Written By: Payal Das

If you’ve dreamed of running a cafe franchise business, it’s a proven roadmap for success. India’s love affair with tea and coffee has created a booming cafe culture, offering incredible opportunities for budding entrepreneurs.  To help you make an informed choice, we’ve compiled a list of the top 10 cafe franchise to consider in 2025 in India. Each of these has carved its niche in India’s cafe ecosystem, offering distinctive appeal and lucrative potential.

Why Are Cafe Franchises Profitable in India?

• Growing Market Demand: India's youth population loves cafes as social hubs for work, meetings, and relaxation.
• Established Business Models: Franchises come with proven operational methods, reducing risks compared to starting an independent cafe.
• Multiple Revenue Streams: cafes often generate income not just from beverages but also from food items, merchandise, and delivery services.
• Brand Power: Customers tend to trust established brands, giving franchises an edge in attracting foot traffic.

Factors That Influence Profitability

1. Location Selection A cafe franchise in India in a busy commercial area, college neighborhood, or tech hub is likely to thrive.
2. Franchise Brand Strength A well-known brand like Chai Sutta Bar or Chai Point may offer higher returns due to customer loyalty.
3. Operational Efficiency Efficient cost management, quality control, and customer service can boost profit margins.
4. Marketing and Community Engagement Promotions, events, and active engagement with customers help build a loyal base.

Top 10 cafe Franchise in India 2025

Here are the top 10 cafe franchise in India for you to invest in 2025!

1. Indian Coffee House Franchise

The Indian Coffee House is not just a coffee shop franchise; it’s an institution. Established in the 1950s, this cooperative chain is known for its nostalgic charm, traditional South Indian coffee, and affordable menu. 

Benefits of Indian Coffee House cafe Franchise

• Low Investment: Known for its cost-effective setup, making it a great choice for beginners.
• Brand Recognition: A legacy brand with a loyal customer base.
• Menu: Simple yet diverse, featuring snacks, beverages, and full meals.

Franchise Details

• Indian Coffee House Franchise Cost: ₹10–15 lakhs.
• Franchise Fee: ₹2–5 lakhs.
• Support Offered: Training, supply chain assistance, and marketing support.

2. Tea Max cafe Franchise

Tea Max cafe is a rising star in India’s coffee shop franchise scene, offering a unique combination of premium tea blends and quick snacks. This brand is ideal for entrepreneurs targeting younger audiences.

Benefits of Tea Max cafe Franchise

• Innovative Beverages: A wide variety of tea-based concoctions.
• Affordable Pricing: Attracts a broad demographic.
• Trendy Ambiance: Perfect for urban locations.

Franchise Details

• Tea Max cafe Franchise Cost: ₹12–18 lakhs.
• Franchise Fee: ₹3–4 lakhs.
• Support Offered: Interior design, staff training, and marketing strategies.

3. Irani cafe Franchise

Irani cafes is a coffee cafe franchise known for their chai, bun maska, and keema pav, they offer a vintage cafe experience. They have a legacy that blends Persian and Indian culinary traditions. 

Benefits of Irani cafe Franchise

• Cultural Nostalgia: Appeals to customers seeking a classic cafe vibe.
• Varied Menu: Combines beverages, snacks, and hearty meals.
• High Footfall Potential: Ideal for metro cities with a love for heritage cafes.

Franchise Details

• Irani cafe Franchise Cost: ₹15–20 lakhs.
• Franchise Fee: ₹3–5 lakhs.
• Support Offered: Branding, equipment, and supply chain support.

4. Rameshwaram cafe Franchise

Rameshwaram cafe offers authentic South Indian filter coffee and traditional delicacies, making it a favorite among regional cuisine enthusiasts.

Benefits of Rameshwaram cafe Franchise

• Authenticity: Known for premium filter coffee and South Indian meals.
• Family-Friendly: Appeals to all age groups.
• Consistent Demand: South Indian cuisine has evergreen popularity.

Franchise Details

• Rameshwaram cafe Franchise Cost: ₹20–25 lakhs.
• Franchise Fee: ₹5–6 lakhs.
• Support Offered: Recipe standardization, raw material supply, and training.

5. Karupatti Coffee Franchise

This unique coffee shop franchise focuses on healthy and traditional beverages, particularly jaggery-based (karupatti) coffee and tea.

Benefits of Karupatti Coffee cafe Franchise

• Health-Focused: Caters to health-conscious consumers.
• Niche Market: Differentiates itself with natural sweeteners.
• Strong Local Appeal: Ideal for semi-urban and rural markets.

Franchise Details

• Karupatti Coffee Franchise Cost: ₹8–12 lakhs.
• Franchise Fee: ₹2–4 lakhs.
• Support Offered: Equipment setup, training, and promotional strategies.

