Restaurant Franchise Cost in India: Complete Guide to Investment, Budget & Best Opportunities
- The Studs Office
- 5 days ago
- 5 min read
Introduction: Why Restaurant Franchising Is Booming in India
India’s food and beverage industry is evolving faster than ever. With consumers dining out more frequently and Tier-2 cities joining the trend, restaurant franchising has become one of the most exciting investment avenues today.
If you’ve ever wondered “how much does a restaurant franchise cost India 2025”, this guide covers everything from franchise fee + setup cost restaurant India to ROI insights and the best restaurant franchise opportunities India.
Whether you dream of owning a café, fine-dining outlet, or a buzzing sports bar franchise, this article breaks down the restaurant franchise investment India landscape — so you can confidently plan your next move.
1. Basics of Restaurant Franchising
What Is a Restaurant Franchise?
A restaurant franchise is a business model where a brand (franchisor) allows an entrepreneur (franchisee) to operate under its name, using its branding, recipes, and systems in exchange for a fee and revenue share.
Types of Restaurant Franchises in India
Quick Service Restaurants (QSRs) – fast setup, high turnover (e.g., Domino’s).
Casual Dining Restaurants – balance of dine-in and delivery.
Fine Dining – high investment, premium clientele.
Resto-bar / Lounge / Sports Bar – ideal for metro nightlife.
Cloud Kitchens – delivery-only, low overheads.
Franchise Models
FOFO (Franchise-Owned Franchise-Operated) – you invest and run operations.
FOCO (Franchise-Owned Company-Operated) – you invest; the brand runs it.
COCO (Company-Owned Company-Operated) – brand owns and operates everything.
Each model carries different risk, return, and control levels — an essential choice before investing.
2. Cost Components of a Restaurant Franchise
Understanding restaurant franchise cost goes beyond the franchise fee. Here’s a detailed breakdown:
These combined costs define your restaurant franchise investment India figure and influence ROI.
3. Cost Ranges Across Formats in India
Here’s an indicative snapshot for 2025 (may vary by city and brand):
For example, The Studs Sports Bar & Grill, India’s leading sports bar franchise, operates on a FOCO model franchise offering lower operational hassle and faster ROI.
4. Factors That Affect Costs & Risks
Your bar & restaurant franchise India cost depends on multiple factors:
Location: Metro cities like Mumbai, Bangalore, Delhi require higher deposits but deliver faster returns.
Space & Seating: A 1,500–2,500 sq ft outlet adds décor and equipment costs.
Licensing: Resto bar franchise cost India increases due to liquor permits.
Menu Complexity: More cuisine means higher inventory & chef costs.
Brand Strength: Established brands charge premium franchise fees but offer built-in trust.
Hidden Costs to Watch: staff attrition, food wastage, raw material inflation, and aggressive launch marketing.
Smart investors calculate these early when estimating investment required for restaurant franchise India.
5. ROI, Break-even & Profitability Insights
Typical restaurant franchise ROI India ranges from 18%–35% annually depending on scale and efficiency.
Break-even:
QSRs: 12–18 months
Casual Dining: 20–24 months
Sports Bar Franchise: 18–30 months
Case Example – The Studs Sports Bar & Grill
As a national leader in the sports bar franchise space, The Studs demonstrates how a well-positioned bar + restaurant franchise India can achieve strong ROI. With moderate resto bar franchise cost India.
Section 6: Best Restaurant Franchise & Resto-Bar Opportunities in India
India’s food franchise opportunities span every budget — from quick bites to full-scale hospitality ventures.
Here are some leading categories:
1. The Studs Sports Bar & Grill
India’s first and most loved sports bar franchise, The Studs brings global dining, live entertainment, and premium ambience together.
Investment Range: ₹1 – 2.5 Crores
Ideal For: Entrepreneurs seeking a lifestyle brand with strong ROI
Format: Resto-bar franchise (FOFO / FOCO options available)
Why Choose: Strong brand recall, marketing support, and consistent revenue
2. QSR & Café Franchises
Examples: Subway, Biryani Blues, Café Coffee Day
Investment: ₹20 – 60 Lakhs
Ideal For: Small investors or first-time entrepreneurs
3. Cloud Kitchens
Examples: Faasos, Oven Story, Behrouz Biryani
Investment: ₹10 – 25 Lakhs
Ideal For: Low-risk, low-staff operations
4. Fine Dining & Lounge Chains
Examples: Barbeque Nation, Social, Hard Rock Café
Investment: ₹2 – 5 Crores
Best Suited For: Metro investors with premium clientele
5. Dessert & Beverage Franchises
Examples: Frozen Bottle, The Tea Planet
Investment: ₹10 – 30 Lakhs
Low-Investment Pick: Among the lowest-cost restaurant franchises in India
Whether you seek best small-investment restaurant franchises in India or premium experiential lounges, there’s a franchise model to match every ambition
Section 7: How to Plan & Budget Your Franchise Launch
A structured roadmap ensures your restaurant franchise investment in India delivers the expected returns.
Step-by-Step Checklist
Assess Your Capital & Risk Appetite
Decide between low-investment food franchises or full-scale bars.
Research Market & Location
Analyze demographics, footfall, and local competition.
Engage With Franchisor
Request the FDD (Franchise Disclosure Document), clarify royalty & territory rights.
Estimate Costs & Create a Budget Model
Factor in franchise fee + setup cost, working capital, and marketing.
Secure Licenses & Permits
Apply for FSSAI, GST, liquor (if applicable), and fire safety clearance.
Hire & Train Your Team
Follow brand SOPs for service consistency.
Plan Marketing & Soft Launch
Leverage local influencers, events, and social media ads.
Monitor & Scale
Use POS data, customer feedback, and optimize your menu and cost ratios.
Section 8: Tips & Best Practices for Reducing Risks & Improving Cost Efficiency
Negotiate Lease Terms: Seek longer lock-ins, rent-free fit-out periods.
Opt for Phased Rollout: Test a pilot before multiple locations.
Standardize Décor & Menu: Keep interiors modular and efficient.
Partner With Vendors: Bulk purchasing reduces procurement costs.
Go Digital: Use social media, local SEO, and Google Ads for cost-effective marketing.
Automate Operations: Use digital billing and inventory tools to cut wastage.
Lean Management: Cross-train staff to save on manpower costs.
Section 9: FAQs
1. What is the minimum investment required for a restaurant franchise in India?
Starting options begin at ₹10–15 lakhs for small QSRs or dessert cafés.
2. Do I need prior restaurant experience?
Not necessarily. Brands like The Studs offer full training and operational support.
3. How long is a franchise agreement valid?
Usually 5–10 years, renewable based on performance.
4. What are typical royalty rates?
Between 4–8 % of gross sales, plus marketing fees.
5. Can I resell or exit the franchise?
Yes, subject to brand approval and agreement clauses.
6. What documents are required?
Basic KYC, financial proof, business registration, and property lease documents.
Conclusion & Call to Action
India’s restaurant and sports bar franchise industry continues to thrive in 2025, offering both high-ROI premium brands and best small-investment food franchises for aspiring entrepreneurs.
If you’re exploring a resto-bar franchise with strong brand value, proven ROI, and complete support, The Studs Sports Bar & Grill is among the best restaurant franchises to own in India.
Ready to turn your investment into an experience?
👉 Enquire now at The Studs and get your personalized franchise cost breakdown today.