In the presence of Domino’s and Pizza Hut, Can anyone create one’s own desi pizza chain? Yes, Brother One can create And it was created by a man Who had absolutely no experience in the food industry And that too, without taking any money from investors It is created like this It is India’s fastest-growing pizza chain.
It has a turnover of ₹1000 crore Has more than 600 stores And comes 3rd after Domino’s and Pizza Hut And has done all this work in just 12 years When Zudio grows very fast, Then, we usually say It is Tata Group, They are big people They must have done this.
However, when a common man grows so fast and achieves turnover, I enjoy doing such case studies So today, let’s hear, How does a common man despite having Domino’s and Pizza Hut, Made a separate name for himself And after this case study, You have to analyze yourself Can you also enter into the fight against a big brand and win? Is this growth scope only in the food business?.
Or in any business, can business be expanded so fast? So, if you are doing business and want to do it, and want to learn the lessons of business and management, Then, this video is for you So. are you ready? What does the public say? Let’s start the video by saying Janta Janardhan ki Jai The story starts in 2011 And the hero of the story is Sanam Kapoor He was working in HCL,.
He was an IT guy, It was an IT company Everything was going well However, there is a bug in doing business normally among the people Like, we will do business, we will do business It is more common among corporate people They sit every Friday night and make a plan That by doing something like this this weekend, They will leave the company And then brother, we will make our own company.
However, that worm of entrepreneurship Goes back on Sunday night, And they join on Monday, However, his worm of entrepreneurship remained alive, And he started his own company separately, Now, he has decided to do my own work and left the company However, couldn’t understand what to do? So, he said, when you can’t understand anything, Do that thing in which you are an expert,.
Or in which you have an interest, So, he said that he does not have expertise but has an interest “In Food” We will start a business related to food Hence, in the year 2011, He took a small space of 120 square feet in Chandigarh And opened his first pizza store He named it “Pinocchio Pizza” And like, everyone did in the beginning,.
He was self-employed And did all the work by himself From making the recipe of pizza, To manage the bills of the customers, From managing the money, To marketing, He does all the work by himself Remember, we are talking about the 2011 year, 2011 was that era when pizza was not available everywhere.
Pizza was a high-class commodity It was available only in five-star hotels And that too at such a price point, That it was beyond the reach of the common man Apart from the pizza chains available in the market i.e., Domino’s and Pizza Hut, It was such an international chain And they had a complete market Domino’s was sitting alone with 54% shares.
And if you combine Pizza Hut and Papa Johns, So, They were sitting with covering 80-90% of the area At that time, people did not have much income They did not spend too much money And they stayed away from expensive things This founder did not even have any experience, So, how he could go to anyone to ask for investment? When he goes to ask an investor, The investor says (possibly).
That, neither he has the experience nor the market So brother, they didn’t even ask for it, and they didn’t get it either So, he started the business with his own money Now brother, one thing that people ask me again and again, Rahul Ji, what business should I do?, What should I do?, Wow should I do it? I give the same advice to everyone If you want to start a business, And if you want to win from the competition,.
You should have three things in your product Either it should be first or it should be best Or it should be different Either you should bring something which no one has brought Or if someone has brought it, So, make it like this, no one else makes it Or else make something different So, what did he do? He worked on the same concept.
He said, “The world is selling pizzas”, I will also sell the same pizzas, What is the difference then? So, If I sell similarly to everyone, Then, the world will eat Dominos for sure Then, what he had done? A new concept which was seen in Western countries There you do not get a full pizza or a round pizza There, if you order,.
You will get only a big slice of pizza There was no such concept in India He said that he will give huge slices of pizza, Hence, he changed the name of his company From Pinocchio’s Pizza to Lapino’z Lapino’z meaning in Italian is “Giant Pizza” Hence, the first difference they made from the rest is this The second difference is that.
They said, that whether go to Five Star or Domino’s, All the flavors available are foreign There is nothing like the flavor of India So, they started giving Indian flavour Now, if you go and check the menu of Lapino’z There is Paneer Makhani Pizza, Paneer Korma Pizza, Paneer Butter Masala Pizza One I too found interesting during research, Makhani Do Pyaza Pizza.
So, the first difference is Big pizza pieces, The second difference – Desi Indian Tadka Then, slowly with time, they made more innovations And they have started offering large and extra large pizzas too, So, there is an option at Lapino’s Where you order a large pizza, And each slice of pizza has different toppings, On the basis of these innovations, It made a different name in the market.
And there was a struggle in the initial phase, However, its first store became profitable He said that it is profitable, However, there are less people in Chandigarh If I want more space, Then, brother, he went to Mohali and opened another branch And did the same concept, become very popular there too Then when did the turning point in his life come? When one of his customers came to him and asked him,.
Brother, you make wonderful pizzas, Will you give me a franchise? He said, “Brother, why not?” Now, let’s pause this story And listen to one important thing, You have made a wonderful product, your brand has been created, Your process is all set, However, if you want to move it forward quickly, Then, the best and most effective way is giving franchise.
