Would you like to be an entrepreneur? Do you love food? If so, 2026 is the perfect time. Crores of rupees you do not need. You can start a shop and run a successful food business with an amount less than 5 lakhs!
Many Indians want to be their own boss, and a food business is a safe bet. Why? Indians are fond of food; everyone loves to eat, be it tasty Biryani or hot Chai. Also, India’s food business market is experiencing significant growth, with the food service sector projected to reach $139.8 billion by 2030, growing at a CAGR of 10.41% from 2025 to 2030. Changing consumer preferences and dietary habits have fueled demand for innovative food ventures, including cloud kitchens, health-focused eateries, and vegan businesses. It is the best reason to start a business in 2026.
This guide is for you. We will present you with the finest Food Franchise Under 5 Lakhs in India. There is a choice of Delhi, Chennai, Hyderabad, and even specific areas such as Saket. We will show you how in simple terms, without any complex math, without any jargon, so that anyone can understand how to make you feel that you can make money.
We will discuss the new best food franchises in 2026.
What Is a Food Franchise Business?
A food franchise business is an established business model in which entrepreneurs operate outlets under a franchisor’s name, using the franchisor’s systems and processes. This model enables would-be entrepreneurs to enjoy the benefits of brand awareness, operational support, and existing supplier chains, whilst reducing the risk involved in starting up. The franchisor offers extensive services, including training, marketing aids, equipment specifications, and ongoing operational guidance.
The food franchises span a wide range of industries, from fast-food restaurants and beverage shops to ice cream salons and regional food culture experts, where entrepreneurs can find investment opportunities based on their budgets and interests.
Why Franchising Works Well in India’s Tier 2 & 3 Cities
Franchising thrives in Tier 2 & 3 India because of rising consumer demand, low setup costs, and untapped markets. In 2025, these cities accounted for 60% of new online shoppers and saw 42% higher job growth than metros, driving disposable income and brand adoption. With 30–40% lower operational costs, franchisees achieve faster ROI and higher profit margins.
Improved infrastructure, government incentives, and digital connectivity make Tier 2 & 3 cities the new franchise growth engines — combining affordability with massive expansion potential.
Advantages of Choosing a Food Franchise
- Brand Recognition and Trust: There are franchises whose market recognition and customer trust are well established; by adopting one of these franchises, one avoids the real problem of building brand awareness for a new business. This immediate credibility causes customers to flock in, accelerating business growth.
- Proven Business: Model Franchises have tested and refined operational systems, significantly lowering the risk of failure. Systematic processes and procedures provide a clear roadmap to success.
- Comprehensive Training and Support: The supported know-how covers operations, food preparation, customer service, and management. The support provided serves as the strongest guarantee of maintaining quality and service standards across all locations.
- Lower Initial Investment: Several food franchises, especially in the Indian market, require an initial investment of less than 5 lakh and are therefore viable for budding entrepreneurs with limited resources. This includes kiosks and small formats.
- Marketing & Promotional Support: The national marketing initiatives and brand promotion on behalf of the franchisees mitigate individual marketing costs and bring visibility to the possible maximum.
- Supply Chain Efficiency: Established supplier networks, coupled with bulk purchasing power, help enhance product quality while minimizing costs, improving profit margins.
Criteria for Selecting an Affordable Food Franchise Under 5 Lakhs in India
The choice of the right Food Franchise Opportunity under 5 Lakhs in India is crucial for success. Some of the important factors are discussed below.
1. Brand Reputation
Brand image is an integral part of any franchise. Research is conducted to understand the brand’s presence in your area and who would benefit from it. Some are more household-name brands, like The Belgian Waffle Co. or Chaat Adda, that would generate a huge loyal customer base.
2. Initial investment and fees
While going for investment on a food franchise under 5 lakhs in India, do take into account the break-up of costs related to franchise fees, equipment, and operational costs. Some brands might offer several models like kiosks, carts, or full-scale outlets that will attract differing investment levels.
3. Demand for the product in your locality
Analyze the market to know if the franchise’s product suits local tastes and preferences. For example, brands like Chai Sutta Bar Franchise that focus on chai are more likely to thrive in places where a strong tea culture is embedded. A Kulfi franchise like Kulfi Nation would be better off in places with warm weather.
