The fast-food industry has taken root in India. Fast food restaurants or QSR (quick service restaurants) are everywhere. People find them at highway exits, rest stops, mall food courts, commercial strips, and airports. This article will give you the top 15 fast-food franchises in India.
India’s Fast Food Industry Overview
India saw its first fast-food restaurant in 1977 when Nirula’s opened in Delhi. In the late 1980s, Wimpy, an international fast-food chain, entered India. It launched its first restaurant in Delhi. Wimpy joined when the country opened its door to global companies.
Then, in 1996, a wave of international fast food companies came. They were McDonald’s, Domino’s Pizza, Pizza Hut, and Kentucky Fried Chicken. Since that time, many others have followed. Since then, India’s fast food industry has been growing and growing.
Despite the pandemic, the industry is expected to grow at a compound annual growth rate of 23% until 2025. The pandemic has brought a bright outlook. At first, the industry suffered due to the lockdowns. But then, fast food companies strengthen their online ordering and delivery operations to serve customers.
The current financial status of the big chains has reached pre-pandemic levels. With the strengthening of the e-commerce and delivery system, the industry will thrive and grow.
What Makes Fast Food an Ideal Business to Franchise
Fast food is an ideal business to franchise because of its popularity among Indians. It is for several reasons:
- Young people love fast food. To them, fast food restaurants suggest being urbane. Among the different age groups, they are the most brand conscious.
- The working people, because of their busy schedule, choose fast food meals.
- Families opt for fast food when they are dining out casually. Fast food restaurants are more affordable compared to traditional restaurants. And some fast-food restaurants have play areas for children.
Because of its popularity, buying a franchise is a wise decision. The fast-food business is thriving even during this pandemic.
Pros and Cons of Fast Food Franchise
If you are considering buying a franchise, know the pros and cons of the business.
Pros
The following are the pros of starting a fast-food franchise business:
Easy to form an outlet
Setting up your outlet is not as complicated as starting your own business. The franchisor will help you in putting your company.
High demand market
Those in the ages 15 to 35 are your main customers. Young people and professionals make up this age bracket, and because of this, 65% of fast-food restaurants meet with 100% sales daily.
No shortage of workers
India has more young people than anywhere else in the world. Many of these young people will work in fast-food restaurants.
Another plus is the ability to speak English. Reports say that 90% of Indians are familiar with English. This ability helps a lot in communicating with customers.
Brand recognition
You do not have to build a brand for your business. Many of the fast-food chains offering franchises are well-known brands. People recognized them.
Financial funding
Indian banks understand the needs of entrepreneurs wanting to start a business. They will provide you with options to finance your business.
Training and Support
The franchisor takes charge of training you and your crew. Then when the business is in operation, the franchisor will support you. They want you to succeed because your failure is their failure too.
Cons
Initial cost
Well-known fast-food chains ask for steep franchise fees and initial investment capital. One of the main reasons for this is that you are buying a brand name. Less known chains will not be expensive.
Contractual obligations
The franchise contract seals the relationship between the franchisor and franchisee. Both parties should follow the terms and conditions written in the contract to ensure smooth operations. Moreover, the franchisor should discuss the lock-in period and the restrictions.
Lock-in period
Franchise contracts require a locked-in period. If you discover things do not meet your expectations, the agreement binds you. If you want to get out, wait for the locked-in period to expire.
Restrictions
Related to the contractual obligation are restrictions. You do not have the freedom to change and innovate to fit your business situation.
Royalties
Depending on the franchising company, a franchisor could require a royalty fee. It is like a membership fee paid regularly. But not all franchising companies do this. Their share in your profit covers the royalty fees.
Sharing of profits
You share profit with your franchisor. The allocation of profit will depend on the agreement entered or the franchise availed. A franchise could either be franchise-owned, Company-operated (FOCO), or Franchise-owned, Franchise-operated (FOFO). In the former, the franchisee receives less. In the latter, the franchisee gets more.
