Guide to Franchising. Kamats- Original Family Veg Restaurant, Mittal Estate, Andheri East Mumbai

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1 Guide to Franchising Kamats- Original Family Veg Restaurant, Mittal Estate, Andheri East Mumbai

2 Kamats Original Family Restaurant has many outlets across in india and still counting It s Currently making 25-30% profit per restaurant.

3 Introduction Kamats restaurants are aimed at providing Kamat Hospitality Experience to highway travelers and City dwellers. Kamats was started with Mahad outlet in Sep The restaurants are designed with care by an expert teams to ensure maximum comfort and easy accessibility to the individuals visiting the outlets. Kamats are known for hygienically prepared fresh vegetarian food, quick service and value for money to the customers. The guests have an option of air-conditioned dining or an open seating. Special care has been taken to integrate the natural elements like landscaping and modern architecture and to provide a rustic setting. The KAMATS division today has Over 65 properties operational across the country with another 35 to be opened by the end of the year taking the total tally to over 100 plus. These vary from stand alone restaurants to food courts and mall outlets.

4 KAMAT S - Original Family Restaurant, spread across multiple states (Maharashtra, Gujarat, Delhi-Gaziabad, Madhya Pradesh, Rajasthan,Karnataka & Orissa, ), has expansion plan pan India through Franchise route. State Nos. Maharashtra 59 Gujarat 03 Himachal Pradesh 02 Karnataka 01 Madhya Pradesh 01 Rajasthan 01 Delhi 01

5 The key is Offering are : Hot, Healthy & Hygienic Foods : The importance if food in India is the fact that Indians are used to eating all hot food. Cold items are reserved normally only for desserts / ice cream. Also when it comes to Kamats the leaders in South Indian foods, people always know it as healthy food. And lastly, Hygienic. Because the first thing any restaurant sells, is cleanliness. Food & Beverages : Kamats is known for its pure veg South Indian and North Indian fare and Chat items. The food is prepared in clean and hygienic conditions. The menu has a fine selection of curries from all over the country along with the specialties of the region. Clean Toilets : The facility has clean and modern toilets for the travelers to refresh oneself. There are separate toilets for ladies and gents.

6 Food Items : South Indian Dishes Medu Vada, Idli, Dosas, Uttapam

7 Upma Vithal Wada Misal Pav Pav Bhaji

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9 Kamats Food Standatrd Ready to Eat Packets

10 Automatic Table Top Dosa Machine in Kamats Dosamachine is your magical and personal Dosa making Robot that is as easy to operate as 123. Just the click of a button and the machine magically -1- pours then spreads the batter to your desired thickness, 2- cooks and roasts the Dosa to your desired colour, 3- folds the Dosas for you ready to be served.

11 The KAMATS outlets have computerized billing system. The menu and the prices are controlled centrally from Mumbai. All the menu items are prepared as per the standardized recipes developed by our chefs. Apart from regular fare, the menu also includes the regional or local specialties particular to that location. KAMATS has developed various systems and processes over the period of time for efficient running and managing the restaurants. These include material management, standardization of food and beverage items, service delivery, guest feedback system, cash management, housekeeping practices, MIS etc. These systems help control the costs and help ensure maximum guest satisfaction.

12 To ensure that the highest quality of raw material is used for food preparation, KAMATS has invested in centralized kitchen and stores. The basic batters, chutneys, gravies and masalas are prepared at the central kitchen and then sent to various outlets. This ensures consistent and standardized product. Even the dry materials like spices, pulses, staples and cleaning material are purchased centrally and then supplied to the outlets to ensure standardization and cost benefit to the operations. KAMATS has also developed various training programs and tools to impart the knowledge necessary to operate restaurants with highest standards. One of our key programs, Sadhak Chalak Malak, where we develop owners out of our own staff, by first training them to become managers. Now, having withstood multinational and local competition over the years, KAMATS is looking to expand operations all over the country. A dream we hope to convert into with the help of our franchisee partner.

13 II. Kamats- Franchise Model 2.1 Territory Clearly defined distinct territories. No Two franchises to serve the same territory, product wise. Reduction of and addition to the territory at the sole discretion of the company. Territory could be based on geographic considerations or customer segmentation or both. Institutions/ governments department to also follow the territory pattern. Infiltration into other territories to be discouraged.

