Top 10 Food Franchises in India: A Guide to Choosing the Right One
May 05, 2023
Recent years have seen a spike in the food and beverage industry. The constant change in people’s lifestyles and the increasing demand for fast food and casual dining options have boosted this industry.
This makes the Food Franchise Business In India an attractive opportunity for all investors and entrepreneurs. However, choosing a single franchise that can potentially become a Profitable Food Franchise In India might be challenging.
While selecting the Best Food Franchises, you must scrutinise factors such as reputation, market demand, the support offered to franchisees, and your budget. This blog outlines these factors and highlights the Top 10 Food Franchises In India, helping you make an informed choice.
Popular Food Franchises in India
The Indian market is flooded with food franchise options. Selecting the Best Food Franchise in India that aligns with your budget and goals can be quite a task. We have listed out the Top 10 Food Franchise In India to get you started:
1. Domino’s Pizza
Established in 1960, Domino’s Pizza or popularly known as “Dominos”, has Fast Food Franchise outlets across the globe. Currently, CEO Russell Weiner manages its growth and operations.
In India, Jubilant FoodWorks owns Domino’s Pizza’s main franchise. This Food Chain Franchise has seen tremendous growth, with India having the 2nd largest number of outlets! This franchise requires an initial investment of INR 30–50 lakhs.
2. Belgian Waffle
Waffles is a favourite with teens, kids, and adults. Shrey Aggarwal and Alisha launched India’s first waffle business in 2015, “Belgian Waffles”. Currently, approximately 500 franchises are spread across India and Nepal!
You would need a minimum investment of INR 10–12 lakhs for its kiosk and around INR 16–18 lakhs to set up a café. This makes it one of the Cheapest Fast Food Franchise In India. It has an agreement period of three years.
3. Kentucky Fried Chicken (KFC)
KFC is now a household name and is synonymous with fried chicken. Though there have been a few competitors of late, none have matched the last and quality of KFC fried chicken. This Fortune 500 firm has more than 40000 locations worldwide. India has over 749 stores, and there still are locations where you could set up a KFC outlet.
Being one of the Top Food Franchise In India, you would have to set aside around INR 50 lakhs for a convenient location and INR 1 crore for a non-conventional location. This franchise would cost you around INR 1.5–3 crores.
Subway, as a fast food joint, prides itself on healthy food. It is popular with the health-conscious crowd. It has approximately 41,600 outlets across the world. However, there are a lot of places in India that are yet to witness a Subway.
Considering its popularity, this Fast Food Franchise is worth your investmentIt has menus created to tickle the tastebuds of Indians and intends to widen its product line too. You would need an initial investment between INR 5–25 lakhs.
5. La Pino’s
Sanam Kapoor established La Pino’z Pizza in Chandigarh in the year 2011. Today it is quite famous for its affordable and delicious pizzas and has around 500+ outlets nationwide.
Furthermore, this brand is going international and plans to launch in Dubai, the United Kingdom, Australia, Tanzania, and Canada. This Food Chain Franchise would cost you an investment of about INR 30–40 lakhs.
6. Pizza Hut
We love this American Fast-Food Franchise for its amazingly delicious pizzas. Dan and Frank Carney founded this business in Wichita, Kansas. Currently, there are 18,703 outlets all over the world.
You would need an investment of approximately INR 15–30 lakhs for this profitable Fast-Food Franchise in India. For franchise businesses with a success rate, you can easily get an unsecured business loan to take care of the funding by applying for a business loan with FlexiLoans.
7. Tibbs Frankie
If you have visited Mumbai, you must have found a Frankie outlet in every area. The food is affordable and delicious. Yes, Tibbs Frankie is one of the Cheapest Fast Food Franchise In India and a great choice for a food franchise.
Amarjit Singh founded Tibb’s Frankie in Mumbai in 1969, and its popularity has only increased with time! It has over 300 stores across 15 Indian cities. The initial investment required is around INR 5–12 lakhs only. You would require an area of 75–150 sq. ft to set up the outlet.
Haldiram is a household name. Every house has a packet of Haldiram’s Bhujia, Bakarwadi, or another trademark snack from this brand. One of India’s renowned and top brands for namkeen and sweets, it has stores in more than 80 different countries.
The investment cost depends on the store you wish to set up. You need a total investment of INR 30–35 lakhs for its namkeen and sweet store. To set up a fast food restaurant or casual dining, you must shell out around INR 1–4 crores. You can apply for an online business loan via FlexiLoans.
Mc Donalds is every child’s favourite restaurant and is very popular worldwide. McDonald’s is popular for its affordable fast food and kid meals. Their menu has undergone quite a few changes to suit Indian tastebuds. This makes it a lucrative franchise business opportunity for investors and entrepreneurs.
Though this business can be very profitable, it all depends on location, marketing, size of the restaurant, and other factors. Owning their franchise can be expensive as the investment required is a whopping INR 6.6–14 crores.
