Written By: Gouri Ghosh

A growing number of people are adopting vegetarianism due to health concerns, lifestyle changes, and religious inclinations. Mix that with the increased interest in healthy eating and the worldwide movement towards plant-based diets, and you have a thriving market. If you’re planning to start a food franchise business under ₹40 lakhs, then veg-only franchises are a smart investment in 2025. 

Pure veg and vegan restaurant concepts are gaining huge popularity in metros and tier-2 cities. A ₹40 lakh budget is a sweet spot for small and medium investors who want high returns without going into huge debt.

In this blog, we'll assist you in knowing what to search for before investing and provide the Top 5 Veg-Only Franchise Brands Under ₹40 Lakhs in India that can reward you with excellent returns in 2025.

Major Points to Check Before You Invest

It is thrilling to start a franchise, yet before you select a brand, ensure you verify these points:

•  Brand Reputation – Is the brand well-established and reputable? Do they have existing locations and great reviews?
•  Initial Investment & ROI – Does the investment fall within ₹40 lakhs? When do you expect to break even?
•  Menu Appeal – Is the menu creative, delicious, and popular?
•  Location Requirements – How much square footage do you require? Is it optimal for a mall, high-street, or independent store?

5 Best Veg-Only Franchise Brands Under ₹40 Lakhs in 2025

Below are the top choices if you need a veg food franchise in India that is within your budget and has good growth prospects:

Bliss Veg Resto

Bliss Veg Resto is a pure veg multi-cuisine fast-food chain that serves South Indian, Italian, and Mexican fare all under one roof. It's a favorite among office-goers, students, and families because it offers variety, affordability, and quick service. With heavy malls and food court presence, it attracts customers preferring dine-in as well as take-out options.

Unambiguous Investment Details

Total Amount to be Invested: ₹14–16 lakhs

Breakdown:

• Franchise Fee: ₹4–6 lakhs
• Interiors & Setup: ₹6–8 lakhs
• Kitchen Equipment: ₹2–3 lakhs
• Working Capital (First 3–6 Months): ₹2–3 lakhs

It is a low investment relative to full-fledged restaurants since the brand is based on a small, high-turnover model.

Expected Returns & Profitability

• Average Monthly Revenue: ₹3–4 lakhs
• Profit Margin: 18–22%
• ROI Period: 14–18 months

This translates to breaking even within 1.5 years, which is a good return for a food franchise.

Brand Strength & Market Potential

• Widely suited in urban and semi-urban markets because of reasonable pricing.
• Meets the appeal of multiple customer segments – families, college students, and working professionals.

Operational Support from Franchisor

• Staff training (kitchen and service)
• Menu planning and recipe standardization
• Branding and marketing support
• Centralized supply chain for raw materials

Location & Space Requirements

• Suitable for high-footfall locations: malls, food courts, and busy streets.
• Minimum Space: 150–200 sq. ft. (small kiosk or QSR format

USP (Unique Selling Proposition)

• Reasonable price with multi-cuisine variety
• 100% vegetarian food to address religious and health food consumers
• Strong positioning as a fast-food chain alternative to major brands like Haldiram's

Legal & Agreement Details

• Franchise Agreement: 5 years
• Royalty: 5% of monthly sales

Why Choose Bliss Veg Resto

If you seek a low-investment veg food franchise below ₹20 lakhs with high demand and a fast ROI, this is an excellent choice. It's ideal for small restaurants and high-traffic areas.

Veg Sutra

Veg Sutra specializes in healthy vegetarian food, both for dining in and delivery. It's intended for health-conscious consumers and working professionals who desire healthy meals without sacrificing taste.

Clear Investment Details

Total Investment: ₹18–19 lakhs

Expected Returns & Profitability

• Average Monthly Revenue: ₹3.5–4.5 lakhs
• Profit Margin: 20–25% (premium pricing and delivery focus)
• ROI: 12–18 months

  Brand Strength & Market Potential

• Delivery model ensures constant orders through Zomato/Swiggy.

Operational Support

• Full staff training
• Marketing support (promotions, social media)
• Support for the supply chain of healthy ingredients
• Tech integration for delivery management

Location & Space

• Best Locations: Offices near, gyms near, high-end residential zones
• Space Needed: 250–300 sq. ft.

