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.
Â
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:
While a franchise can be highly profitable, it comes with its own set of costs, which we will explore in the next section.
Â
The restaurant franchise cost is influenced by various elements, including:
Understanding these factors is essential to estimate the total investment required for a restaurant franchise and choose a franchise that fits your budget.
Â
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.
Â
If you’re looking for best restaurant franchises under ₹10 lakh, you will typically find opportunities in:
These options are perfect for first-time entrepreneurs or those looking to start small before scaling up.
Â
This category includes:
Mid-range franchises require higher capital for branding, staffing, and operations but often yield higher profits in the long run.
Â
Premium restaurant brands fall under this category, including:
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.
Â
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:
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:
Every restaurant franchise requires a well-equipped kitchen, furniture, décor, and branding materials. The setup costs depend on:
On average, setup expenses range from ₹5 lakh (for kiosks) to ₹1 crore (for fine-dining restaurants).
To operate legally in India, restaurant franchises require:
Licensing costs range from ₹1 lakh to ₹10 lakh, depending on the restaurant type.
Running a restaurant involves recurring costs such as:
Monthly expenses typically range between ₹50,000 and ₹5 lakh, depending on scale and location.
Â
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.
Low-cost franchises provide a low-risk entry into the food industry while ensuring steady revenue with the right marketing and location.
Â
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.
Tandooriwala offers a profitable franchise model with strong brand recognition and excellent support.
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!
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.