4. Franchise Support
Determine whether the support provided by the franchisor is of the kind you will need. Evaluate franchises that offer training and marketing materials, including operation. A brand that intends to invest in the prosperity of its franchisee will most likely be a system that is supportive enough to help reach profitability levels.
5. Flexibility in Business Model
Consider a flexible franchise model that offers a profitable business opportunity, and that can be undertaken with minimal space and resources. Small entrepreneurs with limited space or funding are well-suited to small kiosks or food carts. Suitable for those who have high footfall, the mini café model is.
6. Low Royalty Fees
Those collect royalties or form a percentage of your monthly revenue. Seek franchises with low or no royalties to benefit from healthy profits. For example, The Lassi Shop or Juice Lounge usually has attractive fee structures for small investors.
Top Food Franchise under 5 Lakhs (2026 Ranking)
| Brand | Category | Investment (₹ Lakhs) | Net Profit Margin | Est. Monthly Profit | Break-Even | ROI (Annual) |
|---|---|---|---|---|---|---|
| Amul Ice Cream | Veg | 4–5 | 30–35% | ₹90k–1.5L | 10–14 mo | 30–40% |
| Belgian Waffle Co. | Veg | 4–4.5 | 40–45% | ₹1.6–2.5L | 8–12 mo | 40–50% |
| Thickshake Factory | Veg | 4.5–5 | 40–45% | ₹1.5–2.4L | 9–14 mo | 38–45% |
| JB Kachori Wala | Veg | 2–4 | 30–35% | ₹80k–1.4L | 8–12 mo | 35–45% |
| Goli Vada Pav | Veg | 4–4.5 | 30–35% | ₹90k–1.2L | 10–15 mo | 30–40% |
| Lassi Shop | Veg | 3.5–4 | 35–40% | ₹1–1.6L | 9–13 mo | 35–45% |
| Wow Momo | Mixed | 4–5 | 25–30% | ₹1–1.6L | 14–20 mo | 25–35% |
| Rolls Mania | Mixed | 4.5–5 | 25–30% | ₹90k–1.4L | 15–22 mo | 25–32% |
| Biryani by Kilo | Non-Veg | 4.8–5 | 28–32% | ₹1.4–2.4L | 18–24 mo | 25–30% |
| Chai Sutta Bar | Beverage | 3.5–4 | 35–40% | ₹1–1.6L | 8–12 mo | 40–50% |
| Tea Time | Beverage | 4.5–5 | 30–35% | ₹90k–1.3L | 12–18 mo | 30–35% |
| Chai Calling | Beverage | 2–4 | 30–35% | ₹75k–1.3L | 9–14 mo | 35–45% |
| Chai Point | Beverage | 4.5–5 | 35–40% | ₹1.4–2.2L | 12–18 mo | 30–40% |
| Salado | Healthy | 3–5 | 25–30% | ₹75k–1.5L | 14–20 mo | 25–30% |
20 Best Food Franchises Under 5 Lakhs in India (2026 Edition)
A) Veg Food Franchises
1. Subway Franchise
- Growth: 15% year-over-year growth
- Revenue: Approximately ₹450 crore (2023)
- Profit Margin: 20-25%
- Outlets: 700+ outlets across India
Subway is one of the world’s largest sandwich chains and a popular veg food franchise under 5 lakhs in India, especially known for its submarine sandwiches and healthy food options. The brand offers a unique dining experience where customers can see their food prepared fresh before them. Its business model focuses on fresh ingredients and allows consumers to customize meals based on their tastes and preferences.
The company already has a franchise system with established procedures and wide-ranging training programs in place. They have manuals that elaborate on everything from food preparation to customer service protocols. Because of the health-conscious offerings, the brand has managed to remain pretty loyal to its customers.
- Industry: QSR
- Segment: Fast Food Chain
- Franchise Cost: ₹4.5-5 Lakhs
- Space Required: 300-400 sq ft
- Franchise Fee: ₹2.5 Lakhs
- Profit Margin: 20-25%
Read about Subway Franchise Cost in India in Detail.
2. Amul Ice Cream Franchise
- Growth: 20% year-over-year growth
- Revenue: Part of Amul’s ₹61,000 crore revenue (2023)
- Profit Margin: 30-35%
- Outlets: 10,000+ retail outlets nationwide
This ice cream franchise of Amul is a most sought-after business opportunity in India’s frozen dessert market. Such a brand, which happens to be a flagship dairy brand of India, commands wide acceptance and a large variety of products. It offers an ice cream parlor with formats ranging from basic counter service to a café-style setup.
