The New Shop Franchise in India 2027: Cost, Investment, Profit, ROI

Thinking about opening a convenience store in India in 2027? You may have already come across The New Shop franchise. This concept is very basic. You will operate a store that provides consumers with quick access to goods like snacks, beverages, groceries, personal care products, and ready-to-eat foods.

However, before you make your investment, there is one key question:

How much does The New Shop franchise cost?

According to The New Shop's official franchise page, the current setup cost is ₹20 lakh + GST. This includes furniture and fixtures, equipment, air conditioners, LED equipment, kitchen equipment, franchise fees and marketing fees. Inventory is extra.

According to The New Shop's franchise information it  have 250+ stores, 30+ cities, and 50 lakh customers.

Thus, if you are seriously thinking about this franchise opportunity for 2027, let us explain everything in layman’s terms.

Short Answer: What Is the New Shop Franchise Cost?

This is the basic info you should know:

The most important point is this:

₹20 lakh + GST is the published setup cost. It is not necessarily the total amount you will need to start the business.

You should also budget for inventory, rent deposit, salaries, electricity and working capital.

 What Is The New Shop Franchise?

The New Shop is a convenience-store business.

Think of it as a modern retail store where customers can quickly purchase products they need during the day or night.

The company describes its format as a 24/7 convenience store. Its official franchise page currently lists 250+ stores across 30+ cities. Source : new shop broucher

Depending on the store, products can include:

•  Snacks
•  Beverages
•  Grocery products
•  Ready-to-eat food
•  Personal care products
•  Hygiene products
• Health and wellness products
•  Other everyday convenience products

The main attraction for a franchise owner is that you do not have to create a retail brand from zero.

You get a ready-made franchise format, branding and operating support.

But remember: you still have to run the business.

 How Much Does The New Shop Franchise Cost?

According to The New Shop's official franchise page, the current setup cost is:

₹20 lakh + GST

The company says this includes:

•  Furniture and fixtures
•  Store equipment
•  Air conditioners
•  LED equipment
•  Kitchen equipment
•  Franchise fee
•  Marketing fee

Inventory is extra.

This is important because many people make the mistake of thinking:

 “I need only ₹20 lakh to open the store.”

That may not be enough.

You may also need money for:

•  Opening inventory
•  Security deposit
•  Rent
•  Employee salaries
•  Electricity
•  Internet
•  Maintenance
•  Local marketing
•  Licences and other business expenses
•  Working capital

Your actual starting budget will therefore depend on the location and property.

 How Much Money Do You Actually Need?

Let's keep things simple.

If the standard setup charge is ₹20 lakh plus GST,

that doesn't necessarily mean that your entire cost of project would come to ₹20 lakh.

Your total finance requirement may be more or less something like this:

Franchise setup charge + GST + stock + rent deposit + staffing + working capital and many other opening costs

It totally depends on your location and many other factors.

So before signing a lease, prepare a complete budget.

 How Much Space Is Required?

The typical space listed for The New Shop is around:

500–750 sq. ft.  source : FranchiseBAZAR

But don't choose a property just because it has the right size.

For a convenience store, **location can be just as important as size**.

Look at things such as:

 Number of people passing the location

•  Nearby residential buildings
•  Offices
•  Colleges and schools
•  Road visibility
•  Parking
•  Public transport
•  Nearby shops
•  Competition
•  Monthly rent

A 500 sq. ft. store in a busy area may have better customer traffic than a 750 sq. ft. store in a quiet location.

 Is The New Shop Franchise Profitable?

This is probably the question most investors want answered.

The honest answer is:

There is no single profit figure that applies to every The New Shop outlet.

Your profit will depend on your actual sales and expenses.

Some important factors are:

1. Monthly sales

2. Product margins

3. Customer footfall

4. Average bill value

5. Rent

6. Employee costs

7. Electricity

8. Inventory wastage

9. Competition

10. Local demand

The New Shop's official franchise page says that it offers industry margins and states that break-even can be achieved within the first three months. It also mentions a monthly return potential of ₹500 per sq. ft.

However, these are claims published by the franchise company, not a guaranteed return for every franchise owner.

Your own financial calculation should therefore be based on the numbers for your specific location.

 Simple Example of The New Shop Profit Calculation

Let's take a simple example.

