The cafe culture in India is booming! Owning a cafe franchise can be a lucrative and fulfilling venture. But hefty initial investments might hold you back. This blog unveils the top cafe franchise options in India, perfect for aspiring entrepreneurs. We’ll explore investment ranges, space requirements and potential return on investments (ROI) for each brand. So, grab a cuppa and read on!
Table of Contents
Ajay's Cafe
With the Indian QSR sector growing rapidly, Ajay’s Cafe is a great choice for first-time entrepreneurs who want to take advantage of this exciting market. Their low investment, comprehensive support, and delicious menu make them a winning franchise opportunity.
Their unique franchise model is ideal for new business owners. With an investment of around ₹15 lakhs and a space of 400 sq. ft., Ajay’s Cafe makes franchising accessible to more people.
|
Investment (₹) |
15 Lakhs |
25 Lakhs |
50 Lakhs |
|
Area (sq.ft.) |
400 |
1000 |
6000 |
|
Franchise Fee (₹) |
₹0 |
₹0 |
₹0 |
|
Royalty |
0% |
0% |
0% |
|
Marketing Levy |
0% |
0% |
0% |
There are no franchise fees or royalties to pay, so franchise owners can keep more of the profits. The team of Ajay’s Cafe helps every step of the way. Their team will handle everything from finding a good location to setting up your outlet, branding, and even initial marketing.
Additionally, the franchise owner and the franchise outlet staff receive a thorough 15-day training program from Ajay’s Cafe before the opening. This compulsory training covers everything that’s required in running a successful Ajay’s Cafe franchise, from food preparation to providing excellent customer service.
After the opening, the team from Ajay’s Cafe offers ongoing support with sales and marketing strategies, regular check-ins and business advice from experienced professionals.
The Chocolate Room
The Chocolate Room is a delightful cafe franchise concept celebrating all things chocolate. With three distinct models to choose from, aspiring entrepreneurs can find the perfect fit. The standard model requires an investment of ₹50-55 lacs, including a franchise fee of ₹15 lakhs, for a spacious 800-1200 sq.ft. area. The compact model offers a more economical option, with a total investment of ₹35-40 lakhs and a franchise fee of ₹10 lakhs for a 500-700 sq.ft. space. For those seeking a smaller footprint, the kiosk model demands an investment of ₹15-20 lakhs and a franchise fee of ₹5 lakhs for a 100-300 sq.ft. area. Regardless of the model, franchisees can expect an 8% royalty on net sales and a 2% marketing levy.
|
Model |
Standard |
Compact |
Kiosk |
|
Investment (₹) |
50-55 Lakhs |
35-40 Lakhs |
15-20 Lakhs |
|
Franchise Fee (₹) |
15 Lakhs |
10 Lakhs |
5 Lakhs |
|
Area (sq.ft.) |
800-1200 |
500-700 |
100-300 |
|
Royalty |
8% |
8% |
8% |
|
Marketing Levy |
2% |
2% |
2% |
The table above will help you understand their franchise cost better.
Starbucks
Starbucks, a world-famous name synonymous with exceptional coffee and a premium cafe experience, is a perfect example of a successful food franchise opportunity in India. Established in India through Tata Alliance, Starbucks offers aspiring entrepreneurs a chance to be part of this global brand’s legacy.
|
Model |
Tata Starbucks Franchise |
|
Investment (₹) |
25-40 Lakhs |
|
Franchise Fee (₹) |
Not publicly available |
|
Area (sq.ft.) |
Not publicly available |
|
Royalty |
Not publicly available |
|
Marketing Levy |
Not publicly available |
All the above data is provided only to applicants by Tata Starbucks Pvt Ltd
Owning a Starbucks franchise means instant brand recognition and customer loyalty. Tata Starbucks provides extensive training and support to its franchisees, ensuring a smooth operation that upholds the brand’s high standards for quality and customer service. While Starbucks offers a premium coffee experience, if the focus is on a high-energy cafe with a constant buzz and repeat customers, then a brand like Ajay’s Cafe might be a better fit, as they target a younger demographic with a more casual vibe.
Ultimately, the choice between a Starbucks franchise and other food franchise opportunities depends on the entrepreneurial goals and target market.
