F&B franchising in Pakistan

[EngrOmair]

Recently I have been doing some research in the world of franchising specifically food and beverages outlets in Pakistan.

There are two aspects to this first being establishing a brand and then growing it while sticking to a solid business model canvas.

I have not been involved by any means in the F&B industry only taking care of fit-out works for some major brands down in UAE likes of McDonalds, Burger King and Dunkin.

I am intrigued by the business model of owning a franchise therefore I did approach couple of brands to let me setup in Pakistan. Being new I am still putting down numbers such as one particular Pizza and Pasta brand sent me T&C schedules as below...

Non-Refundable Franchise Fee : AED 45,000.00
Royalty Fee : 6% on Weekly Profit
Marketing Fee : 3% on Weekly Profit

They will assist with design and drawing as well as share vendors details for equipment and ingredients (Raw material)

Similarly I tried to get in touch with Tim Horton's franchising department but unfortunately couldn't get a reply, website says they aren't looking to expand in this particular region.

As a contractor I have catered many reputed cafes and restaurants with our services so design and execution wouldn't be a concern for me in terms of Interior design and equipment's , keeping these things in mind I also think about introducing a self named outlet rather than franchising a known brand.

Would like everyone's input regarding future of F&B industry in Pakistan, Authority fee related feedback , Quality Human Resources to hire , Standards of Quality imposed in Pakistan By authorities , Health and Safety monitoring authorities , Target audience for cafes and any other queries and feedback is welcomed.

 

[aqeelPK]

Pakistan's economy (whatever of it was left) has been completely destroyed in past 2-3 years. Middle class is almost non existent now. Small businesses are shutting down rapidly. 99% of the public is desperately struggling to put food on the table & pay the utility bills. Other 1% is desperately struggling to hold onto their wealth & figure out way to move it out of the country. I would strongly advise against investing anything into Pakistan.

 

[Pakpak]

As for OP. Investing in Pakistan is much safer now as we don't have looters who will eat up your money. There are many ways for non resident Pakistanis to put their money into the country. I'm sure someone more better versed will come along and advise you. Someone who's not reading off a PMLN script.

 

[saeedhk]

Pakistan's economy (whatever of it was left) has been completely destroyed in past 2-3 years. Middle class is almost non existent now. Small businesses are shutting down rapidly. 99% of the public is desperately struggling to put food on the table & pay the utility bills. Other 1% is desperately struggling to hold onto their wealth & figure out way to move it out of the country. I would strongly advise against investing anything into Pakistan.

True. I know wealthy people who are living a comfortable life in Pakistan wanting to leave the country. 95% of Pakistanis will probably never eat a set of McDonald's in their lifetime as it is too expensive.

Having been to Pakistan recently, I can attest that only overseas-based Pakistani can afford Pizza Hut or Mcdonald’s. I remember going to Pizza Hut and eating a couple of pizzas with a few friends and the bill came at Rs 8000. My local friend remarked that the bill amount was a Pakistani’s three-week wage. People are in dire straits.

You just have to go to Pakistan to witness how everybody struggles with basic necessities like meat, milk and vegetables. Let alone being able to send their kids to school.

The place where I live in Pakistan, a set of chicken burger costs Rs700. Too expensive!

 

[aqeelPK]

As for OP. Investing in Pakistan is much safer now as we don't have looters who will eat up your money. There are many ways for non resident Pakistanis to put their money into the country. I'm sure someone more better versed will come along and advise you. Someone who's not reading off a PMLN script.

No, govt's official data says otherwise. Foreign investment has significantly declined in past 2-3 years & the trend is only getting worse. See the data below for yourself. It is shared by State Bank of Pakistan (not by any opponent of the Govt).


Don't let your political views to cause someone financial losses.

 

[Angrez Pakistani]

The only sound advice I can give is to make it more affordable. Make it cheaper and more pleasant for people to eat out. Sure, you might take a bit of loss initially but that’s just a cost of building your brand. In Pakistan, the cost is the ultimate deal maker/breaker. If your brand is an affordable night/day out, then sky is the limit. A lot of these foreign f&b outlets overlook this basic fact and they end up catering to the elites in a handful of locations.
Also, go hard on advertising. You gotta make your brand stay in everyone’s head.

