Written By: Bandana Gupta

The Indian food franchise market is growing quickly, especially in Tier-1 and Tier-2 cities, where quick-service restaurant (QSR) formats are expanding fast. Among the popular options, South Indian cafe franchises are gaining attention because they usually need lower investment, see steady daily demand, and attract repeat customers.

The South Indian Cafe (One Ikigaii) model includes both QSR and casual dining formats and grows mainly through franchising. One fast-growing brand in this segment is Nandri South Indian Cafe. This blog explains the Nandri South Indian Cafe franchise cost, profit potential, ROI, and expansion scope, helping investors see why it is becoming a scalable and attractive food franchise opportunity in India.

Overview of Nandri South Indian Cafe

Started in 2021 and opened for franchising in 2023, Nandri South Indian Cafe offers a smart, low-investment QSR model focused on popular South Indian favourites like dosa, idli, vada, and filter coffee. 

Key Brand Highlights

• Founded: 2021  
• Franchise model launched: 2023  
• Cuisine focus: Widely consumed South Indian staples, including dosa, idli, vada, and filter coffee.
• Format: Quick Service Restaurant (QSR) / Cafe  
• Target markets: Tier-1 and Tier-2 cities  

Nandri South Indian Cafe is an all-day dining brand that serves customers for breakfast, lunch, evening snacks, and coffee or other beverages. This all-day demand helps maintain consistent customer flow and steady sales throughout the day.

Why South Indian Cafe Franchises Are in High Demand

Before evaluating any specific brand, it is useful to understand why South Indian cafe franchises are considered one of the most in-demand and scalable food business formats in India. Daily consumption habits, cost-efficient menus, simple operations, and strong repeat customer behavior support their growth. These factors make South Indian QSR and cafe models attractive for franchise investors in both metro and non-metro markets.

1. Consistent Year-Round Demand

South Indian food is part of regular eating habits across India. Items like dosa, idli, vada, and filter coffee are widely consumed by all age groups and are suitable for breakfast, light meals, and snacks. Unlike trend-based food categories, these staples maintain steady demand throughout the year, resulting in more predictable sales and footfall.

2. Cost-Efficient Ingredients

These are easily available in local markets and usually have stable pricing. Standard preparation methods also help control portions and reduce wastage, which supports better margins.

3. High Repeat Customers

South Indian cafes benefit from frequent repeat visits. Many customers return regularly for quick and affordable meals. This repeat business lowers marketing dependency, improves daily sales consistency, and supports faster local brand acceptance.

4. All-Day Sales Potential

This all-day demand helps increase orders and improve outlet productivity, which supports better QSR profits.

.5. Simple and Standardised Operations

Menus are usually focused and process-driven, with standardised recipes and cooking methods. This makes staff training easier, reduces kitchen complexity, and supports faster service. Such standardisation also makes it easier to replicate the model across multiple outlets.

6. Suitable for Compact QSR Spaces

Quick preparation and limited kitchen requirements allow operations in compact spaces with lower rent, while still maintaining high order turnover. This supports easier and more affordable expansion.

Cost of the Nandri South Indian Cafe Franchise and Information Regarding Investment

Total Investment

The estimated investment to start a Nandri South Indian Cafe franchise is around ₹10 lakhs to ₹15 lakhs. This is considered a low to mid-range investment in the food franchise segment. It makes the model suitable for first-time entrepreneurs, small business owners, and investors who want to enter the food industry without a very high capital risk. Nandri’s lower investment model allows franchise partners to start with less financial pressure while still entering a high-demand food category.

Space Requirements

Nandri South Indian Cafe outlets can be set up in a compact space of 250–500 sq. ft. This is much smaller than traditional restaurants, which usually need over 1,000 sq. ft.

A smaller outlet size offers several practical benefits:

• Lower monthly rent, especially in metro cities  
• More location options, such as malls, high streets, office areas, and transit zones  
• Easier daily management  
• Fewer staff required  
• Lower setup and maintenance costs

This compact format supports faster setup and better cost control.

Franchise / Brand Fee

The franchise or brand fee is included in the total investment range of ₹10–15 lakhs. This means the setup cost usually covers the rights to operate under the brand along with basic launch support. Since it is bundled into the total investment, it reduces the chance of unexpected extra charges at the start.

Expansion Locations

Nandri South Indian Cafe is currently inviting franchise partners across cities such as.

• Indore, 
• Bhopal
• Nagpur
• Mumbai
• Pune
• Goa

These locations include both Tier-1 and Tier-2 cities. Metro cities like Mumbai and Pune offer high footfall and strong demand for quick-service food. Tier-2 cities like Indore, Nagpur, and Bhopal are growing fast and seeing increased spending on organised food outlets. Goa adds a tourism-driven market where affordable and familiar cuisine can attract regular customers as well as visitors. By targeting a mix of large and growing cities, the brand is planning expansion across different types of markets.

Profitability and Return on Investment (ROI)

Expected ROI Timeline

The Nandri South Indian Cafe follows a high-volume, quick-service model that helps generate faster sales and quicker cost recovery. Similar South Indian cafe franchises in this investment range often achieve ROI within 12–18 months, depending on location and footfall. This shorter payback period is a key advantage, as many full-service restaurants and premium retail businesses may take 3–5 years to recover their initial investment.