The Amul franchise is supported entirely by the company in terms of equipment, marketing materials, and regular supply chain management. Amul provides comprehensive training in product handling, storage, and customer response. Seasonal deals and the launch of new products raise customer excitement and keep them engaged throughout the year.
- Industry: Dairy Products
- Segment: Ice Cream Parlor
- Franchise Cost: ₹4-5 Lakhs
- Space Required: 100-150 sq ft
- Franchise Fee: ₹1.5 Lakhs
- Profit Margin: 30-35%
3. Cafe Udupi Ruchi
- Growth: 20% year-over-year growth
- Revenue: ₹80 crore (2023)
- Profit Margin: 25-30%
- Outlets: 200+ outlets across India
Cafe Udupi Ruchi is a franchise focused on authentic South Indian vegetarian food. It offers a complete menu of dishes and varieties of particular products in a modern café, using a standardized format from traditional South Indian cuisine without sacrificing taste or quality. Their menu includes popular items like dosas and idlis and specialty South Indian dishes.
The franchise offers wide-ranging training in preparation methods and sustains quality constancy for all dishes in all places. Their kitchen layout and selective equipment help to optimize operations and improve the speed of service. The brand’s focus on authentic recipes and traditional preparation methods appeals to a customer who is keen on getting real South Indian cuisine.
- Industry: Restaurant
- Segment: South Indian Food
- Franchise Cost: ₹4.8-5 Lakhs
- Space Required: 250-300 sq ft
- Franchise Fee: ₹2.2 Lakhs
- Profit Margin: 25-30%
Explore detaled guide for Amul Franchise Cost.
4. Belgian Waffle Co.
- Growth: 45% year-over-year growth
- Revenue: ₹250 crore (2023)
- Profit Margin: 40-45%
- Outlets: Increased from 200 to 400+ outlets
The Belgian Waffle Co. introduced fresh, made-to-order waffles to India with its recipes and ways of preparation. The brand offers both sweet and savory waffle variations tailored to Indian taste buds. Such a compact design of the kitchen and the efficiency of working make it adaptable for all location formats.
Franchising provides comprehensive training in waffle preparation and equipment handling. They follow stringent quality controls over the ingredients as well as the preparation processes. The fresh preparation thrust along with the option of providing customization has an appeal among the young lot of consumers.
- Industry: Quick Service Restaurant
- Segment: Dessert/Snacks
- Franchise Cost: ₹4-4.5 Lakhs
- Space Required: 100-150 sq ft
- Franchise Fee: ₹1.5 Lakhs
- Profit Margin: 40-45%
5. Cream Bell
- Growth: 25% year-over-year growth
- Revenue: ₹200 crore (2023)
- Profit Margin: 25-30%
- Outlets: 1,500+ outlets nationwide
A more popular ice cream brand, Cream Bell has brought to the market innumerable tastes-from delicious to innovative that have catered to the varied preferences of the customers. Founded with the promise of quality and taste, it emerged as a trusted name in the country’s ice cream segment.
- Segment: Ice Cream and Desserts
- Franchise Cost: ₹3.5–5 Lakhs
- Space Required: 100–150 sq ft
- Profit Margin: 25–30%A popular ice cream brand with diverse flavors and consistent demand across urban and semi-urban areas.
6. Chaat Adda
- Growth: 35% year-over-year growth
- Revenue: ₹50 crore (2023)
- Profit Margin: 35-40%
- Outlets: 100+ outlets
Chaat Adda has transformed street-style chaat into an institutionalized retail format while maintaining the authenticity of flavors and variety. Hygiene-driven comfort is availed of by the brand to its various regional chaat specialties. The menu has popularized it with the most sought chaat from every region of India along with numerous innovative fusion varieties.
Franchisees are given extensive training in chaat preparation techniques as well as quality standards. The kitchen design and equipment arrangement have been designed to ensure smooth operations and fresh preparation. Authentic recipes and quality ingredients where the brand focuses on maintaining customer satisfaction.
