Food Franchise : Unearthing the culinary goldmine of India

Food Franchise : Unearthing the culinary goldmine of India
Introduction

In the bustling streets of India, where the aroma of spices and the sizzle of tandoors pervade the air, lies a burgeoning opportunity for aspiring entrepreneurs – the food franchise industry. With the Indian food retail sector expected to reach a staggering $827 billion by 2023, the landscape is ripe with potential for those ready to embark on a culinary adventure. (Indian Food Retail Sector | Business Standard)

In 2023, the Indian foodservice profit sector boasted a remarkable market size of approximately $46 billion, and it’s projected to grow at a CAGR of over 10.6% from 2022 to 2027 according to reports by Global Data​. This represents not just a business venture but a chance to be part of a cultural phenomenon that marries traditional flavors with modern entrepreneurial spirit.

The diversity of India’s palate, ranging from the spicy street foods of Delhi to the tangy flavors of South India, has paved the way for a multitude of franchise opportunities. These range from low-investment kiosks to high-end restaurant chains, each offering a unique taste and experience. The popularity of food franchise is further bolstered by the Indian population’s growing disposable income and their increasing inclination towards branded food outlets, as reported by the National Restaurant Association of India. (NRAI)

Budget Bites

Budget Bites: Affordable Food Franchise

India’s food franchise sector presents lucrative opportunities even for those with limited investment capacity. The low-investment category, typically ranging under Rs. 10 Lakh, is a playground for diverse and innovative culinary concepts. This segment caters to the rising trend of convenience and street food, which has seen a surge in demand, especially in bustling urban and semi-urban areas

Amul

Amul, synonymous with quality dairy products in India, offers a lucrative opportunity for entrepreneurs through its franchise model. As a pioneer in the Indian dairy industry, Amul’s franchise system leverages the brand’s strong recognition, comprehensive support, and robust supply chain. (Amul Franchise)

Types of Amul Franchise Outlets
  • Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk
  • Amul Ice-Cream Scooping Parlour
Cost Breakdown
Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk
  • Space Required: 100-150 sqft
  • Total Investment: Approximately Rs. 2.00 Lakh
    • Refundable Brand Security: Rs 25,000
    • Renovation: Rs 1,00,000 (approx.)
    • Equipment: Rs 70,000 (approx.) plus incidental cost
  • Retail Margins:
    • Pouch Milk: 2.5%
    • Milk Products: 10%
    • Ice Cream: 20%
Amul Ice-Cream Scooping Parlour
  • Space Required: More than 300 sqft
  • Total Investment: Approximately Rs. 6.00 Lakh
    • Non-Refundable Brand Security: Rs 50,000
    • Renovation: Rs 4,00,000 (approx.)
    • Equipments: Rs 1,50,000 (approx.) plus incidental cost
  • Retail Margins:
    • Recipe-based ice cream scoops/sundaes/floats/shakes/etc.: About 50%
    • Pre-packed ice creams: 20%
    • Other Amul products: 10%

Chai Calling

Chai Calling has emerged as a prominent name in the tea cafe franchise sector in India. With a unique QSR concept, the brand stands out for offering a wide variety of tea and snacks, tailored for quick hangouts and social gatherings. They have successfully established over 110 outlets across India and abroad. (Chai Calling Franchise)

Types of Chai Calling Franchise Outlets
  • Franchise Express Model: A small QSR format with an area of about 100-200 sq. ft.
  • Franchise Cafe Model: A larger setup ranging from 500-1000 sq. ft., offering a more extensive range of snacks and tea.
Cost Breakdown for Chai Calling Franchise
Franchise Express Model
  • Investment Range: Approximately INR 2 Lac – 5 Lac
  • Franchise/Brand Fee: INR 150,000 for unit/brand fee
Franchise Cafe Model
  • Investment Range: Approximately INR 2 Lac – 5 Lac (for larger setups, the cost might vary)
  • Franchise/Brand Fee: INR 200,000 for unit/brand fee

ChiQueen

ChiQueen, a well-known fried chicken franchise in India, offers an appealing business opportunity for entrepreneurs interested in the food and beverage industry. Established in 2020 by Binu Joseph and headquartered in Alappuzha, Kerala, ChiQueen has successfully started its franchise operations, emphasizing a quick setup time and efficient business model. (ChiQueen Franchise)

