Starting A Cafe Franchise Under 1 Lakh In India

June 5, 2024

In India, a steaming cup of chai or coffee is more than just a beverage; it's a social ritual, a conversation starter, and a moment of respite woven into the fabric of our daily lives. Cafes have become essential, offering a welcoming space for friends to catch up, colleagues to brainstorm, or students to unwind between classes. 

This deep-rooted love for cafes has fueled the phenomenal growth of the cafe industry, transforming it into a vibrant hub for entrepreneurial ventures.

cafe franchise

The good news? You don't need a mountain of capital to become a part of this exciting scene. Franchises offer a structured and supported path to cafe ownership, providing a framework for success. They equip you with established brand recognition, proven recipes, and business processes, reducing the risks often associated with starting a new business from scratch. 

  • Perhaps the most exciting part is that many food franchises under 1 lakh in India are making cafe franchise ownership a realistic and accessible dream for many aspiring entrepreneurs.

Popular Cafe Franchises in India Under 1 Lakh

Game of Chai

Specializing in chai, snacks, and meals, Game of Chai caters to a wide range of customer needs. Whether it's a quick chai break or a full-fledged meal, they've got you covered.

Investment-Friendly: With an investment requirement of Rs. 50,000 to Rs. 1 lakh, Game of Chai offers a relatively low entry point into the cafe franchise world. 

This makes it an attractive option for entrepreneurs who are cautious about initial investment.
Franchisees benefit from Game of Chai's support in crucial areas like site selection, staff training, and marketing. This comprehensive assistance can smoothen the operational processes and equip you for success. Further, their 10% royalty fee seems to be well within industry standards for franchise ventures.

drinks

The Granios

Looking to cater to the growing health-conscious market in India? The Granios franchise might be your perfect cup of tea (or should we say, smoothie!). The Granios offers a vibrant menu focused on healthy snacks, sandwiches, and salads, aligning perfectly with the rising trend of mindful eating.

  • Investment Range: Falling within the range of Rs. 75,000 to Rs. 1 lakh, The Granios franchise makes starting your cafe business a relatively affordable option.
  • Reduced Royalty Fees: The Granios charges a 5% royalty fee, which is lower than the industry standard of 10%. This translates to potentially higher profits for you.
  • Comprehensive Support: Similar to Game of Chai, The Granios offers assistance in site selection, staff training, and marketing, providing a strong foundation for your cafe's success.
green tea

Beontea

Beontea rounds out our exploration of popular cafe franchises in India for under 1 lakh. Their focus? Revolutionizing the way we experience tea.

Beontea boasts a variety of teas, coffee, sandwiches, wraps, and snacks, catering to a broad customer base seeking a quick refreshment or a light bite. Their tea, however, is their specialty. They focus on pre-mixed, ready-to-serve tea concentrates, which promise convenience and consistency.

Investment-Friendly: Just like Game of Chai, Beontea requires an investment of Rs. 50,000 to Rs. 1 lakh, making it an attractive option for budget-conscious entrepreneurs.

Moderate Royalty Fees: With an 8% royalty fee, Beontea falls within the typical range for cafe franchises.

Support System: Franchisees benefit from Beontea's assistance in site selection, staff training, and marketing, providing a well-rounded support structure.

british food

Kia Cafe

Kia Cafe emerges as a strong contender in your exploration of cafe franchises under 1 lakh in India. Kia Cafe caters to a broad audience with its diverse selection of beverages, including tea, coffee, and shakes. This variety is often the reason for its large customer base. Kia Cafe's comprehensive support system can be a valuable asset for new franchisees. Their assistance in site selection ensures you choose a location with high visibility and foot traffic, which is crucial for attracting customers. 

1. Investment Required: Rs. 50,000 to Rs. 1 lakh

2. Royalty Fees: 5%

The Chocolate Room

The most loved cafe franchise, Chocolate Room is also providing a delicious franchise opportunity that is under the budget in discussion. Let's explore the sweet possibilities:

The Chocolate Room specializes in cocoa-infused delights, offering a haven for those who crave delectable desserts, coffee, and snacks. This unique focus continuously attracts a dedicated customer base.

  1. The Rs. 50,000 to Rs. 1 lakh investment requirement positions The Chocolate Room as an attractive option for entrepreneurs looking for a budget-friendly entry point into the cafe franchise world.
  2. With an 8% royalty fee, The Chocolate Room falls within the industry standard for franchise ventures.
  3. The Chocolate Room offers assistance in site selection, staff training, and marketing. This comprehensive support structure can be invaluable for new franchisees, ensuring they have the tools and guidance needed to navigate the initial stages of running their cafe.