- Industry: QSR
- Segment: Indian Street Food
- Franchise Cost: ₹4-4.5 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹1.8 Lakhs
- Profit Margin: 35-40%
7. Lassi Shop
- Growth: 35% year-over-year growth
- Revenue: ₹40 crore (2023)
- Profit Margin: 35-40%
- Outlets: 100+ outlets
Lassi Shop redefined the idea of the authentic Indian yogurt drink by fusing modern retailing practices with innovative flavors. Just as modern presentation and packaging techniques enabled the brand to modernize traditional lassi-making methods without compromising authenticity, so too did modern presentation and packaging techniques. Its menu is full of a variety ranging from classic lassis to creative fusion flavors, making seasonal fruit-based offerings to accommodate the diversity of tastes.
Some specialized lassi preparation equipment and a refrigeration system to ensure proper chilling of the product at ideal storage temperatures shall also be provided to the franchises. Fresh ingredients and authentic preparation techniques will ensure a high-quality product. Support for a franchise includes managing inventory and conducting promotional activities to ensure efficient processes.
Lassi Shop is an ideal selection for entrepreneurs looking for a food franchise under 5 lakhs in India.
- Industry: Beverage Retail
- Segment: Indian Traditional Drinks
- Franchise Cost: ₹3.5-4 Lakhs
- Area Required: 100-150 sq ft
- Franchise Fee: ₹1.5 Lakhs
- Profit Margin: 35-40%
8. Keventers (Mini Setup)
- Growth: 35% year-over-year growth
- Revenue: ₹150 crore (2023)
- Profit Margin: 35-40%
- Outlets: 250+ outlets
Keventers has brought the milkshake craze in a stylish bottle and high-end positioning in the beverage space. The mini setup model is compact yet efficient to serve the masses that their signature milkshakes and other beverages are for. The menu offers classic flavors alongside unique ones that cater to the modern choice of tastes.
They provide intensive training in shakedown preparation, hygiene standards, and customer service procedures. Their effective configuration consists of particular machines used in the preparation and stockholding of shakes but at controlled temperatures.
- Industry: Beverage Retail
- Segment: Milkshakes & Beverages
- Franchise Cost: ₹4-4.5 Lakhs
- Space Required: 100-150 sq ft
- Franchise Fee: ₹1.8 Lakhs
- Profit Margin: 35-40%
9. Thickshake Factory
- Growth: 40% year-over-year growth
- Revenue: ₹80 crore (2023)
- Profit Margin: 40-45%
- Outlets: 150+ outlets
Thickshake Factory mainly sells high-end thick shakes with many innovative flavors and combinations. As a brand, they carved out their niche in the beverage market using signature thick shakes and presentation styles. Their menu includes flavors and tastes ranging from traditional to experimental, seasonal favorites to premium additions.
The franchise offers extensive training in shake preparation and maintains consistent taste and quality. The setup has professional blenders and refrigeration systems designed to operate at their best. The brand focuses on premium ingredients and recipes to create unique offerings with higher profit margins.
- Industry: Beverage Retail
- Segment: Premium Milkshakes
- Franchise Cost: ₹4.5-5 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹2 Lakhs
- Profit Margin: 40-45%
Non-Veg / Biryani Franchises
10. Wow Momo Franchise
- Growth: 25% year-over-year growth rate
- Revenue: ₹500+ crore annual revenue (2023)
- Profit Margin: 25-30%
- Outlets: Expanded from 350+ in 2021 to 650+ outlets in 2024
WowMomo is a mammoth momos and dumplings brand offering a variety of authentic Asian flavors across the country. The brand has redefined traditional momos as it now comes in pan-fried, steamed, fried, and chocolate momos. Quality and hygiene remain their commitment that has made them a name to reckon with in quick-service restaurant brands. This is the best food franchise under 5 lakhs in India.
They provide employees with training and maintain high quality across all branches. They also provide operational and marketing support to ensure a franchise’s success. Moreover, their recipes and operations are standardized. So, a new franchisee can easily maintain the quality standards.
- Industry: QSR
- Segment: Asian Fast Food
- Franchise Cost: ₹ 4-5 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹2 Lakhs
- Profit Margin: 25-30%
Read about Wow Momo Franchise Cost in Detail.
11. Biryani by Kilo
- Growth: 40% year-over-year growth
- Revenue: ₹300 crore (2023)
- Profit Margin: 28-32%
- Outlets: Growth from 60 to 150+ outlets (2020-2024)
Biryani by Kilo has emerged as a premium brand to serves biryani with original preparation methodology and quality ingredients. This is the best biryani franchise under 5 lakhs. Each biryani is freshly handis prepared individually by the age-old dum cookery process. It had been popular for its taste and quality maintained uniformly at every single outlet. It served regional styles of biryani with complementary dishes on the menu.
