The food franchise market in India is thriving, making it an appealing prospect for budding entrepreneurs. Starting a food franchise has been a popular choice for people wishing to invest in a company with an established track record as fast-service restaurants, cloud kitchens, and snack stores demand. The Indian QSR or fast-food chain industry is predicted to grow 23% annually between FY21 and 2025.
Food franchises under 10 lakh provide a perfect beginning point for businesspeople with a small budget. These lower-investment choices provide a chance to be a part of a reputable and successful business without having to make a large cash outlay. This blog will go over the advantages of selecting a food franchise under 10 lakh, considerations to take into account before deciding, and a list of the top food franchises under this investment level. This blog will help you choose the ideal fit if you want to enter the food industry without going broke.
Benefits of Choosing a Food Franchise Under 10 Lakh
Choosing a food franchise under 10 lakh offers a number of important benefits.
Lower Investment with Higher Returns: With a low start-up cost, you may profit from a market with great demand and development possibilities. This is a wise approach to lower your financial risk and set yourself up for consistent gains.
Reduced Risk and Established Brand Recognition: From cultivating a client base to developing a brand, starting a company from nothing entails many unknowns. But a food franchise offers a ready consumer base, proven business plan, and well-known brand. This lowers your risk and raises your possibility of success.
Operational Support and Training: Many franchisees guarantee that you are ready for everything from inventory control to customer service by means of continuous training and operational assistance. This lowers the learning curve and will position you for success straight away.
Easier Access to Funding: Since franchisees are a proven system, lenders are more inclined to grant loans to them. The low-cost franchises around 10 lakh also imply that you are less likely to be under financial pressure when getting finance.
Marketing and Advertising Backing: National and regional marketing initiatives of the brand will help you, as a franchisee. In a competitive market, this might provide you with an advantage and assist generate consumer traffic without having to significantly spend on promotion on your own.
Top 7 Food Franchises Under ₹10 Lakhs in India
Here is a list of some of the most successful food franchises in India that need less than ₹10 lakhs in investment. For anyone wishing to start a low-cost, proven-business model food company with robust support systems, these franchises have excellent prospects.
1. Kouzina
Overview: Kouzina offers entrepreneurs a cloud kitchen franchise model with an investment under ₹10 lakhs. Franchisees can operate multiple brands such as Warm Oven, Indiana Burgers, and Kaati Zone from a single kitchen, lowering overhead while increasing revenue streams.
Why It’s Popular: Its innovative multi-brand approach backed by a robust support system including kitchen setup, marketing, and operations makes it highly attractive in urban markets across India.
USP: Complete end-to-end franchise support and the ability to run multiple food brands from one location for better profitability.
2. One Bite
Overview: One Bite is a fast-food franchise known for offering a range of affordable, quality meals with consistent customer service.
Why It’s Popular: It has a loyal customer base ensuring steady sales and profitability across outlets.
USP: Proven business model with full franchise support including training, marketing help, and centralized raw material distribution.
3. Burger Brothers
Overview: Burger Brothers is a growing franchise offering mouthwatering burgers made from premium ingredients at affordable prices.
Why It’s Popular: Recognized for quick service and quality components, it appeals to a wide audience.
USP: Comprehensive franchise support including marketing and staff training for smooth operations.
5. Chai Garam
Overview: Chai Garam meets India’s passion for tea by offering freshly brewed chai and fast snacks.
Why It’s Popular: Popular spot for tea drinkers looking for affordable, quick refreshments.
USP: Strong franchise support with training, equipment procurement, marketing, and product uniformity.
6. Biryani Blues
Overview: Biryani Blues is a popular biryani franchise known for its authentic Hyderabadi Dum Biryani.
Why It’s Popular: Recognized for delicious, consistent biryani and strong brand loyalty.
USP: Dedicated customer base and profitability through authentic cuisine and brand awareness.
7. Frozen Bottle
Overview: Frozen Bottle specializes in premium desserts and drinks with a focus on quality ingredients.
Why It’s Popular: Gained popularity for unique dessert options and consistent product quality.
USP: Complete franchise assistance including site discovery, marketing, and quality control ensuring minimum risk and strong returns.
Key Factors to Consider Before Investing in a Food Franchise
Buying a food franchise calls for thorough evaluation of several factors influencing the success potential of the company. Below, we'll go over the most crucial variables to consider, from brand strength and market research to financial planning and development potential, to help you make an informed and successful choice.
Brand Strength: The franchise brand should be well-known and established, with loyal customers. Strong brands guarantee ongoing market presence, client confidence, and a better possibility of profitability and future growth for the business.
Business Model: The franchisor should provide a tested and successful business model with clearly specified operating procedures, smart marketing plans, and excellent customer service. This guarantees daily operations and supports uniformity throughout every franchise location.
Market Analysis: Investigate the regional target market, demographics, and competitors carefully to know before investing. This will let one evaluate the brand's demand in the local market and pinpoint the ideal tactics to thrive in that particular one.
Accessible Support: It is critical to have access to ongoing training and assistance from the franchiser. This guarantees that your staff has the required skills to manage the franchise successfully, use smart marketing plans, and provide exceptional service to clients.
Financial Requirements: Match your investment plan to the franchise's financial demands. Think through all the expenditures—including equipment, royalties, continuous running expenses, and first setup charges. Make sure you grasp exactly what financial obligations are needed for the business to grow.
