Food Franchise Businesses Cost In India: Low Investment Opportunities

April 26, 2024

Craving entrepreneurial freedom but with a taste for security? Food franchising in India might be the perfect recipe for your success! This guide dives into the sizzling world of Indian food franchises, whetting your appetite for the exciting possibilities

Overview of the Food Franchising Landscape in India

India’s franchise industry especially the food sector has seen unprecedented growth over the past decade. As stated by an IBM study about 90% of Indian startups fail within five years whereas the success rate for franchising stands at about 85%, the country has become a mega market for profitable franchise businesses

A food franchise cost in India is generally low compared to starting a business from scratch making it a lucrative opportunity for upcoming entrepreneurs who may lack huge investment amounts.

Franchising is a hot business due to multiple factors in fact, such as low initial investment, reduced costs, and better margins along with the strong training and marketing support that is provided by well-trusted franchises.

The Allure of Low-Investment Franchises for Aspiring Foodies in India

The world of food franchising in India might seem daunting, especially if you're an entrepreneur with a limited budget. But fear not! Low-investment food franchises offer a delicious alternative, allowing you to become your own boss without breaking the bank.

A low-investment franchise- is there a more perfect opportunity?

Unlike starting an independent restaurant from scratch, low-investment franchises come with the established brand recognition and standardized operations of a successful business model all while being light on your pockets!

These franchises act like a protective layer, minimizing the risk of failure often associated with new ventures.

Not to forget, setting up a new restaurant can be a time-consuming and expensive process. Low-investment franchises, however, often boast quicker turnaround times.

Additionally, established franchise models often benefit from economies of scale, and pre-negotiated supplier contracts with larger chains can also ensure better deals on ingredients. 

These factors combine to create a recipe for potentially higher profit margins and a faster return on your investment.

Diversity in Cuisine and Innovative Business Models like Cloud Kitchens

Imagine owning a franchise specializing in regional specialties like Hyderabadi biryani, filter coffee from South India, or the comforting street food of Mumbai.

These established favorites have a loyal customer base and require less investment in menu complexity.

Low-investment franchises come in a variety of flavors, just like Indian cuisine itself. You can choose from established quick-service restaurants with limited menus, grab-and-go beverage stalls, or even niche concepts like dessert cafes. This allows you to find a franchise that aligns with your interests and culinary passion.

Kouzina: Innovation on a Plate-Cloud Kitchens and Beyond:

  • Cloud Kitchens - The Virtual Revolution: Low-investment cloud kitchens are revolutionizing the food delivery industry. These delivery-only operations eliminate the need for a dine-in space, significantly reducing overhead costs. This model is perfect for entrepreneurs who want to focus on food quality and online marketing, making it a great fit for low-investment ventures.

Examples of Success:

Kouzina Food Tech's beginnings with delivery-focused cake franchises place them as one of the early adopters of the cloud kitchen model in India. This early entry into the market allowed them to establish themselves and grow alongside the burgeoning cloud kitchen industry.

Unlike some cloud kitchens that focus on a single cuisine, Kouzina Food Tech operates multiple virtual restaurants under various brands, offering a wide variety of food options. This approach caters to a wider customer base and helps them capitalize on diverse food trends.

Read more: How to Start a Cloud Kitchen in India: A Guide on Setup Cost

Low Investment Franchise Models

Not all franchises are created equal. Selecting the most suitable model is crucial for maximizing your chances of success. 

Importance of Choosing the Right Franchise Model for Success

Here are some key factors to consider:

  • Investment level: Low-investment franchises typically require a smaller initial investment compared to traditional franchises. However, carefully assess ongoing fees and royalties to ensure profitability.
  • Your skills and experience: Consider your strengths and weaknesses. Some models may require more operational experience, while others might offer more training and support.
  • Lifestyle preferences: Do you crave hands-on involvement, or would a more absentee ownership model better suit your lifestyle?