14 2.2 Appointment / Selection / Profile Owner involvement and location based A must. Direct relationship with company. Institutions- Chief decision maker and user involvement. No compromise on basic territory definition. Time bound appointment. To set up everything operational within 3 months of signing agreement. One time Franchise fee of Rs 10 lakh ( plus taxes ) for buying franchise. The profile to be progressive, open-minded needy and desirous of growth.

15 2.3 Financial Terms : Franchise fee Includes the following Brand Name, Opening support, Architectural manual, Interior Guide, Access to bargain rates for purchase of equipments, chairs tables etc. One month opening food items Kit worth materials of 1 lac. Training for staff upto 7 people in Kamats Acadamy. Royalty 7% First Year, 8% Second Year, 9% Third Year onwards of net sales at the end of every month. There would be a purchase price for material and ongoing ingredients. All materials/ purchases relation to Franchise operations to be purchased only from company approved suppliers. Full Disclosure of ownership to be made to the company. Any change in management is liable for cancellation of the Franchise unless approved by the Company in writing. The Franchise term would be for 10 years, renewable for another 5 years by the Company. Termination on 3 months notice.

16 2.4 Service : The Franchisee to follow rules/ customer service procedures/ maintain quality standards as per company norms. Regular and periodic information to be provided to the Company as per company rules. Not to do anything, which is, detrimental to the image of the Company s brand. To ensure tangible/ intangible perception is built up positively for the brand and ensure customer satisfaction. To participate in Company s training and follow Company s advice towards selection and recruitment of personnel

17 III. Franchisee Selection Process Letter of Interest from Prospective Franchise Filling in the complete details in the franchisee Application Form Site Visit by the Company Representative Meeting of Prospective Franchisee with Co. Officials at Co Premises Finalization of Territory & Terms and Conditions Payment of the Franchisee Fee & signing up of the Agreement

18 IV. Kamats- Scope 4.01 Brand Name Specifications for the interiors, kitchen layout and equipment Signage for the outlet Training by Chef and Management representative for approximately 10 days on the menu and operations Assistance in the setting up of systems, standard operating procedures, purchase specifications, suppliers and inventory levels Marketing support in the form of advertising, promotions including co- promotions with other brands The presence of Senior Company Executive at the launch Regular audits by Company Executives to check on Quality, Hygiene, Systems, Books of Accounts, etc. Cost of accommodation in a 3 star hotel, local travel & food to be done by the franchisee New product development and training Assistance in formulating LSM initiatives.

19 V. Franchisee- Scope To cover the territory effectively All renovation and interiors to be as per the specifications provided by the Company. All manpower to be on the rolls of the franchisee. All required licences and permissions for running the restaurant in the area as per the existing rules. Purchases to be as per specifications laid down by the Company. Quality to be maintained as per Company standards. Stringent checks to be kept on the food preparation, service and housekeeping Wastage and leakage to be controlled. Hygiene factors to be kept under strict check, as per Company standards Maintaining records of all customer feed back at the outlet and sharing it with the company Books of Accounts to be maintained in an organized manner as specified by the company and made available to the Company whenever asked for. All payments to the Company under the Franchise Agreement to be made by NEFT/ Direct Transfer strictly according to the payment schedule. Complete confidentiality on all trade secrets and products manufactured to be maintained at all times. Sales Tax to be paid by the franchisee as per the law. All promotions and marketing initiatives launched by the company to be promoted aggressively. Attention to stocks and sales Achievement of targets set by the company.

