The Indian F&B industry is experiencing quick growth and now offers a wide array of opportunities for both beginners and experienced investors. Experts also estimate that the entire food business industry in India will expand to about $887.77 billion in 2025, and is expected to expand at a 6.66% annual rate from 2025 to 2030. The food franchise model is considered attractive in this environment, thanks to the reputation and standardized methods it brings to the table.
The combination of a huge population, many types of cuisine, and higher income in India makes it favorable for businesses in the food industry. Starting a business in the F&B space has become easier, thanks to franchising, as people can join reputable names and deal with fewer risks in the process. As time passes, the Indian food franchise industry is not just warming up; things are heating up, and it’s prepared to reward those who pick the right path.
The article looks at the factors behind this sector’s growth, the positive aspects of investing, top considerations for choosing a franchise, and finally, provides a list of the food franchise in India expected to expand rapidly in India in the coming years.
Why the Food Franchise Sector is Sizzling in India
Because of this sudden growth in the food franchise in India market, cities are being reshaped and consumer habits are changing. A combination of things is driving this rapid growth, making Latin America an appealing site for investment.
Burgeoning Middle Class and Rising Disposable Incomes:
More people are moving into the middle class, making their disposable incomes increase. Increased purchasing power among India’s middle class is the most important reason for the shift. An increase in disposable income often leads people to eat out more, try different types of food, and look for easily accessible meals. As time goes by, people in this group become more inclined to buy high-quality food and well-known products.
Consumer Preferences and Culinary Exploration:
Indians are trying out more adventurous types of food nowadays. People are interested in tasting dishes from different countries and trying out unique types of food. Good-tasting, one-of-a-kind, and trendy food can attract a lot of interested customers in franchises. In addition, more attention is now given to how safe, hygienic, and fresh the food needs to be, all factors that well-known chains usually do well in.
The Digital Revolution and Food Aggregator Platforms:
Because of an increase in the number of smartphones and affordable internet, services like Zomato and Swiggy have become very popular. Because of these platforms, food franchises can now draw in many new customers nationwide, instead of setting up stores in every town.
Technological Advancements in Operations:
Technology not only makes deliveries easier but also improves how the business runs day to day. Operating with digital order systems, smart chat bots, computerized warehousing, and modern POS saves time for the business and smoothes out customer experience.
Untapped Potential in Tier-II and Tier-III Cities:
Tier-II and Tier-III cities offer a range of potential for fast-food and delivery services. For many years, food franchises were built mainly in big cities, but now the fastest growth is found in Tier-II and Tier-III cities. According to predictions, the QSR market in the franchise sector could reach ₹82,000 crore by the year 2025 thanks to its expansion.
Why Invest in a Food Franchise in India?
Those interested in the food and beverage sector can find a strong incentive in bringing a food franchise to India. The following are main reasons why a food franchise in India is worth investing in:
Established Brand Recognition and Trust:
Food franchise in India benefit from the fact that their name means something to consumers and holds their trust. Having brand equity already in place means there is a ready group of customers and less time and effort is required to start building a reputation. Most people tend to prefer choosing a well-known franchise compared to local independent restaurants they are unfamiliar with.
Established Methods and Systems for Running the Business:
Those who buy a franchise receive instructions on how to do everything from preparing food to managing customers and stock in the same and approved way. It makes it much easier for the franchisee because almost everything is already set up for them.
Comprehensive Training and Ongoing Support:
Food franchise in India is supported by training courses, which cover all the needed skills for business management. Usually, the support lasts the whole time the franchise is operating, covering marketing, introducing new products, updates to technology, and fixing problems on site. The information here is a big help, especially for new start-up business owners.
Access to Bulk Purchasing Power and Supply Chain Efficiencies:
The group buying power of the entire franchise network works to the benefit of its franchisees. They can get the ingredients, equipment, and supplies more efficiently and cheaply, which earns them a higher profit than an independent restaurant could make. Having an established supply chain means the business receives products when needed and at a high level of quality.
Top 10 Food Franchise in India (2025)
A. Fast Food Giants
1. McDonald’s
Mc Donald’s was founded in 1955 in the USA by Ray Kroc) and was established in India by Hardcastle Restaurants Pvt. Ltd. and Connaught Plaza Restaurants. McDonald’s has maintained excellent name value in India and continues to earn profits. The restaurant menu offers ingredients popular in India, making their global brand the perfect fit for local customers. It is clear their expansion indicates a promising future and many opportunities in such cities.