Estimated Profit Margins

South Indian cafe franchises generally operate with profit margins in the range of 18% to 30%. These margins are supported by a combination of cost control and steady demand.

Key margin-support factors include:

• Low-cost raw materials: Core ingredients such as rice, lentils, and coffee are affordable and widely available.  
• Consistent customer demand: South Indian food is part of regular eating habits, leading to repeat purchases.  
• Controlled preparation: Standardised recipes and portion sizes help reduce food wastage.

Together, these factors help maintain stable operating margins across locations.

Main Drivers of Profitability

Several operational and market factors contribute to the profit potential of this format:

• Value-based pricing: Customers view South Indian food as affordable and filling, which encourages frequent visits.  
• Fast service model: Quick preparation and serving time allow higher customer turnover per hour.  
• Wide customer appeal: South Indian cuisine is accepted across regions and age groups, supporting broader market reach.

These elements support steady daily sales and improve outlet productivity.

Monthly Operating Costs (Indicative)

While exact figures depend on city and outlet size, typical costs include:

• Rent (major variable cost)  
• Staff salaries (limited team size)  
• Raw materials  
• Utilities  
• Platform commissions (if online delivery is used)

Compared to full-service restaurants, these costs are significantly lower, improving net profitability.

Franchise Support for Revenue Growth

Nandri South Indian Cafe provides marketing and operational support to franchise partners to help improve local visibility and customer reach. This includes:

• Search Engine Optimisation (SEO): To improve ranking in local online searches  
• Social Media Marketing (SMM): To promote outlets and offers on social platforms  

This structured digital support helps new outlets attract customers more quickly and build awareness in their target area.

Scalability: Is Nandri a Scalable Franchise Opportunity in India?

• Low-Investment Model

The Nandri South Indian Cafe franchise requires an estimated investment of ₹10–15 lakhs, which is considerably lower than many established South Indian restaurant brands such as Sagar Ratna or Saravana Bhavan. Those brands typically require much higher capital outlay. The lower entry cost makes it more practical for franchise partners to plan multi-outlet expansion within a city or across different regions.

• Efficient Operating Structure

The cafe and QSR format is designed for operational efficiency and requires only about 250–500 sq. ft. of space. This compact model supports lean and manageable operations.

Key operational advantages include:

• Lower staffing needs: Outlets can usually operate with a small team of about 3–5 employees  
• Basic infrastructure requirements: Only essential kitchen equipment and simple seating are needed  
• Standardised processes: The operating model can be replicated easily across multiple locations.

This structure supports faster rollout and easier scale-up.

• Strong and Broad Cuisine Demand

South Indian food is widely consumed across India and is not limited to a niche customer segment. Common items such as idlis, dosa, and filter coffee are part of regular meal and snack habits. The menu supports demand across multiple dayparts, including breakfast, lunch, and evening snacks. This helps maintain steady customer flow throughout the day rather than depending on only one peak period.

• Flexible Outlet Formats

Nandri South Indian Cafe outlets can be set up in different high-footfall environments, which supports expansion flexibility. Suitable locations include:

• Shopping malls  
• Corporate and office hubs  
• High-street retail markets  
• Transit areas such as railway stations and bus terminals

This location flexibility improves scalability across varied city formats.

What Investors Should Review Before Choosing a Food Franchise Opportunity

While the model shows scalability potential, investors should evaluate certain factors carefully before investing.

• Brand Maturity

Nandri began franchising in 2023 and is still in the early growth stage compared to long-established competitors. Prospective franchisees should review actual outlet performance and customer response in their target market.

• Competitive Landscape

Well-known South Indian chains already have strong brand recognition. To compete effectively, newer brands must differentiate through pricing, service quality, consistency, and local marketing efforts.

• Location-Level Demand

Although South Indian cuisine has broad acceptance, demand intensity can vary by locality. Investors should conduct local market checks to confirm sufficient customer demand in the selected area.

• Operational Consistency

The success of a QSR outlet depends on maintaining consistent taste, hygiene standards, and service speed. Franchise partners must follow brand operating guidelines closely to achieve stable results and customer satisfaction.

Comparison With Established South Indian Brands

Nandri’s advantage lies in lower risk exposure per outlet, while established brands offer stronger recall but at a much higher cost.

Conclusion

Nandri South Indian Cafe represents a high-potential franchise opportunity in India’s booming food and beverage sector. With its low investment requirement, compact space model, and focus on authentic yet affordable cuisine, it offers a compelling proposition for entrepreneurs seeking rapid ROI and scalability.

The brand’s emphasis on digital marketing support, efficient operations, and flexible formats further enhances its attractiveness. However, as a relatively new entrant, investors should carefully evaluate local market conditions and compare Nandri’s performance with established competitors before committing.

If executed well, Nandri has the potential to become a household name in Tier-1 and Tier-2 cities, tapping into India’s enduring love for South Indian food while offering franchisees a profitable and scalable business model.

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.