Aug 23, 2024
TOP 10 HoReCa franchises in Russia
How much will you have to invest and what features should be taken into account
HoReCa remains the fastest growing and most in-demand business area in terms of investment in a franchise. The number of franchisors is growing every year - both due to newcomers who barely had time to launch their brand and immediately began offering franchises, and due to restaurant holdings that have long mastered this business and are bringing to the market concepts that were previously not available to franchisees.<br>
<br>
Only time allows us to judge the success of both the first and the second, since it is they who test franchises. Therefore, the Buybrand franchise rating includes just such proven concepts - from companies that have been operating in their field for at least 6 years and have been franchising for at least 3.<br>
<br>
We present to you the TOP 10 time-tested HoReCa franchises. The rating of each was calculated using a special proprietary algorithm that took into account more than 60 indicators (including financial, quantitative, legal and geographical), and reflected both positive and negative results from activities for 2023. In addition, when calculating the place in the ranking, feedback from existing franchisees collected through a telephone survey was taken into account.<br>
<br>
So, the TOP 10 catering franchises included...<br>
<br>
<b><span style="color: #000000;"><u>Coffee and buns</u></span></b><br>
<br>
<b>COFFEE LIKE</b> <br>
Category: coffee shops <br>
Investments: from 1.4 million rubles. <br>
Rating position: 1<br>
Coffee shops have been and remain one of the most attractive, and therefore highly competitive, segments. Entering here without a franchise is extremely risky, as evidenced by the large number of closures of “author’s” establishments. The Coffee like chain caught the trend in time and therefore, back in 2022, chose as a scaling strategy not only the sale of a franchise, but also the transfer of small regional coffee shops under its brand.<br>
Therefore, in addition to selling a franchise to start a business from scratch, it offers 2 models of interaction: selling a franchise with a complete rebranding of the existing outlet or connecting the coffee shop to business processes while maintaining the existing name.<br>
<br>
<b>
REAL BAKERY</b><br>
Category: bakeries<br>
Investments: from 1.8 million rubles.<br>
Rating position: 3<br>
Demand for bakeries, continuing for the second year in a row, as well as the relatively low amount of investment required, has made this category one of the most attractive and fastest growing. The largest players not only in catering, but also in retail are striving to occupy this niche - only Magnit, a member of the “Big Three” Russian retail chains, intends to increase the number of its bakeries to 5,000 by the end of 2024.<br>
Over the years of its existence, “Real Bakery” has also demonstrated an impressive pace of openings; today, 754 outlets operate in 10 countries, of which 181 were launched as franchises in 2023 alone. The team, in addition to bakeries, manages culinary and burger shops, so they can quickly adapt the model to the city and local demand.<br>
<br>
<b>ONE PRICE COFFEE</b><br>
Category: coffee shops<br>
Investments: from 3.5 million rubles.<br>
Rating position: 4<br>
The name of the chain speaks for itself - the concept is based on selling coffee at a single price. Over the 5 years of the company's franchising activities, its partners opened 385 points (as of the end of 2023). At the beginning of 2024, Smart Ranking analysts rated One Price Coffee as the fastest growing chain of to-go coffee shops in Russia: according to their forecast, by the end of December, the brand’s revenue should increase by 21% year-on-year.<br>
At the same time, the demand for to-go establishments is growing at such a pace that other players are rushing to enter the niche, including by closing existing full-service coffee shops in order to open takeaway coffee outlets in their place. Moreover, the latter require less staff, significantly less investment and pay for themselves in an average of 9 months.<br>
<br>
<b><u>Sushi and pizza</u></b><br>
<br>
<b>SUSHI MARKET</b><br>
Category: sushi shops<br>
Investments: from 1.9 million rubles.<br>
Rating position: 2<br>
Sushi and rolls are among the top most popular delivery dishes among Russians. The trend, which emerged during the pandemic and self-isolation, continued amid the crisis, falling incomes and consumer confidence, and eventually grew into a conscious choice. Ordering Japanese dishes with delivery costs 2-3 times less than going to a restaurant, and large chains have learned to cook for takeaway with the same quality as for guests in public catering.<br>
“Sushi Market” went further in terms of attractive prices for consumers, becoming one of the pioneers in the market of Japanese cuisine stores in the take-away format in the world where rolls can be bought individually. At the end of 2023, the network consisted of 440 franchise points (an increase over the year + 51); now the company is focused on active expansion, including abroad - in particular, to the CIS countries and Eastern Europe.<br>
<br>
<b>SUSHI WOK</b><br>
Category: sushi and pizza shops<br>
Investments: from 2.2 million rubles.<br>
Rating position: 8<br>
Another notable player in the Japanese cuisine delivery market, SUSHI WOK is distinguished by the fact that it managed to occupy two of the most popular niches in delivery and fast food at once - in addition to rolls and sushi, the chain delivers and sells takeaway pizza.<br>
