How much does it cost to open Wow! Momo? Unfortunately, Wow! Momo does not allow franchising at this time. All 480 stores are company owned and operated even though there’s a lot of demand from prospective franchise operators.
But if Wow! Momo ever changes their business strategy, I’ve conducted an evaluation of the company and my thoughts on whether or not the chain would be a good investment. If you want to invest in a growing business that is accepting franchisees, take our 7-minute franchise business quiz.
Financial Requirements and Fees
Since you cannot franchise a Wow! Momo, there are no details as to how much the financial requirements and fees are. However, there is an unofficial estimate that to franchise a Wow! Momo, the initial investment is Rs 1 Lakh to Rs 8 Lakhs and the franchise fee is INR 25,000 + GST. But do note that these details are unofficial and it is still best to talk to Wow! Momo representatives if you intend to do business with them and bring Wow! Momo to your area.
Average Sales / Revenue per Year
According to Inc42, Wow! Momo’s revenue for the year 2021-2022 was INR 219.8 Cr. It rose from INR 106 Cr which was their revenue in the previous year.
Wow! Momo Franchise Facts
|Does Not Allow Franchising
|South Asian Cuisine
Wow! Momo was created by Binod Homagai and Sagar Daryani in 2008 in Kolkata. They were schoolmates in St. Xavier’s Kolkata and on their final year, they decided to put up a momo business that was unlike any other. Thus, Wow! Momo was born.
Momos are steamed dumplings that are filled with vegetables or meat. At Wow! Momo, their menu includes momos that are filled with more than just the usual. They have Cheese Momos, Augratin, Sizzlers, Butter Masala Momo, Darjeeling Momo and many more. They also created a MoBurg which is a hybrid of a momo and a burger.
According to the founder Sagar Daryani, all Wow! Momo locations are company owned. The owners warned in their website that any franchise model being distributed online is not affiliated with them and should be reported to them.
The business is still run by the founders to this day. Wow! Momo’s headquarters is located in Kolkata.
How Much Does Wow! Momo Make in Profit?
It is not known how much Wow! Momo makes in profit but according to a report, their EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 43.13 % for the financial year ending in March 31, 2022.
Advantages of a Wow! Momo
Become more than a franchisee.
If you could franchise a Wow! Momo, then these are the advantages you can expect in running this momo chain in your area:
Brand: Wow! Momo has a brand name that’s known by everyone in India. With over 400 stores nationwide, their chain is easily spotted. They’ve also been around for 15 years so one can say that if it’s a momo place you’re looking for, it’s Wow! Momo that comes to mind.
Simple and Innovative: As mentioned above, Wow! Momo doesn’t just sell steamed dumplings filled with meat and vegetables. They have different varieties of momos which is probably the reason why they’re so popular in the first place.
Aside from momos, the brains behind the business also came up with Wow! China and Wow! Chicken. Wow! China caters to Indian food with an influence in Chinese cuisine such as Hot and Sour Soup and Shanghai Veggie Spring Roll while Wow! Chicken offers fried chicken served with rice and with different flavors such as Lemon Pepper and Chilli Peri Peri Madness.
Strong Revenue Growth: Wow! Momo has demonstrated a remarkable ability to increase revenue, with a more than twofold surge in revenue in FY2021-22, reaching INR 219.8 Crores. This indicates strong market demand. You can’t increase revenue unless you’re growing.
Potential for Brand Expansion: With a strong brand identity, Wow! Momo has the potential to expand beyond India, possibly even internationally, leveraging the growing global interest in diverse cuisines.
Challenges of a Wow! Momo Business
Wow! Momo’s potential for growth could skyrocket if they embrace franchising.
There are several challenges I see when evaluating the Wow! Momo business. Here are a few:
Company Operated: It has been made clear that Wow! Momo doesn’t allow franchising of their business but can you imagine if they finally opened their doors and allowed franchising? A lot of people would be interested in a momo business like Wow! Momo and many might even be interested to bring this internationally. Their sales would also go up. So hopefully, Wow! Momo might entertain the thought of having the business be franchised real soon.
Revenue and Growth: The company’s revenue is in the range of INR 100 – 500 cr, indicating significant business operations. However, a key risk is maintaining this growth trajectory, especially in a competitive food industry where consumer preferences can quickly change.
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Negative Return on Equity: A concerning figure is the -25.47% return on equity. This indicates that the company is not generating positive returns for its shareholders, which could be a red flag for potential investors and a sign of underlying inefficiencies. This is something I would want to understand at a deeper level before investing in.
In the case of Wow Momo Foods, the negative return on equity means the company is losing money instead of making it, based on the money that shareholders invested. It’s like the lemonade stand example: investors put in money expecting profits, but the company is losing value, just like how the lemonade stand lost money. This is why a negative return on equity is usually seen as a bad sign.
Debt-to-Equity Ratio: The debt-to-equity ratio is 0.61. While this is not excessively high, it indicates a reliance on debt financing. There’s a risk if the company cannot service its debt due to fluctuating revenues or increasing interest rates. A sudden change in consumer taste preferences or a recession that impacts of diners wallet could impact cashflows and debt servicing.
Is the Wow! Momo Franchise Right For You?
In India, a chain of momo restaurants have taken the nation by storm. Momos, which are a South Asian kind of dumplings filled with meat or vegetables are quite popular in the Indian cuisine. One restaurant that’s well-known in the country is Wow! Momo and they’ve been in business since 2008. They’ve grown to over 480 locations at present and they’re still expanding. But they are not sin not open for franchising, you’ll have to look at other options as of the moment.
What is an alternative Wow! Momo franchise?
If it’s Indian cuisine you’re still interested in, check out Curry Up Now. They’re a chain serving Indian Street Food so their menu is filled with a variety of delectable eats such as biryani, samosa, pani puri and naan. To franchise Curry Up Now, expect the initial investment to be around $392,000 to $1,671,500 with a franchise fee of $35,000.
We’re looking forward for the day Wow! Momo finally decides to offer up the business for franchising. But for now, we hope the alternative suggestion was helpful and that you’ve learned a lot about Wow! Momo from this guide. I also suggest watching this video on YouTube about the founders. They have an inspiring food business story.