From Beans to Profits: Top 11 Cafe Franchises to Invest in 2024
The Indian Cafe franchises have experienced significant growth in recent years, making it an attractive investment opportunity for entrepreneurs and business enthusiasts. With a thriving café culture and increasing consumer demand for quality coffee, investing in a cafe franchise can be a profitable venture.
When considering which cafe franchise to invest in, there are several important factors to consider:
Brand Reputation
Look for cafe franchises with a strong and established brand presence in the market. A reputable brand will attract customers and provide a solid foundation for your business.
Initial Investment
Consider the initial investment required to open a cafe. This includes costs such as franchise fees, equipment, and interior setup. It’s important to choose a franchise that aligns with your budget and financial goals.
Growth Prospects
Evaluate the growth potential of the cafe franchise. Research its expansion plans, target markets, and strategies for staying competitive in the industry. Investing in a franchise with promising growth prospects can lead to long-term success.
By carefully assessing these factors, you can select one of the best cafe franchises that suit your investment goals and align with your passion for coffee and hospitality.
11 Cafe Franchises Worth Investing in 2024
Barista Lavazza Coffee Bar
The Coffee Bean & Tea Leaf Restaurant and Café
Nothing Before Coffee (NBC)
11 Cafe Franchises Worth Investing in 2024
Founded by Neha Chaudhary in 2018, Cafe NYC Queens swiftly emerged as one of India’s fastest-growing cafe franchsies. Offering a fine dining experience, the flagship store in Kalkaji, South Delhi, has created a chain and loyal following. With expansion into cities like Hyderabad, Silvassa, and Amritsar, the brand has established itself as a favourite neighbourhood cafe.
The initial franchise fee is a cost of INR 5 lakhs and a moderate royalty fee of 6%. Currently, seven outlets exist, and the overall investment required is around INR 20 lakhs. The franchise space requirement is 2000 sq. ft., with a remarkable return on investment (ROI) of 100%, adding to its appeal. The brand stands out with comprehensive support to franchisees, ranging from providing the Operations Manual, design assistance, and project management during store construction to ongoing staff training, menu updates, and marketing support.
Barista Lavazza Coffee Bar
Barista Lavazza, an established Italian coffee brand since 2000, has made a significant mark in India with over 200 outlets across 30+ cities. The expected cost for a Barista Lavazza coffee bar franchise is around 50 lakhs, with a minimum space requirement of 1000 sq ft. The franchise agreement spans 6 years, offering renewal options for long-term collaboration.
Established in 2013, Cafe Crème has rapidly emerged as one of India’s fastest-growing cafe franchises with a footprint in over 20 cities and more than 150 shops across the country. Renowned for its delightful cold coffees, creamy chocolate treats, and velvety ice creams, Cafe Crème has become a popular choice for enthusiasts seeking a diverse and indulgent menu.
The franchise, founded by Kunal Kashikar, offers a proven business model backed by efficient supply chain management, providing comprehensive training and support for franchisees.
For potential franchisees, the package includes a low franchise cost of INR 3 lakhs, an investment range of INR 5-10 lakhs, and a space requirement of 100-500 sq. ft. The franchise agreement is set for 6 years, with a renewal option. The return on investment (ROI) is projected at 12-14 months, making it an attractive opportunity in the dynamic café industry.
Cafe Crème believes in providing excellent support to its franchisees, with the flexibility for local sourcing of machinery and equipment, interior setup, and hiring staff. Raw materials are supplied by the brand as well.
In addition to its authentic offerings and original creations, Cafe Crème has gained industry recognition for its efficient supply chain management, excellent training facilities, and a modern café concept that appeals to all age groups.
Founded by Gloria Jean Kvetko in 1979 in Long Grove, Illinois, Gloria Jean’s Coffees started as a small coffee and gift store. In 1998, Coffee Companies acquired the franchise rights, leading to its expansion to over 50 locations in the United States. Currently based in Sydney’s Castle Hill, the American-Australian coffee brand is owned by the global fast-casual restaurant corporation Retail Food Group, boasting 1,400 licensed restaurants in 40 countries, with over 460 in Australia alone.
Cafe Brewbakes, an influential modern Indian café chain, established a global reputation for its impressive 180+ outlets worldwide since its founding by Mr. Anupam Kumar in 2014. Renowned for its fusion-food expertise and welcoming atmosphere, the cafe has revolutionized the modern Indian café tradition.
