As of 2018, the restaurant and food services industry stood at INR 3.7 trillion and is continuing to grow at a 9% CAGR. This is unsurprising given how Indians, especially millennials, have changed their eating habit and patterns. Quick-service restaurants (QSRs) and fast-food restaurants have become a staple in our diets.
There is also a growing faction of the population that gravitates towards healthier choices causing such restaurants to thrive. Seeing how the ripe market is and the established target consumer, this is an opportune time to start a profitable food business with low investment. However, the F&B industry is diverse and has several sub-categories within itself.
6 Profitable Food Business Opportunities With Low Investment
- Fast Food Franchise Business Opportunities
- Desserts And Ice Cream Franchise Business Opportunities
- Cafe Franchise Business Opportunity
- Healthy Food Franchise Business Opportunity
- Rolls And Shwarma Franchise Business Opportunity
- Quick Service Restaurants
It becomes imperative to learn about the different kinds of food business opportunities in the industry before diving in:
Fast Food Franchise Business Opportunities
A fast-food restaurant serves fast food cuisine with minimal table service. The menu is usually fixed, and the food is cooked in bulk, and the cooking processes are well-defined. Fast food restaurants typically offer a consistent experience through standardized ingredients, recipes, and methods. Most fast-food franchise outlets work in the same manner to produce the most efficient results. A franchise operation has a franchisor and a franchisee.
The franchisor is the original business with an established work model, and the franchisee is allowed to use the name, trademark, and business model to replicate the success of the original business. Subway is a prime example of how franchising helps the fast-food business grow. It follows a Franchise Owned and Franchise Operated (FOFO) franchise model and requires around INR 35 lakhs-80 lakhs to start a Subway franchise.
Desserts And Ice Cream Franchise Business Opportunities
It is no news that India has a big sweet tooth. We incorporate dollops of sugar and sweetness in all our festivals, meals, and occasions. So, it should come as no surprise that a dessert business can bring in lots of profit. However, if you are wondering how you can break into this irresistible business without any knowledge of how to make a dessert, look no further than Giani’s and Frozen Bottle. Not only do Giani’s ice cream and Frozen Bottle’s shakes have an unforgettable taste, but they also do not require a hefty franchise fee. The franchise fee is paid to the franchisor and usually covers the cost of marketing and advertising. Frozen Bottle requires around INR 25 lakhs to start operating an outlet and Giani’s costs nearly INR 11 lakhs to kick start.
Apart from ice creams and shakes, a traditional yet modern take on desserts is offered Love Sugar and Dough that manufactures and sells all kinds of baked goods. After 11 original stores, the business is now open to the franchise and requires a minimum investment of INR 30 lakhs.
Cafe Franchise Business Opportunity
Cafes have become really popular in the last two decades, not just among the younger generation, but people of all ages. From students who hang out there after school to entrepreneurs who need space to meet investors, cafes have become part and parcel of our everyday life.
The Indian cafe chain market is expected to reach INR 4040 crores by 2023. Jumping aboard the bandwagon does not mean you have to spend big bucks either. If you want an easy entry into the market, consider investing in newer and innovative cafes like Xero Degrees that can be started with a minimum investment of INR 17 lakhs only.
Healthy Food Franchise Business Opportunity
The healthy food industry in India is primarily divided into three segments – app-based companies that offer health and wellness support; packaged health food industry, like nutribars, juices; and the organic food market where players like BigBasket come into play.
However, for the average person who wants to go out and eat healthily, there aren’t many options. This niche market is thriving, and healthy food restaurants like The Salad Story are filling the void. The Salad Story has made eating healthy food fun, and their unique menu is perfect for grab-and-go or a sit-down meal. This healthy eating outlet requires only 300-1000 sq. ft. and an investment of 30 lakhs to get started.
Rolls And Shwarma Franchise Business Opportunity
In the world of quick and easy food, rolls are hard to miss out on. A crowd favourite, a roll stand or shop can rake in quick bucks as is evident by the success of Kathi Junction. A small investment of INR 7 lakhs can get you franchise outlet, and it is easy to scale up using their business model. Throughout the life of the outlet, franchise owners receive support from chefs of the original franchisor as well.
‘Rollacosta’ is another unique concept that combines rolls and shwarmas and is immensely popular with the public for its food and its unique experiences. A notch above Kathi Junction, a Rollacosta franchise will cost you a minimum investment of INR 8 lakhs.
Quick Service Restaurants
QSRs are the norm rather than the exception. Gone are the days when one would patiently wait for their meal to be prepared. QSRs are not limited to only fast-food chains. Franchisors like Charcoal Eats, understand exactly how impatient a patron can get when not served almost instantly. Their range of food – starters, pizzas, biryanis, and desserts are not only tempting and innovative but also cater to the global palate.
To get started with your very own Charcoal Eats franchise business, you only need INR 12 lakhs to start rolling. Another restaurant that combines elements of QSRs and healthy food is The Tuck Box. Established in 2014, The Tuck Box is a pure vegetarian chain that caters to the masses. They also have a social mission wherein they feed people from low resource backgrounds every month. Starting your very own Tuck Box outlet will require INR 19 lakhs.
The food industry – service, packaging, and retail – is expanding rapidly. One way to crack into the market is the usual path of establishing your own thing, get funds and promote it, which is ideal for someone who has a background in the service industry or as a chef.
However, for someone who wants to understand how to run a food business firsthand without any prior experience or knowledge, the best way to do that is to invest in a franchise. The best part is that there are a variety of options for investors and businessmen to get started with. If you want to start a franchise business in the F&B industry in India, get in touch with us today by filling the Investor Enquiry form.