Succeeding in the Fast Food Franchise Business
Everyone who goes into business wants to succeed. This is not impossible but requires hard work and perseverance.
Moreover, there are two factors that you have to consider: preparation and management.
Do your homework about franchising
Arm yourself with the essentials of franchising. Franchise Market India provides you with these essentials:
- Know the basics of franchising.
- Know the pros and cons of franchising
- Know the selection process
- Know the tips for buying a franchise.
- Know the questions you need to ask your franchisor.
Apply effective management tips
These tips focus on the running of the business.
Define management roles
Clearly defined management roles and job descriptions will reduce disputes in the workplace. Instead, this will lead to efficiency and harmony. A good manual will help to clear the different roles.
Hire the right employees.
Hire reliable people - people that you can trust with the work given to them. They can work with minimal supervision. Moreover, hire trustworthy people whom you can trust with money, especially the cashier.
Also, it is best to hire friendly crews so they can build rapport with your customers. Being friendly and courteous builds bridges with the customers.
Train your staff
Although the franchisor takes care of the training, just make sure that your staff understands. Then, check also that they are doing according to the standard operating procedure. The well-trained staff knows their goals in work, thus reducing constant supervision. They also work efficiently.
Maintain cleanliness
Since this business is a food business, the cleanliness of the restaurant must be the top priority. Dirty restaurants do not attract customers.
Ensure safety
The safety of the workers and customers must be a top priority too. Workers should follow preventive measures. They must wear the required PPE when their work needs it.
Take advantage of technology
The grab-and-go environment of the fast-food restaurant calls for technology. Technology makes store operations flow faster and efficiently. Get the best POS software you can buy. A good POS software can help you with the sales, inventory, and customer data.
The pandemic also calls for technology. During this pandemic, less personal contact is the goal of all business establishments. Check for technology that can offer self-checkouts, contactless and mobile payments, etc.
List of Fast Food Franchises
Here are the top 15 fast-food franchises based on Research and Market’s India’s QSR Analysis.
1. Domino’s Pizza
Domino’s Pizza is an American fast-food chain. The company started in 1960 in Michigan. They came to India in 1996 and opened their first outlet in Delhi.
Now, they are the number one fast-food chain in the country. They have over 1250 outlets all over India. Because of their many outlets, they promise to deliver your online order in 30 minutes.
Jubilant FoodWorks Limited holds the master franchisee of Domino’s Pizza in India. They offer three types of franchising models: Traditional Stores, Non-traditional Stores, and Transitional Stores.
Traditional Stores are the ones you can usually find in commercial strip centers, shopping malls, etc. They have parking spaces for the customers and delivery vehicles.
Non-traditional Stores are the ones you can do in non-traditional places like stadiums, airports, zoos, etc. These stores mainly offer take-out services because they have limited space for seats.
Transitional Stores provide customized menus to fit the customers’ preferences in location of the store. You usually find them in areas where there are not too many customers.
Franchise Fee: Rs. 50 Lakhs (traditional), Rs. 30 Lakhs (non-traditional)
Royalty Fee: 5.5%
Website: https://www.dominos.co.in
Email: [email protected]
Contact Number/S: 1800-208-1234
2. Pizza Hut
Pizza Hut is an American fast-food chain. Brothers Dan and Frank Carney founded the company in 1958 in Wichita, Kansas. To start their pizza business, the two brothers borrowed $600 from their mom. They named their business Pizza Hut because they had limited options. Their sign could accommodate eight letters only.
Pizza Hut came to India together with its sister company, KFC, in 1996. It opened its first restaurant in Bangalore. Last July 2021, it inaugurated its 500th restaurant in Moga, Punjab.
Pizza Hut India offers three franchise models to those interested in franchising.
Restaurant-Based Delivery (RBD) System Restaurants
These are dine-in restaurants, but they also provide takeout and delivery services. The company calls these legacy restaurants.
