Post Covid-19 expected trends in Food and Beverage Franchise and F & B Distribution?

The emerging new normal in post covid-19 era is making us rethink not only the way we approach our office routine or school attendance but also our choices the way we select or consume our staple food and beverages.

In turn, it is influencing the way Food & Beverages Distributor and F& B Franchise need to evolve to meet the changing expectations of consumers and franchise agreements.

Evolving Trends for  Food & Beverage suppliers

Some of the key requirements which Food and Beverages manufacturer consider while appointing Food & Beverage distributor as picked up from recent classifieds  titled  Wanted Food Distributors  shows manufacturers seek compliance to;

  1. The layout of Food Distributor Showroom: Based on regulatory authorities for e.g. Municipalities’ guidelines many top food distributors & retailers have included social distancing norms & display shields to meet stipulated hygiene requirements.
  2. Contactless Payment Counters: The recent data has clearly shown that Food & Beverage retailers who upgraded to automated checkout counters have increased footfall and revenue per square feet.
  3. Dedicated Display for Organic Foods & Health supplements: Organic Food Dealerships in India are in high demand. The Food & Beverage suppliers are looking for food retailers with dedicated organic displays.
  4. Storage and Delivery Infrastructure: Online ordering has started to pick up even for fresh foods and frozen items. This will force FMCG distributors to upgrade their storage and delivery infrastructure to meet new age requirements.

Emerging formats in Food and Beverage Franchise (F&B franchise)

The traditional Food and Beverage Franchise (F & B Franchise) format such as Fine Dining Restaurant Franchise format or Fast Food Franchisee  or Ice Cream parlour Franchise is being replaced or augmented with some new dimensions as below;

  1. Gourmet Food Franchise: Many fine dining restaurants have started to offer gourmet food or haute cuisine to their menu’s to keep up with times.
  2. Cloud Kitchen Franchise: Many F&B BRANDS to cash on their Brand Equity are contemplating -How to open Cloud Kitchen? This new format allows them to serve other locations through delivery only outlets or serving from one location to multi cities with food aggregator thereby saving on fixed cost and bring in economies of scale to increase profitability.
  3. Food Delivery Apps: The high level of take away and penetration of mobile internet has given rise to new phenomenon of Food Delivery Apps. This new ecosystem has made all F&B Franchisee and Food Distributors have made to rethink their pricing and promotion models and origin of new profit metrics like RLP (Restaurant List Price- Price if directly ordered from Restaurant)  Vs TMC (Total Meal Cost i.e. with Meal price markups to cover delivery/ tax & service fee).

Recent data shows on average delivery apps in Mumbai were marked up the most (6.49%), followed by Bangalore (5.98%), then New Delhi (1.77%).

Some Beverage Distributors,  F&B Franchisors will use the current transition phase to transform themselves and emerge from current crises fit to compete at the highest levels & take advantage of the next technological revolution. Those who do not will be left behind. Whether it’s a new evolving format or the speed of digital transformations is here to help F&B Franchisors and franchisees to get in better shape and assess where they stand in market share and most important, ability to compete.


Which F&B distributorship is most profitable?

Segment like Ice cream, bakery, confectionery, spices, edible oil or even organic food is a very popular food distributor business. There are many distributorship and franchise opportunities available in India.

Which F&B Franchise is best in India?

Some of the top Indian Brands which are operating through franchisee model Haldiram, Bikanerwala, Sarvanna Bhavan Mother Dairy and Amul Icecreams and many more have a global footprint also.