Written By: Nikita J

The fragrant hot kebab, the savory warmth of a cup of tea, the delicious creamy delight of a dessert - the food and beverage industry in India is a sensory marvel with budding commercial potential. If you’ve ever dreamed of being your boss and carving a niche within this exciting area, this blog is your perfect starting point. We will dive into the world of food and beverage franchise under 5 lakh opportunities in India, find practical options, and give you the knowledge to make informed decisions.

Top contenders - Top High-Profit Food and beverage franchise under 5 Lakh in India

The Indian F&B landscape offers less than 5 lakh different franchises. Therefore, let’s examine some promising contenders:

1. Amul Ice Cream Franchise

• Amul, a household name synonymous with reliability and quality in India, offers an exciting franchise opportunity for ice cream enthusiasts with a minimum investment of Rs. 25,000 to Rs. 50,000 and also minimum infrastructure requirements, Amul ice cream franchises are ideal for kiosks, carts, or small takeaway systems in areas with high foot traffic
• Investment: Rs. 25,000 to Rs. 50,000 (minimum).
• Profit: Statistics show that Amul ice cream parlors can earn around 10-15% profit depending on location and operation.
• Target market: Creates a universal love of ice cream, especially for families and children.
• Market potential: The Indian ice cream market is expected to be worth ₹23,730 crore (US$3.1 billion) by 2024, according to a Euromonitor report: [invalid URL omitted This growth suggests a promising market for the Amul ice cream franchise.

2. Chai Point Franchise

• Get the essential Indian beverage, devoted fans of the chai. Tea Point capitalizes on this love by offering a variety of tea options served with sweets. Their franchise model caters to entrepreneurs looking for a kiosk or takeaway setup, making it an investment-friendly option that can drive high customer turnover.
• Investment: Rs. 3 lakhs to Rs. 5 lakhs and it is
• Profitability: Studies show that Chai Point franchises can generate profit margins of 8-12%, depending on factors such as location, efficiency, and customer traffic
• The target market mainly targets office workers, college students, as well as individuals who are looking for quick and convenient tea preparation.
• Market Potential: The Indian tea market is expected to grow at a CAGR of 4.25% during the forecast period 2022-2027, Mordor Intelligence: [invalid URL removed This growth indicates strong market potential for tea franchises like Chai Point.

3. Chaayos Franchise

• Another rising star in the tea segment, Chaayos offers a unique and modern twist on the traditional beverage. Their franchise model deals with a slightly higher investment range than tea-drop, typically Rs. 3 lakh and Rs. 5 lakhs and it is. However, they offer an extensive menu with items like kulfi and coffee, which appeals to many.
• Investment: Rs. 3 lakhs to Rs. 5 lakhs (a little more than a tea-drop).
• Interest rates: Like Tea Point, Chayos franchisees can enjoy interest rates in the 8-12% range, depending on location and service plan.
• The target market caters to a slightly larger audience compared to Chai Point, attracting customers who demand a wider range of teas and other offerings such as coffee and kulfi
• Market potential: The Indian coffee market is estimated to be worth ₹21,400 crore (US$2.8 billion) by 2025, according to Statista: [invalid URL removed Chayos' extensive menu caters to tea and coffee lovers, taking advantage of this growing market

4. StreetCobbler Franchise

• Craving a piece of the candy market? StreetCobbler offers a stylish and delicious concept - adjustable cobblers served in mason jars. Their franchise model complements the smaller kiosk or takeaway systems, making it a viable option for entrepreneurs with limited space and budgets.
• Investment: Information about the specific investments the StreetCobbler franchise has is not readily available. However, given their kiosk/takeaway model, it can be estimated to fall in the 5-lakh under range.
• Benefits: There is limited information on the typical benefits of street shoes. However, dessert cafes generally enjoy higher margins compared to dessert options, which can reach 15-20% or more when properly managed
• Target Market: Cater to a fashionable and contemporary audience with a sweet tooth, especially millennials and young professionals.
• Market Potential: The Indian confectionery market is witnessing growing popularity, with increasing disposable income and increasing appetite for on-the-go charity This trend indicates a market that is promising for the street cobbler franchise.