Delivery/Carryout (Delco) System Restaurants
These outlets are for carryout and delivery only. They do not offer dine-in services.
Delivery Based Restaurants (DBR)/Fast-Casual Delco (FCD) System Restaurants
Delivery Based Restaurants (DBR) is an open-kitchen Delco with dine-in services. Fast-Casual Delco (FCD) System Restaurants are Delcos counter-serve seating.
Franchise Fee: Rs. 14 Lakhs
Initial Investment: Rs. 25 - 30 Lakhs (RBD); Rs. 15 Lakhs (Delco); Rs. 20 Lakhs (DBR/FCD)
Royalty Fee: 6.5%
Space Requirement: 1,000 – 1,500 sq. ft.
Website: https://www.pizzahut.co.in
Email: [email protected]
Contact Number/s: 0124-4025100
3. KFC
Kentucky Fried Chicken or better known as KFC is an American fast-food chain. Colonel Harland Sanders founded KFC in 1930. He sold fried chicken from his roadside restaurant in Corbin, Kentucky. His business was growing. After four years, he moved to a bigger place. Because of his growing success in business, the Governor of Kentucky gave him the honorary title of “Colonel.”
KFC arrived in India in 1996 and launched its first restaurant in Bangalore. This year 2021, the company has 480 restaurants across India. In India, Yum! Brands, KFC’s parent company, has three franchise partners: Sapphire Foods, RJ Corp-owned Devyani International, and Burman Hospitality.
Franchise Fee: Rs. 20 Lakhs
Initial Investment: Rs. 1-2 Crores
Royalty Fee: 4-5%
Space Requirement: 1,000 – 1,500 sq. ft.
Website: https://online.kfc.co.in
Email: [email protected]
Contact Number/s: 0124-4025100
4. McDonald’s
Brothers Richard and Maurice McDonald in San Bernardino, California. Starting in 1940, McDonald’s is an American fast-food chain. It is the world’s largest restaurant chain by several branches and by value.
McDonald’s opened their first branch in Delhi in 1996. The company has two master franchisees: Hardcastle Restaurants and Connaught Plaza Restaurants.
Hardcastle Restaurants holds the West and South of India franchise. The group has 305 branches. Meanwhile, Connaught Plaza Restaurants under Sanjeev Agarwal has the North and East of India franchise. The group has 140 units.
McDonald’s has several franchise models to choose from:
Traditional Restaurant
This model is a stand-alone building with parking space or in storefronts, food courts, etc. It is a full-menu restaurant.
Satellite Locations
You can find these restaurants in retail stores, commercial strip centers, airports, universities, hospitals, etc. They do not carry the full menu.
STO and STR Locations
STO (Small Town Oil) restaurants are the ones seen in petrol stations or convenience stores. They serve a full menu. Meanwhile, STR (Small Town Retail) restaurants are in small retail centers in rural communities.
BFL Franchises
In the BFL (Business Facilities Lease) franchise, a franchisee leases the business facilities.
Franchise Fee: Rs 30 Lakh
Initial Investment: Rs 6.6 Crore-Rs 14 Crore, with liquid capital available of Rs 5 Crore
Royalty fee: 4%
Website: https://www.mcdonaldsindia.com (West-South); https://mcdindia.com (North-East)
Email: [email protected] (West-South); [email protected] (North-East)
Contact Number/s: 011- 24604047/45/49 (West-South); +91-1123731230 (North-East)
5. Subway
Subway is an American fast-food restaurant franchise. Their primary product is submarine sandwiches (subs) which are long and cylindrical bread split lengthwise. The bread used makes them look like submarines. Aside from submarine sandwiches, they also have wraps, salads, and beverages.
Fred DeLuca founded Subway Restaurants in 1965. He was only a 17-year-old high school graduate. A family friend, Dr. Peter Buck, financed the business. Subway arrived in India in 2001. It opened its first restaurant in New Delhi. Now, it is all over India with 660 restaurants.