Franchise support includes everything from kitchen fit-outs and furniture to cleaning and hygiene training for staff, quality control measures, and even an online presence and delivery network. Emphasis on proper preparation methods by the brand and premium positioning helps maintain higher profit margins.
- Industry: Food Service
- Segment: Biryani Specialist
- Franchise Cost: ₹4.8-5 Lakhs
- Space Required: 200-250 sq ft
- Franchise Fee: ₹2 Lakhs
- Profit Margin: 28-32%
12. Rolls Mania
- Growth: 30% year-over-year growth
- Revenue: ₹100 crore (2023)
- Profit Margin: 25-30%
- Outlets: Increased from 150 to 250+ outlets
A market leader in the roll-and-wrap segment, the brand Rolls Mania offers a wide variety of Indian and fusion rolls. The brand standardizes the street food roll preparation process while maintaining authentic flavors and quality. They have a vegetarian and non-vegetarian menu with different innovative combinations, catering to varied tastes and preferences.
The brand provides thorough training on preparation methods, hygiene expectations, and customer satisfaction procedures. Their eased and rapid kitchen planning and equipment establishment maximize the utilization of available space and efficient functioning. They keep giving new flavors and mixes that catch people’s attention to the menu.
- Industry: Quick Service Restaurant
- Segment: Roll & Wraps
- Franchise Cost: ₹4.5-5 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹2 Lakhs
- Profit Margin: 25-30%
13. Tandooriwala
- Growth: 28% year-over-year growth
- Revenue: ₹70 crore (2023)
- Profit Margin: 28-32%
- Outlets: 150+ outlets nationwide
Tandooriwala has tasted huge success in building the QSR format for dining as well as taking away, specializing in North Indian tandoor delicacies. The brand has standardized recipes and processes for maintaining quality consistency across all the outlets. A variety of tandoor items is available with support from other North Indian dishes. The franchise would train at all levels in operations within the tandoor, food preparation, and quality control measures.
For their kitchen design, they adopt proper space utilization to enhance the efficiency of tandoor operations. Authentic tandoor preparation and quality usage of ingredients remain a factor to ensure loyalty to the brand, along with continuous support in marketing and promotional activities for a sales lift.
- Industry: Quick Service Restaurant
- Segment: North Indian Cuisine
- Franchise Cost: ₹4.5-5 Lakhs
- Space Required: 200-250 sq ft
- Franchise fee: ₹2 Lakhs
- Profit Margin: 28-32%
14. Kathi Junction
- Growth: 30% year-over-year growth
- Revenue: ₹60 crore (2023)
- Profit Margin: 30-35%
- Outlets: 100+ outlets
Kathi Junction is an authentic Kolkata-style kathi roll with a modern QSR approach. It has been able to standardize the old style of making kathi rolls without compromising on authenticity and quality. The menu consists of several vegetarian and non-vegetarian items, all of which have signature spice blends and preparations. They undertake detailed training in roll preparation techniques and keeping consistency in taste and quality.
Its fast service with efficient kitchen setup along with the selection of equipment would provide quick service and optimal usage of space. The brand would emphasize the highest quality ingredients and proper hygiene measures. They also provide regular support in inventory management and activities related to marketing.
- Industry: Quick Service Restaurant
- Segment: Roll & Wraps
- Franchise Cost: ₹4-4.5 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹1.8 Lakhs
- Profit Margin: 30-35%
15. Rollacosta
- Growth: 30% year-over-year growth
- Revenue: ₹40 crore (2023)
- Profit Margin: 30-40%
- Outlets: 80+ outlets
Rollacosta is a dynamic QSR brand focusing on wraps, rolls, and grilled fast food. It is popular for offering a varied variety of vegetarian and non-vegetarian food items from its menu that suit the taste bud of the modern consumers. The low-investment model coupled with higher profit margins makes Rollacosta an excellent business opportunity for aspiring entrepreneurs. This compact setup ideally suits malls or very high-traffic areas, plus some robust training and operational support, and therefore a scalable and successful business venture in the fast-food industry.
