Pinch of cost: Pandemic may claim half of standalone restaurants. Why franchises can dodge it.

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Illuminated boards of franchise food oulets at MG Road in Mumbai

Synopsis
About half of standalone restaurants may not reopen even after the pandemic is over. It is worth noting that business sustainability often boils down to how costs are managed. In such a scenario, owing to its cost advantages and higher efficiency, the franchise model offers an excellent opportunity with a 400% higher chance of generating profits.

The worst phase of the longest lockdown may be behind us, but it has a loud message for the food and restaurant industry — there’s no return to normalcy. There is growing fear among stakeholders that even after the pandemic is over, some businesses may not reopen. And the ones that do, will struggle for a long time to come. The food business, in particular, has a unique attribute. People do it for the love of it. That’s one of the reasons why