Restaurant Franchise Cost in India: Complete Guide to Investment, Budget & Best Opportunities

Are you looking to start your own restaurant business but wondering about the restaurant franchise cost in India? This guide will help you understand the complete breakdown of franchise investments, including setup expenses, licensing, and ongoing operational costs. Whether you are searching for a budget-friendly option or a premium brand, this article will provide insights into the franchise cost for restaurants, helping you make an informed decision.

The investment required for a restaurant franchise varies widely based on factors such as brand reputation, location, infrastructure, and operational expenses. Some small franchises start at ₹5-10 lakh, while well-known brands may require several crores. Knowing the restaurant franchise price range will help you plan your budget efficiently.

This article covers the key factors affecting restaurant franchise cost, top best restaurant franchises under ₹10 lakh, and how to choose the right franchise. We will also introduce Tandooriwala, a leading restaurant franchise with a successful business model and full operational support.

 

Understanding the Cost of a Restaurant Franchise

What is a Restaurant Franchise?

A restaurant franchise allows entrepreneurs to open and operate a restaurant using an established brand name, menu, and business model. The franchisor provides support in terms of branding, marketing, training, and operational guidance in exchange for a franchise fee and a percentage of revenue.

Compared to independent restaurants, franchising offers:

  • Established brand identity and customer trust
  • Reduced risk due to a proven business model
  • Marketing and advertising support
  • Training programs for staff and management
  • Assistance in location selection and interior design

While a franchise can be highly profitable, it comes with its own set of costs, which we will explore in the next section.

 

What Factors Affect Restaurant Franchise Costs?

The restaurant franchise cost is influenced by various elements, including:

  • Brand Reputation – Popular franchises charge higher fees due to strong market presence.
  • Franchise Fee – One-time cost paid to acquire the brand rights, varying from ₹2 lakh to ₹50 lakh.
  • Setup and Infrastructure – Includes kitchen equipment, interior design, furniture, and branding.
  • Licenses and Permits – Legal requirements such as FSSAI, GST, health permits, and fire safety.
  • Operational Costs – Rent, staff salaries, utilities, raw materials, and maintenance.
  • Royalty and Marketing Fees – Ongoing percentage-based fees paid to the franchisor, typically 4-8% of revenue.
  • Franchise Model – Different business models such as FOFO (Franchise-Owned, Franchise-Operated) and FOCO (Franchise-Owned, Company-Operated) impact overall costs.

Understanding these factors is essential to estimate the total investment required for a restaurant franchise and choose a franchise that fits your budget.

 

Restaurant Franchise Price Range in India

The restaurant franchise price range varies widely depending on the type of restaurant, brand reputation, location, and operational requirements. A clear understanding of different price brackets will help potential franchisees determine the best option based on their budget and financial capacity.

 

Low-Investment Franchises (₹5-10 Lakh)

If you’re looking for best restaurant franchises under ₹10 lakh, you will typically find opportunities in:

  • Food Carts & Kiosks – Small stalls selling snacks, street food, or beverages with minimal space requirements.
  • Cloud Kitchens – Delivery-only restaurants that operate from a shared kitchen space, eliminating dine-in expenses.
  • Small Fast-Food Outlets – Budget-friendly quick-service restaurants (QSRs) that focus on high turnover and minimal setup costs.

These options are perfect for first-time entrepreneurs or those looking to start small before scaling up.

 

Mid-Range Franchises (₹10-50 Lakh)

This category includes:

  • Casual Dining Restaurants – Mid-sized restaurants offering a complete dine-in experience.
  • Fast-Food Chains – Branded QSRs with takeaway and dine-in options.
  • Themed Cafés – Special concept-based cafés with unique branding and décor.

Mid-range franchises require higher capital for branding, staffing, and operations but often yield higher profits in the long run.

 

High-Investment Franchises (₹50 Lakh – ₹5 Crore)

Premium restaurant brands fall under this category, including:

  • Fine-Dining Restaurants – Luxury restaurants with high-end ambiance, gourmet menus, and premium pricing.
  • Large QSR Chains – Global fast-food giants requiring significant investment for franchise rights.
  • Multi-Outlet Franchises – Entrepreneurs with the capacity to open multiple units under one agreement.

These franchises require a large investment but offer the advantage of brand recognition and established customer demand.

Choosing the right price category depends on your financial resources, business experience, and market demand in your location.