- Segment: Wraps and Rolls
- Franchise Cost: ₹4.5–5 Lakhs
- Space Required: 150–200 sq ft
- Profit Margin: 30–40%Focuses on quick, delicious wraps and rolls, targeting youth and fast-food lovers.
16. Pizza Da Dhaba
- Growth: 25% year-over-year growth
- Revenue: ₹45 crore (2023)
- Profit Margin: 25-30%
- Outlets: 75+ outlets
Pizza Da Dhaba had a unique fusion concept dhaba-style ambiance marrying Italian pizza with Indian flavors and topping. The brand comes up with innovative menu offerings that feature pizzas topped with classic Indian spice combinations and toppings. The unique selling proposition of the brand is it creates a casual fine dining experience both for a person who craves for pizza and a hardcore Indian foodie.
The franchise provides comprehensive training on preparing pizzas, preparing dough, and maintaining consistency in quality. They also have specifically designed ovens and preparation places for pizzas to achieve efficient practices in the kitchen.
- Industry: Quick Service Restaurant
- Segment: Fusion Pizza
- Franchise Cost: ₹4.8-5 Lakhs
- Space Required: 200-250 sq ft
- Franchise Fee: ₹2.2 Lakhs
- Profit Margin: 25-30%
Desserts, Tea & Snacks Franchises
17. Chai Point Franchise
- Growth: 35% year-over-year growth
- Revenue: ₹200+ crore (2023)
- Profit Margin: 35-40%
- Outlets: Expanded from 180 to 300+ stores
Chai Point has transformed the organized tea retail space of India, bringing it what it so desperately needed – modernization. Offering a wide variety of teas with snackable options, Chai Point had a spot between the traditional Indian tea essence and the contemporary café experience. Smart dispensing machines and efficient inventory management systems underpin their high reliance on technology in the smooth functioning process.
It aims for brewing excellence through extreme training in brewing techniques and customer service. Further, the company strategizes with location selection and store design to ensure an attractive and accessible setting. Chai Point has a very strong presence in corporate and high-traffic locations ensuring there is business coming in at a consistent interval during the day.
Chai Point inspires aspiring entrepreneurs who look for options in Food Franchise Under 5 Lakhs in India. The model is groundbreaking but cost-effective, considering that it could modify an age-old beverage to be modern while milking the urban and corporate market.
- Industry: Beverage Retail
- Segment: Tea Café
- Franchise Cost: ₹4.5-5 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹1.8 Lakhs
- Profit Margin: 35-40%
18. Chaayos Franchise
- Growth: 30% year-over-year growth
- Revenue: ₹150 crore (2023)
- Profit Margin: 30-35%
- Outlets: 300+ outlets across major cities
Chaayos is a modern chai café chain that offers “Meri Wali Chai” where customers can customize their tea according to taste. The brand is an amalgamation of traditional Indian tea culture and contemporary café aesthetics and service standards. The menu includes various forms of tea in addition to food items that complement their beverage offerings. Partners are trained through a comprehensive process of tea preparation and café management.
Their comprehensive technology platform comprises customized POS systems and customer relationship management tools. Customization and quality control are the fundamental support behind the brand’s strong focus on creating customer satisfaction.
- Industry: Beverage Retail
- Segment: Tea Café
- Franchise Cost: ₹4.8-5 Lakhs
- Space Required: 200-250 sq ft
- Franchise Fee: ₹2 Lakhs
- Profit Margin: 30-35%
19. Chai Sutta Bar
- Growth: 50% year-over-year growth
- Revenue: ₹120 crore (2023)
- Profit Margin: 35-40%
- Outlets: Expanded from 150 to 400+ outlets
Chai Sutta Bar has carved a niche in itself offering tea in kulhad-earthen cups with a modern café experience. The brand catered to the younger population through appealable ambiance with rustic elements well blended into contemporary styles. Tea preparations accompanied by quick bites and snacks are great bait for college students and young professionals at this venue.
The franchise teaches overall tea preparation techniques and customer service procedures. Their unique marketing style and digital presence ensure continuous visibility of the brand and sustained customer interaction. The kullhadd employed to serve tea formed a distinctive selling proposition and raised a significant stake in the pottery artisans as well.
- Industry: Beverage Retail
- Segment: Tea Café
- Franchise Cost: ₹3.5-4 Lakhs
- Space Required: 150-200 sq ft
- Franchise Fee: ₹1.5 Lakhs
- Profit Margin: 35-40%
Know about Chai Sutta Bar franchise cost in detail.
