10 Best Restaurant Franchise Opportunities in India

July 15, 2024

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Food franchises in India are immensely popular and highly profitable.  Globalization and market liberalization have enhanced brand awareness, creating numerous opportunities for overseas brands to establish franchises. 

The country’s growing middle class, expected to reach 475 million by 2024, seeks diverse dining experiences, making franchises an attractive choice. Successful business models replicate easily, fueling the franchising sector's growth at 30-35% annually and recently valuing it at over $7 billion.

Restaurant franchises are among the most sought-after opportunities today. India's broad and spicy background makes it a great market, with a vibrant food place that ranges from fast food to specialized dining.

The franchise model remains a trusted formula for success. When selecting a food franchise, consider factors such as reputation, market demand, franchisee support, and budget.

However, with numerous food and beverage franchises available, identifying the best option can take time and effort.

This guide highlights the top 10 restaurant franchises in India, helping you make an informed choice.

Top 10 Restaurant Franchise Opportunities

Let's take a look at some of the greatest restaurant franchises currently dominating the Indian food sector. We've compiled a list of the Top 10 Food Franchises in India to help you get started:

girl eating at restaurant

1. Frozen Bottle

People know Frozen Bottle for its innovative menu, featuring signature milkshakes and desserts. The franchise offers comprehensive support in training, marketing, and operations, ensuring franchisees have all the resources they need to succeed.

Frozen Bottle stands out with its trendy concept and focus on a niche market. Their commitment to quality ingredients and unique flavor combinations positions them to capture the growing demand for new and exciting beverage experiences.

  • Investment Requirements: Approximately ₹20-30 lakhs
  • Resources and Support: Full support in training, marketing, and operations.
  • Market Demand: High, driven by the popularity of unique, premium milkshakes.
  • Profit Margin: Approximately 20-25%
  • Founded in: 2017
  • Franchising Since: 2018
  • Franchise Units: 100+ across India
  • Initial Investment: ₹20-30 lakhs
  • Royalty Fees: 6% of gross sales

2. McDonald's

McDonald's doesn't need much introduction. Its brand recognition is unparalleled, and its standardized operations ensure consistent quality across locations. The relatively low investment cost makes it an attractive option for first-time franchisees.

McDonald's, with its strong global brand recognition, offers a reliable franchise opportunity with relatively low investment costs for a worldwide brand. Franchisees benefit from extensive support in site selection, training, marketing, and operations.

  • Investment Requirements: ₹6-14 crores
  • Resources and Support: Comprehensive support, including site selection, training, marketing, and operations.
  • Market Demand: High, due to brand loyalty and recognition.
  • Profit Margin: Approximately 20%
  • Founded in: 1940
  • Franchising Since: 1955
  • Franchise Units: Over 38,000 worldwide
  • Initial Investment: ₹6-14 crores
  • Royalty Fees: 4% of gross sales

3. KFC

KFC is famous for its unique taste and menu customized for Indian preferences. The franchise is well-supported, with robust training and operational systems. KFC offers a delightful selection of fried chicken buckets, wings, and tenders, all bursting with their signature flavor. They've cleverly adapted their menu to Indian preferences, introducing vegetarian options like Veg Krispy Strips.

KFC uses the power of a globally recognized brand while catering to the local palate. Its menu adaptations demonstrate its understanding of the Indian market, making it a strong contender for fried chicken lovers.

  • Investment Requirements: ₹1.5-2.5 crores
  • Resources and Support: Extensive training, marketing, and operational support.
  • Market Demand: High, especially for its customized menu for Indian tastes.
  • Profit Margin: Approximately 15-20%
  • Founded in: 1930
  • Franchising Since: 1952
  • Franchise Units: Over 24,000 worldwide
  • Initial Investment: ₹1.5-2.5 crores
  • Royalty Fees: 6% of gross sales

4. Subway

Subway transformed the fast-food landscape with its "build-your-own" sandwich concept. They offer a wide variety of fresh ingredients, allowing customers to create personalized sandwiches or salads that cater to their dietary needs and preferences.