20 Format# 1 : Dining & Highway Format : Dining Location : Mohol (Pune Solapur Highway)

21 Location : Yevat 2 (Pune Solapur Highway) Many More

22 Site Layout of Dining Format#1 : Dining

23 Dining & Highway Format Particular Franchisee Fee Civil Work Manpower Cost Food Cost Branding Marketing : Investment(Approx) : Rs.10 Lacs + Tax : Rs Lacs : Rs.90 Thousand : 27-30% of Gross Sale : Rs.35-50Thousand : On Actual

24 Total Capex for Dining(Approx) : SR.NO. CAPEX HEAD CAPEX COST 1 Civil Work 1,000,000 2 Equipments 600,000 3 Furniture 300,000 4 Crockery/Cutlery 200,000 5 Uniforms 50,000 6 Electronics 80,000 7 Printing & Stationary 10,000 8 Signages 100,000 Total 2,340,000

25 Format : Khao-Jao Location : Metro City Mall, Kalyan

26 Format : Khao Jao Location : Lodha s Palava Mall Outlet Many More.

27 Format#2 : Khao Jao

28 Mall & Food Court Format Particular Franchisee Fee Civil Work Manpower Cost Food Cost Branding Marketing : Investment(Approx) : Rs.5 Lacs + Tax : Rs. 6 7 Lacs : Rs.50 Thousand : 27-30% of Gross Sale : Rs Thousand : On Actual

29 Total Capex for Khao-Jao (Approx) : SR.NO. CAPEX HEAD CAPEX COST 1 Civil Work 700,000 2 Equipments 500,000 3 Crockery/Cutlery 20,000 4 Uniforms 20,000 5 Electronics 50,000 6 Printing & Stationary 10,000 7 Signages 100,000 Total 1,400,000

30 Kamats Support to Franchise Marketing & Sales Support. Promoting TV Ads. Corporate Chef s Visit at Outlet. Opeartion Managers & Area Managers Visits Logistics Supports for Supply any Goods. 6 days Training Program for staff with franchise owners. Tapping New Ideas share with Newsletters

31 Completed Training Certificate photos

32

33

34 Annexure 1 : Draft of Letter from the Prospective Franchisee

35 Annexure 2 : Franchise Application Form

36

37

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40 Annexure 3 : Franchise FAQ?? Kya mera Exclusive area/ teriteri rahenga? Ans : Ek teriteri mein ek hi franchise dete hain, Agar company me kal teriteri me jyada potential dekha to divide kar sakte hai. Is sthiti mein VKOFR aapko First refusal ka mauka dega at same existing terms and Condition. Kya aap staff provide karenge? Ans : Hum staff ke database provide karte hain. From that aap aapka choice ka staff choose kar sakte hain, yeh Kamats Private Network system ke dwara available hain. Kya aapka manager rahenga? Ans : Ek mahina ke liye hamara manager aapko support ke liye rahenga,. Agar aapka Lacation Mumbai se Bahar Hai to accommodation & food aapko provide karna hoga.

41 Outlet ka ROI kya rahenga? Ans : Outlet ka ROI aapke upar nirbhar hain. Kripya hamara ROI work sheet ko fill kariye to aap ko Samaj mein Aayega ki Aap ke Outlet mein Kitna Business Hoga. Aap kya provide karte hai? Ans : Hum aapko Central Marketing Jaise ke Radio,T.V. Advertising. Local Sales marketing. Aap ke Staff ka Training hum hamare Vithal Kamats Panvel Academy mein Kamat Sutra Program Ke jariya Denge Aur Hamara Ek Trainer Aap ke Locations Mein Har Mahine Aakar Training be Dega & Aap ko Hamara Area Manager Aur Corporate Chef Routine Visit Karenge Aur operational guidance &support Provide Karenge, Aap ko Hum Vender Support be De rahe hai Wahan aap ko Kam Daam Mein Raw Materials Milega, Aur Uniforms, Crockery Cutlery and Bahut Saare Packaging Items Rate Contract ke jariye Milenge. Uske alawa Ready to mix Products Aap ko Hamare Central Kitchen se Milega, Restaurant Billing Software be hum aap ko Provide Karenge.

42 Muje kya provide karma padenga? Ans : Aapka dhyan provide karma padega sirf 2 cheez par rahenga khas Sales & Quality. Aapka central kitchen kahan par hai? Ans : Presently hamara food supplies kitchen Pune,Pimpri,thane our mumbai mein hain. Kya fees reduce nahi kar sakte? Ans : Already fees se koi jyada aapko value mil raha hain.fees first outlet ke liye reduce nahin hote hain. Mere liye special kya offer karsakte hai? Ans : Hamare sabhi offers special hi rehte hain.