 

[King-Misbah]

Pakistan's economy (whatever of it was left) has been completely destroyed in past 2-3 years. Middle class is almost non existent now. Small businesses are shutting down rapidly. 99% of the public is desperately struggling to put food on the table & pay the utility bills. Other 1% is desperately struggling to hold onto their wealth & figure out way to move it out of the country. I would strongly advise against investing anything into Pakistan.

Yes, it is better to invest in places such as the UK where restaurant have been closed due to COVID for nearly a year now.

I was in Pakistan a few months ago and McDonalds, Howdys, Hardys etc were booming with people. As was the centaurus mall in relation to ladies fashion stores.

Talk about self hate and Pakistanis. If you have not got anything good to say, best not to say it.

 

[GoUgandaCranes]

No, govt's official data says otherwise. Foreign investment has significantly declined in past 2-3 years & the trend is only getting worse. See the data below for yourself. It is shared by State Bank of Pakistan (not by any opponent of the Govt).
View attachment 106516

Don't let your political views to cause someone financial losses.

Even the graph that you have shared shows that FDI has rebounded in 2020.

 

[Pakpak]

No, govt's official data says otherwise. Foreign investment has significantly declined in past 2-3 years & the trend is only getting worse. See the data below for yourself. It is shared by State Bank of Pakistan (not by any opponent of the Govt).
View attachment 106516

Don't let your political views to cause someone financial losses.

The posters above me has answered what I was going to. It's okay, I know nooras are sad that your master is never coming back.

 

[Colorblind Genius]

Recently I have been doing some research in the world of franchising specifically food and beverages outlets in Pakistan.

There are two aspects to this first being establishing a brand and then growing it while sticking to a solid business model canvas.

I have not been involved by any means in the F&B industry only taking care of fit-out works for some major brands down in UAE likes of McDonalds, Burger King and Dunkin.

I am intrigued by the business model of owning a franchise therefore I did approach couple of brands to let me setup in Pakistan. Being new I am still putting down numbers such as one particular Pizza and Pasta brand sent me T&C schedules as below...

Non-Refundable Franchise Fee : AED 45,000.00
Royalty Fee : 6% on Weekly Profit
Marketing Fee : 3% on Weekly Profit

They will assist with design and drawing as well as share vendors details for equipment and ingredients (Raw material)

Similarly I tried to get in touch with Tim Horton's franchising department but unfortunately couldn't get a reply, website says they aren't looking to expand in this particular region.

As a contractor I have catered many reputed cafes and restaurants with our services so design and execution wouldn't be a concern for me in terms of Interior design and equipment's , keeping these things in mind I also think about introducing a self named outlet rather than franchising a known brand.

Would like everyone's input regarding future of F&B industry in Pakistan, Authority fee related feedback , Quality Human Resources to hire , Standards of Quality imposed in Pakistan By authorities , Health and Safety monitoring authorities , Target audience for cafes and any other queries and feedback is welcomed.

If I was you, I would definitely look forward to keep marching; however, there are two EXTREMELY important points that you MUST cover in your plans.

First and the most important one,
You MUST get your hands dirty and practically learn the business you are getting in. And you learn the business not by taking the training courses provided by the Franchiser but, practically working in that business environment.

For example, if you are looking into a Pizza Hutt, then you MUST work as a delivery person, to a counter clerk to a baker to a managerial position in Pizza Hutt for at least 2 years.
You MUST know the in and out, and complete detail of the EXPENSES and overhead cost, and the hidden challenges that are NOT advertised with the same of a business. This is the biggest mistake many new businessmen make.

In labor intensive retail businesses like many F&B set up, having a good employment force and man management skill is not only very challenging but a must have for a successful operation.

And if you don't practically do this, I almost guarantee that you will lose money and time in a failure of an attempt.