Subway offers a welcome alternative to traditional fast food. Their focus on customization caters to a broad audience and dietary restrictions, making them a relevant choice for health-conscious consumers.

  • Investment Requirements: ₹50-90 lakhs
  • Resources and Support: Comprehensive support including training, marketing, and operational assistance.
  • Market Demand: Steadily increasing, driven by demand for healthier fast-food options.
  • Profit Margin: Approximately 15-20%
  • Founded in: 1965
  • Franchising Since: 1974
  • Franchise Units: Over 40,000 worldwide
  • Initial Investment: ₹50-90 lakhs
  • Royalty Fees: 8% of gross sales

5. Domino's Pizza

Domino's Pizza is renowned for its expertise in pizza delivery, with adaptations for the Indian market that have made it a household name.

Domino's is a household name synonymous with delicious pizza delivered hot and fresh to your doorstep. They offer a wide variety of pizzas with innovative crusts, toppings, and flavors, catering to every pizza craving. Their expertise lies in swift delivery and a focus on the Indian market, with options like the Cheesy Golden Corn pizza.

Domino's has mastered the art of pizza delivery, ensuring convenience and quality for its customers. Its understanding of the Indian palate through localized menu options positions it as a leader in the pizza delivery segment.

  • Investment Requirements: ₹30-50 lakhs
  • Resources and Support: Full support in site selection, training, marketing, and operations.
  • Market Demand: Very high due to convenience and popularity of pizza.
  • Profit Margin: Approximately 15-20%
  • Founded in: 1960
  • Franchising Since: 1967
  • Franchise Units: Over 17,000 worldwide
  • Initial Investment: ₹30-50 lakhs
  • Royalty Fees: 5.5% of gross sales

6. Café Coffee Day (CCD)

Café Coffee Day (CCD) is more than just a coffee shop; it's a cultural hub. It offers a warm and inviting atmosphere perfect for a relaxing cup of coffee, a quick bite with friends, or even a productive work session. The menu extends beyond coffee, featuring an array of beverages, snacks, and light meals.

CCD has carved a niche as a casual hangout spot, catering to India's growing cafe culture. Their diverse menu and welcoming ambiance make them a popular choice for people across demographics. 

Additionally, CCD offers franchise options like Square, Lounge, and Value Express, allowing you to choose a format that fits your budget and target audience.

  • Investment Requirements: ₹10-15 lakhs
  • Resources and Support: Comprehensive support in training, marketing, and operations.
  • Market Demand: High due to the growing coffee culture in India.
  • Profit Margin: Approximately 15-20%
  • Founded in: 1996
  • Franchising Since: 2000
  • Franchise Units: 1,700+ in India
  • Initial Investment: ₹10-15 lakhs
  • Royalty Fees: 8% of gross sales

7. Barbeque Nation

Barbeque Nation offers a unique and interactive dining experience.  Their tables are equipped with built-in grills, allowing patrons to cook a variety of marinated meats and seafood right at their tables. This creates a fun and social dining atmosphere, perfect for a memorable evening with family or friends.

Barbeque Nation stands out from the crowd with its interactive dining concept. The do-it-yourself grilling experience fosters engagement and social connection, making it a popular choice for celebrations and gatherings.

  • Investment Requirements: ₹1.5-2.5 crores
  • Resources and Support: Extensive training, marketing, and operational support.
  • Market Demand: High, driven by the unique dining experience.
  • Profit Margin: Approximately 20%
  • Founded in: 2006
  • Franchising Since: 2008
  • Franchise Units: 140+ in India
  • Initial Investment: ₹1.5-2.5 crores
  • Royalty Fees: 5% of gross sales

8. Haldiram's

Haldiram's is a beloved Indian brand synonymous with delicious snacks and sweets. It offers a wide variety of snacks and sweets and is known for its quality and taste, making it a trusted name in Indian households.

Their expansive menu features a wide variety of regional specialties, from savory namkeens (savory snacks) to melt-in-your-mouth sweets and ready-to-eat meals. They've built a reputation for high-quality ingredients and authentic flavors.

