Food franchise in India: costs, formats and what to check
Food is the largest franchise category in India and the one where the same brand can cost ₹5 lakh or ₹1 crore depending on the format you sign for. This page sets out what each format costs to open, what the brand takes each month, and which food and beverage brands are accepting enquiries here today.
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What each food format costs to open
| Format | Typical opening cost | What drives it |
|---|---|---|
| Kiosk or counter | ₹5–15 lakh | 80–200 sq ft, no seating, one or two staff. Lowest rent exposure and the fastest format to open. |
| Quick service outlet | ₹15–50 lakh | 300–800 sq ft with limited seating. Kitchen equipment and fit-out dominate the opening cost. |
| Cloud kitchen | ₹8–25 lakh | Delivery only, no frontage. Cheap to open, but aggregator commission of 18–28% comes straight off every order. |
| Casual dining | ₹50 lakh+ | 1,500 sq ft and upwards, full kitchen, large team. Highest bill value and the longest payback. |
These are the market ranges we see quoted across Indian food brands, given so you can sanity-check an offer. They are not the figures of any brand listed on this site — every listing above shows the numbers that brand published itself.
Before you sign a food franchise agreement
- Get the full opening cost sheet in writing: franchise fee, fit-out per sq ft, kitchen equipment, signage, initial stock, deposit and training.
- Ask whether supplies must be bought from the brand, and at what margin. This is often a larger monthly cost than the royalty.
- Check the territory clause. Exclusive radius, delivery-zone overlap and the brand's own cloud kitchens in your area all affect your sales.
- Confirm who owns the aggregator listing and who pays the commission on delivery orders.
- Speak to two franchisees you find yourself, not two the brand selects for you.
Food franchise in India: common questions
+How much does a food franchise in India cost?
It depends almost entirely on format rather than brand. A kiosk or takeaway counter typically starts around ₹5–15 lakh, a quick service outlet with seating ₹15–50 lakh, and a full casual dining restaurant ₹50 lakh and upwards. Fit-out, kitchen equipment and the rent deposit usually cost more than the franchise fee itself.
+Which food franchise format is most profitable?
Profit follows the ratio of rent and staff cost to sales, not the cuisine. Kiosks and cloud kitchens carry the lowest fixed cost and break even fastest; dine-in earns a higher bill value but takes longer to recover the fit-out. Ask any brand for the average monthly sales of outlets that have been open more than a year, not for a projection.
+What licences does a food franchise need in India?
An FSSAI registration or licence depending on turnover, GST registration, a local municipal trade licence, and a shop and establishment registration. Outlets serving on the premises may also need fire safety clearance and, where applicable, an eating house licence from the police commissionerate.
+What royalty do food brands charge?
Commonly 4–8% of net sales, sometimes with an additional 1–3% marketing contribution. Some brands charge no royalty and instead take their margin on compulsory supplies. Compare the total the brand takes each month, not the headline royalty rate.
+How long does a food outlet take to break even?
Brands commonly quote 18–30 months for a dine-in outlet and 9–18 months for a kiosk or cloud kitchen. Treat any quoted payback as the brand's claim and ask which outlets it is based on.