Many at times, after you have worked and fully learned a business, you will probably change your mind of getting into it as you will be better informed to know that it's not worth your time, money and effort.

When new and inexperienced people buy a business, they look at the sale numbers which are usually swelled, and they don't focus too much on the overhead cost which are usually shrunk on the papers.

But when they get in, they find the numbers and equations to be totally inverted.

Always, always always remember, "The cost of running the business" is THE NUMBER ONE focus of a successful businessmen.

You must know exactly what these numbers are, and how can they be controlled and reduced. If your information in this aspect is incorrect, you are bound to failure.

Sales and revenue and profits comes second.

Second piece.

You must have a good location. Your business location is the key!
It should not only have a great visibility from business road/highway etc, easily accessible but also in an area where demographics show the buying power of consumers. These three are the important factors.

And then, when you start the business, get ready to not look at the watch for the first 2 years till you are established.

Tell your family that you will be at work early mornings to late nights 7 days a week. So they must support you otherwise, you can't focus on developing your business and take to a point where you can put it on auto pilot mode.

And you move on to open a second location.

All the best to you.

 

[EngrOmair]

The only sound advice I can give is to make it more affordable. Make it cheaper and more pleasant for people to eat out. Sure, you might take a bit of loss initially but that’s just a cost of building your brand. In Pakistan, the cost is the ultimate deal maker/breaker. If your brand is an affordable night/day out, then sky is the limit. A lot of these foreign f&b outlets overlook this basic fact and they end up catering to the elites in a handful of locations.
Also, go hard on advertising. You gotta make your brand stay in everyone’s head.

See that is the thing I don't understand in Pakistan a place like Gloria is selling a large coffee for about 500Rs and green tea (tea bag) for 400Rs.

The pricing is pretty decent but middle class family wouldn't entertain those rates personally speaking I wasn't even impressed with the gloria coffee either.

Most cafes in Pakistan have no knowledge of coffee mostly are using shelf Nescafe products.

I have been in talks with some suppliers from Ethiopia for coffee beans I don't want to compromise quality and there are no coffee suppliers in Pakistan.

Still fail to understand all these glittery brands are packed, locations like Bahria Town and DHA are booming with business with these brands.

 

[Colorblind Genius]

Pakistan's economy (whatever of it was left) has been completely destroyed in past 2-3 years. Middle class is almost non existent now. Small businesses are shutting down rapidly. 99% of the public is desperately struggling to put food on the table & pay the utility bills. Other 1% is desperately struggling to hold onto their wealth & figure out way to move it out of the country. I would strongly advise against investing anything into Pakistan.

And yet, there are long lines at many Int'l food franchise stores in Pakistan.

 

[Gayle_Force]

See that is the thing I don't understand in Pakistan a place like Gloria is selling a large coffee for about 500Rs and green tea (tea bag) for 400Rs.

The pricing is pretty decent but middle class family wouldn't entertain those rates personally speaking I wasn't even impressed with the gloria coffee either.

Most cafes in Pakistan have no knowledge of coffee mostly are using shelf Nescafe products.

I have been in talks with some suppliers from Ethiopia for coffee beans I don't want to compromise quality and there are no coffee suppliers in Pakistan.

Still fail to understand all these glittery brands are packed, locations like Bahria Town and DHA are booming with business with these brands.

From my experience, Pakistan has more of a chai culture than a coffee culture. The demand for good quality coffee as you see in the west may not be there.

I most say though that I haven’t been there for nearly 3 years and things may have changed since.

 

[Cryin Out Loud]

True. I know wealthy people who are living a comfortable life in Pakistan wanting to leave the country. 95% of Pakistanis will probably never eat a set of McDonald's in their lifetime as it is too expensive.

Having been to Pakistan recently, I can attest that only overseas-based Pakistani can afford Pizza Hut or Mcdonald’s. I remember going to Pizza Hut and eating a couple of pizzas with a few friends and the bill came at Rs 8000. My local friend remarked that the bill amount was a Pakistani’s three-week wage. People are in dire straits.