Cost Breakdown for ChiQueen Franchise
  • Total Investment: Ranges from Rs.1 Lakh to Rs.2 Lakhs.
  • Unit/Shop Area: Requires a space of 100 – 200 Sq. Ft.
  • ROI Timeframe: Approximately 3 – 6 months.
  • Franchise Fee: The exact amount is not disclosed.
Revenue and Support
  • Commission/Revenue Sharing: Franchisees receive flat 100% commission with no royalty to the brand.
  • Support: ChiQueen provides comprehensive support to franchisees, including menu planning, cooking training, food presentation training, and various marketing supports.

Burger Hut

Burger Hut, a notable burger franchise in India, presents an exciting business opportunity for entrepreneurs looking to enter the fast-food industry. Founded in 2015 by Gurjant Singh and headquartered in Amritsar, Burger Hut has established a presence with its delectable and affordable offerings. The franchise, which commenced operations in 2020, aims to expand across India, focusing on areas like Madhya Pradesh and Chhattisgarh.

Cost Breakdown for Burger Hut Franchise
  • Total Investment: Approximately Rs.3 Lakh to Rs.7 Lakh.
  • Franchise Fee: Ranges from Rs.2 Lakh to Rs.5 Lakh.
  • Infrastructure Investment: Between Rs.1 Lakh and Rs.2 Lakh.
  • Unit/Shop Area: Requires a space of 100 – 200 Sq. Ft.
  • ROI Timeframe: Estimated at 12 – 18 months.
  • Commission/Revenue Sharing: Franchisees can expect a commission of 90% – 100%, with the brand’s royalty ranging from 1% to 10%.
Support and Training

Burger Hut provides comprehensive support to its franchisees, including assistance in site selection, setup support from the head office, detailed operating manuals, and proper training. The brand also offers ongoing support in areas such as menu planning, cooking training, food presentation, and marketing.

Tibbs Frankie

Tibbs Frankie offers a franchise opportunity in the fast food industry, particularly known for their rolls and wraps. Established in 1969, Tibbs Frankie has become a notable name with over 300 outlets across 15 cities in India. (Tibbs Frankie Franchise)

Investment and Space Requirements
  • Investment Range: INR 5 Lac – 10 Lac
  • Area Requirement: 75 – 200 Sq.ft

Franchise Details

  • Franchise/Brand Fee: INR 200,000
  • Anticipated Return on Investment: Around 70%
  • Payback Period: Approximately 7-10 months
  • Exclusive Territorial Rights: Provided to unit franchisee
  • Franchise Term: 5 years, renewable
Support and Training

Tibbs Frankie provides detailed operating manuals, field assistance, expert guidance from the head office, and inclusion of current IT systems in the franchise setup.

Moderate Stakes

Moderate Investments : Maximum Impact Food Franchise

Stepping into the realm of medium investment food franchises opens up a world of diverse and dynamic business opportunities. This is tailor-made for entrepreneurs ready to invest a bit more for higher returns. Here, we explore a variety of franchises that strike the perfect balance between investment and profitability. From trendy cafes to specialty cuisine outlets, these businesses are designed for those looking to make a significant impact in the food industry. Get ready to uncover franchises that offer a blend of brand recognition, comprehensive support, and the potential for substantial growth.

Giani

Giani’s Ice Cream, a premium brand since 1956, offers an exciting franchise opportunity in India. Known for its real taste and diverse menu, Giani’s has more than 250 stores across the country. (Giani Franchise)

Cost Breakdown for Giani’s Franchise
  • Area Required: 80-400 Sq. Ft.
  • Total Investment: Approximately INR 13-16 Lakhs.
  • Franchise Fee: INR 6 Lakhs.
  • Gross Margins: Around 50%.
  • Average Return on Investment (ROI): 12-15 Months.
Support and Training

Giani’s provides extensive support in site selection, store designing, construction, and marketing. They offer ongoing training to maintain quality and brand consistency.

Wow! Momo

Wow! Momo, a renowned name in the fast-food industry, specializes in offering a variety of momos. Starting a franchise with them can be a promising venture due to their established brand presence and innovative menu.