20. Goli Vada Pav
- Growth: 25% year-over-year growth
- Revenue: ₹150 crore (2023)
- Profit Margin: 30-35%
- Outlets: Growth from 350 to 500+ outlets
Goli Vada Pav has converted Mumbai street food into a successful QSR format, where it sustains standard quality and hygiene standards. Being eased in this manner, it intends to retain the authenticity of vada pav while offering the same quality all over its outlets. Brand-specific spice mixes and preparation techniques ensure that there is no variation of taste for the brand.
Franchise partners will receive thorough training in food preparation, handling, and storage to meet the brand’s stringent quality standards. Goli Vada Pav offers all necessary equipment, marketing materials, and operational guidance, hence a fantastic opportunity for an entrepreneur. On the menu are various vada pavs and items that form complementing pairs to attract a wide customer base.
For an individual searching for a Food Franchise Under 5 Lakhs in India, Goli Vada Pav is an excellent example of how street food can be adapted into a modern, scalable business while retaining its essence. Its alignment with the vibrant street food culture of India ensures steady customers and business inflows.
- Industry: Fast Food Restaurant
- Segment: Street Food of India
- Franchise Fee: ₹4-4.5 Lakhs
- Space Required: 100-150 sq ft
- Franchise Fee: ₹1.8 Lakhs
- Profit Margin: 30-35%
Food Franchise Under ₹5 Lakhs in Delhi & NCR
Delhi loves street food. People eat out daily, from Momos to Chaat. This is an excellent proposal to start a food shop. It has to be a well-known name but not expensive to launch.
Top café there: cafes in Delhi and NCR (Noida, Gurgaon):
1. JB Kachori Wala
They are a very famous brand of North India and offer delicious Kachoris and snacks. Perfect for a small shop.
- Why it is good: Kachori is eaten as breakfast and as an evening snack.
- Cost: The overall cost is extremely low-low start up.
2. Salado (Healthy Food)
The new direction in Delhi is healthy eating. Salado offers a variety of salads and nutritious bowls that are not only delicious but also healthy.
- Why it is good: Young people and office workers are fond of it.
- Cost: 3 to 5 lakhs are sufficient to install a small kiosk (stall).
3. Chai Calling
Delhiites consume chai numerous times a day. Chai Calling is a contemporary tea box that appears sunny and offers excellent tea.
- Why it is good: You can sell tea, sandwiches, and Maggi.
- Cost: Very affordable setup.
| Brand | Type | Why It’s Good | Estimated Cost |
|---|---|---|---|
| JB Kachori Wala | Snacks / Kachori | High breakfast & evening demand | ₹2–4 lakhs |
| Salado | Healthy bowls / Salads | Popular among youth & office crowd | ₹3–5 lakhs |
| Chai Calling | Tea & Snacks | High daily chai demand | ₹2–4 lakhs |
Food franchise less than 5 Lakhs in Chennai
Chennai is a key market in coffee and fast food. Customers are thankful to eat good, clean food. The optimal budgets in 2026 are shown below.
1. Whimsey Café
An eye-catching yet affordable budget cafe that is affordable to open.
- Why it is good: There are college crowds in the location.
- Cost: ₹3.99 lakhs.
2. Samruddi Coffee
Chennai is a fan of filter coffee; Samruddi is the one to provide the real flavour.
- What makes it good: Repeat customers are fuelled by da aily habit.
- Cost: Around ₹3 lakhs.
3. Galtoz Pizza
Pizzas are everywhere; Galtoz provides tasty pizzas at a cheap cost.
- Why it is good: It is competing with the large brands but remains cheap.
- Cost: About ₹3.99 lakhs.
| Brand | Type | Why It’s Good | Cost |
|---|---|---|---|
| Tea Time | Tea chain | Strong brand & demand | ₹4.5–5 lakhs |
| Chai Bunk | Tea & snacks | Popular among students | ₹4–5 lakhs |
| Hyderabadi Chai Adda | Local tea | Authentic taste | ₹3.5 lakhs |
Real Profit & ROI Estimates
| Metric | Typical Range / Estimate |
|---|---|
| Annual ROI (Return on Investment) | ~20% – 45% (healthy) |
| Break-Even Period | ~12 – 36 months |
| Profit Margins (Net) | ~12% – 30% typical |
| Monthly Profit Potential | ₹40,000 – ₹2,50,000+ varies widely |
Factors Affecting Profitability
- Location Selection: Everything from customer traffic to potential sales comes directly. Sites offering higher customer traffic usually pay better returns, but that means they are expensive.