 

Investment Required for a Restaurant Franchise

The investment required for a restaurant franchise is not limited to just the franchise fee. Several additional costs must be accounted for to ensure smooth operations. Let’s break them down further:

Franchise Fee

This is the initial payment made to the franchisor for the rights to use their brand, trademarks, and business model. Franchise fees can range from:

  • ₹2-10 lakh for small brands
  • ₹10-30 lakh for mid-sized restaurant franchises
  • ₹50 lakh+ for premium and international franchises

Setup and Equipment Costs

Every restaurant franchise requires a well-equipped kitchen, furniture, décor, and branding materials. The setup costs depend on:

  • Size of the restaurant – Larger spaces require higher investment.
  • Type of cuisine – Some cuisines require specialized kitchen equipment.
  • Interior design – Aesthetic dining spaces add to the cost.

On average, setup expenses range from ₹5 lakh (for kiosks) to ₹1 crore (for fine-dining restaurants).

Licenses and Permits

To operate legally in India, restaurant franchises require:

  • FSSAI License – Mandatory for all food businesses.
  • GST Registration – Required for tax compliance.
  • Trade License – Issued by the local municipal corporation.
  • Liquor License – Needed if serving alcohol (costs ₹5-10 lakh).
  • Fire Safety Certificate – Ensures compliance with safety regulations.

Licensing costs range from ₹1 lakh to ₹10 lakh, depending on the restaurant type.

Operational Expenses

Running a restaurant involves recurring costs such as:

  • Rent – Prime locations demand higher rentals.
  • Salaries – Staff wages vary by experience and restaurant size.
  • Utilities – Electricity, water, and maintenance costs.
  • Inventory – Raw materials for food preparation.

Monthly expenses typically range between ₹50,000 and ₹5 lakh, depending on scale and location.

 

Best Restaurant Franchises Under ₹10 Lakh

For entrepreneurs with limited capital, several best restaurant franchises under ₹10 lakh provide an excellent starting point. These franchises focus on cost-efficient models, such as takeaways, kiosks, and food delivery services.

Tandooriwala Express

  • Quick-service restaurant model with high demand.
  • Investment starts at ₹5 lakh.
  • Ideal for small spaces and urban locations.

Chaat Junction

  • Specializes in Indian street food and snacks.
  • Investment required: ₹4-7 lakh.
  • Popular in tier-2 and tier-3 cities.

Juice Lounge

  • Health-focused beverage brand.
  • Investment required: ₹6-9 lakh.
  • Best suited for malls and commercial areas.

Pizza Corner

  • Takeaway and delivery-focused pizza brand.
  • Investment required: ₹7-10 lakh.
  • High profit margins and growing demand.

Low-cost franchises provide a low-risk entry into the food industry while ensuring steady revenue with the right marketing and location.

 

Why Tandooriwala is the Best Franchise Option for You

Tandooriwala is one of India’s leading restaurant franchises, offering a premium dining experience with a proven business model. The brand has over 52 successful outlets and provides full operational support to franchisees.

Investment & Support

  • Low-cost investment with full training and marketing assistance.
  • Complete guidance on staff hiring, kitchen management, and logistics.
  • 24/7 franchisee support for smooth operations.
  • Fast ROI and high profitability.

How to Get Started with Tandooriwala

  • Visit the official website and submit a franchise application.
  • Attend a consultation session with the franchise team.
  • Secure financing and finalize location.
  • Complete training and restaurant setup.
  • Launch your restaurant with expert guidance.

Tandooriwala offers a profitable franchise model with strong brand recognition and excellent support.

Conclusion

Starting a restaurant franchise can be a highly profitable business if you choose the right brand and plan your investment wisely. Understanding the restaurant franchise cost and considering factors like setup expenses, licensing, and operational costs are crucial for success. Whether you’re looking for best restaurant franchises under ₹10 lakh or premium brands, careful research and budgeting will ensure a smooth business journey. Explore Tandooriwala today for a proven and profitable franchise opportunity!

Frequently Asked Questions

The cost varies widely, starting from ₹5 lakh for small franchises to ₹5 crore for high-end restaurant chains.

Low-cost franchises under ₹10 lakh include Tandooriwala Express, Juice Lounge, and Chaat Junction.

Brand reputation, location, setup costs, licensing, and operational expenses play a crucial role in determining the total investment.

Tandooriwala, Fast-food chains, QSR models, and cloud kitchens generally offer the fastest return on investment.

Use a franchise budget calculator to estimate total costs, including franchise fees, setup, and operational expenses.

Most franchises charge a royalty fee of 4-8% of revenue, but some brands offer zero-royalty models.

Research brand reputation, location suitability, investment requirements, and profit potential before making a decision.

Most restaurant franchises achieve break-even within 1.5 to 3 years, depending on operational efficiency and market demand.