According to the online marketing academy MAED, in 2023 pizza became the absolute leader in delivery among Russians in terms of demand growth dynamics - it was ordered 52% more often than a year earlier. According to researchers, within a year, for the first time in a long time, pizza delivery in Russia may become more popular than sushi. SUSHI WOK allows you to open a point of sale of both as franchises, or to buy out an existing corporate one from the franchisor. As of the end of 2023, the chain's partners had launched a total of 450 stores across the country.<br>
<br>
<b>FARFOR</b><br>
Category: food delivery<br>
Investments: from 4 million rubles.<br>
Rating position: 10<br>
The company, positioning itself as an international chain of “dostarans”, in addition to sushi and pizza, has embraced the growing popularity of burgers and poke. As well as pies, desserts and wok. The network is represented by “dark kitchens” (which means that franchisees do not need a specialized premises to organize retail space, display equipment and additional staff), as well as kitchens with the possibility of pick-up and kitchens with a hall that operate like a restaurant.<br>
The composition of the menu and format depend on the city and population - for small towns, the franchisor offers to open a dark kitchen, where only the most popular items are prepared. By the end of 2024, the company plans to achieve revenue of 9 billion rubles, compared to 7.1 in 2023.<br>
<br>
<b>IL PATIO</b><br>
Category: restaurant<br>
Investments: from 36 million rubles.<br>
Rating position: 9<br>
The chain of Italian restaurants from one of the oldest Russian restaurant franchisors, Rosinter Restaurants Holding, has been gaining a reputation for more than 20 years. And successfully: according to the company’s financial statements for 2023, the holding increased its total revenue by 14.1% to RUB 7,166 million. compared to 2022; for Il Patio restaurants the figure increased by 8%.<br>
This brand is a franchisor whose portfolio also includes Asian concepts “Shikari” and “Planet Sushi”, has paid special attention in recent years. In 2022-2023, the visual concept and communication platform were updated. As a result, “IL Patio” won the prestigious “Golden Palm of the Restaurant Business” award and was recognized as “Brand of the Year”. The concept is not cheap, but demand in the regions for such establishments is growing, especially in cities with active tourist traffic.<br>
<br>
<b><u>Shawarma and grill</u></b><br>
<br>
<b>SVSH</b><br>
Category: fast food cafe<br>
Investments: from 4 million rubles.<br>
Rating position: 5<br>
Shawarma and the weight of its variations are the third most popular product in the fast food and ready-to-eat category, both in catering establishments and in retail. “The Tastiest Shawarma” (the company, not the recipe) was born in Tula in 2015, over 9 years it added burgers, hot dogs and other popular categories of “fast food” to the menu and grew to 232 establishments in 117 cities and towns Central Federal District. The surge in openings occurred in 2022-23, when the network grew by almost a hundred franchise points. (During the same period, the demand for shawarma in large cities increased by 100-200%: experts attribute this, among other things, to the rise in prices of the same sushi and burgers, due to which consumers prefer more budget-friendly snacks.<br>
What is important: at SVSH, 60% of cafes operate as franchises, the rest are managed by the franchisor himself, which means he makes money on his concept as a restaurateur, and not just through the sale of franchises.<br>
<br>
<b>#LAVASH</b><br>
Category: fast food cafe<br>
Investments: from 1.5 million rubles.<br>
Rating position: 7<br>
This is the second franchise of the owner of Sushi Market. It includes a patented technology for preparing shawarma (that’s what the brand’s founder calls it), and the main distinguishing feature of all establishments - be it a corner in the checkout area, a shawarma bar or street retail - is the so-called show kitchen. That is, an open kitchen in which all dishes are prepared in front of the guest. All chefs are trained by a specialist from the management company. The franchisor’s plans are to increase the network to 1,000 points by the end of 2026. This is quite realistic with an average launch time of 1 month. However, a future franchisee should be prepared for the fact that after a year of operation, the royalty for him will increase from 3.5% to 5% of revenue.<br>
<br>
<b>SHASHLYKOFF</b><br>
Category: grill bar<br>
Investments: from 15 million rubles.<br>
Rating position: 6<br>
The second franchise in terms of minimum investment in the ranking will also fall into the category of increasingly popular “meat” restaurants. The advantage of the offer from the franchisor is the presence of two partnership options: starting from scratch (then you will have to invest at least 27 million rubles) and rebranding an existing establishment (from 15 million).<br>
Grilled dishes, although profitable, are quite a troublesome item on the menu, since they require expensive equipment, highly qualified personnel and premises with special parameters. According to the franchisor's estimates, rebranding can reduce launch costs by 30-50%. We are talking about both an operating business and the adaptation of a premises in which a restaurant previously operated. To prepare for the restart, the management company provides a team of 11 people.
