Why Barista Is The Best Cafe Franchise Opportunity In India In 2024
Written By: Shruti Agrawal
Step right up aspiring entrepreneurs! It's 2024, and guess who's bringing the caffeine revolution to India? None other than the sultan of sips, the maestro of mochas—Barista cafe franchise! Why is it the best cafe franchise opportunity in India in the upcoming year? Well, hold onto your barista hats, because this is no ordinary brew.
And here's the kicker—the franchise package is like a caffeine kickstart for your entrepreneurial dreams! So, why settle for ordinary when you can sip on success with a Barista Cafe franchise? It's not just a franchise; it's a flavour-packed, frothy adventure waiting for you in every cup!
Learn About Barista Cafe Franchise In India
Barista is an Indian chain of espresso bars and cafes that operates in the Indian subcontinent, with over 350 locations as of 2023. The company was established in February 2000 by the Barista Coffee Company Limited and is headquartered in New Delhi. The company has partnered with Tata Coffee and Sterling Infotech Group.
Barista offers a variety of coffee products, including cappuccinos, americanos, and other hot beverages. They also have a range of syrups and seasonal flavours.
Barista's revamp strategy focuses on four key pillars:
- Innovation in food menu: The company aims to become a serious player in celebration cakes, pastries, and the all-day dining format, in addition to its core coffee and quenchers offerings.
- Franchising: Barista is leveraging franchising to expedite its expansion, targeting tier II and III towns with higher price points.
- Barista Express: This is a lower capital expenditure option for franchisees, allowing them to open smaller kiosks in locations such as institutions, hospitals, and offices.
- Growth in the International Market: Barista has expanded its presence to these islands, further increasing its global reach
Franchise Details of Barista Cafe Franchise
Barista has adopted a franchise model for its expansion, with almost 60% of its stores being franchises and the rest being company-owned. Barista aims to double its store count to 500 in three years.
The franchise model allows Barista to expand rapidly and target premium locations, making it less capital-intensive. The requirements to open a barista cafe franchise in India are,
- Investment: The investment required for a Barista Cafe franchise varies depending on the model you choose. Model A (Diner) requires an investment of INR 85 lakhs - INR 1 Cr., Model B (Cafe) requires INR 35 lakhs - INR 40 lakhs, and Model C (Kiosk) requires INR 10 lakhs- INR 20 lakhs.
- Franchise Fee: The franchise fee for Barista Cafe is INR 6 lakhs - INR 8.5 lakhs.
- Royalty: The royalty/commission for Barista Cafe is 8%.
- Term of Franchise Agreement: The term of the franchise agreement is 9 years, and it is renewable.
- Support: Barista Cafe provides comprehensive support to its franchise partners, including vendor negotiations, food and menu development, staff training, and marketing support.
- Locations: Barista Cafe has franchises available in various locations across India, including the Tier 1 and Tier 2 cities of India.
Legal Requirements For Opening A Barista Cafe Franchise In India
To open a Barista Cafe franchise in India, there are certain legal requirements that need to be fulfilled. These include:
- Business registration: Depending on the legal nature of the business, a different registration needs to be obtained. For example, if the cafe is set up as a company, company registration is required under the Companies Act, 2013.
- FSSAI license: Since the cafe franchise comes in the category of food and beverages, an FSSAI license is a must.
- Trademark registration: While not mandatory, it is recommended for a cafe to obtain a trademark registration to protect its brand.
- GST registration: To obtain GST registration is necessary, if the cafe posts an annual turnover exceeding INR 20 lakhs.
- Shop and Establishment license: This license is there to protect the rights of the workers employed in shops. So, a franchise owner needs to obtain the Shop Act license.
Steps To Set Up A Barista Cafe Franchise
To set up a barista cafe franchise, follow these steps:
- Estimate financial need: Determine the financial requirements for your coffee shop franchise, considering factors such as location, equipment, and staffing costs.
- Create a business plan: Develop a comprehensive business plan that outlines your coffee shop's concept, target customers, marketing strategies, and financial projections.
- Finalize your brand: Choose a suitable name, design a logo, and develop a consistent brand identity for your coffee shop.
- Find your target audience: Identify your target customers and tailor your offerings and marketing efforts to cater to their preferences.
- Handpick employees: Recruit and hire experienced baristas and other staff members to ensure smooth operations and excellent customer service.
- Prepare your coffee business: Source high-quality coffee beans, equipment, and supplies, and ensure that your coffee shop is well-prepared before opening its doors to the public.
- Start social media marketing: Create and launch a social media marketing campaign to promote your coffee shop and engage with potential customers.
- Choose a franchise: Consider your strengths and find a suitable coffee shop franchise that aligns with your goals and values. Research the franchisor's business model, expansion plans, and reputation in the industry.
