza Hut Franchise is known for its great taste, Dine-In experience, and Exotic Pizzas. However, Pizza Hut Franchise is not much profitable in India.
Most of the market share of the Pizza Industry is acquired by Domino’s. One of the most important reasons for its loss is its high Royalty and Advertisement Fee. More than 500 Pizza Hut Franchises closed down during the pandemic in India.
There are still 350+ outlets of Pizza Hut in India. Let’s explore the Cost and Profit Margin of the Pizza Hut Franchise-
Pizza Hut Franchise Cost
Pizza Hut Franchise Cost 20 Lakh Rupees to 40 Lakh Rupees of an Initial Investment. Pizza Hut has 3 types of Franchise Models in India.
The takeaway model cost 20 Lakh Rupees Investment. The QSR model with less sitting area will cost around 30 Lakh Rupees Investment. The full-fledge Dine-In Model of 1000-1200 Square Feet will cost 50 Lakh Rupees Investment.
Pizza Hut Franchise Fee
Pizza Hut Franchise Fee depends upon the type of Outlet. The franchise fee of Pizza Hut is 3,00,000-5,00,000 Rupees.
In exchange for the franchise fee, you will get the right to sell Pizza Hut Products in a particular area. You will be provided the Raw Material for making the material.
Pizza Hut Equipment and Machinery Cost
Pizza Hut Equipment and Machinery cost 8-10 Lakh Rupees which includes the Kitchen Utensils, Oven, Baker, Deep Freezers, and many more types of equipment.
Pizza Hut Interior, Civil Work, and Furniture Cost
Pizza Hut Interior, Civil Work, and Furniture cost 5-15 Lakh Rupees depending upon the area. The minimum area required to start a Pizza Hut Outlet is 1000 Square Feet of which 150 Square Feet will be allotted to the kitchen area.
Civil Work will cost around 2-5 lakh Rupees, including building the kitchen and sitting area. Furniture will cost 3-10 Lakh Rupees of Investment and the rest of 2-5 Lakh Rupees will be the Interior Cost that includes Hoarding, Signage and Led TV, etc.
Pizza Hut Other Expenditure
The other Expenditure in Pizza Hut Franchise cost 10 Lakh Rupees as an Investment that includes training cost, transportation cost, Maintainance, Licensing, Marketing, and many more expenditures.
Pizza Hut Franchise Profit
We will analyze Pizza Hut Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 6,00,000 Rupees i.e. 20,000 Rupees per day.
|Gross Sales||6,00,000 Rupees|
|Food Cost @35%||(2,10,000) Rupees|
|Electricity and Water Supply||(25,000) Rupees|
|Salary of Workers and their Expenses||(90,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(25,000) Rupees|
Advertisement Fee @4.25%+GST
|Other expenses (Software, Maintenance and Misc)||(40,000) Rupees|
|Net Profit||45,000 Rupees|
We can conclude that the Profit Margin of the Pizza Hut Franchise is 7.5% for the Sales of 6,00,000 Rupees. The outlet may have less profits in the initial days, but Indian food will eventually gain high popularity and have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 9 Lakh Rupees per month and the profit margin will be 20% on Sales.
Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service.
The location should have a very high footfall. It should be in the main market of that area. A corner outlet is the most preferable option.
You can open the outlet nearby colleges, corporates, or any place where young people love to have Pizza and fast food.
How to get Pizza Hut Franchise?
To get the Pizza Hut Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best. However, we are not the franchise givers of Pizza Hut is only Sapphire Co. has the right to sell the Pizza Hut franchise in India. We can just guide you-
Thanks for reading the blog, If you have any queries regarding the franchise then you can ask me in the comment box or on my
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Also Read- Low-Cost Pizza Franchise