They are now running over 500 restaurants and growing by an average of 15-20% every year in the QSR segment. Because of their shift to healthier foods and open nutrition information, McDonald’s can sustain its growth in the future. They are active in all regions of India and are favored by many consumers. Selling in malls, alone, and by the highway gives them access to almost the entire retail market.
- Investment Required: ₹2-3 crore
- Space Required: 1,800-2,500 sq. ft.
- Profit Potential: 15-20% after establishment (typically 3 years)
- Franchise Model: FOFO (Franchise Owned Franchise Operated) with 20-year renewable agreement and 4-5% royalty fee
- Contact: https://mcdindia.com/
2. KFC
KFC was launched in 1930 in the USA by Colonel Harland Sanders) and was launched in India by Yum! Brands. KFC leads the chicken QSR market with unparalleled brand equity and product. Their introduction of vegetarian alternatives with their popular fried chicken showcases flexibility to the Indian consumer. Technology alignment and youth-oriented marketing build competitive advantage in digital ordering and consumer engagement. To be in the lead of the chicken fast-food market with double-digit annual growth.
KFC’s innovative strategy of test-and-learn with seasonal menus and region-specific offerings guarantees ongoing market innovation while staying true to core brand principles. Pan-India presence with strategic high-profile locations and robust delivery network. Their youth-oriented marketing appeals to India’s burgeoning young population.
- Investment Required: ₹1.5-2.5 crore
- Space Required: 1,500-2,000 sq. ft.
- Profit Potential: 15-22% after stabilization
- Franchise Model: FOFO (Franchise Owned Franchise Operated) with 10-year agreement, 6% royalty and 5% marketing fee; also offers FOCO (Franchise Owned Company Operated) model for select locations
- Contact: https://online.kfc.co.in/
3. Domino’s Pizza
Domino’s Pizza was established in 1960, USA by James Monaghan) and Tom and was set up in India by Jubilant FoodWorks Ltd. Domino’s established the pizza delivery concept in India through industry-high technology and logistics platforms. Localized menu innovations (Peppy Paneer, Chicken Tikka) have delivered unique market positioning. Domino’s operation efficiency allows for higher margins than the competition. Running the India’s largest pizza chain with 18-25% margins and incessant expansion into new markets.
Their technology-enabled delivery platform and commissary-based supply chain approach guarantee quality consistency and operational excellence. Strong presence in metropolitan, tier-2, and tier-3 cities with robust digital ordering strength. Value-for-money model has broadened the customer base beyond high-end urban consumers.
- Investment Required: ₹1-2 crore
- Space Required: 1,000-1,500 sq. ft.
- Profit Potential: 18-25% after establishment
- Franchise Model: FOFO (Franchise Owned Franchise Operated) with 5-year renewable agreement and 5.5% royalty fee; COCO (Company Owned Company Operated) model in premium markets
- Contact: https://m.dominos.co.in/postorder-ui/login
B. Quick Service Restaurants (QSR) – Indian Snacks & Street Food
4. Wow! Momo
Wow! Momo was established in 2008 by Sagar Daryani and Binod Homagai. Wow! Momo is one of India’s greatest homegrown QSR success stories, turning a classic food item into an scalable, innovative QSR idea. The multi-brand approach (Wow! China, Wow! Chicken) generates several revenue streams with the same operating footprint.
Worth over ₹1,200 crore with Tiger Global investment support. Their rapid growth from one kiosk to 500+ locations in 30+ cities shows outstanding scalability with envisioned further accelerating growth. Pan-India reaches in multiple formats (kiosks, food courts, independent restaurants) with high brand recall in the QSR category. Their cloud kitchen strategy allows effective market penetration at low capital costs.
- Investment Required: ₹25-35 lakhs
- Space Required: 250-500 sq. ft.
- Profit Potential: 20-25% after initial phase
- Franchise Model: FOFO (Franchise Owned Franchise Operated) with 3-5 year agreement and revenue sharing model (8-10%); also offers FOCO (Franchise Owned Company Operated) for strategic locations
- Contact: https://wowmomo.com/franchise
5. Chai Sutta Bar
Chai Sutta Bar was founded in 2016 by Anand Nayak and Anubhav Dubey. Chai Sutta Bar has led the organized chai segment with their green kulhad concept, having carved out a brand identity. Their low investment cost and high margin value make this a compelling entry point franchise offering. The green philosophy appeals to the environmentally friendly consumer.
