Why Third Wave Coffee Is The Best Cafe Franchise In India In 2024?

on Dec 05, 2023 | 97227 views

Written By: Shruti Agrawal

In India, the late 20th century saw the rise of cafe franchises as a result of LPG  reforms as it led to the expansion of the urban middle class, which reignited the interest in cafe culture. What was once considered a niche market is now a booming sector of the economy. The brand, like Third Wave Coffee café franchises, has taken the traditional Indian cuisine and innovated it to acquire the flavours of the local palate, which produces a warm and inviting menu that serves a diverse customer base.

Over the past few decades, India's cafe franchises have undergone a remarkable metamorphosis, presenting a unique blend of international coffee culture and a diverse range of Indian tastes and preferences. 

In India, the Third Wave Coffee Cafes franchise has grown to become more than just places to grab a quick cup of coffee. They support the active lifestyles of urban Indians by acting as community hubs, locations to study, hold business meetings, or just relax.

This understanding of Third Wave Coffee café franchises in India seems to be an insightful and motivating trip, regardless of your background as an entrepreneur thinking about a franchise, a coffee lover, or someone interested in both the local and international flavours.

About Third Wave Coffee Cafe Franchise

Third Wave Coffee Roasters is a coffee brand in India that offers locally sourced coffee brews and curated food and beverages. In 2017, Ayush Bathwal, Anirudh Sharma, and Sushant Goel launched it. The brand is a member of the quickly growing Indian coffee startup sector.

The brand is known for its ethically and sustainably sourced 100% Arabica coffee. They roast coffee in-house with specific profiles to ensure optimal flavour notes. 

They have a wide range of brew methods, from pour-over and French press to Chemex and AeroPress, as well as a variety of single-origin and blended coffees. They also offer educational experiences, such as coffee cuppings and tastings, to help customers learn more about the coffee they are drinking.

The brand also focuses on leveraging technology to bring a consistent and exceptional coffee experience to its customers. The brand has a stamp of freshness, and they work closely with producers to ensure that the beans are of the highest quality, grown sustainably, and traded responsibly.

Third Wave Coffee Cafe Franchise Model

The Third Wave Coffee franchise model is gaining popularity due to high profits and lesser inputs. 

The Third Wave Coffee franchise offers a unique experience to coffee lovers and aims to serve its exclusive blends in over 300 cafes across the country by the end of FY 2023. The franchise model is flexible, and investors can start with a minimum area of 500-1000 sq. ft. The franchise fee is INR 6 lakhs including taxes, and the royalty fee is 5%.

The franchise model offers subscription plans and membership plans where customers can receive regular shipments of freshly roasted coffee beans, providing a consistent revenue stream and fostering customer loyalty.

Steps To Set Up A Third Wave Coffee Cafe Franchise

  • Research and Planning: Conduct thorough research on the coffee industry, the market demand, and the competition. Develop a plan to smoothly run the business, that includes the franchise model, location, target audience, menu, pricing and more.
  • Franchise Application: You may sign up for a  Third Wave Coffee franchise by contacting them directly by visiting their website (completing the online application) and can also use the services of a franchise consultancy, which will help you with the entire procedure. 
  • Investment: The initial investment required to start a Third Wave Coffee franchise ranges from INR 25 lakhs to INR 50 lakhs. The franchise cost or total initial setup cost will depend on the location, size, and extent of renovations required.
  • Training: The franchisor provides training to the franchisee on the company's standards, products, and customer experience. The franchisee must complete the necessary training program offered by the franchise.
  • Site Selection: Conduct proper site/location research and read the market to understand the business potential and select a location which attracts a good number of interested population. The location should be in the main market of the area and have a minimum floor area of 500-1000 sq. ft.
  • Renovations and Equipment: Renovate the site as per the franchise's standards and purchase the necessary equipment, such as coffee machines, grinders, and kitchen equipment.
  • Hiring: Hire staff locally or through the franchisor and provide them with the necessary training on billing and inventory management software.
  • Marketing: Create a marketing plan to advertise the franchise and draw clients. Pay attention to what customers have to say and adjust as necessary.
  • Grand Opening: Launch the franchise with a grand opening event and start serving high-quality coffee and food to customers.

Market Trends of Cafe Franchise In India

India's coffee market has seen significant growth in recent years, with an increasing number of coffee lovers and a rise in disposable income, global exposure, digital and media penetration, urbanization, and lifestyle changes.

The Indian foodservice market is expected to reach USD 69.78 billion in 2023 and grow at a CAGR of 10.21% to reach USD 125.06 billion by 2029. The India retail coffee chains market was valued at USD 128.6 million in 2016 and is expected to grow further over the forecast period.

In 2020, the market capitalization of café franchises in India was approximately INR 40 billion. The Indian coffee cafe market was estimated at around USD 340.12 million in 2023 and is growing at a CAGR of 13.21% during the forecast period. 

The cafe franchise market in India is expected to continue growing in the coming years, driven by factors such as rising disposable incomes, increasing demand for socialization, and the expansion of franchise opportunities.

Benefits of Starting A Third Wave Coffee Cafe Franchise

Starting a Third Wave Coffee Cafe Franchise can have several benefits, including:

  • Best menu offering and brewing method: Third-wave coffee focuses on the nuances of coffee flavour and brewing methods, emphasizing artisanal techniques. This can help set your franchise apart from other coffee shops in the area.
  • Minimal investment with high Returns: Owning a Third Wave coffee shop offers a high gross profit margin with little initial investment. It may therefore be a desirable choice for company startup hopefuls.
  • Direct relationships with coffee farmers: To guarantee openness and reasonable costs, Third Wave Coffee Cafe forges direct connections with cooperatives and coffee growers. This could encourage moral and environmentally friendly behaviour.
  • Community building: Third Wave Coffee shops often host coffee tastings, workshops, or events to bring people together and share their passion for coffee. By doing this, you may cultivate a feeling of brand community.
  • Variety: People want variety, and Third Wave Coffee shops often offer limited edition or seasonal roasts to cater to the preferences of coffee enthusiasts. Finding your niche and highlighting it can help set your franchise apart.
  • Support and resources: Third Wave Coffee franchises often provide support and resources to franchisees, including technical support, personal training of staff, and raw materials. This can help ensure the success of your franchise.

In conclusion, the world of coffee cafe franchises in India is a captivating blend of tradition and modernity, global influences and local adaptations. Over the years, these franchises have not only reshaped the coffee culture in the country but have also become integral to the daily lives of millions of Indians.

In a land of diverse tastes and traditions, coffee cafe franchises have found their own distinct place. They not only provide a hot cup of coffee but also serve as a melting pot of culture, a window to the world, and a testament to India's ability to embrace global influences while remaining deeply rooted in its own heritage.

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Q. What is the profit margin for a Third Wave Coffee Cafe Franchise in India?

A. becoming a Third Wave Coffee outlet owner requires a minimal investment that offers an impressive gross profit margin. The gross profit margin may vary from 15-20% depending on the environment, expenses, location, season, customer preference, and emergency expense.

Q. Are there any specific regulations or licenses required for running a Third Wave Coffee cafe franchise in India?

A. Yes, you'll need to comply with local health and safety regulations, obtain food and beverage licenses, and adhere to labour laws. It's essential to consult with local authorities and legal experts for specific requirements.

Q. What is the average payback period for a Third Wave Coffee cafe franchise in India?

A. The payback period can vary depending on factors such as location, brand, and how well the cafe is managed. On average, it may take 2 to 5 years to recover your initial investment.

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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