<br>
Only time allows us to judge the success of both the first and the second, since it is they who test franchises. Therefore, the Buybrand franchise rating includes just such proven concepts - from companies that have been operating in their field for at least 6 years and have been franchising for at least 3.<br>
<br>
We present to you the TOP 10 time-tested HoReCa franchises. The rating of each was calculated using a special proprietary algorithm that took into account more than 60 indicators (including financial, quantitative, legal and geographical), and reflected both positive and negative results from activities for 2023. In addition, when calculating the place in the ranking, feedback from existing franchisees collected through a telephone survey was taken into account.<br>
<br>
So, the TOP 10 catering franchises included...<br>
<br>
<b><span style="color: #000000;"><u>Coffee and buns</u></span></b><br>
<br>
<b>COFFEE LIKE</b> <br>
Category: coffee shops <br>
Investments: from 1.4 million rubles. <br>
Rating position: 1<br>
Coffee shops have been and remain one of the most attractive, and therefore highly competitive, segments. Entering here without a franchise is extremely risky, as evidenced by the large number of closures of “author’s” establishments. The Coffee like chain caught the trend in time and therefore, back in 2022, chose as a scaling strategy not only the sale of a franchise, but also the transfer of small regional coffee shops under its brand.<br>
Therefore, in addition to selling a franchise to start a business from scratch, it offers 2 models of interaction: selling a franchise with a complete rebranding of the existing outlet or connecting the coffee shop to business processes while maintaining the existing name.<br>
<br>
<b>
REAL BAKERY</b><br>
Category: bakeries<br>
Investments: from 1.8 million rubles.<br>
Rating position: 3<br>
Demand for bakeries, continuing for the second year in a row, as well as the relatively low amount of investment required, has made this category one of the most attractive and fastest growing. The largest players not only in catering, but also in retail are striving to occupy this niche - only Magnit, a member of the “Big Three” Russian retail chains, intends to increase the number of its bakeries to 5,000 by the end of 2024.<br>
Over the years of its existence, “Real Bakery” has also demonstrated an impressive pace of openings; today, 754 outlets operate in 10 countries, of which 181 were launched as franchises in 2023 alone. The team, in addition to bakeries, manages culinary and burger shops, so they can quickly adapt the model to the city and local demand.<br>
<br>
<b>ONE PRICE COFFEE</b><br>
Category: coffee shops<br>
Investments: from 3.5 million rubles.<br>
Rating position: 4<br>
The name of the chain speaks for itself - the concept is based on selling coffee at a single price. Over the 5 years of the company's franchising activities, its partners opened 385 points (as of the end of 2023). At the beginning of 2024, Smart Ranking analysts rated One Price Coffee as the fastest growing chain of to-go coffee shops in Russia: according to their forecast, by the end of December, the brand’s revenue should increase by 21% year-on-year.<br>
At the same time, the demand for to-go establishments is growing at such a pace that other players are rushing to enter the niche, including by closing existing full-service coffee shops in order to open takeaway coffee outlets in their place. Moreover, the latter require less staff, significantly less investment and pay for themselves in an average of 9 months.<br>
<br>
<b><u>Sushi and pizza</u></b><br>
<br>
<b>SUSHI MARKET</b><br>
Category: sushi shops<br>
Investments: from 1.9 million rubles.<br>
Rating position: 2<br>
Sushi and rolls are among the top most popular delivery dishes among Russians. The trend, which emerged during the pandemic and self-isolation, continued amid the crisis, falling incomes and consumer confidence, and eventually grew into a conscious choice. Ordering Japanese dishes with delivery costs 2-3 times less than going to a restaurant, and large chains have learned to cook for takeaway with the same quality as for guests in public catering.<br>
“Sushi Market” went further in terms of attractive prices for consumers, becoming one of the pioneers in the market of Japanese cuisine stores in the take-away format in the world where rolls can be bought individually. At the end of 2023, the network consisted of 440 franchise points (an increase over the year + 51); now the company is focused on active expansion, including abroad - in particular, to the CIS countries and Eastern Europe.<br>
<br>
<b>SUSHI WOK</b><br>
Category: sushi and pizza shops<br>
Investments: from 2.2 million rubles.<br>
Rating position: 8<br>
Another notable player in the Japanese cuisine delivery market, SUSHI WOK is distinguished by the fact that it managed to occupy two of the most popular niches in delivery and fast food at once - in addition to rolls and sushi, the chain delivers and sells takeaway pizza.<br>