5. Waffy Cone Franchise

• Take the ice cream cones, the waffle cones take center stage! Waffy cones offer a delicious treat with a unique twist - their signature dish features a warm waffle cone stuffed with ice cream toppings. Their franchise model supports kiosks or small takeaway systems, making it a trendy option for high-traffic areas.
• Investment: As with StreetCobbler, specific financial details regarding the Waffle Cone franchise are not publicly available. However, their kiosk/takeaway model claims to fall within the 5-lakh below range.
• Profitability: Profitability data for the Waficon franchise is limited. However, like Street Cobbler, dessert cafes can achieve profit margins of 15-20% or more when managed properly.
• The target market caters to a trendy young audience looking for unique and visually appealing desserts, especially social media enthusiasts and seekers Of Instagrammable treats.
• Market Potential: The Indian confectionery market, as mentioned earlier, is experiencing significant growth. Waffy Cone’s trendy concept makes it stand to take advantage of this growing consumer demand for fresh and stylistically appealing desserts.

Growing food and beverage franchise business concessions in India under 5 lakh

The Indian food and beverage franchise industry is experiencing tremendous growth, driven by a combination of factors:

• Increasing disposable income: The growing Indian economy is showing increasing disposable income, leading people to spend more on restaurant meals.
• Changing demographics: The busy lifestyle of a growing young urban population is driving demand for convenient and fast food options.
• Changing tastes: Consumers are becoming more analytical in their food choices, and are looking for different culinary experiences.

These trends are paving the way for growth in the food and beverage franchise industry. The statistics paint a promising picture:

• Market Size and Growth: According to the National Restaurant Association of India (NRAI), the Indian F&B market is estimated to reach ₹5.47 billion (US$72.3 billion) by 2025, with a CAGR of 9.2%.
• Growth of the Franchising Industry: The franchising industry in India is witnessing growth, with the food and beverage segment being a major contributor. According to a report by Franchise India, the Indian franchise market will touch $140-150 billion in the next five years.

Why consider a food and beverage franchise under 5 lakh?

While the food and beverage franchise landscape offers exciting opportunities, starting from scratch can be challenging. Fewer than 500,000 franchises make for a solid choice:

• Lower Investment: Compared to starting a restaurant from scratch, the sub-500,000 franchise offers much less initial investment, making it an attractive option for those who want to work with limited resources
• Established brand: Franchises use the name and brand loyalty of a well-known company, giving you a head start in attracting customers.
• Proven business model: Franchises operate under a tried and successful business model, reducing the risk of failure associated with starting a new business.
• Support and Training: Most franchisors offer comprehensive training programs and ongoing support, ensuring you have the skills and guidance you need to run your business successfully.

A glimpse of the future: an exciting roadmap for Food and Beverage Franchise Industry

The future of food and beverage business in India is full of optimism. Here are some of the key features that will continue to shape this dynamic landscape:

• Enabling Technology: Technology is playing an important role in F&B franchises. Expect to see growth in online ordering, cashless payments, and kitchen automation, which will streamline operations and increase customer convenience.
• Food delivery and delivery focus: Demand for convenience food options will continue to grow, leading to an increase in delivery and delivery. Franchises that cater to this trend will position themselves well for success.
• Emphasis on health and wellness: Consumers are increasingly health conscious, leading to increased demand for healthy and sustainable food options. Franchises that adapt their menu and offerings to this growing segment will thrive.
• Focus on regional cuisine: Regional Indian cuisine is expected to grow in popularity. Franchises that offer unique and authentic regional rides will attract loyal customers.

With so many options available, choosing the right franchise requires careful consideration. Here are some key considerations:

• Your passion: Triumphs over passion. Choose a franchise concept that matches your interests and culinary tastes.
• Target market: Analyze the demographics of your area and identify where there is high demand. Choose a franchise that matches the preferences of your target audience.
• Investment Requirements: Determine the initial investment, running costs, as well as operating costs associated with each franchise opportunity.
• Space Availability: Consider the constraints of your desired location. Also, choose a franchise model that can work well within that footprint.
• Franchisor Support: Review the ongoing training as well as support provided by the franchisor. Choose a franchise that offers comprehensive guidance to ensure success.

Also Read: 7 Most Profitable Food Business Ideas To Start in India 2024

Conclusion

To sum up, the Indian F&B industry offers a host of exciting opportunities for aspiring entrepreneurs. By choosing a franchise of less than 500,000, you can leverage a proven business model, a recognized brand establishment, and the support of franchisees to meet the initial challenges and pave the way for success

Carefully consider your interests, target market, investment, and availability before choosing a franchise. Do a thorough search, and also examine the information provided. Also, don’t hesitate to contact the franchisees for more information. With the right attitude, dedication, as well as a dash of entrepreneurial spirit, you can turn your dream into a reality.

Contact us at Franchisebazar to get your food and beverage franchises.

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.