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Brewbakes extends a franchise opportunity with a reasonable cost of INR 4 lakhs, a 6% royalty fee, and an investment range of INR 10-15 lakhs. With a space requirement of 200-2000 sq. ft., the cafe franchise promises a return on investment (ROI) averaging 45-55%.
The franchise fee structure includes INR 2,00,000 as a unit/brand fee and INR. 3,00,000 as a master/brand fee. This presents an appealing opportunity for entrepreneurs seeking to join the cafe industry, marked by Cafe Brewbakes’ successful business model and commitment to creating a vibrant space for coffee and conversations.
The Coffee Bean & Tea Leaf Restaurant and Café
Established in 1963 in California, The Coffee Bean & Tea Leaf has evolved into globally recognized as one of the top café franchises with over 1000 outlets worldwide. Founded by Herbert Hyman, the franchise launched in 2008 and currently operates 20-50 outlets.
With a franchise cost ranging from INR 50 lakhs to 1 Cr., and a 9% royalty fee, this opportunity is a compelling investment for entrepreneurs. The required space for a franchise is 700-900 sq. ft., with an average return on investment (ROI) of 2%.
Indian Coffee House, managed by cooperative organizations, is a significant restaurant franchise with around 400 coffee shops across India, originating in 1936. Founded by N. S. Parameswaran Pillai and T. K. Krishnan, the franchise officially launched in 1957. With over 500 outlets, it has expanded since its inception in 1940 during British rule.
Offering a unique proposition, the franchise requires a modest investment of INR 3 lakhs and charges 0% royalty fees. The total investment to establish a franchise is approximately Rs. 5 lakhs, with a space requirement of 200 sq. ft.
Nothing Before Coffee (NBC)
Nothing Before Coffee (NBC) offers a diverse range of beverages, emphasizing quality and customer satisfaction. With over 100 beverage options, NBC serves as a premier destination for beverage enthusiasts. Seeking franchise opportunities in locations such as Gurgaon, Noida, Maharashtra, Karnataka, Gujarat, and New Delhi, NBC follows a thorough acquisition process involving location search, agreement signing, staff recruitment, and promotion.
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Café Chocolicious, founded in 2015 in Akurdi is one of the leading cafe franchises that has expanded to over 26 partnership stores across the country. Founded by Vinayak Lohokare and Sharmilee Tarama, the franchise prioritizes customer happiness and manufactures simple ingredients in-house, ensuring the integrity of the process.
With a franchise cost of INR 3 lakhs, 5% royalty fees, and an investment range of INR 5-10 lakhs, the franchise requires 200-300 sq. ft. of space, offering a favourable return on investment (ROI) averaging 60-80%. The agreement terms span 5 years, with a profit margin of 60 to 70%, no franchise fee, and comprehensive support, including training, raw material supply, marketing strategies, and partnerships with online delivery services.
Staff requirements range from 2 to 4 members, making Café Chocolicious an attractive venture for entrepreneurs seeking a customer-focused and innovative café franchise.
Tealogy, an Indian Tea company and café chain founded in 2018 in Indore, India, has expanded to over 250 outlets across 15 states and 100+ cities. Known for its flavorful Kulhad Tea & Coffee and hygienically prepared snacks, Tealogy offers a welcoming ambience for social gatherings.
Classic Rider Café, a Quick Service Restaurant chain, was established in 2018 with a focus on offering quality, nutritious food with great taste at affordable prices in a friendly environment. Specializing in Shawarma, Fried Chicken, and Barbecues made from premium recipes and ingredients, the brand has rapidly grown to over 20 outlets, becoming one of Tamil Nadu’s fastest-growing QSR brands.
The Franchise opportunities require an investment of INR 10 to 20 lakhs, with a franchise/brand fee of INR 2 lakhs. Ideal franchise properties are commercial spaces ranging from 600 to 1000 sq. ft, and the franchise term extends for 5 years, offering a promising venture for entrepreneurs.
In conclusion, investing in a well-established franchise can be a lucrative opportunity in the thriving cafe industry. These brands offer the advantage of brand recognition, proven systems, and extensive support. However, it is important for potential investors to carefully evaluate all the cafe franchises and their opportunities based on their own goals, financial capabilities, and local market conditions before making a decision.
And if you do go forward and choose to invest in one of these amazing brands, then don’t forget to give Petpooja Cafe POS solution a check.
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