Franchise Models and Cost

Wow! Momo offers different franchise models:

  • Distributorship:
    • Form Charge: Rs. 35,000 + GST.
    • Required Investment: Rs. 15-20 Lakhs (Refundable with Bank Interest).
    • Space: 1000–2000 sq. ft.
    • Profit Margin: 50%.
  • Franchise:
    • Form Charge: Rs. 35,000 + GST.
    • Required Investment: Rs. 8-15 Lakhs (Refundable with Bank Interest).
    • Space: 250-800 sq. ft.
    • Profit Margin: 50%.
  • Kiosk (Takeaway Only):
    • Form Charge: Rs. 35,000 + GST.
    • Required Investment: Rs. 8-15 Lakhs (Refundable with Bank Interest).
    • Space: 250-800 sq. ft.
    • Profit Margin: 50%.
Profit Potential

Franchise owners can expect to make a monthly profit of around Rs. 95,000, with the possibility of recovering their investment within 8-9 months. This is based on certain assumptions like daily sales, operational costs, etc.

Training and Support

Wow! Momo provides extensive training and support, including a comprehensive 2-week training program covering product knowledge, menu development, customer service, and marketing strategies. Franchisees also receive ongoing support in operations management, quality control, and supply chain management.

Chowringhee Foods

Chowringhee Food Pvt Ltd, known for its Kathi rolls and Tandoori Momos, offers a franchise opportunity in the fast food category. Founded in 2004, the brand has established a presence in Delhi NCR and is expanding its network.

Cost Breakdown and Requirements
  • Investment Range: INR 5 Lac – 10 Lac
  • Franchise Fee: INR 4 Lac
  • Royalty/Commission: 4%
  • Anticipated Return on Investment: 50%
  • Payback Period: 1-2 Years
  • Space Requirement: 200 – 300 Sq.ft
  • Franchise Term: 5 Years (Renewable)
Support and Expansion

Chowringhee offers comprehensive support including trained staff, operational support, marketing, and central purchasing. The brand is looking to expand across various regions in India, including North, South, East, West, Central regions, and Union Territories.

Yummerica Fries

Yummerica Fries, a popular fast food franchise in India, offers a business model focused on serving a variety of fries, appealing to the growing fast food market in the country.

Cost Breakdown for Yummerica Fries Franchise
  • Total Investment: Around Rs. 8 Lakhs to Rs. 13 Lakhs.
  • Franchise Fee: Approximately Rs. 300,000.
  • Infrastructure Investment: Between Rs. 5 Lakhs to Rs. 10 Lakhs.
  • Unit/Shop Area: Requires a space of 250 – 300 Sq.ft.
Revenue and Support
  • Commission/Revenue Sharing: Franchisees can expect around 65% commission with the brand receiving approximately 35% royalty.
  • ROI Timeframe: The expected timeframe to reach breakeven is about 1 year.
Additional Details
  • Franchise Tenure: 3 years.
  • Location: Pan India availability.
  • Support: The brand offers comprehensive support including menu planning, cooking training, and interior design support.

Tea Factory

The Tea Factory is a rapidly growing chain of tea cafes in India, known for its quality and variety in tea and snacks. Launched in 2014 by entrepreneur Shashank Sharma, it has become a popular destination for tea lovers. (Tea Factory Franchise)

Investment and Franchise Details
  • Investment Range: INR 5 Lac – 10 Lac.
  • Franchise Fee: INR 250,000.
  • Royalty/Commission: 4%.
  • Space Requirement: 500 – 3000 Sq.ft for different franchise models.
  • Franchise Models: Includes Takeaway and QSR (Quick Service Restaurant) options.
  • Expected Monthly Sales: Varies with franchise model; for example, the QSR model expects around INR 6 lakh.
  • Profit Margin: Approximately 30%.
Support and Training

The Tea Factory provides comprehensive support and training to its franchisees, including operating manuals, franchisee training at the company’s store outlet, and expert guidance from the head office.

High Stakes

High Stakes, Higher Rewards: Premium Food Franchise Opportunities

In the high investment food franchise segment, the stakes are higher, but so are the rewards. This section is dedicated to exploring prestigious food franchise opportunities, ideal for seasoned entrepreneurs and investors looking to make a grand entrance into the food industry. These franchises, ranging from gourmet dining to international fast-food chains, demand a significant investment but offer the allure of high returns and brand prestige. Here, we navigate through the elite world of high-investment franchises, showcasing opportunities that promise not just financial gains but also the chance to be part of a globally recognized brand legacy.

