Written By: Gouri Ghosh

Big cities not only offer opportunities to make your venture successful, but they also help you succeed quickly. Metro cities are places where consumers actively seek out quality and trusted products, that's why the success rate is so high here, and you will be tapping into an existing market.

The best part about starting a franchise in a metro city is the availability of affluent consumers, premium locations, and high energy, which result in higher turnovers. 

In this blog, we tell you the best franchise business ideas for metro cities, viable franchised business ideas that you can actually invest in, the cost of starting, and the profits earned. By the end of this post, you will know which franchise business to start in metro cities is right for you.

Best Food Franchise Brands Suitable for Metro Cities

Food is considered a safe business idea in metro cities, as most individuals tend to dine out or order in daily. Hence, there is continuous demand and the possibility of earning a constant income.

Most Famous QSR Brands 

Subway

Subway serves extremely well in corporate areas and shopping malls, where customers seek quick meals.

• The starting cost for setting up this franchise would be between ₹50-90 lakh, depending on the area chosen.
• The initial cost would comprise interiors, kitchen equipment, and branding needs.
• The monthly cost would include rent, salaries, and royalty payments, amounting to 6%-8% of sales.
• Profit margins for this business are 15%-20%, provided that the outlet functions successfully.
• It operates under a direct franchise system.

Pizza Hut

Pizza Hut emphasizes dine-in service along with delivery service, making it ideal for family and group customers in crowded locations.

• You will require an initial investment of about ₹1–2 crores based on the size of the outlet.
• The initial investment will be higher as it requires more space and interior design.
• Monthly expenses will include rent, salaries, stock, and royalties, which are around 6%–7% of the total sales amount.
• Generally, the average margin of profit ranges from 12%–18%.
• The franchisee opportunity comes via a partnership, which might be limited

Rapidly Growing Indian Food Brands

Indian food brands are growing very rapidly in metro cities. These brands have a better understanding of the local palate and may also require less investment than global brands, making them excellent franchise business options.

Wow! Momo

Wow! Momo is a rapidly expanding QSR brand with many loyal and young customers. The brand works excellently in malls, food courts, and areas with high footfall.

• The starting investment can be around ₹20-50 lakh.
• The starting capital required is moderate, with expenses related to interiors, kitchen equipment, and branding.
• Monthly costs will consist of rent, manpower, operation charges, and royalty of 5%-6%.
• The average profit margin for Wow! Momo is about 18%-25%, considering its high volume of sales.
• It takes around 12-24 months to recover the initial investment.

The franchising system used is direct and focused on rapid expansion.

Haldiram’s

Haldiram’s is a famous name in snacking and restaurants for family consumption. It works effectively at premium and high traffic locations.

• You may have to invest around ₹1-3 crore.
• It requires more initial capital because of a larger outlet size and wider product range.
• Monthly costs will include manpower, inventory, maintenance and royalty of 4%-6%.
• Average profit margin for Haldiram’s is around 12%-18%.
• It can take 3-5 years to break even.
• The franchise system used is selective and partnership-based.

Chai Point

It is part of the snacks segment. It targets school students and office workers. That's why it always get good amount of customers.

• You can begin your venture starting from around ₹30-80 lakhs
• Initial investment is not so heavy for small formats
• Monthly expenses will include rental charges, salaries, and material cost along with royalties in the range of 6%-8%
• Profit margins are estimated to be in the range of 15%-20% with stable sales
• The break-even period can take around 18-30 months
• The franchising system is based on a partnership with good backing

Barbeque Nation

Barbeque Nation serves as a premium buffet dining chain. It provides high returns but involves a higher initial investment.

• You may have to invest in the range of ₹2-5 crore
• High setup costs owing to the requirement of more space and kitchen facilities
• Monthly expenditure includes salaries, materials, and running costs, with royalties being 5%-7%
• Profit margins can be expected in the range of 15%-20%
• It can take up to 3-4 years to break even
• The franchising process is restricted to partnerships only

Bikanervala

Bikanervala brings together sweet, savory, and dine-in options in one outlet. It is a robust multi-purpose concept that can attract families and group customers.

• Expect to invest about ₹1-2 crore
• Bikanervala requires setting up a large-sized outlet with a kitchen, display, and seating area
• Expenses per month would be salary, stock, and maintenance expenses, along with 4%-6% royalties
• Typically, profit margins would be around 15%-20%
• Time taken to break even would be 2-4 years
• The structure is solid and depends on the locations

Why choose these Indian Brands in metro cities

• The investment required is generally less when compared to global brands
• Local tastes suit these brands better, helping create a loyal customer base
• High demand in urban metros and increasing
• Brands are aggressively expanding, thus offering multiple options
• They make for great franchises to work in developed cities and metros, where there would be local demand and brand recognition to your advantage.

Options Available for Café and Beverage Franchises

There has been an increase in café businesses in metro cities in recent years. These are not just limited to coffee or tea; rather, they are used by people as their workplaces and meeting places. So they provides best cafe brands in metro cities.

High-Premium- Coffee-Chain-Franchises

Blue-Tokai-Coffee-Roasters

It is famous for its high-flavour coffee. It provides high-quality coffee beans with a premium seating place.

• The investment range from fifty lakh to one crore.
• Most of the investment goes towards interior design, coffee equipment, and furniture arrangements
• Costs involved are mostly rental costs, staff costs, and a royalty of 5%-7%
• The margin stays in the 15%-20% range, provided there is consistent customer traffic
• The payback period is approximately 2-3 years
• Franchising takes place through franchises and partnerships

Third-Wave-Coffee

It provides high quality coffee house ambience. It is suitable for those individuals who love working and socializing in elegant environments.