What happens in the franchise model? You give the right to use that product and that brand to the other person And the other person earns some money based on that And gives you money in the form of royalty And it is the best way to increase business rapidly Although, it is seen a lot in the food space, Whether it is Domino’s, whether it is McDonalds, Whether it is your Lapino’z or your Burger Singh, However, it can be applied in every area.
Like Manyavar did this, Zudio did this Now, what are the benefits of giving franchise? Let me tell you The first advantage is rapid expansion You go to open a shop yourself If I open one shop, Then, the CAPEX in it First seeing the shop, then liking it, Fitting the machine in it,.
Making it from inside And then putting the product So much investment, So much team Their salary, rent, Brother, you will get worried And when you come to give a franchise, You can distribute the franchise to 10 people in a month, You can even distribute a franchise to 100 people in a year So, the expansion happens very fast.
Second, the local market knowledge I am a person from Jaipur I am thinking of opening a shop in Delhi I don’t know the market of Delhi I don’t know the audience of Delhi, I don’t know their taste, So, brother, I don’t know whether I will be successful or not, However, if I tell a local person in Delhi To open a franchise,.
He has information about it He also has connections in the market, and if he knows as well, He will be able to run the Delhi store better than me The third benefit The cost is less Now see, if I have one shop, And I am making goods for that, Versus I have to make goods for 10 franchises.
So, the more capacity I make the goods, The cheaper it will be for me Plus, first I do marketing, One shop gets the benefit I have 10 shops. So, the budget for marketing is the same, However, brother, the profit is distributed in 10 places And fourthly, brand loyalty increases When in every street and corner of every city, Your brand boards start appearing.
The world starts connecting with you Then, you get more benefits So, what is a franchise?, To whom should it be given, when should it be given, What are its types, and who should take it? What are the cons? On this issue, I will either make a video of 10-15 minutes, Or if I have your permission, I will make a full course on it.
Whether it should be given or not, And to whom should it be given? If you like then, tell me in the comment box I will see if there is a response in that market or not Now brother, after two stores, he started Deni Chalu franchise but also made a little twist in the franchise like They made a twist in their pizza and also And made a twist in the way of giving franchise Normally, whenever international companies give franchises,.
What do they do? They hire a professional company Like Dominos is a U.S. company, however, When it came to India, So, they partnered with Jubilant That brother, look, you are a professional company, I will give you the right to give further franchises Like, When McDonald’s came to India, They talked with Westlife FoodWorld,.
Like, You give the franchise They said that if I go through a professional operator, I don’t know how it will happen, So, he said that I will give the franchise to a local person So, if they went to Gujarat They give it to a local person from Gujarat So, he will be able to understand that region in a better way For example, let me tell you What happens many times,.
When big companies give franchises, There are strict norms for everything Like, what to do? when to do it? how to do it? It is completely written down They gave a little freedom Like for example, if Subway is launched in Gujarat, Then, it’s veg menu, and non-veg menu; Both will be given As they are the same product However, If La Pino’z said that brother.
There are some restaurants in Gujarat which say that We will not eat non-veg So, pure veg-only Lapinoz has also been launched there One more interesting thing I came to know in my research That, they have introduced a pizza “Jain Pizza” “Without Onion”, “Without Garlic”, “Without Mushroom Now, what was its benefit? They said since we launched Jain Pizza.
Pizza is a food of youth or children’s thing However, since the time we have launched Jain Pizza, Even elders have come to us to eat Pizza Like, let’s see what is the new thing We were not eating for that reason, However, now it is Jain Pizza and so, we will eat They have done one smart thing in giving franchise Normally, what happens? Like, Assume For example, I am Rahul madam.
I am sitting in Jaipur And I have to give a franchise all over India Then, I came to know that It is given one from Delhi, one from Bombay, and one from Hyderabad My franchise is in three cities, however, I am finding it difficult to handle it They said no He gets hold of one area first They gave 10-15 franchises there.
And when they felt that everything is set now, Then, they gave it to the second area, And then to the third area Hence, their operation cost and logistics costs were saved a lot And they saved a lot in management control Let me tell you their franchise trajectories In 2013, they gave their first franchise By 2015, they had 50 franchises in just 2 years After that in 2017,.
This means it took a total of 4 years to reach 100 franchises However, after that, The next 100 franchises came in 2 years ‘2019 – 200 franchises’, ‘2021 – 300 franchises’, ‘2023 – 600 franchises’ And with this, they crossed the turnover of ₹1000 crores My team was saying that Sir Ji, Lapino’z is not such a big brand You are doing a case study on it You are right, the brand is not that big.
However, you get to learn something in the brand It becomes my duty to make that case study and make it available to you Now you will say, what is Lapino’z? like from the edge “Lapino’z is a pizza company” Then, where should its revenue come from? The money that will come from selling pizza Right? When the company gives franchise, Then this ratio becomes a bit reverse.
Like what they used to do in the beginning? They gave franchise and used to say that They will take a royalty of 8% of the total sales And you can use all the other products at your convenience Tomatoes, potatoes or whatever ingredients you have to use, Use according to your convenience, Just give me 8% as the royalty However, in the case of the franchisee, What do franchisee owners say?.
Brother, we have to increase the margin So, lower the quality of potatoes, lower the quality of tomatoes, Lower the quality of flour