You just have to go to Pakistan to witness how everybody struggles with basic necessities like meat, milk and vegetables. Let alone being able to send their kids to school.

The place where I live in Pakistan, a set of chicken burger costs Rs700. Too expensive!

These prices, seriously? Rs 8000 for two pizzas?

 

[Gayle_Force]

These prices, seriously? Rs 8000 for two pizzas?

There is absolutely no way that is correct

 

[Dark_Horse]

There is absolutely no way that is correct

He is wrong rates can be checked on the site unless it is xxl pan the rates are below 2000 per pizza xxl pan is 20inches. Furthermore there are regular deals
https://www.pizzahut.com.pk/pizzas

 

[Dark_Horse]

For the op I would advise him to open any business just make profit margin small and provide quality it will run smoothly. The brands will not provide you good growth rates.

 

[Bigboii]

For the op I would advise him to open any business just make profit margin small and provide quality it will run smoothly. The brands will not provide you good growth rates.

+1 do your own thing man....
Franchising in pak looks a little to off for my liking

 

[Colorblind Genius]

+1 do your own thing man....
Franchising in pak looks a little to off for my liking

The problem is, many in Pakistan go to Franchise Food Chains not primarily because the food is super good or super cheap or super tasty. It's more of a status and show off thing. And that's where the business is where you make money.

McDonald's in Pakistan is a delicacy, but here in the United States a favorite food joint for the homeless where they can pick a 99 cents sandwich, and move on.

 

[offstump]

Agree, better to do your own thing especially if you’re interested in coffee. Franchising is buying yourself a job until, or if you are eventually able to expand to multiple locations.

 

[Pakpak]

There is absolutely no way that is correct

He is wrong rates can be checked on the site unless it is xxl pan the rates are below 2000 per pizza xxl pan is 20inches. Furthermore there are regular deals
https://www.pizzahut.com.pk/pizzas

Not a surprise the fraud is proven wrong again yet will still show up with his mug again and again shamelessly on PP.

 

[Bigboii]

The problem is, many in Pakistan go to Franchise Food Chains not primarily because the food is super good or super cheap or super tasty. It's more of a status and show off thing. And that's where the business is where you make money.

McDonald's in Pakistan is a delicacy, but here in the United States a favorite food joint for the homeless where they can pick a 99 cents sandwich, and move on.

Don't say that man think about the poor, forgotten, the most hated creatures in the neighborhood
College students

Me and and my boys on student budget basically survived MacDonalds
Fish filet each day every day
If it wasn't for Ronald McDonald there would be no food for us forgotten gods creature
If it wasn't for McDonald we would have been saying to the world " kilha nahi saktey toh paida kyu large ho?"

Homeless, and broke college students should thank McDonald for thier mere existence as human beings
We bow to you Mr: Ronald the McDonald's

 

[saeedhk]

These prices, seriously? Rs 8000 for two pizzas?

We ordered some other dishes too.

 

[Gayle_Force]

We ordered some other dishes too.

You would agree that your initial post was misleading? You guys must have ordered quite a few dishes for the bill to reach 8000 lol

Based on the Pizza Hut website [MENTION=147662]Dark_Horse[/MENTION] shared a family of 4 can easily be fed for under Rps 2000.

 

[saeedhk]

You would agree that your initial post was misleading? You guys must have ordered quite a few dishes for the bill to reach 8000 lol

Based on the Pizza Hut website [MENTION=147662]Dark_Horse[/MENTION] shared a family of 4 can easily be fed for under Rps 2000.

True. My point was Pizza Hut and the likes are unaffordable by the locals. I think we ordered 2 pizzas and 3 other dishes.

 

[Giannis]

Pakistan's economy (whatever of it was left) has been completely destroyed in past 2-3 years. Middle class is almost non existent now. Small businesses are shutting down rapidly. 99% of the public is desperately struggling to put food on the table & pay the utility bills. Other 1% is desperately struggling to hold onto their wealth & figure out way to move it out of the country. I would strongly advise against investing anything into Pakistan.