Rocket growth from one outlet to 400+ stores in 200+ cities in a span of 7 years. Their 1,000 outlets by 2026 target, including overseas locations, showcases outstanding growth paths. Strong positioning in metros, tier-2, and tier-3 cities with major international expansion in progress. Their technology-based business helps maintain quality standards across all outlets.
- Investment Required: ₹8-15 lakh
- Space Required: 150-300 sq. ft.
- Profit Potential: 25-35% after stabilization
- Franchise Model: Pure FOFO (Franchise Owned Franchise Operated) with 3-year agreement and 5% royalty; no minimum guarantee required
- Contact: https://www.chaisuttabarindia.com/
6. Amul Ice Cream Parlor
With the operation of GCMMF, Amul franchise are known for being one of the most reliable dairy brands in India. In India’s dairy industry, the white revolution led by Dr. Verghese Kurien was made possible by Amul, a farmers’ cooperative that first started in 1946.
At the ice cream parlors, customers can find more than 40 flavors of ice creams, sundaes, thick shakes, and dairy-based treats that are made with natural ingredients and no added artificial flavors. Because of their popularity, the number of Amul ice cream parlors has increased rapidly across India.
Since they are a cooperative, Amul is able to maintain high quality and affordable prices even during recessions. What were once simple ice cream counters have become upmarket cafés in the best locations, always offering seasonal new flavors.
- Investment Required: ₹7-15 lakh
- Space Required: 200-400 sq. ft.
- Profit Potential: 20-30% throughout the year
- Franchise Model: Distributor-based model with product supply agreement; not a traditional FOFO but operates as exclusive territorial rights
C. Cafes and Beverage Chains
7. Café Coffee Day
Cafe’ Coffee Day was founded in 1996 by V.G. Siddhartha. CCD pioneered India’s café culture with a fully vertically integrated business model from farm to cup. Their established supply chain infrastructure and economies of scale provide operational advantages. Despite competition, CCD maintains strong brand loyalty and prime real estate positions. Expanded to 1,700 cafés across 240 cities in India and internationally. Their diversified outlet formats (highway, lounge, express) allow targeted market penetration according to location dynamics. Pan-India presence across metros, tier-2, and tier-3 cities with strong youth connection. Their ownership of 12,000+ acres of coffee plantations ensures supply chain stability.
- Investment Required: ₹70 lakh – 1.5 crore
- Space Required: 800-1,500 sq. ft.
- Profit Potential: 15-20% after initial years
- Franchise Model: Primarily COCO (Company Owned Company Operated) with limited FOFO (Franchise Owned Franchise Operated) opportunities in tier-2/3 cities; 5-year agreement with 8% royalty on gross sales
- Contact: https://www.cafecoffeeday.com/
8. The Belgian Waffle Co.
Founded in 2015 by Shrey Aggarwal, The Belgian Waffle Co. got its start with a single kiosk in Mumbai and has expanded to have outlets in more than 100 cities with over 400 locations. With its fresh waffles, the brand started a dessert revolution in India and made them accessible to everyone as an affordable treat.
Among their customers, mainly young people, The Belgian Waffle franchise has earned a cult following for its “Red Velvet Waffle” and “Chocolate Overload” dishes. Thanks to their small, efficient outlets, averaging 150 sq. ft., The Belgian Waffle Co. can open stores in popular places like malls, metro stations, and commercial areas with much lower real estate expenses.
Exceptional growth from one kiosk to 400+ stores in 100+ cities in a span of 8 years. Their aggressive goal of 1,000 stores by 2027 signals outstanding velocity within the specialty dessert category. Densely occupied presence in high-traffic venues (malls, subway stops, commercial districts) with cult status amongst younger generations. Their compact small footprint model (avg. 150 sq. ft.) maximizes location potential.
- Investment Required: ₹15-30 lakh
- Space Required: 100-300 sq. ft.
- Profit Potential: 25-35% after stabilization
- Franchise Model: Pure FOFO (Franchise Owned Franchise Operated) with 3-year renewable contract and 8% royalty; offers master franchise options for multi-unit development
D. Traditional Indian Sweets and Snacks
9. Haldiram’s
Haldiram’s was started in 1937 by Ganga Bishen Agarwal (Haldiram). Haldiram’s is one of the most iconic food brands of India with three-generation customer loyalty. Their three-pronged business model (restaurants, packaged foods, sweets) provides three revenue streams. Their combination of traditional recipes with contemporary manufacturing technology ensures consistent quality at large volumes.