43 Kya sabhi cheez ( food / non food) aapse leni padengi? Ans : Haan is madhyan se aapko sabse zyada convineince milti hain.upar se quality & cost dono mein fair rehte hain. Staff aapke payroll pe rahenga? Ans : Nahi aapka staff hone karan voh aapke payroll pe rahenga. Kis tarah ka marketing aap karte hain? Ans : Hum pura national marketing sambhalte hain. T.V. Ads,Promotions,loyality Schemes. Aapka kis tarah ke formats hain? Ans : Hamare 3 formats hain 1) Dining 2) Kho Jao 3) Kiosk. Dining mein widest menu hain with highest rates. Kho-Jao me keval standy tables hain with limited 20items menu. Kiosk me keval six items hain.

44 Khao Jao or dining me kya ferk hain? Ans : Kho-jao chote jagaon ke liye hai with high food stalls using limited 20items rehte hain with no seating only standing tables & self service. Yeh 400sq ft ke liye hai. Or Dining me aapko total dining experience milta hain. Yeh sq ft jagah ke liye hain. Har territory me kitne distance rahenga? Ans : Restaurant mein visibility & ease of acsessjaruri hai E.g.station east/west outlets ek dusre ka business nahi affect karte there for territory provided as per location wise not km wise. Aap km wise/ Distance wise territory Kyun nahin rakhte? Ans : Restaurant mein visibility & ease of acsessjaruri hai E.g.station east/west outlets ek dusre ka business nahi affect karte there for territory provided as per location wise not km wise. Kya aap Sahar (city) ka master franchise dete hai? Ans : Ji haan. Details ke liye aap hamare Director Mr. Vikram Kamat se contact kar sakte hain at ya 9o

45 In any case agar hamara business nahin chalta to aapke side se kya milenga? Ans : Sahi process & sahi dhyan lagane se nahin chalane ka saval nahi aata. Month to month hum aapko guidance dete rehte hain to agar kuch taklif hain hum solve karte hain. Aap revenue sharing per business kar sakte hai kya? Ans : nahi sir. Hum kewal franchise pe restaurant kakarte hain. Mera itna sab investment ke baad return ka kya guarantee hai? Ans : Road cross karte hai. Kuch na ho kibhi guarantee nahi. Hum sahin process or sahi dhyan ke vajah se aaj safal ho paya hain. Yahi safalta /process ko follow karne se safalta mumkin hain. Kitna din ka agreement hoga? Ans: Yeh Franchise 10 saal ke liye rehte hain with 5 year extention.

46 In any case if I would like to exit your Brand, what would be exit clause? Ans : A terminator fee would be payable to KRPL/Vithal kamat for easily termination. Aapka joining fee kya hai aur aapka monthly fee kitna rahenga? Ans : Joining fees aapke format/unit ke basis pe rahenga. Term shit pe dono details rahenge. Aap profit se franchise fee kyo nahi lete? Ans : Franchise fee hum anya services like Marketing, traing back support. Licences kon nikalenga? Ans : Restaurant ke sabhi licensing aapko manage karma padenga. Sales tax kon bharenga? Ans : As sales aapka unit ka hain, to tax bhi aapko hi bharna padenga.

47 Processed foods aap enge to hame payment kisko karna hoga? Ans : Payment bhi hamein karma hoga order ke sath. Sabhi payments KRPL ko issue karne ki vajah se aapko convenience hai Sab jagah par refundable joinee fee hai? Aapka yaha kayon nahi hai? Ans : Yeh joining fees hain deposite nahin. Baki jan kya kar rahe hain yeh unka choice hai. Mere paas aur bhi business hai muje restaurant business me bhi intrest hai, is situation me business kaise kar paunga? Ans : Kaunse bhi business ya franchise pe dhyan na ho to uski pervarish arthat safalta nahin hogi. Aap ek winning brand join karma chahte hai aur hum winning franchises chahte hain. Aaapke dhyan ke sivay hum saath safalta nahi payange,hum apna support dete rahenge par aapke side kuch nahin hone se outlet success nahi honga.

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