- Appoint a team for the new location: As you expand, delegate responsibilities and onboard experienced professionals to ensure the success of each outlet.
- Prepare for opening day: Plan the launch of your new coffee shop franchise by setting an opening date, organizing marketing efforts, and ensuring that all necessary permits and licenses are obtained.
- Understand your health & buildings department regulations: Familiarize yourself with local regulations and requirements to ensure compliance with health and safety standards.
- Purchase your coffee equipment: Invest in the necessary equipment, such as espresso machines, grinders, and coffee scales, to serve high-quality coffee.
- Explore wholesale coffee roasters, vendors, and partners: Establish relationships with suppliers to ensure a consistent supply of high-quality coffee beans.
Future Trends Of Starting A Cafe Franchise In India
The future trends of starting a cafe franchise in India point to significant growth and evolving consumer preferences. The surge in the future of cafe franchises in India is supported by several key points:
- Market Growth: The India Coffee Cafe Market was estimated at around USD 340.12 million in 2023 and is growing at a CAGR of 13.21%.
- Consumer Preferences: The cafe culture in India has witnessed a significant surge, with consumers seeking cosy spaces to relax, work, or socialize. Speciality coffees, teas, and a relaxing ambience have found favour among customers.
- Industry Shifts and New Trends: The Indian franchising industry is seeing a growth rate of 30% every year, and the food and beverages sector has tripled its growth rate in 2023 compared to 2022.
- Innovative Concepts: Trending food franchise concepts in India include specialty coffee, and tea cafes, unique brewing methods, artisanal products, and a focus on creating a relaxing ambiance for customers.
- Digitalization and Sustainability: The future of franchising in India is expected to involve digitalization, non-traditional sectors, regional expansion, women entrepreneurship, and sustainability, providing opportunities for entrepreneurs to explore the franchise business model.
Why To Invest In Barista Cafe Franchise In India
Absolutely, here are some of the reasons to start a Barista Cafe franchise in India:
- Coffee Couture Nights: Fashion meets coffee with themed nights showcasing local designer collections over espresso shots.
- Barista Buddy Program: Connect regulars with newcomers for personalized café tours and special discounts, fostering a sense of community.
- Coffee Art Extravaganza: Live coffee art performances by skilled baristas, turning brewing into a captivating visual experience.
- Eco-Friendly Coffee Pods: Offer unique, customizable biodegradable coffee pods for home brewing, reducing environmental impact.
- Blend Your Brew Workshops: Let customers create their signature blends and have them featured on a dedicated 'guest blend' menu.
- Digital Barista Chatbot: AI-driven chat support offering personalized coffee suggestions and trivia for curious customers.
- Sip & Spa Sundays: Collaborate with local spas for exclusive coffee-infused treatments, pampering guests with unique indulgence.
Some Other Cafe Franchise To Consider For Investment
Madras Coffee House is a beloved destination for coffee enthusiasts seeking the rich and aromatic flavours of Indian filter coffee, founded in 2010. It is a chain of coffee cafes that serves authentic South Indian filter coffee.
Madras Coffee House has grown to over 120 stores across India and 150 stores worldwide. The brand offers a wide variety of offerings with customization as per the user and is open to expanding at the Pan-India level.
The franchise opportunity requires an investment range of INR 5 lakhs – 10 lakhs, and the space required is less than 250 sq. ft. The franchise fee and infrastructure investment are approximately INR 5.80 lakhs – INR 12 lakhs, and the expected return time frame is 1 – 2 years.
Cafe Buddy's Espresso
Cafe Buddy's Espresso is a Pune-based cafe chain, established in 2005. The brand is known for its international-style all-day dining concept, with a European feel and premium interiors. The cafe presents strong and delicious coffee and quick and friendly service.
The franchise offers two formats: Classic (Regular Franchise) and Elite (Master Franchise).
Classic (Regular Franchise):
- Investment: USD 24 - 30 thousand (approximately INR 16 lakhs).
- Brand Fee: USD 5,000
- Space: 500 - 600 sq ft
- Expected Monthly Sales: USD 18,000
- Profit Margin: 30%
- Royalty: 8% on gross sales
Elite (Master Franchise):
- Investment: USD 30 - 48 thousand
- Brand Fee: USD 6,000.
- Space: 1,000 - 3,000 sq ft.
- Expected Monthly Sales: USD 24,000.
- Profit Margin: 30%.
- Royalty: 8% on gross sales
To conclude, the Barista franchise opportunity is not just about profits and numbers (although those are pretty great too), but also about the high-fives exchanged with fellow franchisees, the blend of entrepreneurial spirit, and a support system that's as solid as the foundation of a well-built latte.
To learn further about the Barista cafe franchise and other cafe franchise opportunities in India and to start your business you must contact the experts of FranchiseBAZAR.
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.
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