Yeah you're kind of forgetting that the world is currently going through a pandemic and coronavirus has severely hurt the economies of several countries especially poorer ones. A lot of times the economy of poor countries is at the mercy of the global market, that's not something you can control but what you can control is corruption, wasteful spending, law & order and anti-business friendly policies and that's something Imran Khan's government has been better at.

 

[JaDed]

Don't say that man think about the poor, forgotten, the most hated creatures in the neighborhood
College students

Me and and my boys on student budget basically survived MacDonalds
Fish filet each day every day
If it wasn't for Ronald McDonald there would be no food for us forgotten gods creature
If it wasn't for McDonald we would have been saying to the world " kilha nahi saktey toh paida kyu large ho?"

Homeless, and broke college students should thank McDonald for thier mere existence as human beings
We bow to you Mr: Ronald the McDonald's

Lol bro except Mcflurry(had 4 times in last 3 yrs) I absolutely cannot have anything in Mcdonalds of USA, detest it ,not to forget you are increasing your future health bill.(Cooking is cheaper).

[MENTION=151861]Colorblind Genius[/MENTION] Indian Mcdonalds actually has much more options esp for Vegetarians and is cheaper..so am assuming Pak one would be as well for budget burgers..

 

[JaDed]

Imho Desis in SC don’t have the work ethic for franchise , most desis in North America dont either.(eg: Popeyes in Canada, Subway in USA).

 

[sshakir411]

Food and beverage is a very hard industry to profit from. I’d stay away from it unless it’s something you love doing.

 

[Colorblind Genius]

Don't say that man think about the poor, forgotten, the most hated creatures in the neighborhood
College students

Me and and my boys on student budget basically survived MacDonalds
Fish filet each day every day
If it wasn't for Ronald McDonald there would be no food for us forgotten gods creature
If it wasn't for McDonald we would have been saying to the world " kilha nahi saktey toh paida kyu large ho?"

Homeless, and broke college students should thank McDonald for thier mere existence as human beings
We bow to you Mr: Ronald the McDonald's

lol hahaha .. I hear you.
In my college years we survived on aalu and anda in the dorm for good two years.

[MENTION=151861]Colorblind Genius[/MENTION] Indian Mcdonalds actually has much more options esp for Vegetarians and is cheaper..so am assuming Pak one would be as well for budget burgers..

I haven't eaten McDonalds in the U.S., except for fish sandwich.
15 odd years ago, I visited Pakistan and first time ever tried their meat burgers. I think they were OK but didn't find 'em anything extra ordinary.

Last year I was in Istanbul on a family vacation and they had halal McDonalds. I guess we ate the heck out of the spicy chicken sandwich. That thing was good!

Food and beverage is a very hard industry to profit from. I’d stay away from it unless it’s something you love doing.

Its definitely VERY HARD in the U.S., due to overhead cost and food and health regulation.
However, labor is cheap and food n health laws are almost non-existent in places like Pakistan India etc, so food/restaurant business is not THAT hard.

I was at the Centaurus Mall Islamabad last year, and noticed that their food court was absolutely bombarded with customers at lunch hour. It were mostly all western brand F&B stores. So there is definitely business. You must have the right plan, right location and right experience.

 

[rockyboy2018]

Please consider the law and order situation in your business plan. Any thug can come and steal away all your money resources at a gunpoint and your employees in Pakistan may get perchees as well.
When it comes to business, invest your money in Real Estate like buying cheap land, building a house and then selling it at a higher cost. That kind of business model may work in Pakistan. However, for other kinds of business, an average Pakistani has no purchasing power, simply put. Just imagine what they eat in Pakistan. Crap.

 

[Abdullah719]

Having been to Pakistan recently, I can attest that only overseas-based Pakistani can afford Pizza Hut or Mcdonald’s. I remember going to Pizza Hut and eating a couple of pizzas with a few friends and the bill came at Rs 8000.

