Key Factors to Consider Before Investing in a Popular Food Franchise in India
Selecting the best food franchise in India under ₹10 lakhs is not an extreme task. However, it is important to evaluate certain elements. These can impact profitability and long-term success of your investment. Here is the list of some of them -
- Market Demand: Check whether the brand aligns with the food preferences of the target customers in your city or town. Urban areas prefer fast food. Tier-2 and Tier-3 cities lean towards traditional flavours blended with modern concepts.
- Franchise Fees and Royalties: Understand the initial costs and recurrent royalty fees. Low investment doesn't necessarily result in low operating expenses. Clear models enable entrepreneurs to plan more effectively.
- Profit Margins and ROI: Understand projected sales and net profits. A good franchise must provide a reasonable return on investment within 1 - 2 years. For high-demand items such as drinks and snacks, ROI can come sooner.
- Support Provided by the Franchisor: Brands providing training, marketing advice and supply chain assistance enable franchisees to achieve success more quickly. This also provides consistency and quality check.
- Location Requirements: Select a location with good footfall like malls, office areas and schools. In small towns, market areas and bus stops are good.
- Terms and Conditions: Carefully read the agreement. See to it that there is openness about operational policies, costs and cancellation clauses. There should not be concealed charges that will eat into your margins.
List of Popular Food Franchises Under 10 Lakhs in India 2025
There are a few brands that have successful models where one can initiate a food franchise in India under ₹10 lakhs. They include the concepts of fast food, beverages and QSR formats.
Insta Bite
Insta Bite is a leading food franchise of less than ₹10 lakhs in India. With a focus on quick delivery, young branding and low-priced menu, it has been popular among many. It's low investment and systematic support system provide it an advantage for first-time business owners. Typical investment varies from ₹5 - 7 lakhs, with monthly return of ₹80,000 - 1.5 lakhs based on location.
ZORKO
ZORKO is an Indian fast food chain worth less than ₹10 lakhs that serves value-for-money meals. It has snacks, quick bites and drink on the menu, suiting a mass audience. Franchise partners enjoy low setup costs and fast returns. Kiosks with low investment can break even within 10 - 12 months, particularly in tier-2 markets where demand is growing exceptionally fast.
Kathi Junction
Kathi Junction has expanded as a brand for food with a specialty in rolls, kebabs and fusion street food. Through its budget-friendly franchise model, it has extended to small town and city areas. It is fit for youth entrepreneurs due to its easy-to-operate model. It takes ₹6 - 8 lakhs investment to open a typical outlet and can achieve daily sales of ₹10,000 - 15,000 in good places.
Kouzina
Kouzina is an Indian cloud kitchen-based food franchise under ₹10 lakhs. Popular for its high visibility on delivery apps, it serves the digital-first generation. Its innovative menu and centralised kitchen support guarantee consistent quality. Its low staffing requirements make it cost-effective, with a payback period of only 12 - 15 months.
DTDC Courier & Cargo Ltd.
While a logistics brand in essence, DTDC has ventured into quick-service food kiosks in some areas. Its hybrid model enables entrepreneurs to pursue food and service business ventures within one's budget. This concept separates it from other franchises. Though not common, it offers twin earning streams and faster profitability.
Ajay's cafe
Ajay's cafe is an emerging cafe chain providing drinks, sandwiches and snacks. Due to its low-cost franchise model, young investors with profitable returns can invest in small towns. The cafe concept is great around college campuses and office groups. Investment is between ₹4 - 6 lakhs, and there are high margins on coffee and fast-moving food items.
Frozen Bottle
Frozen Bottle is a favorite for dessert jars and milkshakes. It is one of the top food franchise in India under ₹10 lakhs with high youth brand recognition. The business model involves minimal manpower and high returns on drinks. On an average, the franchisees can make returns of 35 - 40% per annum if located in malls or student pockets.
Burger Buddy
Burger Buddy is a budget fast food chain below ₹10 lakhs in India that deals in gourmet burgers at budget prices. It draws students and working professionals. With low cost of operations and high youth appeal, it provides a quick payback on investment. Outlets usually cost ₹7 - 9 lakhs to set up, with consistent sales volumes in urban locations.
Barbeque Nation
Barbeque Nation has now launched smaller express formats for below 10 lakhs for entrepreneurs. It brings the premium dining brand at a lower investment. Its established brand name and loyal customer base are a guarantee of high footfall right from the first day. Even small-format models have monthly turnovers of ₹2 - 3 lakhs.
Conclusion
Investing in best food franchise under ₹10 lakhs in India is a compelling way to venture into the ever-expanding F&B sector. From drinks to quick bites and cloud kitchens, there are varied models for every investor. Insta Bite, Frozen Bottle and Ajay's cafe are some of the brands which have built strong opportunities in this area. The imperative is to study the market, select a good location and tie up with a brand that has good support. With increased demand for economical and convenient food items, the top food franchise in India under ₹10 lakhs assures profitability and long-term success.
FAQs About Starting a Food Franchise under 10 lakhs
What are the rolling costs like in such franchises?
Rolling costs comprise salaries of employees, rental charges, purchase of raw materials and royalty payments. They are different based on outlet size and brand needs. On average, these fluctuate between ₹1 - 3 lakhs per month.
Can I get financing to set up my franchise?
Yes, some banks and NBFCs offer loans to finance a portion of the franchise setup expenses. Some franchisors also have arrangements with financial institutions to facilitate financing to franchisees.
Is experience required to operate a franchise
No prior experience is compulsory. Training is given by most brands to make things go smoothly and to maintain consistent quality. Managerial ability and some customer care experience are useful, though.
How do I evaluate the credibility of a franchisor?
Verify their market presence, customer feedback, support mechanism and transparency in contracts. Talking to current franchisees is also beneficial. Go through their history of expansion to determine stability.
Can I change the pricing of menu items in a franchise?
No, the price is typically set by the franchisor to ensure brand consistency. In exceptional cases, some local modifications may be permitted in tier-2 and tier-3 towns where affordability is the priority.