India’s quick-service restaurant (QSR) market is projected to grow at an annual rate of around 23% between FY21 and FY25. In FY20, the overall food services market was valued at ₹4,236 billion, with organised QSRs making up ₹348 billion of that. The growth in this area will be led by QSR chains, which made up 54% of the market in FY20. According to Edelweiss, this figure is expected to reach 64% by FY25. The fast food franchise business is growing in India, with a lot of people opting for this route instead of starting a new venture from scratch. Launching a new business can be quite a hassle, but with a fast food franchise, you can jump into the industry with the backing of a well-established brand. In this blog, we’ll look into some of the most profitable QSRs in India, providing insights into the profit margins and investment costs associated with these franchises to help you understand the financial overview and determine the best food franchise
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Ajay’s Cafe
Gujarat’s fastest growing food franchise Ajay’s Cafe has been in the fast food business for the last 10 years. They are known for serving the best burgers, pizzas and coffee. Ajay’s Cafe entered the franchise market in the year 2018 and since then they have opened 165 franchise outlets in 42 cities all over the country. Ajay’s Cafe offers an affordable franchise model for new QSRs passionate people. The minimum area requirement to own an Ajay’s cafe franchise is 400 sq. ft.
The investment for the franchise is approximately ₹15 lakhs is significantly lower than most franchises and with no royalty fees, your profits are maximised. Ajay’s Cafe manages the entire outlet setup, ensuring a smooth launch and a fast payback period for all its locations.
Ajay’s Cafe offers comprehensive support throughout your journey, from selecting the perfect location before opening to providing ongoing operational guidance and staff training. They even take care of initial marketing and branding, ensuring your cafe starts strong.
Investment: ₹15 lakhs
Return on Investment Duration: 15 to 18 months
Outlet count: 165 outlets in 42 cities
Haldiram’s
Haldiram’s is well-known for its snacks, desserts and a wide range of prepared meals. With stores in various metro cities and urban, Haldiram offers three different types of franchise models: quick service restaurants, kiosks and casual dining where people can enjoy their meals at the restaurant. However, starting a restaurant requires a significant investment of around ₹1-4 crores. This covers rent, staff salaries, utility bills, food supplies and more, with costs potentially rising to ₹15-18 crores. The required space is approximately 4000-5000 sq ft.
Haldiram’s began in Bikaner in 1941 as a small shop and has now expanded to about 80 countries, becoming the largest snack company. Haldiram’s is currently serving a monthly profit margin of ₹2-5 lakhs to their fast food franchises.
Investment: ₹1-4 crores
Profit Margin: ₹2-5 lakhs/month
Outlet count: 150 outlets in 23+ countries
Belgian Waffles
Belgian Waffle is one of the best food franchise businesses in India. Since 2015, they’ve been serving delicious on-the-go sandwich waffles and now boast over 565 stores in more than 199 cities. With an initial investment of around ₹12 lakhs, which includes ₹3.5 to 5 lakhs for franchise fees and about ₹8.5 lakhs for setup costs in a cafe model, you can open a franchise. They do take an 8.5% royalty fee, but the strong support and brand recognition make it worthwhile.
To start a franchise, you need a minimum of 200 sq ft of space. The profit margin is impressive, standing at 20% on sales, making it a lucrative option. People love the taste and convenience of Belgium Waffle, making it a smart choice for anyone looking to enter the food industry.
Investment: ₹12 lakhs initially
Profit margin: 20% on sales
Outlet count: 565 stores in 199+ cities
Wow! Momos
Wow! Momo is a fantastic example of a profitable fast food franchise in India. Founded in 2008, this fast-food chain specialises in dumplings, momos and other Nepalese and Tibetan delicacies. With over 1120 outlets in more than 16 Indian cities and a valuation of ₹860 crores, Wow! Momo has certainly made its mark.
Starting a Wow! Momo franchise requires an investment between ₹1 lakh to ₹8 lakhs. You’ll need a food licence, space for the outlet, electricity and the necessary permits and equipment. Franchise owners can expect a profit margin of ₹85,000 to ₹1 lakh monthly.
Investment: ₹1 lakh to ₹8 lakhs
Profit margin: ₹85,000 to ₹1 lakh/month
Outlet count: 1120 outlets in 16 cities
Chai Sutta Bar
Chai Sutta Bar is quickly becoming one of the most profitable food franchises in India. Launched in 2016, it now has over 550 outlets in more than 320 cities, catering to the nation’s love for tea. Setting up a Chai Sutta Bar outlet requires an investment of about ₹30 lakhs, which includes a brand fee of ₹6 lakhs plus GST.
The investment covers all necessary equipment and furniture, tailored to the shop size and location. Marketing support is robust, with brochures, pamphlets and other materials provided to ensure a strong launch and continued market presence. Franchisees receive extensive field assistance, a detailed training program and operating manuals for smooth operations.
With a royalty fee of just 4%, profit margins range from 35% to 40% or around ₹90,000 per month. The return on investment is an impressive 108%, with a payback period of 12 to 15 months.
Investment: ₹30 lakhs initially
Profit margin: 35% to 40% (₹90,000/month)
Outlet count: 550 outlets in 320 cities
Tibbs-Frankie
When it comes to QRS franchises in India, Tibb’s Frankie stands out as one of the best food franchises. Founded by Amarjit Singh in 1969, Tibb’s Frankie currently has over 160 outlets across fifteen Indian cities. However, two franchise outlets cannot be too close to each other and should ideally be located in malls or crowded areas.
Starting a Tibb’s Frankie franchise requires an investment of ₹3 lakhs to ₹5 lakhs. You’ll need a spacious outlet, basic infrastructure, equipment, decor, licences and a dedicated team. The profit margin for a Tibb’s Frankie franchise is around ₹30,000 monthly.
Investment: ₹3 lakhs to ₹5 lakhs
Profit margin: ₹30,000/month
Outlet count: 160+ outlets in 15 cities
The Chocolate Room
The Chocolate Room, launched in Ahmedabad in 2007, has swiftly become one of the most profitable food franchises in India. With over 300 outlets across 50+ cities, it’s a favourite among chocolate enthusiasts. Opening a Chocolate Room franchise requires an investment of ₹30-35 lakhs, which includes a ₹10 lakh franchise fee plus GST.
This franchise model comes with a fully equipped kitchen, complete with a suitable platform and workspace, adding to the initial investment. The company provides chefs and employees, ensuring you have a skilled team ready. The required area for a franchise is between 500 and 700 sq. ft.
With an 8% royalty fee, franchisees can expect a monthly profit of ₹2 to ₹3 lakhs.
Investment: ₹30-35 lakhs initially
Profit margin: ₹2 to ₹3 lakhs /month
Outlet count: 300+ outlets in 50+ cities
Concluding Thoughts
As the fast food franchise market in India continues to grow, Ajay’s Cafe stands out as a top choice for aspiring entrepreneurs. With a proven track record of supporting over 100 first-time franchisees, Ajay’s Cafe offers a support system that includes comprehensive training, marketing assistance and operational guidance.
With its popular menu and strong brand recognition, Ajay’s Cafe is not just the best fast food franchise but a pathway to a profitable and rewarding venture. Seize the fast food opportunities with Ajay’s Cafe and join a successful network that’s redefining the fast food business in India.