Roast 'N' Frost

Roast 'N' Frost joins the table as a contender for your cafe franchise aspirations under 1 lakh. Roast 'N' Frost caters to a broad audience with their menu featuring hot and cold beverages, sandwiches, wraps, and snacks. This diversity is enough to attract customers seeking a quick bite, a refreshing drink, or a light meal.

Investment Range: Falling within the Rs. 75,000 to Rs. 1 lakh range, Roast 'N' Frost offers a relatively affordable entry point into the cafe franchise world.

Favorable Royalty Fees: The 7% royalty fee is on par with the industry standard for cafe franchises.

Franchisee Support System: Similar to other cafes we've explored, Roast 'N' Frost provides assistance in site selection, staff training, and marketing. This comprehensive support can be instrumental in setting your cafe up for success.

Jannat-E-Chai

Chai Haven: Jannat-E-Chai focuses on a beloved Indian beverage - chai - alongside a selection of snacks and meals. This can be a strategic niche to cater to the local love for chai and provide a convenient food option.

Budget-Friendly: With an investment requirement of Rs. 50,000 to Rs. 1 lakh, Jannat-E-Chai falls into the attractive low-cost range for cafe franchises.

Support System: Jannat-E-Chai provides assistance in site selection, staff training, and marketing, which can be a valuable asset for new entrepreneurs venturing into the cafe business.

While these were some lucrative franchise opportunities under 1 lakh, for all those pursuing higher returns and higher growth trajectory, Kouzina Food Tech, the brainchild that revolutionized the cloud kitchen landscape in India, offers entrepreneurs strong marketing and training support which can be crucial for attracting customers and ensuring business viability.
Also read: Top Affordable Fast Food Franchises in India with Low Investment

Steps to Start a Cafe Franchise Under 1 Lakh in India

1. Research and Select a Suitable Cafe Franchise

When choosing a cafe franchise, carefully consider the investment required and the ongoing royalty fees.

 In addition to financial considerations, research the brand reputation, growth trajectory, and presence in your target market. A strong brand reputation can give your cafe a head start, and a growing franchise system suggests stability and potential for future success.

2. Register the Business as a Private Limited Company or an LLP online

Choose a Business Structure: Both Private Limited Companies (Ltd.) and Limited Liability Partnerships (LLP) offer limited liability protection to the owners. Consult a professional to determine the most suitable structure for your cafe. The online registration process can be facilitated through government websites.

3. Choose a Strategic Location

Foot Traffic and Visibility: Opt for a location with high foot traffic and good visibility to attract potential customers. Consider factors like proximity to offices, colleges, or residential areas.

Rent and Operational Costs: Factor in rent, utilities, and other operational costs when evaluating potential locations.

4. Prepare a Detailed Business Plan and Budget

To ensure your cafe's financial sustainability, create a detailed business plan that outlines your investment, operational costs, projected sales, and potential profitability. 

This plan should include a break-even analysis, which is the point at which your cafe's income covers all its expenses. By understanding your break-even point, you can set realistic sales targets and make informed decisions about pricing, staffing, and inventory management.

5. Hire and Train Staff Members

Skills and Experience: Recruit staff members with relevant skills and experience in food service or customer service.

Training Programs: Leverage the franchise's training programs or conduct additional training sessions to ensure your staff delivers a high-quality customer experience.

6. Develop a Marketing Plan to Attract customers

Target Audience: Identify your ideal customer and tailor your marketing strategy accordingly.

Marketing Mix: Utilize a combination of marketing tactics like social media marketing, local advertising, promotional offers, and loyalty programs to attract and retain customers.

Also read: Top Cafe Franchise Opportunities in India for 2024

Conclusion

The aroma of freshly brewed coffee and delicious treats can be more than just a sensory experience; it can be the foundation of a fulfilling entrepreneurial journey. 

This guide has explored the possibility of starting a cafe franchise under 1 lakh in India, outlining the steps involved and the importance of thorough research and strategic planning.

However, remember that the recipe for success goes beyond financial considerations. Dedication, hard work, and a genuine passion for the cafe industry are essential ingredients to turn your cafe franchise dream into a reality. With commitment and the support of a well-chosen franchise system, you can transform your love for coffee and community into a thriving business venture.

Don't wait! Explore the rewarding world of franchise ownership with the backing of a strong brand. Contact Kouzina Franchise today to learn more and take the first sip towards your entrepreneurial success!

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