Cafe Frespresso
Cafe Frespresso has carved a niche as one of the best cafe franchises in India, offering a delectable range of beverages and delicacies at affordable prices. Beyond its delicious coffee, the brand takes pride in its comprehensive menu prepared with utmost care and high-quality fresh ingredients, ensuring a truly satisfying cafe experience for every customer.
Aspiring franchisees can look forward to an array of benefits with Cafe Frespresso, including a supportive franchise model with one of the best investment requirements in the segment. The brand’s commitment to customisation allows franchisees to cater to local trends and clientele, while its growth-oriented and transparent work policies foster a supportive environment.
Frespresso provides comprehensive training and guidance from a team of internationally trained coffee professionals, equipping franchisees with the skills and knowledge to establish a successful business. Additionally, franchisees gain access to numerous marketing tools and hands-on assistance, from pre-opening to regular operations, ensuring a seamless start and ongoing support.
| Investment | Franchise Fee | Royalty Fee |
|---|---|---|
|
₹10 lakhs - ₹20 lakhs |
₹3 lakhs |
6% |
With an investment ranging from ₹10 lakhs to 20 lakhs, a franchise fee of ₹3 lakhs and a 6% royalty, Cafe Frespresso presents an attractive opportunity for entrepreneurs seeking a foothold in the cafe industry. The brand’s flexible formats, including master and multi-unit franchises, cater to diverse investment capacities and growth ambitions.
Momo Nation Cafe
Momo Nation Cafe presents a diverse range of franchise models catering to varying investment capacities and business goals. For entrepreneurs seeking a compact and cost-effective option, the MNC EXPRESS model offers a minimal investment starting from ₹6 lacs for a 100 sq.ft. space, with an average payback period of 9-10 months.
The KIOSK model requires an investment of around ₹8 lakhs for a 150-200 sq.ft. area ideal for high-street and food court locations. Similarly, the CLOUD KITCHEN model, designed for residential and high-street areas, demands an investment of approximately ₹8 lakhs for a 150-200 sq.ft. space, with an average payback period of 8-9 months.
For those seeking to offer a more substantial dine-in experience, the DINE-IN model offers a minimum of 300 sq.ft. area, with an investment starting from ₹12 lakhs and an average payback period of 9-10 months. Lastly, the DINNER model caters to larger spaces of at least 900 sq.ft., with an investment beginning at ₹17 lakhs and an average payback period of 8-9 months.
| Feature | MNC EXPRESS | KIOSK | CLOUD KITCHEN | DINE-IN | DINNER | |
|---|---|---|---|---|---|---|
|
Investment
|
₹6 lacs+ |
₹8 lakhs |
₹8 lakhs |
₹12 lakhs+ |
₹17 lakhs+ |
|
|
Area |
100 sq.ft. |
150-200 sq.ft. |
150-200 sq.ft. |
300 sq.ft.+ |
900 sq.ft.+ |
|
|
Payback Period |
9-10 months |
Not specified |
8-9 months |
9-10 months |
8-9 months |
|
|
Franchise |
Included in Investment |
|||||
|
Fee |
- |
|||||
|
Agreement Period |
5 Years |
|||||
Across all models, Momo Nation Cafe operates on a franchisee-owned franchise-operated (FOFO) model, with franchisee fees included in the investment amount. The brand offers a 5-year agreement period, providing ample time for franchisees to establish and grow their business.
Concluding Thoughts
The Indian cafe franchise market is growing, offering exciting opportunities for new business owners! These are some of the top cafe franchise options available.
Out of all the cafes, Ajay’s Cafe stands out as a fantastic choice, especially for first-time entrepreneurs. This Indian Quick Service Restaurant (QSR) brand, with its incredible support system for franchise owners, comes out as a great option. And what proves this point is that in just the last 3 years (since 2020), Ajay’s Cafe has helped over 100 first-time entrepreneurs become successful franchise owners.
With its popular cold coffee, great burgers and a great vibe at the cafe, Ajay’s Cafe caters to the growing demand for convenient and quality dine-in options in India. Their competitive investment costs, comprehensive support system and focus on helping new business owners make them the perfect launchpad for a cafe franchise idea!