USP

• Targeting health-focused vegetarian customers
• Balanced meals, calorie-count menus, and diet-specific plans

Legal Details

Agreement: 5 years

Royalty: Approximately 7%

If you desire a health-oriented veg franchise within ₹20 lakhs, then this is a great option. Perfect for corporate areas and urban territories.

Veg Bites Restaurant

Veg Bites is a multi-cuisine vegetarian restaurant that performs well in tier-2 and tier-3 cities.

Investment Details

Total: ₹10–20 lakhs

USP

• Affordable pricing, extensive menu
• Ideal for budget-friendly patrons

Ideal Location

High streets, shopping districts, and residential areas

Why Choose Veg Bites?

Ideal if you need to target tier-2 and tier-3 markets with minimum setup costs and quick ROI.

Yummerica Fries

Overview:

Yummerica Fries is a youth-centric, pure veg fast-food chain with a focus on loaded fries, cheesy bites, and quick meals. It has an Instagram-oriented menu and budget-friendly prices, making it popular among students, young corporate employees, and social media lovers. The concept is new to India and is picking up fans among the youth, thus making a perfect low-investment entry option for franchise investors.

Clear Investment Details

Total Investment Needed: ₹5–10 lakhs (one of the lowest in this list)

Low on costs, this affordable model makes Yummerica Fries an ideal choice for first-time entrants or limited-budget entrepreneurs.

Expected Returns & Profitability

• Average Monthly Revenue: ₹1.5–3 lakhs (small but high-turnover model)
• Profit Margin: 22–28% (high due to snacks having excellent margins)
• ROI Period: 8–12 months – quickest ROI on this list

Brand Strength & Market Potential

The loaded fries trend is being showcased on social media, which translates into organic marketing.

Operational Support from Franchisor

• Menu standardization and recipes
• Initial staff training
• Branding materials and social media promotions

Help with raw material procurement

Space & Location Requirements

Minimum Space: 80–150 sq. ft (kiosk or small store)

USP (Unique Selling Proposition)

• Affordable loaded fries and snack items
• 100% veg menu
• High visual appeal for social media marketing

 Why Choose Yummerica Fries?

If you wish to have a low-investment veg fast food chain under ₹10 lakhs with speedy ROI and good youth attraction, Yummerica Fries is the ideal choice.

Haandi Pure Veg Restaurant

Haandi Pure Veg Restaurant is a true North Indian vegetarian eatery brand centered around thalis, curries, and classical dishes. This model is best executed in tier-2 and tier-3 towns, where Indian regional food prevails over fast food.

Clarity on Investment Detail

Total Investment: ₹10–20 lakhs

Brand Strength & Market Potential

• High demand for pure vegetarian North Indian cuisine in tier-2/3 markets.
• Strong family dining segment – less competition against QSR brands in small towns.
• Repeat customers are due to traditional menu appeal.

USP

Authentic North Indian cuisine – thalis, curries, and also tandoor foods

100% vegetarian, family-oriented brand

Affordable middle-class pricing for families

 Why Choose Haandi Pure Veg Restaurant?

If you wish to target regular dining consumers in small towns with a complete restaurant experience, Haandi is a great option.

Tips How to  Maximize Success with a Veg Franchise

•  Maintain quality food as well as hygiene.
•  Employ local marketing tactics such as social media promotions and influencer partnerships.

Conclusion

The appetite for vegetarian and plant-based eating is increasing at a faster rate than ever before, making vegan franchises among the best business options for India. Moreover, Ranging from popular veg fast food franchises like Yummerica Fries to genuine pure veg food franchise opportunities like Haandi Pure Veg Restaurant, there is an option for every investor below ₹40 lakhs.

As we step into 2025, the trend towards healthy, flavorful, and also economical eating will continue to increase. Suppose you wish to set up a vegan restaurant chain in metros or a kid-friendly restaurant in tier-2 cities. In that case, these five brands offer healthy ROI, operational backing, and established business models.

If you are looking to invest in a veg franchise below ₹40 lakhs, this is the time to do it. Select the brand that suits your budget, location, as well as vision, and you may own a lucrative franchise within the thriving business of vegetarian food

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.