Can You Start a Food Franchise Business Below ₹10 Lakhs? Here’s How
If you’ve ever fantasised about having your food outlet—perhaps flipping burgers or hot, cheesy pizzas—the concept of a food franchise Business in India may have occurred to you. But the question is: Can you begin one for less than ₹10 lakhs? The short answer is—yes, you can. Let’s break it down in a way that’s easy to grasp.
Why Consider a Food Franchise?
Opening a food franchise implies that you’re not starting a brand from the ground up. You’re entering a business that has been tried, tested, and trusted by consumers. That saves you a great deal of time, effort, and guesswork. People are already familiar with the name, so you don’t have to invest as much in marketing.
What Do You Get in ₹10 Lakhs?
Now, ₹10 lakhs may seem like a huge amount, but when it comes to starting a food business, it’s quite a low-cost investment. Here’s where your money typically goes:
Franchise fee: This is the fee you pay to use the brand name. For low-cost brands, this would be approximately ₹2-3 lakhs.
Setup cost: This includes the equipment, interior installation, and branding. This will cost around ₹3-4 lakhs, depending on location and size.
Initial stock & raw material: Approximately ₹1-2 lakhs for your first month.
Training & staff support: Companies mostly assist you in training your staff, and that comes under your cost, usually.
Marketing & launch: Free launch support is given by some brands; otherwise, save ₹50,000–₹1 lakh for minimal promotions.
Top Budget-Friendly Options
Yes, there are brands which provide food franchise opportunities in India for less than ₹10 lakhs. These are ideal for small towns, kiosks, food trucks, and even mall counters.
Local Pizza Franchise: India is crazy about pizza! Some home-grown pizza chains now have franchise setups available for ₹5–₹8 lakhs. These don’t require large spaces, just a small counter space and an oven.
Burger & Wrap Chains: Small burger chains are thriving, particularly among college students. One can start with them from as low as ₹6–₹9 lakhs.
Tea & Snacks Brands: Quick snacks with chai is a fast-selling combination, and the initial investment is even lower, sometimes below ₹5 lakhs.
FOFO Model Makes It Easier
Most small food brands operate by FOFO – Franchise Owned, Franchise Operated. The franchisee works the outlet themselves, with the brand representing support for the form of recipe instructions, supplies, and training. In other words, it is often a win-win arrangement, especially for first-time entrepreneurs.
Some Helpful Hints Before Leaping
It’s not where you’re going; it’s where you’re coming from: a great brand in a bad location won’t go anywhere. Look for spots with traffic – colleges, markets, offices, or malls.
Talk to existing franchisees: Before signing up for anything, make sure you speak to those already running that franchise.
Hidden Costs Check: Some brands might have hidden charges for software, packaging, or marketing. Always ask for a detailed breakup of costs.
Don’t skip support: Choose brands that offer strong backend support and training, especially if you’re new to the food business.
Final Thought
Beginning a food franchise under ₹10 lakhs isn’t an impossible dream—it’s a logical and attainable objective. If you wish to dispense piping hot chai, burgers, or tap into the burgeoning pizza franchise bandwagon, there’s something for everyone. Only make sure to do your research, select the correct brand, and be prepared to have your hands a bit busy (and perhaps saucy!).
