Written By: Resham Daswani

Cafes and food and drink businesses in India offer more than simply snacks and coffee these days. The sports cafe franchise in India is a prime example of how these places are evolving into full-fledged lifestyle hubs. These places bring together the burgeoning cafe culture in India with the country's unparalleled love of sports, featuring live broadcasts of Indian Premier League matches, cricket simulators, pool tables, and e-sports setups. This isn't merely a passing fad for financiers. Two unstoppable waves are riding this scalable business model: the sports industry's boom and India's high-growth cafe/bar market. You may have found the next great thing in franchising with the sports cafe franchise model.

The Potential for Market Growth

Unleashing the F&B Tailwind

Forecasts indicate that the organised cafe and bar market in India would reach about USD 19 billion by 2030, expanding at a CAGR of nearly 10%. Experiential food and drink businesses are seeing a surge in demand from urban customers, especially members of Generation Z and millennials. They want to chat, watch, and play in addition to eating and drinking.

The Cultural Influence of Sports

These days, cricket is far from being the only sport in India. Sports entertainment has skyrocketed thanks to the increase in popularity of leagues like the Indian Premier League, the Indian Super League, and the Pro Kabaddi League, as well as football on a global scale. There will be a steady need for arenas to accommodate the estimated 130 billion Indian rupees in revenue from sports by 2030.

The crossroads? A model for a sports cafe franchise in India that attracts regulars during peak hours as well as over weekends and other non-match days for socialising, gaming, and other activities.

The Importance of Sports cafe Franchises to Investors

Diverse Sources of Income

• Sports cafes, in contrast to more conventional cafes, are multi-channel moneymakers:
• Alcohol, snacks, and food make up the bulk of the food and beverage sales.
• Our event revenue comes from private events such as birthday parties, and corporate bookings.
• From virtual reality cricket simulators to pool tables, our games have you covered.
• Jerseys, fan apparel, and souvenirs for sale.

Pre-Match Financial Planning

On match days (such as those of the Indian Premier League, the Indian Super League, or FIFA competitions), attendance is typically two to three times greater than on non-match days. Sports cafes who are smart about making the most of this opportunity sell tables in advance, have special menus, and host fan gatherings.

Appropriate Demographics

With a population of over 6.5 million people under the age of 35, India boasts the youngest population in the world. The ideal demographic for this idea would consist of these hyper-connected, sports-obsessed, cafe-loving people.

Scalability

Sports cafes are flexible and can take several forms:

• Examples of large-scale arenas that have received investments of 5Cr+ include SMAAASH, which combines virtual reality games with bowling and restaurants.
• The high-energy match screening and bar variant are available for mid-size sports bars (50L-2Cr).
• Slim Sports cafes (25L-75L): Compact layouts include televisions, a foosball table, and an organised food selection.

Nonetheless, investors can take advantage of this flexibility by entering at various price points.

Successful Case Studies: Pioneering Brands Paving the Way

We can learn more about the potential for sports cafe franchises in India by analysing the market trends caused by both domestic and international competitors. Potential investors might learn from these case studies, which showcase various business formats, investment levels, and growth tactics.

SMAAASH

As an industry leader in virtual reality (VR) gaming, food and beverage (F&B), and sports, SMAAASH has become a household name in India. It demonstrates the possibility of scaling up large-format sports experiences with venues in malls and metros. [Source: SMAAASH Investor Deck, 2024].

Sports Bars and Chains in the Area

A premium bar experience, large crowds on match days, and live screenings have helped chains like Underdoggs and The Studs grow. [Source: Franchise India Report, 2023].

Emerging Models from Around the World In India

Global leaders in experiential entertainment, such as Dave & Buster's, are taking notice of India, indicating that this market has potential for the future. [Source: Business Standard, 2024].

To know more about the most promising and lucrative sports bar & lounge franchise in 2025, click here.

Overview of Investments

• Capital expenditures might range from ₹25 lakhs for lean cafes to ₹5+ crores for entertainment complexes.
• Return on Investment: 18–36 months on average, model dependent.
• Because of the alcohol and event sales, the gross margin is higher than average for cafes.
• Malls, university centres, commercial areas, and second-tier cities are good places to put inexpensive cafes.

Important Factors for Investors to Understand

• Difficulty with Regulations: The process of obtaining a liquor licence varies from state to state and can get tedious over time.
• High Capital Expenditure for Large Models: Extended payback periods may occur in the absence of an appropriate location plan.
• Peak earnings come from events like the Indian Premier League (IPL), but regular programming outside of those times is essential.
• Managing food and beverage operations with events and gaming presents a significant operational challenge.
• Partners with seasoned franchise operators who have playbooks in place can help smart investors reduce these risks.

The Sports cafe Franchise Model in India: Looking Ahead to the Future

• E-Sports Integration: A new source of income is emerging from the fast growth of gaming competitions and e-sports leagues.
• Women-Focused Sports cafes: Capitalising on the Expanding Female-Audience for Sports.
• Scaling up to Tier 2: Low-priced sports cafe models in major Indian cities such as Indore, Lucknow, and Coimbatore.
• Data and AI: Tailored promotions for viewers according to their tastes in cuisine, loyalty programs, and viewing habits.

Why This Is the Perfect Moment

Sports cafe franchise India is experiencing a period of transition. Because to the entry of overseas companies, increasing spending by Indian youth, and skyrocketing sports watching. Those that invest early have the chance to get franchise rights and attractive locations before the market becomes oversaturated.

Do you recall the explosive growth of Starbucks and cafe Coffee Day in India a decade ago? Similar trends are likely to unfold in the sports cafe industry, albeit with even more compelling sensory hooks and larger profit margins.

Final Takeaways: Investors, Have a Long-Term Perspective

Sports cafes have staying power. By fusing a love of sports with social events, they are the wave of the future when it comes to lifestyle-driven food and drink in India. There is a combination of scalability, several sources of income, and potential for sustained growth for investors in this market.

Opportunities abound whether you're investigating a lean cafe concept in a tier-2 city or a multi-purpose sports arena in a metropolis.

The moment to act is now if you are an investor interested in investigating sports cafe franchise prospects in India. Franchisebazar has assisted numerous investors and brands in expanding their presence in India's food and beverage industry. Consult with an expert right now to find out what franchise models, unit economics, and expansion plans will work best for your business.

FAQs:

What is the average investment necessary to establish a sports cafe franchise in India?

Investing in lesser cafe formats can cost as little as ₹25 lakhs, while large entertainment arenas can cost over ₹5 crores.

  Do only major cities offer sports cafe franchises?

A growing number of leaner sports cafe concepts are finding success in Tier-2 cities such as Indore, Lucknow, and Coimbatore.

Are non-sports forms of entertainment compatible with sports cafes?

Yes. In order to attract a wider audience and generate more income, several franchises are now including e-sports, gaming, and live music.

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.