Franchise Fee: Rs. 650,000
Initial Investment: Rs. 20 Crore
Royalty Fee: 8%/week (from gross sales minus the sales tax)
Advertising Fee: 4.5%/week (from gross sales minus the sales tax)
Space requirement: 1,000 – 1,500 sq. ft.
Website: https://www.subway.com/en-IN/
Email: [email protected]
Contact Number/s: +91 1244188700
6. Starbucks
Starbucks India operates under Tata Starbucks. It is a 50-50 arrangement between Tata Group and Starbucks USA.
Starbucks does not give franchises. However, one can operate a licensed store. You pay a license fee instead of a franchise fee. We still include Starbucks here since a licensed store is close to a franchise store.
License Fee: Rs. 234 Lakhs
Initial investment: from Rs. 420 Lakhs
Shop area: not available
Website: https://www.starbucks.in/
Email: [email protected]
Contact Number/s: (080) 2558 5544
7. Burger King
David Edgerton and James McLamore founded Burger King (BK) in 1954 in Jacksonville, Florida.
In 2014, BK made its way to India by opening a branch in South Delhi. As of this year, 2021, it has 265 stores.
The company has three franchise models by location.
Institutional Locations
You find restaurants under this model in government buildings, hospitals, airports, train and bus stations, etc.
Commercial Burger King Restaurant Areas
Restaurants under this model are self-contained, full-size Burger King Restaurants.
Non-Conventional Burger King Areas
You find restaurants in retail stores, petrol stations, convenience stores, or other commercial areas.
Franchise Fee: not available
Initial Investment: Rs. 229.4 Lakhs - 21.8 Crores (estimate)
Royalty Fee: 4.5%/month (from gross sales)
Advertising Fee: 4%/month (from gross sales)
Space requirement: 1,000 – 1,500 sq. ft.
Website: https://www.burgerking.in
Email: [email protected]
Contact Number/s: 866-394-2493
8. Dunkin’
Dunkin’ Donuts is now just Dunkin’. It is a famous American fast-food chain selling donuts and coffee. In 1950, William Rosenberg established Dunkin’ Donuts in Quincy, Massachusetts.
Dunkin' opened its first Indian branch in 2012. Today, it has 28 outlets. Jubilant FoodWorks holds the master franchise for India.
Franchise Fee: Rs. 1 Crore
Initial investment: Rs. 50 Lakhs - Rs. 1 Cr.
Shop area: 300-700 sq. ft.
Website: https://dunkinindia.com/
Email: [email protected]
Contact Number/s: 9871276908
9. Costa Coffee
Costa Coffee is a British-owned company. Italian immigrants, brothers Bruno and Sergio Costa founded it in 1971. They wanted a great-tasting coffee and introduced it to the Londoners.
Costa Coffee India is under the franchise of Devyani International Ltd. It opened the first Costa Coffee shop in 2005. Right now, there are over 40 outlets across India.
Franchise Fee: Not available
Initial investment: Rs. 30 Lakhs-40 Lakhs
Shop area: 1000 – 2000 sq. ft.
Website: http://dil-rjcorp.com/brands-costa/
Email: [email protected]
Contact Number/s: +91 9007798519
10. Taco Bell
Taco Bell is an American fast-food chain primarily serving Mexican-influenced foods. It offers tacos, nachos, burritos, quesadillas and many more. Glen Bell, an entrepreneur, started Taco Bell in 1962 in Downey, California.
The company entered India in 2010 and opened its first outlet in Bangalore. Burman Hospitality holds the master franchise for the Indian operation. At present, Taco Bell has 35 outlets.
Franchise Fee: Not available
Initial Investment: Rs 3.86 crores to Rs 19.26 crores
Royalty Fee: 5.5%
Website: https://www.tacobell.co.in
Email: [email protected]
Contact Number/s: 1800-822-6235
11. Jumboking
Jumboking is an Indian fast-food chain. Dheeraj Gupta founded Jumboking in 2001. He opened his first outlet in Malad, Mumbai. It specializes in vada pav, a Maharashtrian regional dish, and vegetarian burgers.
