The term “Farming” has to do nothing with the agricultural buzz but more with the growth trend of the business model. The exponential growth seen mostly in the restaurant business inspired us to get deep into the soul of the business trend that is being followed. With international business chains visible, the franchise model is flourishing alarmingly.
The trend set in the early 90s by A&W and White Castle is being followed worldwide with more than 1000 business houses entering niche marketing strategies in developing countries like Nepal. International brands like Hyatt, Aloft, and Hilton with local brands like the KGH have been enjoying the pinnacle of success in the hotel sectors.
The visible growth of franchising can be seen in the fast-food restaurant sector. Franchising means an agreement where the owner of a particular brand or business system licenses others to use the brand or business system by charging a certain fee. The quantum of the chain business that franchising provides is immense if the involved parties are aware and effective from both ends. The key benefits that franchising provides business houses are brand name recognition and quality consistency. The market growth reads at a healthy 35% per Nepal Chamber of Commerce for the flourishing and ever-growing franchise-based business houses in Nepal.
The outlets of Local Nepali brands initiated by Himalayan Java and The Burger House and Crunchy Fried Chicken have been intensified as well as farmed by BOTA MOMO, Syanko Kathi Roll, and Chicken Station. The intensity has been so good that most of the streets and the corners are filled with either of the above-mentioned brand’s outlets.
The most important thing is the quality control and the consistent fluctuation from outlet to outlet and the lack of surveys is killing the exponential growth and killing the franchise business market. The chain restaurant is filled with people but the expectation couldn’t be met as the quality is sliding most disappointingly. The quality control and inspection are the major factors contributing to the downgrade.
The lack of proper pricing, quality checks, and unclear policies takes the international brands away as a huge chunk of the market is distributed among the customers seeking low-priced eatery places. The rise of ambiance and live music in the restaurants in the metro is tearing apart the cultivation of franchise-based fast food restaurants and is playing as an ace of the restaurant markets in Nepal.
The airport sides of Biratnagar, Bhairahawa, and Pokhara can be seen with youth with trending Nepali Live Music at local restaurants and bars which is the most promising thing to be seen in the restaurant business in recent times.
The ill culture of franchising and just growing the outlets only has diminished the possibilities that they could have easily made with just a little bit of consistency. Bajeko Sekuwa and The Himalayan Java seem like the only well-maintained local restaurant franchise brands that believe in consistency. The most important parameter must be quality control if the brands want to farm more franchises in the fast food restaurant sectors as the graph has been diminishing although outlets have been increasing on a monthly, quarterly, and yearly basis.