Best Coffee Franchise in India

Best Coffee Franchise in India – Tips to Choose the Right One

Owning a coffee shop franchise in India can be an exciting and rewarding venture. The coffee shop business in India is booming since it has seen a drastic surge in coffee lovers making it a smart venture for entrepreneurs to invest in. Investing in a coffee shop franchise instead of opening a shop from scratch is a wise decision. You will see many advantages of associating with a famous coffee franchise brand in India. However, it’s important to choose the right franchise to avail the maximum ROI and advantages.

In this blog, we will let you know about the top key considerations for choosing the right coffee franchise in India. We will also discuss the low-investment franchise options available in the market that align with your goal.

But before that, we will understand about franchise business and how it works.

How Franchise Business Works

A franchisor or business owner sells his business rights to a franchisee to use the brand name and idea. In a simpler term, a franchisor gives the right to a franchise to sell his goods and services. It’s a reliable way to set up your business with additional support and security. You can avail of the benefits of a well-established brand. This is a partnership between a franchisor and a franchisee by which the franchisee gains access to the brand’s trademark, services, products, customer loyalty, and others. And, it’s obvious that it doesn’t come free of cost. You pay a franchise fee along with some percentage as royalty fees to the franchisor.

Now, let’s dive into the important things to consider while choosing the right coffee house franchise opportunity in India to start your own business in India.

How to Choose the Right Coffee Franchise in India

If you have decided to buy a coffee shop franchise in India then it’s imperative to find and invest in a brand that is right for you. Let’s have a closer look at the key factors to consider while choosing one:

Your Budget and the Investment Level

You get a plethora of coffee franchises in India to choose from. However, it is crucial to assess your budget to know which brand is the most suitable for you. Determine the amount you are willing to invest in your new business. This will help you to narrow down your list of coffee shop franchises in India that align with your financial objectives. Even if you have a low budget, you can still grab the best coffee franchise opportunities. Some popular brands like Coffeecana offer low-investment business models starting at Rs. 5 lakhs.

While estimating your budget, you will have to consider

  • The initial franchise fees – This lets you set up your business with technical and manpower support from the business.
  • Royalty fees – This contributes to the things or changes done in the future such as logo change expenses, national advertising fund for the brand, etc.

If you are interested in one of the top coffee franchises in India and your budget does not match with their franchise fee then you can apply for business loans. This initial step will help you to plan for buying a coffee shop franchise by arranging the budget or shortlisting the ones that fit your budget.

Type of Franchise Models

You might be interested in a coffee café with a seating area for customers, drive-thru coffee kiosks, or any other franchise model. You should see if the coffee franchise brand you are interested in offers the same franchise model or not. This also helps you to discover other factors like how much you need to invest upfront, the size of the area you require for the shop, what the demand for the area is, and other costs such as staff salaries, etc.

For ex– Coffeecana, one of the best coffee café franchises in India, offers three different franchise models that suit everyone’s desires and budget. You get the following franchise model from Coffeecana: 

Pocket Model

  • Area -100 sqft to 150 sqft
  • Investment – 5 lakhs to 7 lakhs
  • ROI- 10 to 12 months
  • Royalty – 3%

Xpress Model

  • Area – 200 sqft to 300 sqft
  • Investment – 8 lakhs to 10 lakhs
  • ROI – 12 to 16 months
  • Royalty – 3%

Premium Model

  • Area – 300 sqft to 600sqft
  • Investment – 12 lakhs to 15 lakhs
  • ROI – 18 to 24 months 
  • Royalty – 5%

Many coffee shop franchises do not offer all types of franchise models. So, deciding which type of franchise model you need will help you narrow down your list by keeping the ones that offer the same.  

Brand Awareness and Reputation

Search for well-established coffee franchise brands in India that have a good track record and strong brand reputation. Make sure they have positive reviews from both franchisees and customers. You enjoy instant revenues by investing in a well-known brand.

However, you must consider the correlation between a brand’s geographical chains and brand awareness. For ex- if everyone in your area is aware of the brand you are planning to invest in but has no outlet in the area, will be the perfect choice. You will see a buzz start building about the store opening soon. Consider the brands that provide comprehensive support. From technical support to manpower and marketing assistance to ensure success.  

Other Franshisees Reviews

You are going to spend a sizeable sum of money. So, don’t be shy about taking reviews from other franchisees who have already invested in and running the business.

Contact the franchisors and ask about:

  • The support they are getting from the franchiser
  • If the company is fulfilling its promise.
  • The shop opening procedure. Was it difficult or was it a seamless process?
  • What responses they are getting from customers?
  • How long did it take to make a profit?
  • Are there any negative aspects of owning this franchise?

Future Success

Opening a coffee café in India means you want to generate revenue. Invest in a brand that is anticipated to grow in the next few years, especially if this will be your only source of income. Some brands may not see growth every year because the market fluctuates. However, you should pick a business that shows a growth trajectory from year to year.

Location and Demographics

The success of your coffee shop business heavily relies on the location and demographics of the area. If the same brand is already operating in the same area, then you are going to get tough competition. Also, that depends on the size of the area.

For ex- if you want to open a coffee shop franchise in Delhi and you have chosen Connaught Place for this, then having two or three outlets of the same brand will not affect your revenue. You will get a steady flow of traffic to your café. And, if the location is not so famous or small in area, then avoid buying the franchise that already exists in the place.

Terms and Conditions

The final step you should take is to see the company’s terms and conditions. Every franchise business has different terms for the franchisees. Hence, while signing an agreement with a famous coffee franchise brand in India, you must go through their terms and conditions.

Pay attention to the following things:

  • Operation cost
  • Royalty fees
  • Marketing contributions
  • Ongoing support

Clear communication and maintaining transparency in the agreement lead to a successful partnership between the franchisor and franchisee.

Now, if we talk about some of the famous and low-price coffee franchises in India then it is Coffeecana. It is one of the leading and low-cost coffee shop franchises in India. With a presence in PAN India, the brand offers a secure business model that has the potential for a high return on investment. And, if you want to explore more options then do your research for finding the best coffee franchise in India considering all these factors discussed above.

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