How many is a ‘couple’ of pizzas and how many are a ‘few friends’?

“Only overseas-based Pakistanis can afford Pizza Hut.” )

 

[Bigboii]

Please consider the law and order situation in your business plan. Any thug can come and steal away all your money resources at a gunpoint and your employees in Pakistan may get perchees as well.
When it comes to business, invest your money in Real Estate like buying cheap land, building a house and then selling it at a higher cost. That kind of business model may work in Pakistan. However, for other kinds of business, an average Pakistani has no purchasing power, simply put. Just imagine what they eat in Pakistan. Crap.

C'mon you're going way too overboard

Couple of my relatives are into franchise B and F biz
Never heard anything close to what you are describing
You seriously think in posh places like MM alam rd type places (where most of these businesses are operating)

There are gunpoint robberies taking place frequently?
If that was the case than no business would open shop in those places because
A-Thry cost too much in tunes of crores
If the business was that fragile, volatile than no one would invest that much money into it
B-No customer wants to come in areas where gunpoint robberies are common
But in areas where these franchises exist people with money continue to come in droves
Why would they if the law order situation was this bad
C-After Frequent robberies franchise owners would stop operating cause operating costs are too much to withstand frequent robberies

I know Lahore and I know law order situation is decent to good there
So I am coming from that pov don't know about rest of the country

If you talking about Karachi than honestly I don't know that much to comment on thier situation but I would like to think it's the same there

 

[Gayle_Force]

It definitely seems like there is a lot of misinformation in this thread. Food Services Industry can not be as doom and gloom in Pakistan as some people are presenting here.

Eating out is pretty much the only form of social activity I have witnessed whenever I have visited Pakistan and most decent restaurants are generally packed. I don’t think it can be that bad of an industry to venture in to if you have a decent business plan.

 

[Bigboii]

It definitely seems like there is a lot of misinformation in this thread. Food Services Industry can not be as doom and gloom in Pakistan as some people are presenting here.

Eating out is pretty much the only form of social activity I have witnessed whenever I have visited Pakistan and most decent restaurants are generally packed. I don’t think it can be that bad of an industry to venture in to if you have a decent business plan.

Food service is a good business in Pakistan, people in that buisness are loaded
But western franchise with it's operating cost is not such a good idea

Op should look for cheaper (maybe local) franchises IA he'll be riding around in Lambos in no time

 

[FreakCricket]

All these ABCD's can't tell you anything about Pakistan, I have been going to Karachi every year and the food business is the Industry to invest in. 95% cant eat Mcdonald's where are you getting these stats? if that's the case why are they not shutting down?
With 200m people, the Middleclass population will only go up and I see great potential in the food industry as eating outside is the only Pastime of most Pakistanis.
Bring niche products like Mexican food or something not found in Pakistan.

 

[EngrOmair]

If I was you, I would definitely look forward to keep marching; however, there are two EXTREMELY important points that you MUST cover in your plans.

First and the most important one,
You MUST get your hands dirty and practically learn the business you are getting in. And you learn the business not by taking the training courses provided by the Franchiser but, practically working in that business environment.

For example, if you are looking into a Pizza Hutt, then you MUST work as a delivery person, to a counter clerk to a baker to a managerial position in Pizza Hutt for at least 2 years.
You MUST know the in and out, and complete detail of the EXPENSES and overhead cost, and the hidden challenges that are NOT advertised with the same of a business. This is the biggest mistake many new businessmen make.

In labor intensive retail businesses like many F&B set up, having a good employment force and man management skill is not only very challenging but a must have for a successful operation.

And if you don't practically do this, I almost guarantee that you will lose money and time in a failure of an attempt.

Many at times, after you have worked and fully learned a business, you will probably change your mind of getting into it as you will be better informed to know that it's not worth your time, money and effort.

When new and inexperienced people buy a business, they look at the sale numbers which are usually swelled, and they don't focus too much on the overhead cost which are usually shrunk on the papers.