- Operational Efficiency: With more efficient operations come excellent inventory management and greater staff productivity, directly related to profit margins. Cost control and resource mobilization are of utmost importance.
- Market Competition: Knowing the local competition, offering competitive prices, and remaining profitable is significant. Erosion of customer share by market saturation impacts revenues.
- Quality Consistency: Consistent food and service quality contribute to building customer loyalty and positive word-of-mouth, which are essential for long-term profits.
- Cost Management: Raw material costs, labor costs, and overhead charges must be controlled efficiently to ensure healthy profit margins. Furthermore, inventory management should be smart.
- Local Market: Adaptation. Successfully adapting to local tastes and preferences while maintaining brand standards will affect customer acceptance and sales volume greatly.
How to choose the best franchises under 5 lakhs
Making the appropriate business choices. Just do the following four steps.
1. Check Your Budget
Make sure you have 5 lakhs, and reserve another 50,000 for unplanned expenses.
2. Look at the Location
- Closely located to colleges, Tea or burger stands flourish.
- Office proximity: Healthy food/ thali shops do well.
- Close markets: Families are drawn to ice cream or chaat shops.
3. Taste the Food First
Sample the supplier’s product before investing. Customers will not be attracted by bad taste.
4. Ask About Support
Will you be trained by the franchisor? Will they help with site selection? Chain stores are reliable and provide full support.
How to Start a Food Franchise in India : Step By Step Guide
Growing middle class and changing lifestyles with more people eating out are the factors that keep food franchises in high demand. Here is a step-by-step on how to get one:
1. Select the Right Franchise
All your interests and budget should guide you in researching the best-known food franchises. Some of the well-known franchises are Domino’s, Subway, and Baskin Robbins. You may also opt for Indian franchises like Haldiram’s Franchise or Biryani By Kilo. See franchises with a proven business model, good reputation, and systems for new franchisees.
2. Franchise Cost
The initial investment will also depend on the brand. Most food franchises demand a one-time franchise fee, along with a setup for the required infrastructure, and royalties as a percentage of sales. In the case of QSR, the setup might cost anything for a food franchise under ₹5 lakhs in India. Remember and factor in these costs while working out your budget.
3. Location is everything
Depending on the location, a food franchise could be very successful. A mall, business district, or near a school and college could be an appropriate location, considering that there will be ample customers who would visit those places. Do your market research to find out the competition for your type of food in the locality.
4. Legal Formalities
It includes registration of your business, obtaining the required licenses like FSSAI and GST registration, health, and safety permits, and finally executing a franchisee agreement. In the said agreement, it will be clarified what are your rights and liabilities together with profit-sharing details.
5. Setting Up the Outlet
Note the instructions the franchisor has put in place on how to open an outlet, from interior design to sourcing equipment and menu standardization. Most franchisors train the employees to ensure uniformity in food quality and service delivery.
6. Marketing and Promotion
Most franchisors run national marketing campaigns, but you should also invest in local channels to attract customers. You must therefore implement digital marketing and social media to attract a loyal customer base by offering them discounts.
Conclusion
Opening a food franchise under 5 Lakhs in India is brilliant. You do not have to be a cook; a proper plan suffices.
Excellent brands in 2026 will include Tea Time, Amul, and Salado. They are not risky and are highly profitable. Always keep in mind that the place is a priority- find a place with a lot of people around, wait with a smile, and make your shop clean.
And go get 5 Lakhs in the bank, don’t leave it lying there. It will be invested in a food business, and within a year, you will be making a substantial monthly income.
Ready to start? Select one of the brands in the list above and call them now. Good luck!
FAQs
1. Can I start a food franchise with no experience?
Yes, any franchisee can start with most franchisors, providing training and operational support; therefore, previous experience is not necessary.
2. Which are the examples of food franchises under 5 lakhs in India?
Popular examples include Chaat Adda, Tea Time, and Rollacosta.
3. How long does it take to set up a food franchise?
Usually, 1–3 months, depending on the brand and location.
4. What is the average profit margin in a food franchise?
Usually, profit margins in food franchises range from 20–40%, depending on the product and location.