Franchise Agreement: Extensively go over the franchise agreement's terms and conditions. Focus especially on elements like territorial rights, intellectual property, royalty rates, and exit clauses. Easy operations and legal protection depend on a clear, well-understood agreement.
Profit and Growth Potential: Look at the brand's past performance, profit margins, and development patterns to assess the franchise's profitability. This will enable you to clearly see the financial performance of the brand as well as its future development possibilities, therefore guiding your investment choice.
Overcoming Common Challenges in the Food Franchise Business
The food franchise industry has its own unique set of hurdles, but with the correct techniques, these barriers may be overcome efficiently. This section will go over some typical challenges that franchisees encounter and provide doable fixes to guarantee a smooth running of the business.
Excessive Competition: Both within and outside, franchise companies generally deal with strong degrees of competition. Emphasising the special selling proposition (USP) and knowing the particular demands of the target market can help to solve this difficulty. Franchise stores may set themselves apart and draw devoted consumers by presenting creative ideas and outstanding customer service.
High Operational Costs: High operating expenses may be a major barrier for franchise businesses. Franchisees should concentrate on simplifying business procedures, applying sensible policies, and negotiating better terms with suppliers if they are to address this. Furthermore helping to lower running costs is proactive control of staff turnover and best use of resources.
Customer Retention: Maintaining brand name and guaranteeing long-term profitability depend on keeping consumers happy. To create closer ties, franchise brands should routinely get consumer comments, customise their offerings, and run loyalty programs. Having access to franchisor-provided customer service training will also enable consistent, top-notch encounters that attract returning business.
Slow Sales: Slowed down sales might impede a franchise's expansion. Franchisees should examine their consumer base and improve their marketing plans—traditional and digital—to better include their target demographic in order to raise sales. Reviewing price policies and product offers, working with the franchisor, can also help to increase sales performance and profitability.
Partnering with Kouzina brings multiple advantages that set the stage for franchise success:
Trusted Brand Presence: Kouzina’s reputation for quality and customer satisfaction helps franchisees gain quick recognition and trust in the market.
Cloud Kitchen Efficiency: The cloud kitchen model reduces overhead costs by eliminating the need for large storefronts, while enabling access to a wide customer base through online delivery platforms.
Ongoing Training and Support: Franchisees receive thorough training and continuous operational support to maintain smooth business processes and high customer service standards.
Diverse and Innovative Menu: A wide variety of food options appeals to different tastes, helping franchisees differentiate themselves in competitive markets.
Marketing Assistance: National and local marketing efforts drive customer engagement and sales without heavy advertising expenses for franchise owners.
Streamlined Supply Chain: Bulk purchasing and supplier relationships enable cost efficiencies and smooth inventory management.
Profitability Potential: Efficient operations combined with a trusted brand framework help maximize returns on investment.
Kouzina’s flexible, cost-effective cloud kitchen model paired with comprehensive franchise support provides everything needed to build a successful fast-food franchise business.
How to Get Started with Kouzina?
Kouzina Food Tech Private Limited provides tools and assistance for franchise establishment, making it an exciting prospect for entrepreneurs and seasoned company owners. The following is a guide to assist you in initiating the process:
Research and Evaluation: The first step is to carry out extensive research on the cloud kitchen concept, as well as the brand and items. Understand your client base, target market, and possibilities for growth. Speak with existing franchisees for firsthand information.
Initial Inquiry and Application: Complete an inquiry form or send an application. Provide information about your past, financial status, and preferred franchise location. The franchise team will analyse your application and contact you for more information.
Franchise Discussion and Agreement: Having a conversation with the Kouzina team about the franchise potential is recommended. Recognise the advantages of their cloud kitchen approach, operational support, and continuing resources. Sign the franchise agreement when both parties are pleased.
Location Selection and Setup: Select a location that caters to your target demographic and is able to handle delivery orders. Purchase essential food equipment, install technological platforms, and establish operational processes.
Training and Onboarding: The individual will be provided with virtual training tools and continuous evaluations, as well as get thorough instruction that covers all areas of the business. Kouzina will support marketing activities leading up to the launch date. Marketing help includes advice on how to make the most of internet platforms.
Ongoing Support and Growth: Kouzina offers continuous operational assistance such as check-ins, marketing guidance, and best practice updates. The cloud kitchen approach provides Kouzina with the option for continued development of its business.
Getting started with Kouzina is simple, and with support at every step, it’s an ideal choice for investors. Just hear what their satisfied partners have to say about working with Kouzina.
Conclusion
Owning a food franchise under 10 lakhs can be a fulfilling experience with plenty of satisfied customers and advantages of good business. This blog provides you with the tools you need to take calculated risks in the food industry.
Starting a market like the food industry requires expert guidance, and this is where respectable franchise businesses like Kouzina can be of use. Kouzina's team assists franchisees from the start by providing comprehensive training and teaching them the essential rules and regulations for running a successful cloud kitchen franchise. Kouzina ensures that every franchisee has the three components necessary for success in this sector: careful preparation, financial acumen, and a dedicated staff.
All ready to start your fast food experience with a trustworthy brand? Partner with Kouzina right away and fulfill your business goals!
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