Starting a cafe franchise in India can be a lucrative business opportunity, given the country's growing coffee culture and increasing demand for premium cafe experiences. However, understanding the costs involved is crucial for making an informed decision. This article breaks down the key expenses associated with launching a cafe franchise in India.

Initial Investment Costs

1. Franchise Fee

• The franchise fee varies depending on the brand and reputation of the cafe franchise.

• Typically ranges between ₹5 lakh to ₹50 lakh.

2. Setup and Infrastructure Costs

• Renting or leasing a commercial space: ₹50,000 to ₹2 lakh per month (location-dependent).

• Interior design, furniture, and fixtures: ₹10 lakh to ₹30 lakh.

• Kitchen equipment and coffee machines: ₹5 lakh to ₹15 lakh.

3. Licensing and Permits

• FSSAI (Food Safety and Standards Authority of India) License: ₹5,000 to ₹25,000.

• GST Registration: ₹5,000 to ₹10,000.

• Trade License: ₹10,000 to ₹50,000.

• Fire Safety Certificate: ₹5,000 to ₹50,000.

Operational Costs

1. Staff Salaries

• Hiring baristas, chefs, and support staff: ₹1 lakh to ₹3 lakh per month.

2. Inventory and Raw Materials

• Coffee beans, milk, bakery items, and other consumables: ₹1 lakh to ₹5 lakh per month.

3. Marketing and Branding

• Social media promotions, advertising, and offline marketing: ₹50,000 to ₹2 lakh per month.

4. Royalty Fees

• Many cafe franchises charge 4% to 10% of monthly revenue as a royalty fee.

Miscellaneous Expenses

• Utility bills (electricity, water, internet): ₹20,000 to ₹1 lakh per month.

• Maintenance and repairs: ₹10,000 to ₹50,000 per month.

Conclusion

Starting a cafe franchise in India requires an initial investment of ₹15 lakh to ₹1 crore, depending on the brand and location. Understanding these costs helps aspiring entrepreneurs plan their finances efficiently and choose the right franchise model for success. Visit: https://franchisediscovery.in/franchise/cafe-franchise?fsl=6633835dace0339d9824f0d9&fml=66338375ace0339d9824f1a8&page=1&limit=20&type=cat