Nowadays, fast foods are the most popular. Among them, pizza, burger are the all-time favourite items. Starting a burger franchise in India can prove to be a rather profitable business model. It’s given the increasing trend in the consumption of international as well as fast food in the nation. But it pertinent to point out the expenditure one is likely to incur in planning for a burger franchise cost in India prior to venturing into it.
Initial Investment
The initial costs that people have to make when they seek entry into a burger franchise in India can be quite different depending on existing variables. But the average cost that a first-time burger franchise will require is between 10 lakh INR to 50 lakh INR. This investment normally comprises the initial cash invested in franchise fees, equipment, store lay-out, advertising and promotion costs and other operating cash required.
Franchise Fees
Almost all burger franchises operating in India need an initial franchise fee depending on including INR 5 lakhs INR 20 lakhs or more. This fee gives you the permission to operate under franchisor’s brand name, its products and the business formula.
Equipment and Infrastructure
Some of the most important ranged assets that have to be equipped to begin the franchise are grills or stoves, fryers, coolers and refrigerators, chairs and tables, POS and many other decorated items etc. In regard to costs, equipment and infrastructure varies depending on the center. However, the average cost may be between INR 5 lakhs to INR 15 lakhs.
Operating Costs
Other expense costs that you have to consider are those recurrent costs such as rental, use of power, wages of employees, cost of stock, advertising, and franchise fee remuneration to the franchiser respectively. Such expenses can go up to INR 2 lakhs to INR 5 lakhs per month which may be based on the size of the franchise as well as its location.
Marketing and Branding
Marketing and branding should be done appropriately so as to expand your burger franchise business. Be ready to spend about INR 1 lakh to INR 3 lakhs for local advertising, promotion as well as social media publicity and branding.
Return on Investment (ROI)
Even though the initial cost of setting up a burger franchise in India requires a heavy investment, the returns on investment seems quite prospective. If all these factors are well implemented – the right location, quality product or service offering, good marketing and right operational strategies, then you are likely to recover your capital investment in 1-3 years to start making profits.
Conclusion
Therefore, starting a burger franchise cost in India is a high capital investment but when controlled it is worthwhile. Market research, select a perfect franchisor with a popular brand, and development of the detailed business plan for burger franchise in India. As it was also pointed out, it is crucial to emphasize that understanding local consumers’ preferences, while at the same time delivering quality products and services, is critical to success in the highly consolidated Indian market of franchising burgers.