Cocoberry

Cocoberry, recognized as a prominent player in the dessert franchise sector in India, specializes in frozen yogurt. The brand, founded in 2009 by G S Bhalla, has established a significant presence with about 30 franchise outlets across the country. (Cocoberry Franchise)

Investment and Cost Breakdown
  • Total Investment: The investment to start a Cocoberry franchise ranges from Rs. 46 Lakhs to Rs. 56 Lakhs.
  • Franchise Fee: Approximately Rs. 600,000.
  • Infrastructure Investment: Between Rs. 40 Lakhs to Rs. 50 Lakhs.
  • Unit/Shop Area: The space requirement is about 250 – 500 Sq. Ft.
  • ROI Timeframe: Expected to be around 1 Year.
Revenue Sharing and Support
  • Commission/Revenue Sharing: Franchisees can expect approximately 65% commission, with the brand taking around 35%.
  • Support: Cocoberry offers extensive support, including menu planning, cooking training, and partial marketing support.
Training and Marketing

Cocoberry provides regular menu training and a training helpdesk. The franchise also supports with unit interior and exterior ads and local advertising. However, it does not provide support in digital marketing, television, or prints advertising.

Haldiram’s

Haldiram’s, a renowned brand in the Indian food and beverage industry, offers franchising opportunities with significant investment and potential for profitable returns. Here’s a comprehensive breakdown of the costs, requirements, and other details for starting a Haldiram’s franchise.

Investment and Cost Breakdown
  • Franchise Fee: Approximately ₹30-40 lakhs.
  • Setup and Construction Costs: Minimum ₹1 crore for a high model.
  • Interior Decor and Furniture: Approximately ₹20 lakhs to ₹50 lakhs.
  • Equipment Cost: ₹50 lakhs to ₹70 lakhs.
  • Net Worth: ₹10 Crore with available liquidity of ₹5 Crore.
  • Total Initial Investment: Ranges between ₹1 Crore to ₹5 Crore​​.
Different Franchise Models and Their Costs
  • Kiosk Model: Estimated cost between ₹5 lakhs to ₹10 lakhs.
  • Casual Dining: Estimated cost between ₹10 lakhs to ₹20 lakhs.
  • Quick Service Restaurant (QSR): Estimated cost between ₹20 lakhs to ₹30 lakhs​​.
Space Requirements
  • Kiosk Model: Requires 75-100 sq. ft.
  • Casual Dining and QSR Models: Need a space between 1000-1500 sq. ft​​​​.

Profit Margin

Haldiram’s franchises are known for their healthy profit margins, primarily due to the brand’s strong customer loyalty and demand. The profit margin generally lies around 15-20%, though this can vary based on several factors such as location, chosen franchise model, and the franchisee’s management efficiency​​.

Documentation and Support

Required documents include personal identification, address proof, property documents, business registration documents, and necessary licenses. Haldiram’s provides comprehensive operational manuals and training to assist franchisees in setting up and managing their business successfully

Domino’s Pizza

Domino’s Pizza is a popular franchise in India with a significant market presence. If you’re considering opening a Domino’s franchise, here’s an overview of the process, requirements, and costs involved. (Domino’s Pizza Franchise)

Cost and Investment
  • Franchise Cost: Opening a Domino’s Pizza franchise in India requires an investment of approximately ₹60 Lakh to ₹80 Lakh. This cost is relatively lower compared to other countries. A traditional pizza outlet might cost up to ₹50 Lakhs, while an alternative outlet could be around ₹30 Lakhs​​.
  • Store Size: The recommended minimum store size ranges from 600 to 2,000 square feet, varying based on the type of outlet (dine-in, delivery, carryout, or express outlet)​​.
Basic Requirements
  • Location: A populated area is preferred to ensure high customer footfall.
  • Infrastructure: The franchise requires modern kitchens and delivery infrastructure.
  • Workforce: A team of 5 to 7 people is needed, with skills to handle fast-paced operations and customer service​​​​.
  • Delivery Services: Provision for delivery services is essential, including having a team of delivery drivers​​.
Training and Support

Domino’s provides comprehensive training and ongoing support in areas like operations, management, marketing, and product preparation to ensure adherence to brand standards​​​​.