Suppose your store makes:

₹10 lakh in monthly sales

And, only for illustration, suppose the gross margin is 25%.

Then:

₹10 lakh × 25% = ₹2.5 lakh gross profit

Now you have to pay your operating expenses.

For example:

•  Rent
•  Salaries
•  Electricity
•  Internet
•  Maintenance
•  Marketing
•  Wastage
•  Other expenses

Suppose the total of all these is ₹2 lakh, then your operating profit would be something like this:

₹2.5 lakh - ₹2 lakh = ₹50,000

Please note that this is just an example that shows how to calculate the same.

This doesn't mean that this is the exact profit of The New Shop stores.

Please make sure that you are aware of the realistic figures for your area provided by the company.

The New Shop Franchise ROI

ROI is known as the return on investment.

As such, it basically is the profit you will make compared to your investments.

The formula for calculating the ROI is:

ROI = Annual Profit ÷ Total Investment × 100

For example:

When you have ₹25 lakh total investment and ₹5 lakh annual profit:

₹5 lakh ÷ ₹25 lakh × 100 = 20% ROI

Remember, this is just an example.

Please do not calculate ROI based on the sales you may have.

You should use **profit after expenses**, taking into consideration all the investment.

That can include:

* Setup cost

* GST

* Inventory

* Security deposit

* Working capital

* Other opening expenses

 What Is The New Shop Franchise Payback Period?

The payback period means the time needed to recover your investment from business profits.

The New Shop's official website promotes a fast-payback model and says that break-even can be achieved within the first three months.

But you should not assume that every store will recover its investment in three months.

Your actual payback period can change because of:

* Location

* Rent

* Sales

* Product margins

* Employee costs

* Competition

* Inventory management

* Customer demand

A better approach is to prepare a 12-month cash-flow plan before investing.

 What Are The New Shop Franchise Requirements?

The New Shop currently lists several criteria for potential franchise owners.

These include:

•  Retail, hospitality or management experience
•  Background checks
•  English and regional-language fluency
•  Three years of ITR exceeding ₹10 lakh
• CIBIL Score more than 700
• Entrepreneurial Mentality
• Any Degree Graduate

The company claims that candidates who meet their requirements will be notified to attend the follow-up interview once they apply.

If you already have experience in retail or management, ensure that you have all the required documents handy while applying.

What Is The Business Model For The New Shop?

The business model used by The New Shop is:

FOFO Model – Franchisee-Owned, Franchisee-Operated.

In other words, the franchise outlet belongs to you and you operate it too.

That can include:

•  Managing employees
•  Checking inventory
•  Monitoring sales
•  Maintaining the store
•  Managing customer service
•  Controlling expenses
•  Checking product availability
•  Managing daily operations

And this means that it is not a passive venture for an investor either. You must be ready to control this store yourself or hire someone to look after it.

 Why Location Is That Important

The location may play a great role in opening a convenience store. Think about where the convenience is really required.

Possible options may include:

•  Residential areas
•  Office districts
•  High street locations
•  Student areas
•  Busy roads
•  Mixed residential and commercial districts
• Transport-related locations

It would be best to visit your possible store at different times before renting.

Look out for:

 Morning - Afternoon - Evening - Late night

That way you will get some idea about the customers' movement. Do not forget about rent though.

High revenue does not always mean high profit if your rent and costs are too high.

 What Are The Main Risks?

Each business has its own risks, and convenience store franchise is not an exception.

1. High Rent

A good-looking location may have very high rent.

If rent takes up too much of your gross profit, your final profit can become small.

2. Slow-Moving Inventory

Products that don't sell can lock up your working capital.

Good inventory management is important.

3. Employee Costs

A 24/7 store may require multiple shifts, which can increase staff costs.

4. Competition

You may compete with:

* Local grocery stores

* Supermarkets

* Other convenience stores

* Quick-commerce companies

* Online grocery platforms

5. Lower-Than-Expected Sales

If customer traffic is lower than expected, your payback period may become longer.

This is why you should create your own financial model instead of relying only on advertised ROI or payback claims.