But when they get in, they find the numbers and equations to be totally inverted.

Always, always always remember, "The cost of running the business" is THE NUMBER ONE focus of a successful businessmen.

You must know exactly what these numbers are, and how can they be controlled and reduced. If your information in this aspect is incorrect, you are bound to failure.

Sales and revenue and profits comes second.

Second piece.

You must have a good location. Your business location is the key!
It should not only have a great visibility from business road/highway etc, easily accessible but also in an area where demographics show the buying power of consumers. These three are the important factors.

And then, when you start the business, get ready to not look at the watch for the first 2 years till you are established.

Tell your family that you will be at work early mornings to late nights 7 days a week. So they must support you otherwise, you can't focus on developing your business and take to a point where you can put it on auto pilot mode.

And you move on to open a second location.

All the best to you.

This is Bang On!! Indeed that is why I am trying to collect as much info as I could from everywhere regarding the business, it is not possible to involve in the industry without the paperwork in UAE but I have couple of friends who already are having cafes from where I am trying to observe the sequence of operations.

Manpower management would be slightly easier for me as I am already running a successful contracting firm in UAE since 2010.

 

[EngrOmair]

From my experience, Pakistan has more of a chai culture than a coffee culture. The demand for good quality coffee as you see in the west may not be there.

I most say though that I haven’t been there for nearly 3 years and things may have changed since.

Coffee culture is evolving in Pakistan but location is key, Bahria town,DHA,MM Alam are packed with cafes which are occupied all through the day.

 

[EngrOmair]

For the op I would advise him to open any business just make profit margin small and provide quality it will run smoothly. The brands will not provide you good growth rates.

Quality needs to be constant, there is a phenomena in Pakistan known as Status Symbol. Apparently sipping coffees from branded outlets fuels the status symbol virus, trust me I have seen it every where especially the families who are doing well financially.

 

[EngrOmair]

These are some of my estimates to just start, to what extent do you guys think these are true.

Some things taken into considerations were:

Location: Bahria Town Lahore
Manpower : Manager+ Team Leader (Kitchen) + Support Staff (x3)
Rent Includes Electricity and Water Charges
Equipment prices according to manufactures quote form Sharjah,UAE.

 

[DeadlyVenom]

True. My point was Pizza Hut and the likes are unaffordable by the locals. I think we ordered 2 pizzas and 3 other dishes.

So do Pizza Huts in Pakistan run to serve only overseas Pakistani tourists? It seems highly unlikely.

 

[Kroll]

These are some of my estimates to just start, to what extent do you guys think these are true.

Some things taken into considerations were:

Location: Bahria Town Lahore
Manpower : Manager+ Team Leader (Kitchen) + Support Staff (x3)
Rent Includes Electricity and Water Charges
Equipment prices according to manufactures quote form Sharjah,UAE.

View attachment 106575

This thread gives good food for thought.

The construction and fit-out cost seems way too cheap though. I'd probably allow at least fives times as much. Even then a place like Bahria Town may place even higher premiums as it will be well sought after.

 

[Gharib Aadmi]

So do Pizza Huts in Pakistan run to serve only overseas Pakistani tourists? It seems highly unlikely.

Nope the majority of their customers are locals. Like 99%.

 

[Gharib Aadmi]

Yes, it is better to invest in places such as the UK where restaurant have been closed due to COVID for nearly a year now.

I was in Pakistan a few months ago and McDonalds, Howdys, Hardys etc were booming with people. As was the centaurus mall in relation to ladies fashion stores.

Talk about self hate and Pakistanis. If you have not got anything good to say, best not to say it.

I had a similar experience, however i was in Karachi. Restaurants were full, and so were shopping areas. People in Pakistan have too many other problems to worry about covid.

 

[Gharib Aadmi]

It definitely seems like there is a lot of misinformation in this thread. Food Services Industry can not be as doom and gloom in Pakistan as some people are presenting here.

Eating out is pretty much the only form of social activity I have witnessed whenever I have visited Pakistan and most decent restaurants are generally packed. I don’t think it can be that bad of an industry to venture in to if you have a decent business plan.