Haldiram capitalizes on the strong brand loyalty and trust it enjoys among Indian consumers. Its diverse menu caters to a wide range of taste preferences, making it a one-stop shop for all things snacky.

  • Investment Requirements: ₹1-3 crores
  • Resources and Support: Comprehensive support, including training, marketing, and operations.
  • Market Demand: Very high due to brand recognition and quality products.
  • Profit Margin: Approximately 20-25%
  • Founded in: 1937
  • Franchising Since: 2000
  • Franchise Units: 50+ in India
  • Initial Investment: ₹1-3 crores
  • Royalty Fees: 7% of gross sales

9. Taco Bell

Taco Bell brings the vibrant flavors of Mexico to India, offering a unique and affordable fast-food experience. Their menu features tacos, burritos, nachos, and other Mexican staples, all with a delightful Indian twist in terms of spice levels and flavor profiles.

Taco Bell offers a distinct taste compared to other fast-food chains. Its focus on affordability caters to a budget-conscious audience, making it a popular choice for a quick and flavorful meal.

  • Investment Requirements: ₹1.5-2.5 crores
  • Resources and Support: Full support in site selection, training, marketing, and operations.
  • Market Demand: Growing due to the increasing popularity of Mexican cuisine.
  • Profit Margin: Approximately 15-20%
  • Founded in: 1962
  • Franchising Since: 1964
  • Franchise Units: Over 7,000 worldwide
  • Initial Investment: ₹1.5-2.5 crores
  • Royalty Fees: 5.5% of gross sales

Kouzina is another such cuisine business that has successfully established 11 brands, each with its own distinct identity and serving over 80 cities.

10. Dunkin' Donuts

Dunkin' Donuts caters to the growing popularity of coffee and quick breakfast options. They offer a delectable selection of donuts in an array of flavors and glazes alongside hot and iced coffees, breakfast sandwiches, and bagels.

Dunkin' Donuts is a great option for busy mornings and afternoon pick-me-ups. Their convenient locations, diverse breakfast menu, and focus on high-quality coffee make them a strong contender in the growing coffee and breakfast market.

  • Investment Requirements: ₹1-2 crores
  • Resources and Support: Comprehensive support in training, marketing, and operations.
  • Market Demand: High due to the popularity of donuts and coffee.
  • Profit Margin: Approximately 15-20%
  • Founded in: 1950
  • Franchising Since: 1955
  • Franchise Units: Over 12,000 worldwide
  • Initial Investment: ₹1-2 crores
  • Royalty Fees: 5.9% of gross sales

Read our article: Top 15 Most Profitable Food Franchise Opportunities In India.

Significance of Restaurant Franchises in India

Restaurant franchises are sizzling their way across India, becoming major players in the food industry market. But what exactly makes them so important? Let's explore the key ingredients that contribute to their success:

Benefits for Aspiring Entrepreneurs:

  • Reduced Risk & Proven Model: Franchises offer a well-established business model with a proven track record. This reduces the risk of failure often associated with starting a new restaurant from scratch.
  • Brand Recognition & Marketing Support: Franchisees benefit from the franchisor's established brand name and marketing expertise. This can significantly reduce marketing costs and attract customers from day one.
  • Standardized Operations & Training: Franchises provide comprehensive training and operational manuals, ensuring consistency in food quality, service, and customer experience across all outlets.
  • Supply Chain & Purchasing Power: Franchisees leverage the franchisor's established supply chain network, often leading to better deals on ingredients and equipment.

Benefits for Consumers:

  • Consistent Quality & Familiarity: Franchises ensure a consistent dining experience across locations. Customers know what to expect in terms of food quality, service, and atmosphere.
  • Wider Variety & Innovation: Franchises bring a wider variety of cuisines and dining options to different regions of India. Additionally, some franchises adapt their menus to cater to local tastes and preferences.
  • Convenience & Accessibility: Franchises often have strategically located outlets, making it convenient for customers to grab a quick bite or enjoy a casual meal.

