SMB Foods: A Failed Franchisee

On 9 September 2020, after finishing one of his lectures on franchising, Professor Dani reflected upon his own experience of a food franchisee business that he had started in 2015 in Hyderabad, India. He returned to his hometown of Hyderabad after working for close to 4 years with Symbiosis International University, Pune. On one evening in December 2014, Professor Dani went shopping with his wife; while returning, he saw a catchy advertising billboard of Mumbo King Vada Pav in the Narayanguda area of Hyderabad. Being Maharashtrians, Mr and Mrs Dani wanted to test the taste of vada pav, which is extremely popular, especially in India’s financial capital, Mumbai, and adjoining regions. Their gastronomical experience was surprisingly pleasant; thus, on reaching home, the couple deliberated upon the viability of setting up a vada pav franchise outlet. Professor Dani thought he had identified a niche market that could be catered to; therefore, he set out to explore diverse vada pav franchises and finally shortlisted Mumbo King Vada Pav, of which he had a pleasant gastronomical experience a few weeks back. Shortly, Professor Dani began his venture-SMB Foods; however, hardly within a span of 15 months, he was in a dilemma on whether he should continue the business or close its operations.