Written By: Gouri Ghosh

India's Quick Service Restaurant (QSR) industry is observing rapid growth, which is inspired by the increasing demand for changing consumer preferences, busy lifestyles,s and fast food. The QSR franchise business is becoming one of the most popular business models in India due to its low investment and high profit capacity. As we move towards 2025-2030, the QSR franchise market is ready to undergo major changes, providing new opportunities for investors and entrepreneurs.

In this blog, we will find out how the QSR franchise will develop in India, investment requirements, profit margin and the future of this bouncy industry.

India's QSR Industry Growth Overview

India's QSR franchise industry is growing rapidly. The market is expected to reach ₹ 82,000 crore by 2025, which is inspired by urbanization, changing lifestyles, and increasing disposable income. Popular international and Indian brands are expanding their QSR franchise networks across the country, especially in small towns.

Why QSR franchise business is the future of India's food market?

Demand for quick, clean, and inexpensive food options is increasing. The QSR franchise model allows entrepreneurs to partner with famous brands and tap into this demand. With the growing trend of online food distribution and healthy menu options, the QSR franchise business is set to dominate the food market in India from 2025-2030.

QSR franchise model role in India's F&B sector

QSR franchise model plays an important role in food and drink (F&B) Sector:

• Standardized food quality
• Rapid service
• Affordable pricing
• Strong brand appearance
• Easy scalability

How 2025-2030 Will Redefine the QSR Landscape

Digital technology, cloud kitchens, and healthier menu options will impact how QSRs function in India; ecosystems will become more vibrant, with brands gravitating toward eco-friendly packaging, tech-based ordering systems.

 Current Market Landscape of QSR Franchise in India

Market Size of QSR Industry in India (2024)

As of now, the QSR industry is worth ₹58,000 crore in India and is projected to see an 18% CAGR until 2030.

Dominant Players of QSR Franchise Market

• McDonald's
• Domino's Pizza
• KFC
• Wow! Momo
• Haldiram's Express
• Fastest-Growing QSR Franchise Brands in India
• Chai Sutta Bar
• Biryani By Kilo
• The Belgian Waffle Co.
• Giani's Ice Cream
• Amul Ice Cream Parlour

What Makes QSR Franchise Model Popular in India

According to QSR in India, the franchise model is gaining popularity because of a low investment with high-profit margins, brand support, and training plus its rapid return on investment under a growing demand for fast food in smaller cities.

 Growth Drivers of India's QSR Industry (2025-2030)

• Rising Disposable Income & Urbanization
• With higher incomes, urbanization is driving more people towards the habit of eating out or ordering food.
• Digital Transformation
• There is a critical aspect that offers easier access to QSR food: online food delivery apps like Zomato and Swiggy.
• Health-Conscious Consumer Trends
• In urban and semi-urban areas, brands significantly drive health-conscious food trends and innovations by introducing vegan, low-calorie, and gluten-free options.
•  QSR franchise brands will start catering in Tier 2 and Tier 3 cities by creating franchises in smaller towns or cities, which shall make fast food available in India.
• Government Initiatives
• The Government of India has assigned special considerations for the food and beverage sectors, including through food safety regulations and startups promoting direct advertisements. 

 Popular QSR Franchise Models in India

In India, the QSR franchise operates on various models; the most common being the Company-Owned Franchise, Franchise-Owned, Franchise-Operated (FOFO), Franchise-Owned, Company-Operated (FOCO), and Cloud Kitchens, a delivery-only concept with no other dining space.

Company-Owned Franchise

The company owns, operates, and runs the outlet directly. The brand takes care of setup and all daily operational activities. Although in such circumstances quality and service are consistent, the setup costs to be handled remain high.

Franchise-Owned Franchise-Operated

This model possesses the greatest penetration in India, precisely because of less capital investment.

Franchise-Owned, Company-Operated

Set-up costs are borne by the franchisee; however, the company operates and manages the outlet. The business model works best when an investor seeks returns without any interest in day-to-day activities.

Cloud Kitchen QSR Franchise

Cloud kitchens are delivery-only outlets that do not require store or dining space. The money saved on rent and setup costs makes this concept a low-investment option, with growing demand pushing its viability.

 The Cost of QSR Franchise in India (2025-2030)

Average Investment Required for QSR Franchise in India

The investment range varies between ₹10 Lakh and ₹1 Crore for a QSR Franchise in India. The investment depends on factors such as brand value, size of the outlet, and location.

Items making up setup costs

• Property Rent: Based on monthly rental charges depending on the location
• Equipment & Kitchen Setup: Cooking equipment, counters, and POS systems
• Licensing & Permits: FSSAI license, GST registration, and local permits
• Marketing & Branding: Branding, signboards, and promotions
• QSR Franchise Cost Comparison
• Indian Brands (Wow Momo, Chai Sutta Bar) ranged between ₹10 lakh and ₹30 lakh.
• International Brands (McDonald's, KFC): ₹50 lakh – ₹1 crore. 

Future Trends Transforming the Quick Service Restaurant Franchise Industry (2025-2030)

The QSR (Quick Service Restaurant) franchise industry in India is expected to undergo enormous transformation and development from 2025 to 2030. With increased market demand, advancing technologies, and healthier, more sustainable food options at the forefront of people's minds, QSR brands have to do a good job of adaptation in order to remain in competition. Below are the major trends that will reshape the QSR franchise industry in India.