Have noticed the same.

 

[saeedhk]

So do Pizza Huts in Pakistan run to serve only overseas Pakistani tourists? It seems highly unlikely.

Nope. But having a pizza at Pizza Hut is a rarity rather than the norm. You have to save up money for it. It is like a once in a half year thing.

 

[Gharib Aadmi]

Nope. But having a pizza at Pizza Hut is a rarity rather than the norm. You have to save up money for it. It is like a once in a half year thing.

completely not true, for upper middle class people. And even the majority of middle class people.

 

[Gharib Aadmi]

Quality needs to be constant, there is a phenomena in Pakistan known as Status Symbol. Apparently sipping coffees from branded outlets fuels the status symbol virus, trust me I have seen it every where especially the families who are doing well financially.

Not just coffee. Western food, clothes, even talking Urdu with a western accent and a ton of English words thrown in. all for status.

Coffee culture is evolving in Pakistan but location is key, Bahria town,DHA,MM Alam are packed with cafes which are occupied all through the day.

Absolutely. Not just for coffee, any of these franchise locations needs to be in a good location. I would say ideally you put it in a upper middle class area.

 

[EngrOmair]

Have you even been Pakistan? I was in Pizza Hut recently in Wah Cantt and it was full. You can get one pizza, one side and a drink for 550 or 2 pizzas,2 drinks for 600 rps.

Better to own up about your stupid claim and move on.

These international brands have decent rates and provide good customer service through their well-trained staff. I know families bringing in 50k-70k monthly and enjoying a feast at fast food joints once a month at least.

That's the reason I believe the franchise business has grown over the past 10 years in Pakistan as the last time visited Lahore in late 2019, I witnessed the presence of some major brands serving Pizza and Pasta. The ones I remember are :

1. Pizza Hut
2.Domino's
3. Broadway Pizza
4.Margherito's Pizza
5.California Pizza
6.Manhattan Pizza

There are some local outlets also doing well over the years like Timmys, Fri-Chics....

 

[silentkiller187]

Nope. But having a pizza at Pizza Hut is a rarity rather than the norm. You have to save up money for it. It is like a once in a half year thing.

Try go to Pizza Hut in London then you will understand what constitutes to a rarity and will be more closer to the 8000rs mark. Pizza Hut in Pakistan is very affordable, and the one in my area is always busy with locals from what I saw when I was there.

 

[Runner Up]

Pakistan's economy (whatever of it was left) has been completely destroyed in past 2-3 years. Middle class is almost non existent now. Small businesses are shutting down rapidly. 99% of the public is desperately struggling to put food on the table & pay the utility bills. Other 1% is desperately struggling to hold onto their wealth & figure out way to move it out of the country. I would strongly advise against investing anything into Pakistan.

I am sorry but kuch zyada nahi ho gaya? I don't think you live in Pakistan. I agree there are problems but still if you go to Markets you will see hundreds of people shopping and eating out. A few days ago I went to Tariq Road in Karachi and first thought came to my mind people complaint a lot on media about Mehangayi but still there was large number of people shopping and eating at restaurants. Actually economy is bad everywhere in the world these days so dont single out Pakistan.

 

[Pakpak]

I am sorry but kuch zyada nahi ho gaya? I don't think you live in Pakistan. I agree there are problems but still if you go to Markets you will see hundreds of people shopping and eating out. A few days ago I went to Tariq Road in Karachi and first thought came to my mind people complaint a lot on media about Mehangayi but still there was large number of people shopping and eating at restaurants. Actually economy is bad everywhere in the world these days so dont single out Pakistan.

He's a Noon Leagueya, the likes of him never showed their mug here when PMLN was killing and destroying our economy.

 

[DeadlyVenom]

Nope the majority of their customers are locals. Like 99%.

Yeah I know. I was just questioning his logic. The last time I went to Pak almost every food place was booming. From fast food to high budget resteraunts they were all buzzing with activity.