India is the third-largest consumer market in the world and thus, is an ideal location for major international and national fast-food players. As the fastest growing economy with a rapidly growing middle class, India’s fast food industry is booming and is expected to further grow at an annual rate of 10% and be worth around the US $27.57 billion by 2020.
Thus, for budding Indian entrepreneurs, fast food makes for an ideal business to venture into. One of the simplest, most convenient and low-risk ways to reap the benefits of owning a fast-food business is through the franchise model.
In this blog, we discuss seven extremely lucrative brands that have proven to be successful.
Most Profitable Fast Food Franchise Opportunities In India
- Subway
- Xero Degrees
- Kathi Junction
- Pizza Hut
- MoKart
- KFC
- Taco Bell
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Subway – Profitable Fast Food Franchise In India
Operating since: 1965
Number of outlets in India: 600+ (approximately)
Space required: 600-1000 sq. ft. (approximately)
Investment required: INR 35-80 lacs (approximately)
One of the first few fast food joints to break the stereotypes against fast food being an unhealthy option, Subway started a global trend. With its signature submarine sandwiches, Subway provided an affordable yet healthy alternative to the mainstream burger and fries that had previously dominated the fast-food market.
As a result, Subway enjoys the loyalty of its niche, the more health-conscious audience. The brand has innovated its menu in accordance with Indian tastes and vegetarian preferences and is also planning to expand its Indian footprint in the future; thus, making it a ripe opportunity for business investors and entrepreneurs.
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Xero Degrees – Profitable Fast Food Franchise In India
Operating since: 2018
Number of outlets in India: 5 (approximately)
Space required: 300-1000 sq. ft. (approximately)
Investment required: INR 15-35 lacs (approximately)
A tiny, adorable space nestled amidst Delhi’s Connaught Place, Xero Degrees caught everyone’s eye right when it was launched. Soon, the restaurant went on to open its second branch in Vijay Nagar, owing to its immense popularity. Even though the fast-food joint offers a wide array of dishes, it’s famous for its unique “pizza in a jar” and “fries in a jar.”
A favourite among children and adults alike, Xero Degrees has been rising in popularity and offers an extremely sustainable and profitable franchise opportunity for budding entrepreneurs.
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Kathi Junction – Profitable Fast Food Franchise In India
Operating since: 2009
Number of outlets in India: 100 (approximately)
Space required: 250-1500 sq. ft. (approximately)
Investment required: INR 7-30 lacs (approximately)
Kathi Junction is an immensely popular fast food joint offering a wide variety of Kathi roll options on its menu. Known for its delicious and affordable kathi rolls, the brand is instantly recognisable across most Indian cities. The ability of Kathi rolls to cater to the tastes of different towns and communities is what makes it a favourite among the Indian population.
This franchise brand also offers excellent opportunities for franchise owners with its affordable investment options as well as easy-to-prepare menu items that do not require hiring personnel with any specialised skills.
Check Out: Franchise Business Opportunities in India Under 20 Lakhs
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Pizza Hut- Profitable Fast Food Franchise In India
Operating since: 1958
Number of outlets in India: 400+ (approximately)
Space required: 300-1500 sq. ft. (approximately)
Investment required: INR 80 lacs-2.5 crore (approximately)
In terms of international presence and number of outlets, Pizza Hut is the world’s largest pizza chain. It was one of the first pizza chains to enter the Indian market and played a significant role in turning pizza into an Indian household delicacy. Pizza Hut provides attractive franchise opportunities for businessmen as well.
For example, opening a Pizza Hut Delivery store requires smaller space, lesser staff and shorter training periods. For people interested in opening a complete restaurant, Pizza Hut also provides franchise opportunities in the restaurant domain where the franchise owner is provided with an extensive range of menu options while space and staff requirement is increased. Pan-India, sales for the brand witnessed a growth of 9% in Q1 of 2019.
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MoKart – Profitable Fast Food Franchise In India
Operating since: 2018
Number of outlets in India: 5 (approximately)
Space required: 50-250 sq. ft. (approximately)
Investment required: INR 30,000-800,000 (approximately)
MoKart is a quirky, street food based fast food restaurant offering an extensive range of Delhi’s favourite food: momos. Popular mainly with the city’s youth and children, this fast-food brand makes dimsums literally out of everything. It offers unique flavours in 22 fillings, six customizations, 130 variations with highly affordable prices, starting at just INR 60.
Ever since its launch, the brand has also gained a reputation among the prospective franchise owners owing to their affordable and varied franchise formats.
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KFC
Operating since: 1952
Number of outlets in India: 400 (approximately)
Space required: 600-1000 sq. ft. (approximately)
Investment required: INR 1.5-2 crore (approximately)
KFC is recognized globally for its unique fried chicken recipe, but what’s more intriguing about the brand is how and under what circumstances it was founded. The founder, Colonel Harland Sanders, was 62 when he launched his entrepreneurial venture with limited resources but enormous zeal. To this day, the famous QSR chain reaps heavy returns internationally.
In India itself, the annual revenue of KFC in the fiscal year 2016 was approximately INR 122.5 billion, making it one of the most successful fast-food franchises in the country.
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Taco Bell
Operating since: 1962
Number of outlets in India: 35 (approximately)
Space required: 1000-1200 sq. ft. (approximately)
Investment required: INR 2.5-3 crores (approximately)
Taco Bell is America’s largest Mexican fast-food chain and has successfully entered Indian markets with outlets across 11 different cities in India. The spicy Mexican taste is well-aligned with Indian preferences, and as a result, India has very warmed up to the famous Mexican tacos in no time.
This franchise brand plans to open 600 stores in India over the next decade, making India its largest international market. Taco Bell recognizes the value of the rapidly growing middle class in India and intends to utilize that value in the upcoming years fully.
The growing middle class, increasing disposable income, urbanisation, evolving food palates and growing nuclear families are some of the many factors that have supported and continue to support the growth of the QSR (Quick Service Restaurant) market in India.
Therefore, entering the QSR industry is a safe, secure and sustainable investment to make. The affordable franchise models offered by many major fast-food players have now made it easier than ever to own a business. So if you are thinking about starting a fast-food restaurant of your own, do consider names like Xero Degrees, MoKart, Subway, Kathi Junction, etc.
If you want more information on how you can invest in a fast-food franchise opportunity in India, please fill the Investor Enquiry form.
Karan Makan
Technology Engineer and Entrepreneur. Currently working with International Brands and helping them scale their products Globally through different ventures. He owns Multiple Food Brands and is on a continuous spree to acquire many more businesses in the coming years. With over 10 years of experience and strong background in Brand Acquisition, Karan Makan is soon poised to be a Brand in the coming years.
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