Benefits for the Indian Economy:

  • Job Creation: The growth of franchises leads to job creation in various sectors, from restaurant staff to marketing and logistics personnel.
  • Standardization & Quality Control: Franchises contribute to the overall standardization and quality control within the food industry.
  • Entrepreneurial Spirit: Franchises empower individuals to become entrepreneurs while mitigating some of the risks associated with starting a new business.

Overall, restaurant franchises or fast food franchises play a crucial role in the growth and dynamism of the Indian food industry. They offer a win-win situation for aspiring entrepreneurs, consumers, and the economy. 

Insights on Selecting the Right Franchise

There’s no shortage of funds to kickstart your food franchise business in India. Banks and financial institutions offer MSME loans and collateral-free business loans to support your financial needs. However, whether you choose a restaurant franchise or a fast-food franchise, you must consider the following factors:

Know Your Budget

Before starting your food franchise, estimate your budget. Account for costs such as materials, staff, royalties, and franchise fees. Ensure you choose a franchise that fits within your financial limits and meets your criteria.

Conduct Market Research

Thoroughly research the market to understand the demand for your product, your target audience, and the different brands available. Compare various food franchise opportunities and, once you finalize a franchisor, study their business model and profitability. Banks often offer small and collateral-free business loans—check their interest rates and benefits.

Understand Your Competition

Know the businesses offering similar products. If the market is saturated, consider a different food franchise to tap into more consumers.

Evaluate Your Financials

Clearly understand the initial investment, fees, and projected revenues. Choose a franchise with a good return on investment. Pay attention to cash flow forecasting and use online business loan calculators to check MSME loan eligibility and explore funding options when needed.

Ensure Legal Compliance

The food industry in India is highly regulated. Review the franchise agreement thoroughly and ensure the franchisor complies with all laws and regulations. Confirm that the trademark is registered and you have the right to use it at your franchise location. Consult a tax expert to understand the tax implications and ensure compliance.

Seek Franchisee Training and Support

Choose a franchisor that offers comprehensive training and support to ensure your business's success. The best food franchises assist in site selection, marketing, and operations.

Assess Growth Prospects

Have a long-term plan before entering any business. Choose a food franchise that:

  • Is recognized in the market
  • Is innovative and adaptable to trends and consumer preferences
  • Have competitive and expansion plans aligned with your business goals
  • Is tech-savvy with a strong digital presence

Also Read: Top Famous Food Franchise Opportunities In India: A Guide to Success In The Market

Tackling Challenges in the Restaurant Franchise Industry

Tackling Challenges in the Restaurant Franchise Industry

Even the most delicious recipe can face challenges. Here's what aspiring franchisees need to be prepared for:

  1. Market Competition: The Indian food industry is a competitive landscape. Research your target market and understand the existing competition before finalizing your franchise choice.

  2. Legal & Regulatory Compliance: Navigating the legalities of running a restaurant can be complex. Ensure the franchisor provides guidance and support in complying with all relevant regulations.

  3. Operational Excellence & Quality Control: Maintaining consistent quality and service is crucial for customer satisfaction. Choose a franchise that prioritizes operational excellence and provides ongoing support in maintaining high standards.

The Final Bite

The Indian food industry simmers with opportunity, and restaurant franchising offers a delicious path to entrepreneurial success. The food and beverage sector is brimming with potential. Look for franchises that capitalize on emerging trends, like health-focused options, plant-based alternatives, and delivery innovations.

Today's discerning diners crave convenience, customization, and unique experiences. Choose a franchise that caters to these preferences with online ordering, loyalty programs, and interactive dining concepts. A stagnant menu is a recipe for disaster.  Look out for franchises that encourage innovation in menu offerings and service delivery to stay ahead of the curve and tantalize taste buds.

Now that you've gained this culinary knowledge, it's time to explore your possibilities! Consider a franchise like Kouzina, a leading player in the cloud kitchen space. Kouzina offers a unique franchise model, empowering you to leverage its established brand and innovative multi-cuisine approach to capture a larger market share.

Visit their website or contact them today to learn more about their exciting franchise opportunities and unlock your potential as a successful foodpreneur. With the right franchise by your side, you can transform your passion for food into a thriving business venture, leaving a lasting mark on the Indian food industry.

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