1. Rise of Cloud Kitchen QSR Franchise Models

Cloud Kitchen or Virtual Kitchen is converging into one of the fastest-growing segments in India's QSR industry. These are delivery-only kitchens that do not have any dine-in space and solely focus on online food delivery.

Why is this trend so popular?

• Setup and operational costs are far lower than those of traditional restaurants.
• High demand for online delivery aggregators such as Zomato, Swiggy, and Uber Eats.
• Scalability in multiple cities is faster without requiring heavy investments.
• Ideal for small brands or entrepreneurs with limited budgets.
• Several QSR brands already have existing cloud kitchen franchises, particularly in metro areas and tier 2 cities.

2. AI-Based Ordering & Automation For Speedy Service 

Artificial Intelligence (AI) and robotics are revolutionizing how QSR brands operate. Such automation tools do not only improve customer experience but improve efficiencies, reduce costs, and increase the number of served customers.

Examples of AI-Based Automation in QSR:

• Self-ordering kiosks at restaurants.
• AI Chatboxes for customer service and orders.
• Voice-based ordering through apps or smart devices.
• Automated inventory management systems.
• Robotic kitchen systems to prepare food.
• This trend will only help QSR brands achieve more speed, personalization, and order accuracy. 

3. Environmentally friendly packaging to promote stability

With rising environmental concerns, more customers prefer brands that use durable and environmentally friendly packaging.

Many QSR franchise plastics are transformed with biodegradable, paper-based, or compostable packaging materials. Brands like Tea Sutta Bar and Subway have already adopted eco-friendly packaging.

Future trends in environmentally friendly packaging:

• Paper straws and cups.
• Plant-based biodegradable container.
• Wooden cutlery for takeaWays.
• Reusable packaging model.

Sustainable packaging will not only improve the reputation of the brand, but will also comply with the upcoming government rules on the use of plastic.

4. Cheap, low-cost franchise format

The inexpensive franchise models will become a game-chain for the QSR industry, especially in Tier 2 and Tier 3 cities.

Many brands are offering small-format franchise models to attract local entrepreneurs with limited budgets. These formats include:

• Kiosk Outlet.
• Takeaway-only counter.
• Mobile Food Cart.
• Express outlet with minimum seating.

The low-cost franchise model requires investment starting from ₹ 5–10 lakhs, making them a profitable business option for investors for the first time.

5. Plant-based and healthy menu innovation

The demand for healthy, plant-based and vegetarian food options is increasing among health-conscious consumers. The QSR brands are gradually low-calorie, and gluten-free, and their menu a vegetarian dishes.

Future menu innovation:

• Plant-based burgers and raps.
• Vegetarian Momos and Sandwich.
• Chinese free dessert.
• Protein bowls and salads.
• Keto-friendly food options.

This innings will attract a large customer base, especially between millennium and fitness enthusiasts.

6. Hyperlokal delivery partnership for fast delivery services

The QSR brands are partnered with hyperlocal delivery services such as Swiggi Jini, Dunjo and Blinkit to offer delivery within 10–20 minutes.

The hyperlocal delivery partnerships will help QsR brands:

• Serve more customers in nearby places.
• Increase order volume during peak hours.
• Improve customers' satisfaction with rapid distribution services.
• Reduce operating costs through third-party logistics.

Top 5 Best QSR Franchise in India

QSR stands for Quick Service Restaurant, but those are fast food outlets attracting the patronage of the population, with quicker service amongst the limited shades of table service or takeaway options.

This QSR industry is making its own boom in India, with many top brands offering franchise opportunities. The Top 5 QSR Franchise in India (2025 Edition) include: 

• McDonald's – Global fast-food giant known for burgers, fries, and beverages;
• Domino's Pizza – Famous for its pizzas with a great delivery network;
• Wow! Momo – The largest homegrown QSR chain for momos and Tibetan cuisine in India;
• Haldi ram's Express – Popular for Indian snacks, sweets, and meals;
• Chai Sutta Bar – A trending QSR known for chai (tea) served in kulhad (clay cups).

How to Find the Best QSR Franchise in India

If you're intending to invest in a QSR franchise, factors you should consider include:

 Things to Consider:

• Brand Reputation: A brand with busy present and great customer reviews, even in the face of competition, is worth considering;
• Initial Investments & Franchise Costs: Check the total investment required franchise-wise, including franchise fees, opening setup costs, and working capital;
• Profit Margins: Research how much you can profitably anticipate for each month on an annual basis;
• Marketing Support: Good QSR franchises are known to offer marketing and promotional support for the growth of the business;

Training Programs: Due training should be provided by Franchisors on staff, food preparation, and service.

Conclusion

The QSR franchise business is all set for unprecedented growth from the period 2025 to 2030 in India. With soaring deals for fast food, digital transformation processes, and health-sensitive menus, this industry offers an excellent profit margin and good investment opportunity.

If you've ever thought of starting a business, now's a chance to jump to the queue and invest in a QSR franchise in India. 

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.