 Questions to Ask The New Shop Before Investing

Before paying any franchise fee or signing an agreement, ask these questions:

1. What is the complete investment including GST?

2. How much opening inventory will I need?

3. Are there any monthly royalty charges?

4. Are there recurring marketing charges?

5. What are the expected monthly operating expenses?

6. What sales level is required to break even?

7. What gross margin should I realistically expect?

8. How many employees are required?

9. What training does the company provide?

10. What support is provided after opening?

11. What are the franchise agreement terms?

12. What are the renewal conditions?

13. What happens if I want to exit?

14. Are there location restrictions?

15. Who pays for store maintenance and replacement equipment?

Get important commercial terms in writing before making a payment.

Is The New Shop Franchise Worth Considering for 2027?

If you are researching The New Shop franchise for 2027, don't look at the ₹20 lakh setup cost alone.

Look at the complete business economics.

The official website currently states:

• ₹20 lakh + GST setup cost
•  Inventory extra
•  FOFO business model
•  250+ stores
•  30+ cities
•  50 lakh customers
•  24/7 support
•  500–750 sq. ft. typical space listed by FranchiseBAZAR
•  Specific eligibility criteria for franchise applicants

The company also publishes claims about fast break-even and return potential. These should be treated as company claims and checked against the economics of your own proposed store.

Your own business plan should include:

•  Franchise setup cost
•  GST
•  Inventory
•  Rent
•  Security deposit
•  Employee salaries
•  Electricity
•  Maintenance
•  Marketing
•  Working capital
•  Expected monthly sales
•  Expected gross margin
•  Operating expenses
•  Expected profit
•  Payback period

That's the number that matters to you.

Read : Top 10 Retail Franchise in India

Final Takeaway

The current The New Shop franchise cost in India is ₹20 lakh + GST, according to the brand's official franchise page.

The setup cost includes furniture and fixtures, equipment, air conditioners, LED equipment, kitchen equipment, franchise fees and marketing fees.

Inventory is extra.

The New Shop is a Franchise Owned and Franchise Operated (FOFO), so the franchisee is supposed to run the outlet.

The business operates through the convenience store concept of 24 hours.

The brand claims that the number of stores is 250+ in 30+ cities with 50 lakh customers.

However, FranchiseBAZAR mentions about the franchise with **space requirement between 500-750 sq. ft.** and investment amount of ₹15-20 lakh, but not ₹20 lakh + GST as stated by the brand.

Thus, before investing in 2027, do not rely solely on the headline investment amount.

Check the property.

Check the rent.

Check expected sales.

Check margins.

Check staffing costs.

Check working capital.

About this analysis

This guide was researched using The New Shop's official franchise information and independent franchise listings. Figures that come directly from the company are identified as company-published claims. Investment examples in this article are illustrative and should not be interpreted as financial projections.

FAQs

1. What is The New Shop franchise cost in India?

The New Shop's official franchise website currently lists the setup cost at **₹20 lakh + GST**. Inventory is extra.

2. Is The New Shop franchise profitable?

The franchise has the potential to generate profit, but actual profit will depend on sales, margins, rent, salaries, location, competition and other operating costs.

3. What is the ROI of The New Shop franchise?

There is no single ROI that applies to every outlet. Calculate ROI using your complete investment and actual annual profit after expenses.

4. What is the payback period?

The New Shop's website states that break-even can be achieved within the first three months. This is a company-published claim and should not be treated as a guaranteed result.

5. Does The New Shop work in a 24-hour system?

The New Shop operates in a **24/7 convenience store format** as per the details of its franchise.

6. What is The New Shop's franchise business model?

It follows the **FOFO — Franchise Owned, Franchise Operated** business model.

7. What are the eligibility criteria for The New Shop franchise?

The New Shop currently requires retail, hospitality or management experience, background checks, fluency in English and regional languages, three years of ITR greater than ₹10 lakh, a CIBIL score greater than 700, entrepreneur mentality and degree in any stream.

8. What space is required?

As per FranchiseBAZAR, the approximate space requirement currently is **500-750 sq. ft.** Verify with The New Shop the exact space requirement before leasing out property.

9. What products can be sold by The New Shop?

The convenience store format can sell snacks, beverages, grocery items, ready to eat food, personal care products and other convenience products.

10. What should I check before investing?

Check the complete setup cost, GST, inventory, rent, security deposit, working capital, recurring charges, margins, staffing, agreement terms, exit conditions and expected sales for your specific location.

Written By: Gouri Ghosh, Franchisebazar Editorial Team — Updated September 2026

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.