According to the online marketing academy MAED, in 2023 pizza became the absolute leader in delivery among Russians in terms of demand growth dynamics - it was ordered 52% more often than a year earlier. According to researchers, within a year, for the first time in a long time, pizza delivery in Russia may become more popular than sushi. SUSHI WOK allows you to open a point of sale of both as franchises, or to buy out an existing corporate one from the franchisor. As of the end of 2023, the chain's partners had launched a total of 450 stores across the country.<br>
<br>
<b>FARFOR</b><br>
Category: food delivery<br>
Investments: from 4 million rubles.<br>
Rating position: 10<br>
The company, positioning itself as an international chain of “dostarans”, in addition to sushi and pizza, has embraced the growing popularity of burgers and poke. As well as pies, desserts and wok. The network is represented by “dark kitchens” (which means that franchisees do not need a specialized premises to organize retail space, display equipment and additional staff), as well as kitchens with the possibility of pick-up and kitchens with a hall that operate like a restaurant.<br>
The composition of the menu and format depend on the city and population - for small towns, the franchisor offers to open a dark kitchen, where only the most popular items are prepared. By the end of 2024, the company plans to achieve revenue of 9 billion rubles, compared to 7.1 in 2023.<br>
<br>
<b>IL PATIO</b><br>
Category: restaurant<br>
Investments: from 36 million rubles.<br>
Rating position: 9<br>
The chain of Italian restaurants from one of the oldest Russian restaurant franchisors, Rosinter Restaurants Holding, has been gaining a reputation for more than 20 years. And successfully: according to the company’s financial statements for 2023, the holding increased its total revenue by 14.1% to RUB 7,166 million. compared to 2022; for Il Patio restaurants the figure increased by 8%.<br>
This brand is a franchisor whose portfolio also includes Asian concepts “Shikari” and “Planet Sushi”, has paid special attention in recent years. In 2022-2023, the visual concept and communication platform were updated. As a result, “IL Patio” won the prestigious “Golden Palm of the Restaurant Business” award and was recognized as “Brand of the Year”. The concept is not cheap, but demand in the regions for such establishments is growing, especially in cities with active tourist traffic.<br>
<br>
<b><u>Shawarma and grill</u></b><br>
<br>
<b>SVSH</b><br>
Category: fast food cafe<br>
Investments: from 4 million rubles.<br>
Rating position: 5<br>
Shawarma and the weight of its variations are the third most popular product in the fast food and ready-to-eat category, both in catering establishments and in retail. “The Tastiest Shawarma” (the company, not the recipe) was born in Tula in 2015, over 9 years it added burgers, hot dogs and other popular categories of “fast food” to the menu and grew to 232 establishments in 117 cities and towns Central Federal District. The surge in openings occurred in 2022-23, when the network grew by almost a hundred franchise points. (During the same period, the demand for shawarma in large cities increased by 100-200%: experts attribute this, among other things, to the rise in prices of the same sushi and burgers, due to which consumers prefer more budget-friendly snacks.<br>
What is important: at SVSH, 60% of cafes operate as franchises, the rest are managed by the franchisor himself, which means he makes money on his concept as a restaurateur, and not just through the sale of franchises.<br>
<br>
<b>#LAVASH</b><br>
Category: fast food cafe<br>
Investments: from 1.5 million rubles.<br>
Rating position: 7<br>
This is the second franchise of the owner of Sushi Market. It includes a patented technology for preparing shawarma (that’s what the brand’s founder calls it), and the main distinguishing feature of all establishments - be it a corner in the checkout area, a shawarma bar or street retail - is the so-called show kitchen. That is, an open kitchen in which all dishes are prepared in front of the guest. All chefs are trained by a specialist from the management company. The franchisor’s plans are to increase the network to 1,000 points by the end of 2026. This is quite realistic with an average launch time of 1 month. However, a future franchisee should be prepared for the fact that after a year of operation, the royalty for him will increase from 3.5% to 5% of revenue.<br>
<br>
<b>SHASHLYKOFF</b><br>
Category: grill bar<br>
Investments: from 15 million rubles.<br>
Rating position: 6<br>
The second franchise in terms of minimum investment in the ranking will also fall into the category of increasingly popular “meat” restaurants. The advantage of the offer from the franchisor is the presence of two partnership options: starting from scratch (then you will have to invest at least 27 million rubles) and rebranding an existing establishment (from 15 million).<br>
Grilled dishes, although profitable, are quite a troublesome item on the menu, since they require expensive equipment, highly qualified personnel and premises with special parameters. According to the franchisor's estimates, rebranding can reduce launch costs by 30-50%. We are talking about both an operating business and the adaptation of a premises in which a restaurant previously operated. To prepare for the restart, the management company provides a team of 11 people.
