Franchwise, the largest franchise consulting company in Romania, estimates that around 150-200 new franchises open in the local HoReCa sector every year. The investment in such franchises starts from 30,000 euros and can reach over 300,000 euros, depending on the size of the restaurant.
“The minimum investments in the HoReCa sector start from 30,000 – 40,000 euros for an island franchise from brands like Hello Donuts or from 50,000 – 60,000 euros in a small location for a brand like Bubble Waffles, for example. If we talk about quick service restaurants (QSR), the required budget starts from 100,000 euros while for restaurants with larger surfaces, over 250-300 sqm, the required investment is approximately 1,000 euros/sqm, and can reach over 300,000 euros”, said Raluca Voicu, Franchwise Brand Ambassador.
The company’s data shows that the investment’s recovery period is generally between 2.5-3 years for the premium locations, and the break-even point is reached in 2-3 months. However, for good financial management of franchised locations, it is recommended to have a reserve fund that covers 4-6 operational months.
“There are businesses that are booming, such as Ted’s Coffee, Treevi Pizza, Hello Donuts, Leonidas, Simigeriile Petru or Tucano, and that continue to grow by 20-30% from year to year. There are also businesses and chains that have reached maturity or are redefining how to make a better profit”, added Raluca Voicu.
In Romania, in the HoReCa sector, franchises are very visible, both through local businesses that have grown through franchising (SaladBox, Ted’s Coffee, 5 To Go) and through large international brands operated under franchise regimes (McDonald’s, KFC, Starbucks, Pizza Hut, Subway, and various hotel chains).
Established in 2011, Franchise is the largest consulting company specialising in the field of franchises in Romania, contributing to the development of the Romanian entrepreneurial environment. To date, Franchwise has helped over 60 companies in Romania to expand through the franchise system and has developed over 300 franchise projects in the market, with investments totaling over 22 million euros.