Profit Potential

The potential for profit with a Domino’s franchise in India depends on factors like location, store size, marketing efforts, competition, and ongoing expenses. Effective management and a strong work ethic are crucial for success​​.

Subway 

Subway, a globally renowned sandwich QSR chain, presents a significant business opportunity in India. Known for its customizable sub sandwiches and salads, Subway has become a popular choice across various demographics in India. (Subway Franchise)

Cost Breakdown for Subway Franchise
  • Franchise Cost: INR 6 L – INR 11.9 L
  • Franchise Fee: INR 6.5 L
  • Outlet Interiors: INR 6 L – INR 8 L
  • Advertising & Royalty Fee: 3.5% – 8%
  • Minimum Investment: INR 24 L – INR 30 L
  • Equipment: INR 30 L – INR 40 L
  • Minimum Area Requirements: 170 sq. ft (food-court), 350 sq. ft (non-food court)
  • Inventory: INR 1.2 L – INR 1.7 L
  • Anticipated Profit or ROI: Around 40% – 50%
Additional Information
  • Profit Margin: Estimated profit ranges from 30% – 45% within 24 to 30 months.
  • Personnel Required: Minimum of 8 people
  • Support and Training: Subway provides comprehensive training, design support, store development assistance, and ongoing operational support.

Moti Mahal Delux

Moti Mahal Delux, with its roots dating back to 1920, stands as a prestigious name in the Indian culinary world, renowned for its authentic Mughlai cuisine. The brand, known for inventing Tandoori cuisine and Dal Makhani, has over 100 restaurants globally, offering various franchise models such as Moti Mahal Barbecues, MM Cafe, and China Wall. This diverse range caters to different market segments, allowing franchisees to choose a model that aligns with their business aspirations. (Moti Mahal Franchise)

Franchise Models and Investment
  • Kiosk Model
    • Investment Plan: 18 to 20 Lakh
    • ROI: Within 1 to 1.5 years
  • Moti Mahal Barbecues
    • Investment Plan: 1 to 1.5 Crore
    • ROI: Within 2.5 to 3 years
  • Casual Dine
    • Investment Plan: 40 to 50 Lakh
    • ROI: Within 1 to 1.5 years
  • Fine Dine
    • Investment Plan: 70 to 80 Lakh
    • ROI: Within 2 to 2.5 years
Support and Training

Franchisees receive comprehensive support, including site identification, market surveys, architectural designing, kitchen planning, vendor management, and training. This support extends to pre-operation stages like staff recruitment, menu planning, licensing, and marketing strategy. Post-operation support includes quality control, sales optimization, marketing strategy, staff management, and renewal of licenses.

Franchise Requirements
  • Area Requirement: Approximately 1500 – 1800 sq. ft.
  • Investment Range: INR 50 Lac – 1 Cr.
  • Franchise/Brand Fee: Approximately INR 10,00,000
  • Royalty/Commission: Details are not explicitly mentioned but are part of the franchise agreement.
Conclusion

Conclusion : The Journey from Investment to Innovation in Food Franchising

In conclusion, the landscape of food franchises in India presents a robust opportunity for entrepreneurs looking to venture into the dynamic world of gastronomy. The diversity of tastes and regional cuisines in India provides a fertile ground for both established and budding franchises to thrive, catering to the vast and varied palate of the Indian consumer. As the sector continues to grow, supported by increasing consumer spending and a thriving middle class, the potential for scalable success in this industry looks promising.

For those intrigued by the prospect of delving further into the franchise industry, our other articles on various franchise opportunities provide comprehensive insights that could help steer your entrepreneurial journey. Whether you’re interested in cooling off with an ice cream franchise, embracing wellness with Ayurveda, stepping into the profitability of footwear, enhancing beauty services, or exploring other exciting franchise ventures, our detailed explorations on the Venture Kites website offer valuable guidance and crucial market intelligence.

Each article is designed to equip you with the knowledge needed to make informed decisions in the diverse franchise landscape of India. We invite you to read these recommendations and consider which sector may best suit your business aspirations and market understanding.

Creative Head – Mrs. Shemi K Kandoth

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