India is slowly transitioning from the habit of tea drinking to coffee loving. The younger generation loves the taste of coffee specially when they are out with friends. Hence Coffee franchise in India is becoming a very profitable venture. This trend is quite evident as every major coffee brand in the world is opening its franchise in India. Starbucks, Barista & Cafe coffee day are booming in numbers of revenue & franchise outlets. If anyone wants to get into coffee franchise business in India, now would be a perfect time.
Service with a smile, serve a great drink & do it fast are the basic mantras for a running a successful coffee franchise business. its simpler to operate than a restaurant & attracts the hip young crowd. A good coffee can put you in a great mood instantly, add a muffin or a cookie & you get yourselves a delightful experience for the whole day. But its serious business in terms of revenue, efficiently run cafes earn upto 30% profit margin easily. And the best part is that cafe franchise are available at every price range.
Cheap cafe franchise can cost about 5-10 lakh whereas franchise for a major cafe can cost upto 2-3 crores. Although major cafe chain like Starbucks come with global brand value but the smaller cafe franchise are more popular. Bigger cafe chains costs roughly 2 crore in India, they have high operating cost & high revenue with excellent brand value.
But the smaller cafe franchise are great investment opportunities because of multiple factors like low acquisition cost of 2.5 to 10 lakh, cheaper to run, good margins & wider reach.
Wheelys cafe which is a mobile cafe brand from Sweden. An excellent strategy being used by Wheelys is automation of the entire operation using mobile apps making it cheaper & more efficient to run a cafe franchise. Such good business moves from smaller brands give them an advantage while competing in the niche market. For new entrants the best strategy will be to enter the market with a promising smaller franchise to save initial acquisition cost & building a close community of followers to boost Business.