6. Costa Coffee Franchise

Costa Coffee is a coffee cafe franchise synonymous with luxury cafe experiences. If you’re looking for a premium brand with a global reputation, Costa Coffee is an excellent choice.

Benefits of Costa Coffee cafe Franchise

• Global Brand Value: Trusted by millions worldwide.
• Premium Offerings: From espresso-based drinks to gourmet snacks.
• High-Profit Margins: Targets an affluent customer base.

Franchise Details

• Costa Coffee Franchise Cost: ₹1–2 crores.
• Franchise Fee: ₹30–40 lakhs.
• Support Offered: Extensive training, global marketing resources, and operational guidance.

7. Tea Post Franchise

Tea Post is a tea cafe franchise known for its affordable and cheerful vibe. It caters to students, professionals, and casual visitors. It is perfect for high-traffic areas like colleges and offices.

Benefits of Tea Post cafe Franchise

• Affordable Menu: Appeals to price-sensitive customers.
• High Volume Business: Quick turnover ensures consistent revenue.
• Wide Reach: Strong presence in Tier 2 and Tier 3 cities.

Franchise Details

• Tea Post Franchise Cost: ₹5–10 lakhs.
• Franchise Fee: ₹2 lakhs.
• Support Offered: Training, marketing, and inventory management.

8. Yewale Amruttulya Franchise

Yewale Amruttulya is a tea franchise brand based in Pune that has gained immense popularity for its signature chai. Its straightforward model makes it a great choice for first-time entrepreneurs.

Benefits of Yewale Amruttulya cafe Franchise

• Simple Operations: Limited menu with a focus on quality.
• Affordable Setup: Low entry barrier for franchisees.
• Mass Appeal: Chai is a universal favorite in India.

Franchise Details

• Yewale Amruttulya Franchise Cost: ₹8–12 lakhs.
• Franchise Fee: ₹1.5–2 lakhs.
• Support Offered: Training, ingredient supply, and branding.

9. Chai Point Franchise

Offering excellent chai experiences in a contemporary setting, Chai Point is a market leader in India's organized tea café franchise industry. Its emphasis on quality and sustainability has made it a customer favorite.

Benefits of Chai Point cafe Franchise

• Tech-Driven: Use of apps and delivery services for better reach.
• Sustainability Focus: Eco-friendly packaging and ethical sourcing.
• Diverse Menu: Includes tea, snacks, and breakfast options.

Franchise Details

• Chai Point Franchise Cost: ₹25–30 lakhs.
• Franchise Fee: ₹6–8 lakhs.
• Support Offered: Training, marketing, and tech integration.

10. Chai Sutta Bar Franchise

A popular chai franchise, Chai Sutta Bar is known for its kulhad chai and lively, young atmosphere. With over 400 outlets, it’s one of India’s fastest-growing cafe chains.

Benefits of Chai Sutta Bar cafe Franchise

• Unique Offerings: Kulhad chai is a major crowd-puller.
• Youth Appeal: Targets college students and young professionals.
• Scalability: Easy to expand due to its simple operations.

Franchise Details

• Chai Sutta Bar Franchise Cost: ₹10–15 lakhs.
• Franchise Fee: ₹2–5 lakhs.
• Support Offered: Marketing, training, and operational assistance.

Challenges That Impact Profitability

1. High Initial Investment

• Premium franchises like Costa Coffee require significant capital, which may take time to recover.
• Smaller franchises have lower entry barriers but might face stiff competition.

2. Operating Costs

• Rent for prime locations in cities can be high, impacting margins.
• Expenses for staff salaries, raw materials, and utilities also add up.

3. Market Saturation

• Popular cafe chains often compete in urban areas, making differentiation crucial.
• Franchisees need to focus on unique offerings or customer experiences to stand out.

4. Dependence on Footfall

• Success often relies on consistent foot traffic. Poor location choice can significantly hurt revenue.

Expected Profit Margins

• Small to Mid-Sized cafes: Can generate profit margins between 20%–40% if operations are managed well.
• Premium Brands: May have slimmer margins initially due to high operating costs but can yield higher profits in the long term.

Conclusion

Venturing into the cafe business with Franchisebazar is an exciting opportunity, and choosing the right franchise is the first step toward success. Each of these top 10 cafe franchise in India offers a unique combination of brand value, affordability, and support, making them ideal for 2025’s entrepreneurial landscape.

Whether you’re drawn to the nostalgia of Indian Coffee House, the premium allure of Costa Coffee, or the youthful energy of Chai Sutta Bar, there’s a perfect fit for your business aspirations. Start your journey today and bring India’s favorite beverages closer to your community!

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.