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A COMPARATIVE STUDY OF MALLS AND HIGH STREET AS A LOCATION CHOICE FOR STARTING A FOOD FRANCHISE IN MUMBAI AND PUNE

Dipti Periwal

Abstract


Abstract- The purpose of this paper is to find out which location is more profitable to start a food franchise, Malls or High Streets. The traditional retail business is in the center of a storm due to the rise of online business. The foot traffic in the mall is 45 percent higher than that of the high street and the mall goers have a variety of activities to undertake; thus, the customers stay longer by 30 minutes in the malls as compared to the high street locations. However, there are areas where the high street is better than the mall for operating a food franchise business. The ratio of the rent to service charges are high in the mall as compared to the high street as high street has a rent to service ratio of 10:1 while malls have a ratio of 5:1. The rents in the malls and other charges such as electricity and Common area maintenance are also very high, This paper has also analyzed impact of online delivery services like Swiggy and Zomato on sales of the franchise as they prefer to pick up parcels from high streets rather than malls. The research discovered favorable votes for High streets after conducting a primary research on 30 franchise retailers in Mumbai and Pune region. This study was limited to Mumbai and Pune region only and found which location is more viable to start a food franchise.


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References


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