Comparison of FOCO with Franchisee Owned, Franchisee Operated (FOFO) models

Choosing the right franchise model is crucial for your success. Here's a table comparing FOCO (Franchisee Owned, Company Operated) and FOFO (Franchisee Owned, Franchisee Operated) models to help you decide


FOCO Model

FOFO Model


Franchisee owns the outlet

Franchisee owns the outlet


Franchisor plays a larger role in daily operations

Franchisee has full control over daily operations


Franchisor provides ongoing support, and training, and may appoint managers

Franchisee relies on their own management expertise


Franchisee has some control, but the franchisor has a significant influence

Franchisee has complete control over all aspects


Ideal for entrepreneurs who prefer a structured environment with support

Ideal for experienced entrepreneurs comfortable with independent operations

Food Franchise Cost In India: Top Food Franchises under 15 Lakhs in India

Dreaming of becoming your own boss in the vibrant world of Indian food? Look no further! Here's a curated list of mouthwatering franchises you can conquer, all for under 15 lakhs. 


WarmOven isn't just another bakery – it's a Bangalore institution! Renowned for its melt-in-your-mouth cakes, this franchise is perfect for those with a sweet tooth and an entrepreneurial spirit. The first-only bakery of Bangalore, managed by Kouzina has now spread to over 80 cities in India proving to be a low-cost food franchise for eager entrepreneurs.

With a budget of just 12-15 lakh, investors can become a part of Kouzina’s rich legacy.


This popular chain offers a delightful symphony of flavors, from decadent cakes and pastries to fluffy breads and delightful cookies. With investment options ranging from 10 to 15 lakhs, GIANI presents a sweet opportunity to become a part of their delicious legacy.


Lassi Corner isn't just another franchise; it's a lassi royalty! They've dethroned bland beverages and crowned themselves the undisputed rulers of creamy, flavorful lassi in India. The cost of a food franchise in India can reach up to crores sometimes but the icing on the cake for this franchise is it does not require a king’s ransom.

Their investment range of 5 to 10 lakhs makes it a perfect option for entrepreneurs seeking a delicious and cost-effective venture.


Craving the iconic flavors of Mumbai's street food scene? Look no further than Kaati Zone! Their signature Kathi Rolls, bursting with flavor-packed fillings wrapped in warm roti, is a guaranteed crowd-pleaser. Plus, with an investment range of just 12-15 lakhs, Kaati Zone offers a delicious and affordable entry point into the world of franchising.


Standing out in the crowded pizza franchise sector is no easy feat, but GO 69 Pizza does it with a wink and a delicious pie! Their unique name grabs attention, while their menu offers a variety of toppings and crust options to satisfy every pizza lover.

Investment details: Invest in your pizza passion with an investment range of Rs. 10 lakhs to Rs. 15 lakhs.


AMUL, a name synonymous with dairy excellence in India, offers a chance to be part of their trusted legacy. They provide various franchising options, including dealerships, distributorships, and outlet ownership.  Investment requirements vary depending on the chosen option.

  • Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk:  These outlets typically require an investment of Rs. 2 lakhs (approx.) and focus on selling a core range of Amul products like pouch milk, milk products, and ice cream. They are ideal for locations with high foot traffic like markets, railway stations, or educational institutions.
  • Amul Ice-Cream Scooping Parlour:  If you have a sweet tooth and a vision for a dessert destination, this option might be perfect.  Expect an investment of approximately Rs. 6 lakhs for a parlor


The Korean food craze is here to stay, and Seoul Fried Chicken is riding the wave with its irresistible take on Korean-style fried chicken. Their menu boasts juicy, crispy chicken paired with a symphony of unique and flavorful sauces.

The cloud kitchen model offered by them allows entrepreneurs to have an efficient and low-cost kitchen hence dramatically increasing the profit margin.


Momos, the delightful dumplings of Nepal and India, take center stage at Momos Zone.  They offer a variety of fillings, from vegetarian options to chicken and other kinds of meat.

Investment:  Rs 10 lakhs to Rs 12 lakhs makes Momos Zone an attractive option. Additionally, Momo Zone is a perfect example of a cloud kitchen franchise. Cloud kitchens have lower overhead costs than traditional restaurants, making them ideal for new entrepreneurs seeking an affordable entry point.


Punjabi Chaap Corner is another street food brand that has recently gained popularity due to their tantalizing chaap options.

Investment necessary:  The investment range for a Punjabi Chap Corner franchise falls between Rs. 10 lakhs and Rs. 15 lakhs.