10. sWow! Momo
Everyone loves a good dumpling, and Wow! Momo has given us perfect dumplings at affordable prices. Launched in 2008, it currently has over 1120 profitable outlets.
Momos are guaranteed bestsellers, no matter where you are located. You only need an investment of INR 1–8 lakhs to get this popular Food Chain Franchise.
Factors to Consider When Choosing a Food Franchise in India
There is no shortage of funds to set up your Food Franchise India business. Banks and financial institutions offer MSME loans and collateral-free business loans that take care of the financial aspect of your business.
However, regardless of whether you choose a Restaurant Franchise In India or a Fast Food Franchise In India, you must consider these factors:
1. Know Your Budget
Before you kickstart your food franchise business in India, you must clearly estimate your budget. You will pay for the materials, staff, royalty, franchise fees, etc. Ensure you opt for a franchise that matches your budget and your criteria.
2. Market Research
To set up a business, you must conduct thorough research on the market, the demand for the product you intend to offer, the target audience, and the different brands. Compare the various Food Franchise Opportunities available.
Once you finalise a specific franchisor, research their business model, profitability, etc. Additionally, many banks offer small and collateral-free business loans; regret to know their interest rates and other benefits.
3. Competitor Information
You must know about the competitive businesses that offer similar products. In such scenarios, you must look for a different Profitable Food Franchise In India to help you tap the most consumers.
You must evaluate your financials to set up the food franchise. Clearly understand the initial investment, fees, and projected revenues. Consider investing in a franchise that offers a good return.
Furthermore, it is important to pay attention to cash flow forecasting. You can utilise online business loan calculators to check your MSME loan eligibility and opt for funding options whenever required.
5. Legal Compliance
This industry is highly regulated in India. Make sure you go through the franchise agreement and review the terms and conditions. The franchisor you are dealing with must comply with the laws and regulations.
Also, ensure the franchisor completes the trademark registration, and you have the rights to its usage in the desired franchise location. As a franchisee, you will be liable for tax payments on the income earned. Consult with a tax expert, clarify the tax implications, and ensure you comply with the tax laws.
6. Franchisee Training and Support
Opt for a franchisor who provides franchisee training and support to ensure that your food franchise business succeeds. Franchisors who offer training to the Franchisee at every stage of the business, like site selection, marketing, and operations, are the Best Food Franchises to invest in.
Look for a franchisor that offers support in site selection, training, marketing, and ongoing operational support.
7. Growth Prospects
Before you get into any business, you must have a long-term plan. Always check the future business prospects of the food franchise you intend to invest in.
Select a food franchise that:
- Is recognised in the market
- It is innovative and can adapt according to trends and consumer preferences
- Is competitive and has expansion plans that are in sync with your business goals
- Is tech-savvy and comes with a solid digital presence
These pointers will help you assess all the Food Franchise Opportunities available, take a well-informed decision and ensure a successful investment.
Setting up a food franchise business in India requires much more than mere investment. You must put a lot of research into understanding which is the right franchise for you. This would require considering various factors impacting the business’s revenue stream.
FlexiLoans’ simple processes make taking care of your initial funding easy by applying for a business loan online and giving wings to your entrepreneurial dreams.
Q.1 As a franchisee owner, how much would I earn every month?
Ans: A food franchisee owner’s income would typically range from INR 35,000 to INR 40,000 monthly. The average annual salary of a franchisee owner is around INR 4.9 lakhs.
Q. 2 Can I get a refund of the franchise fee paid?
Ans: Franchise fees are non-refundable. If you (the Franchisee) terminate the franchise agreement before time, you lose this payment. Furthermore, note that a few franchisors might take additional fees for training or even site selection before the operations begin.
Q. 3 What are some of the disadvantages associated with owning a franchise?
Ans: Owning a food franchise is beneficial owing to the ever-increasing demand in this industry. However, a few limitations to this business include a high initial investment, sharing your financial data with your franchisor and adherence to the franchise rules. At the same time, extra expenses like royalties might also add to the costs.
Q. 4 What other costs are involved in a franchise that I must know?
Ans: When reviewing the franchise agreement, monitor costs like royalty, franchise, advertising, marketing expenses, renewal, equipment, inventory, legal, training, and other miscellaneous fees.
Q. 5 What does the term “Grant” in a franchise agreement mean?
Ans: In a franchise agreement, the term “Grant” refers to the non-exclusive rights that the Franchiser gives to the Franchisee to run the franchise. These rights are valid until and unless termination of the contract post the valid period.
Q. 6 Which foods are amongst the most popular and wide-selling food items in India?
Ans: Some of India’s wide-selling and popular food items include Biryani, Butter Chicken, Samosas, Tandoori Chicken, Momos, Naan, Pulao, Seafood, and Sweets. There are a lot of popular food items, considering the growing trend of Korean cuisine amongst the younger generations.