Turnaround from a tiny sweet shop to India’s biggest snack food empire with 18-22% margins. Their multi-format restaurant strategy and international expansion reflect a sustained growth path. 150+ restaurants in India with robust packaged foods distribution network. Their multi-regional operations (Delhi, Nagpur, Kolkata) afford expert regional menu expertise.
- Investment Required: ₹1-3 crore
- Space Required: 1,500-3,000 sq. ft.
- Profit Potential: 18-22% after establishment
- Franchise Model: Mix of FOFO (Franchise Owned Franchise Operated) and FOCO (Franchise Owned Company Operated) models; 7-year agreement with profit-sharing mechanism and brand usage rights
- Contact: https://www.haldirams.com/franchise
10. Bikanervala
Bikanervala began in 1950 as “Bikaner Namkeen Bhandar” (Shyam Sundar Agarwal). Bikanervala presents seven decades of brand legacy and established business stability. Their restaurant as well as packaged foods integrated model (Bikano) offers diversified revenue streams. Their vegetarian food know-how resonates with a large customer base spread across religious beliefs. Spread from one shop to global reach in India, Nepal, New Zealand, Singapore, and UAE.
Their success in exporting packaged Indian foods to 35+ nations proves the market potential of global markets for Indian traditional foods. Multi-format presence (food courts, express shops, sweet shops) with regional brand recognition. Strong dedication to purity and quality has set them up as India’s most trusted food brand.
- Investment Required: ₹1-2.5 crore
- Space Required: 1,200-2,500 sq. ft.
- Profit Potential: 15-20% after stabilization
- Franchise Model: Traditional FOFO (Franchise Owned Franchise Operated) with 5-year agreement; includes royalty and marketing fees with area development options available for experienced franchisees
- Contact: https://www.bikanervala.com/
Factors to Consider When Choosing a Food Franchise:
Making the right choice of food franchise in India is important for your future as an entrepreneur. For the right choice, you should research the area, be thorough, and think seriously about what fits you.
Brand Reputation and Track Record:
- Market Standing: Do some research on the brand’s reputation within the business world and among the public. Pick brands that are popular with customers and consistent in their achievements.
- Franchisee Satisfaction: Talk to former and present franchisees about their experiences with the company’s support and profit potential.
Investment Costs and Financial Projections:
- Initial Investment: Estimate the total amount you will spend in the beginning, that is, the franchise fee, the cost of renting premises, fitting them out, purchasing appliances, stock, and starting capital.
- Ongoing Fees: Ensure you understand what the franchisor’s royalty, advertising, and other recurring financial fees are.
- Profitability and ROI: Look closely at the franchisor’s business forecasts. Ensure a clear explanation is provided on typical purchases, profits, and how quickly new franchisees reach a return on investment (ROI). Compare these with industry benchmarks.
Franchisor Support and Training:
- Initial Training: Ensure that the initial training covers all the basic aspects of operating and running the business. Are all the crucial functions in operations, marketing, and management explained in the program?
- Ongoing Support: Examine the types of on-going support given by the franchisor. Things they may offer include assistance in operations, marketing, technology, and regular visits to your location.
- Supply Chain: Check if the franchisor has a reliable and effective supply chain for all your required ingredients and supplies.
Conclusion
Food franchise in India business continues to bear great potential through present time, with varied opportunities in many different segments. Fast food chains keep their grip alive through localization and digitalization, while local brands such as Wow! Momo and Chai Sutta Bar showcase the huge potential for scalable Indian QSR ideas.
Classic sweet manufacturers such as Haldiram‘s and Bikanervala demonstrate the long-standing popularity of real Indian food when complimented with contemporary business strategies. The industry provides investment opportunities from less than ₹10 lakh to several crores, suiting varied investor profiles and location categories.
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FAQs
What is the average break-even time for food franchises in India?
Most food franchises break even in 18-24 months, although high-end locations can expect quicker returns of 12-15 months.
Which of the food categories holds maximum growth potential?
QSR chains with Indian street food concepts and new-age packaging along with experience are likely to witness maximum growth.
Which franchise models are the most prevalent in the Indian food sector?
FOFO (Franchise Owned Franchise Operated) is still the prevailing model, although hybrid models such as FOCO (Franchise Owned Company Operated) are increasingly popular for intricate operations.
What is the minimum amount of working capital required above the initial investment?
Generally, franchisees should keep working capital equal to 3-6 months’ operating costs above the initial investment.
