Pizza Hut Franchise: Cost, Investment Guide & Profit Margin

Pizza Hut is a huge name in the world of Pizza. This American brand was founded back in the year 1958 and has outlets located in major countries all across the globe. The food business has always been in high demand which is why most entrepreneurs decide to join the industry by either introducing a new product or joining hands with existing brands. Pizza Hut is amongst the top 10 pizza franchise in India.

Now, the profit margin in this industry is huge which is why it would be a good option to enter the food and beverage industry in case you are looking to open up a business today. 

Companies like Pizza Hut do offer its franchise to interested candidates. If the entrepreneur is eligible and has the required amount of investment then he can easily start the franchise at any prime location. Apart from that, the brand allows interested franchisees to open different types of Pizza Hut-branded units at desired locations. The three franchise models are:

• Delivery or carry-out restaurants 
• Family dine-in 
• Hybrid model 

The cost of opening an easy type of franchise would differ from one another. 

Pizza Hut Franchise In India - Is It Profitable?

Pizza Hut is one of the most popular restaurant chains not only in India but all across the globe. Pizza Hut proves to be a tight competitor to other pizza giants like Domino's and other fast food brands in the Indian market but the brand was able to make a revenue of 5.3 billion Indian rupees in the financial year 2022.

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If we can consider the brand image that Pizza Hut has developed over the years then it would be justified to say that Pizza Hut’s franchise is a profitable business in India. However, there would be certain factors that would determine the profit margin of the outlet. Some of them are the location where the outlet is opened and marketing and advertising did for it to attract customers. 

Cost of Pizza Hut Franchise In India

Pizza Hut offers different franchise models to interested franchise owners and entrepreneurs. If you wish to take any of its franchise models and convert it into an outlet then the cost would vary from the other two models. This is because each model has a different kind of setup which makes the cost vary from one another.

A Pizza Hut franchise is an expensive franchise to opt for. This is because of the equipment and the brand value it built over the years. The equipment costs are huge which is why entrepreneurs with low investment cannot afford it. Apart from this the brand also has got a royalty fee. Let us have a look at the cost of the Pizza Hut franchise in India. 

There could be some heavy investment areas where interested entrepreneurs would have to spend if he/she wishes to opt for a franchise of Pizza Hut. There could be other major costs like setting up space for parking, air conditioners, security cameras, salaries of workers, and many more miscellaneous expenses. 

Pizza Hut Franchise Cost Breakdown In India

The total cost of opening a Pizza Hut franchise would be between INR 50 lacs to INR 2 crore depending on the space, location, and area of the outlet. If the outlet is a small one then it would take less investment than opening a large one because a large outlet would require more infrastructure equipment like furniture and such.

In India, an amount of INR 50 lacs as the maximum investment would be required to start a Pizza Hut Franchise. 

Space Required For Pizza Hut Outlet

The minimum space required to open up a Pizza Hut outlet is 1000 sq ft to 1500 sq ft. The location that you choose should be at an ideal location which should be considered the best position to conduct a food and beverage business.

The location should have the maximum amount of footfall so that customers can easily recognize your outlet and visit frequently. The infrastructure should attract customers by giving it the best branding outlook. 

The outlet should be very spacious so that it is comfortable for both customers and the employees to work. Every piece of furniture and equipment should be properly placed so that there are no accidents while conducting daily business. Employees and staff members should be well-trained and must know how to handle different machinery. 

Documents & Licenses Required For Pizza Hut Franchise

• ID Proof documents (Aadhaar card, PAN Card, Voter Card)
• Address proof documents (Electricity bill, Rent Agreement)
• Passport size photographs 
• Bank account details 
• Canceled cheque 
• Trade license 
• Food license 
• Rent agreement 
• GST Number 
• FSSAI License

How To Start A Pizza Hut Franchise In India?

Starting a Pizza Hut franchise may not be as easy as one might think because it is not just the investment amount that one has to be ready with but there comes a good amount of expertise required for a Pizza Hut franchise owner.

The owner must have business knowledge and experience so that they are able to run the outlet smoothly without much support. Franchise owners with specific skills like leadership, management, communication, analytical, and such would be a plus point as well. 

Once the eligibility criteria and investment required and the location is cleared it is time to apply for the franchise. The company has developed a separate website for interested and eligible entrepreneurs to apply for the franchise. Once done with the application process you will be contacted by the concerned authorities for further process. 

Steps To Start A Pizza Hut Franchise In India

• Candidates must have business expertise and knowledge to be eligible for its franchise.
• They must have a good location in mind where they can set up the outlet with the investment amount ready.
• Fill out the application form for the franchise from the official website of the company.
• The company will contact you for further process.
• The company will charge a franchise fee of INR 20 lakhs which you will have to pay.
• Once done with all the initial procedures you may start with setting up the infrastructure at a prime location.
• The company personnel will be guiding you during the process and offer its support.
• You must have a working capital of INR 10 lacs ready for conducting daily business.

Things To Know About Pizza Hut Franchise In India

• Pizza Hut charges around INR 20 lakhs for a 20-year agreement 
• Pizza Hut franchise owners must pay the ongoing royalty fee of 6% on all sales as well as an additional 3% toward national marketing efforts
• There are three franchise models that the company offers to interested entrepreneurs.
• A Pizza Hut franchise in India has proved to be a profitable business in the country.
• The number of Pizza Hut stores operated by Devyani International Limited India in FY 2022 was 413.
• The brand is planning to expand its outlets in the country and is encouraging entrepreneurs to get on board for its franchise opportunity.

Does Pizza Hut Offer Franchises In India?

Pizza Hut does offer its franchises in India and anyone who has got the required capital and is eligible can apply for its franchise. The brand offers three different franchise models and the investment amount differs slightly from one another.

It is important to be not only an eligible candidate in terms of capital requirement but one should be highly qualified as well. Pizza Hut is an American brand that was founded back in the year 1958 it has developed worldwide fame for delivering the best pizza to its customers. This is one of the reasons why the company will be only looking for the best entrepreneurs out there to become its franchise partner. 

Applicants can apply online for the franchise as there is an official website for the franchise inquiry process. Apart from that there is also a customer care number that the brand has put up in their official website itself but it seems like that will not be of much help. It will be the best option to directly register or fill out a form about franchise inquiries through the official website itself.

Benefits of Pizza Hut Franchise In India

There are several reasons to go for the Pizza Hut franchise in India. Some of them are mentioned below.

• It is considered to be one of the most loved pizza brands globally.
• It is one of the highly profitable businesses in the world
• The brand guarantees the best quality pizzas with excellent flavors.
• Customer retention is high for Pizza Hut 
• Being an international brand gives its franchises quality marketing
• The brand is always concerned about customer satisfaction and has always given its highest priority 
• It is now a part of Yum Brands which is the leader in various food categories globally
• The brand has been in this business for more than 5 decades and is now the largest pizza company in the world.