• The starting investment will be approximately ₹1–2 crore
• More investment will be needed for interior designs and other aspects
• Periodic expenditure comprises rent, labor, and royalties between 6% and 8%
• Profitability margins remain in the range of 15% to 18%
• The payback period will be about 2 to 4 years
• Expansion will come through partnerships only

Blenz Coffee

Blenz Coffee is establishing itself in the Indian market with a premium global touch. Being a developing brand, it has much potential for early-stage investments.

• Expected investment will be around ₹1-2 crore
• Initial setup will include branding, interior, and imported machinery
• Monthly investment will cover rent, salaries of employees, and royalty up to 6%-8%
• Profits margins may go as high as 15%-20%
• Payback period may be in 2 to 4 years
• Franchising opportunity comes through direct and master level partnerships

Tea & Beverage Chains

Chaayos

Chaayos focuses on serving customized tea along with small bites. It appeals to people who work professionally and are commuters.

• Minimum investment required is about ₹30-70 lakh.
• It works effectively in small or medium outlets
• Operational expenses include rent, labor charges, and royalty at 6% -8%
• Typical profit margin ranges from 15%-20%
• Payback period is generally between 18 - 30 months
• This franchise adopts an expansion strategy based on partnerships

Salon & Beauty Franchise Businesses

Salons & beauty are one of the most consistent businesses in metros. Grooming and maintenance of personal appearances are now an essential part of life in metropolitan cities.

Lakmé Salon

Lakmé Salon is a famous brand name with very good recognition amongst urban customers. They attract customers preferring beauty services with brand-name professionalism.

• Initial investment cost ranges from ₹50 lakh to ₹1 crore
• Setup requires interior, equipment, and standard branded design
• Monthly expenses include rent, staff salaries, and royalties is about 10%-15%
• Net profit margin may range between 20%-25%
• Break even period takes about 2-3 years
• The franchisee model is organized and brand-controlled

Naturals Salon

This salon is known for providing budget-friendly premium services. This salon provides good coverage across many cities and is very suitable for franchisees who prefer both returns and cost-effectiveness.

• Investment required is approximately ₹20-50 lakh
• The setup cost is relatively low and also varies by outlet size
• Rent, staff salary, and royalty make up the monthly expenses in the range of 8%-10%
• Net profit margin may go up to 20%-30%
• Break even period can take about 12-24 months
• The franchisee model is direct and easily scalable

Dessert and Ice-Cream Franchise 

Dessert and ice cream ventures prove highly successful in metro cities because they draw impulse buyers in metro cities, particularly at malls and crowded locations.

Naturals Ice Cream

• The investment is normally between ₹10-20 lakhs
• Low setup requirements for small-medium scale stores
• Rent, salaries, and operational costs are included monthly
• Profit margins are high owing to premium prices and minimal wastage
• A year could be required to break even
• Limited availability and selective approach

Giani's

Giani’s provides a broad assortment of dessert products such as ice cream, sundaes, and falooda. It does well in high footfall locations and draws customers of all ages.

• Investment required is approximately between ₹15–30 lakh
• This brand setup is appropriate for a kiosk or smaller setups
• Costs per month include rent, staff, and stock
• The gross margin of this brand can reach up to about 40%–50%
• The break-even point comes in approximately 18–24 months
• Franchise is direct with easy access

Baskin Robbins

Baskin-Robbins is an international brand of ice cream known worldwide and enjoys a premium status due to its extensive range of flavors.

• Investment required is between ₹20–50 lakh based on store type
• It's set-up involves branding, freezers, and display counters
• Costs per month include rent, staff, and royalty-based costs
• The margin averages about 15%–20%
• Break-even period takes around 1–2 years
• The franchise is structured effectively

Franchise Opportunities in Retail and Lifestyle Brands

There is huge potential in retail and lifestyle brands in metro cities. You can see good performance due to the preference for branded retail stores. People have a high willingness to pay in the categories of fashion, beauty, and lifestyle segments, making it one of the most profitable business categories in metro cities.

Zudio

It is a quick-expanding clothing brand. It offers affordable and trendy clothes to targeting middle class customers.

• You can find higher investment due to the large store requirements
• Interior design, stocking, and branding are included in the setup cost
• Rent, staffing, and inventory costs make up your monthly expenditure
• Profit relies heavily on high turnover and sales volumes
• Typical break-even point takes about 2–3 years
• Company-owned and partnering models dominate the business

Pantaloons

Pantaloons is an established fashion brand with a strong mall presence. It appeals to families and frequent visitors who look for branded clothes.

• Initial investment may start from ₹1 crore and increase for
• Store requirement.
• The monthly cost comprises rent, staffing, and inventory costs
• Profit margin lies between 12%–18% based on sales turnover
• The break-even period could range from 3 to 5 years
• Location-specific franchising dominates the business

How to Select the Best Location in a Metro City

Which Franchise Category Fits Your Budget?

Read more :Best franchise business ideas for a small investment in India

The 12 Most Profitable Franchise Businesses in India

Conclusion

Selecting the right brand in metro cities is the first step in your business.  Although you have all kinds of good factors to start a business, like location, customers and more, you have to know if the location is perfect for your franchise brand or not. So choose the location and brand as per your goal and budget.

FAQs

1. Best franchise for metro cities

 Food franchise, café franchise, and salon franchise are some of the best choices since they have regular demand.

2. What should be the amount of investment required for starting a franchise in metro cities?

 The initial investment may begin from approximately ₹10-20 lakhs and extend up to ₹2-5 crore and beyond.

3. When does a franchise begin earning profits?

 In general, most franchises require a time period of about 1.5-3 years to make a profit, but it varies according to other factors.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.