Mother Dairy, another leading dairy brand in India, is renowned for its high-quality milk, ice cream, and paneer (cottage cheese). They offer a variety of franchise options, including the Milk Booth franchise, Express Milk Booth franchise, and Mother Dairy Kool franchise.  Investment requirements vary depending on the chosen option.

Exploring Cloud Kitchen Franchises

The world of franchising is evolving, and cloud kitchens are at the forefront of this exciting change. 

Introduction to Cloud Kitchens as a Cost-Effective Franchise Model

Cloud kitchens, also known as virtual kitchens or ghost kitchens, are revolutionizing the food industry.  Unlike traditional restaurants with dine-in spaces, cloud kitchens focus solely on preparing and delivering food through online platforms. 

This eliminates the need for expensive brick-and-mortar setups, significantly reducing operational costs. 

For franchisees, this translates into a more accessible entry point into the food franchise business, particularly for those with budget constraints.

Kouzina Success with the FOFO Model

The Franchisee Owned, Franchisee Operated (FOFO) model plays a significant role in cloud kitchen franchises. Let's take a look at Kouzina, a company that has achieved remarkable success using this model.

Kouzina acts as the franchisor, providing franchisees with established brand identities, standardized recipes, and operational support.  Franchisees own and operate the cloud kitchen itself, managing day-to-day functions like staffing and deliveries. This model allows franchisees to benefit from the brand recognition and established systems of Kouzina while having control over their daily operations.

Food Franchise Cost In India: Cloud Kitchen Franchise Considerations

While cloud kitchens boast lower overhead costs compared to traditional restaurants, several factors can influence your startup investment:

Essential Factors Affecting the Startup Costs of a Cloud Kitchen

The franchisor may charge a one-time franchise fee for the right to operate under their brand name. This fee can vary depending on the brand and the specific franchise model (FOCO or FOFO).

You'll need sufficient inventory to meet customer demand. Consider the cost of maintaining fresh ingredients and managing stock levels to avoid spoilage.

Most importantly, partnering with online delivery platforms can expand your reach but often involves commission fees per order. Analyze these fees to understand their impact on your profitability.

Considerations for Potential Franchisees when evaluating Cloud Kitchen Opportunities

  • Menu and Brand Identity: Analyze the brand's menu and target audience to ensure alignment with your interests and local market suitability.
  • Scalability Potential: Consider the franchise model's potential for growth. Can you easily add new menu items or expand your delivery radius in the future?
  • Training and Support: Evaluate the training and support offered by the franchisor. Do they provide comprehensive guidance on operating a cloud kitchen and marketing your business effectively?
  • Technology Integration: Assess the cloud kitchen's technology infrastructure. Does the franchisor provide user-friendly software for managing orders, inventory, and deliveries?

Expand your knowledge through : 14 Ways to Increase Your Restaurant Sales and Grow Your Business

Key Insights and Tips for Aspiring Food Franchise Entrepreneurs

  1. Foot Traffic and Demographics: Analyze the foot traffic patterns and demographics of your potential location. Is it near a busy office district or a residential area with families? Understanding your target audience is key.
  2. Delivery Radius: If delivery is a major focus, consider the distance you can realistically cover while maintaining food quality and freshness.
  3. Competition Landscape: Research existing food options in your area, particularly those offering similar cuisine. A saturated market might make it challenging to establish yourself.

Exploring the Diversity of Food Franchise Opportunities

Move beyond traditional fast food and explore franchises specializing in ice cream, frozen yogurt, healthy salads, or ethnic cuisines like Thai or Korean food. Consider franchises catering to specific dietary needs, such as vegan, gluten-free, or keto-friendly options. This can attract a dedicated customer base.

Remember: Investing in a franchise is a significant financial decision.  Do your research, seek professional advice, and make an informed choice to increase your chances of success.


The world of food franchising might seem daunting, but with the right knowledge and guidance, it's an achievable dream. This guide has equipped you with valuable insights, from the importance of location to the diverse franchise options available

Finding out food franchise costs in India is a huge topic but this guide has highlighted several low-investment franchise opportunities, making the food franchise dream more accessible than ever. Franchises like Kaati Zone or Momo Zone prove you can enter the food industry without breaking the bank.

Now that you're armed with knowledge and a taste for success, it's time to explore further! Remember, Kouzina Food Tech offers a variety of delectable franchise options across multiple cuisines for you to choose from!

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