Presently, it has over 115 stores, mostly in Western India. As to franchising, Jumboking operates on the FOFO (Franchise owned franchisee used) model.
Franchise Fee: Rs. 4 lakhs + taxes (non-refundable)
Refundable security deposit: Rs 50,000
Initial Investment: INR 20 lacs for a 250 sq. ft. carpet outlet; INR 26 lacs for a 500 sq. ft. carpet outlet (Outside Maharashtra)
Royalty Fee: 10% (on the net sales)
Website: https://www.jumboking.co.in
Email: [email protected]
Contact Number/s: (022) – 2927 1286 / 2927 1357
12. Wow! Momo
A home-grown fast-food chain, Wow! Momo started its operation in 2008. Sagar Daryani and Binod Homagai opened their first outlet in Kolkota. Both were just 21 when they started the company.
The company specializes in momos. Momo is a Tibetan dumpling dish that is popular in Tibet, Nepal, and India.
There are now Wow! Momo 350 outlets across India.
Initial Investment: Rs.8 - Rs.20 Lakhs
Space Requirement: 250 – 300 Sq.ft.
Facebook: https://www.facebook.com/WowMomos/
Email: [email protected]
Contact Number/s: +91 98755 31137
13. Wat-a-burger
Wat-a-Burger! is an Indian QSR chain that started in 2016. Its first outlet was in Noida Sector 18, Delhi NCR. Their menu includes burgers, sandwiches, wraps, flavored sodas, milkshakes, smoothies, and Belgian fries.
Today, the company has over 65 company-owned and franchise-owned restaurants. They offer FOCO (Franchise owned franchisee operated) and FOFO (Franchise owned company-used) franchise models. They come in two formats: Takeaway and Cafe.
Franchise Fee: Rs. 6 Lakhs (Takeaway); Rs. 10 Lakhs (Cafe)
Initial Investment: Rs.13 Lakhs (Takeaway); Rs. 19 Lakhs (Cafe)
Royalty Fee: 6%
Space Requirement: 200-250sqft (Takeaway); min 350 sq. ft.(Cafe)
Website: https://wataburger.in
Email: [email protected]
Contact Number/s: 77-0001-0002
14. Nirula's
Lalit and Deepak Nirula opened their first restaurant in Connaught Place, New Delhi. Established in 1977, Nirula's is India's oldest fast food restaurant chain. Hot Chocolate Fudge, Big Boy, and Mahaburgers, and Classic Pizza are their specialty.
Today, it has 70 outlets in Delhi/NCR, Chandigarh, Dehradun, and Lucknow.
Franchise Fee: Rs. 6 Lakhs (Takeaway); Rs. 10 Lakhs (Cafe)
Initial Investment: Rs.10 - 20 Lakhs
Royalty Fee: 5%
Space Requirement: min 300 sq. ft.
Website: https://nirulas.com
Email: [email protected]
Contact Number/s: 7827719099
15. Smokin' Joe's
Based in Mumbai, Smokin' Joe's is an Indian pizza QSR chain. Founded in 1993, Parsi entrepreneurs opened their first outlet in Carmichael Road, Mumbai. At present, there are 60 outlets.
Franchise Fee: Rs. 3 Lakhs
Initial Investment: Rs. 23 Lakhs (estimate)
Space Requirement: 400 Sq Ft.
Website: https://www.smokinjoespizza.com
Email: [email protected]
Contact Number/s: 022 2367 9727 / 2367 9728
The pandemic affected India’s fast food or QSR industry. Many fast-food chains had to close some outlets. For example, Jubilant FoodWorks Ltd, India’s master franchisee for Domino's Pizza and Dunkin' Donuts, shut down 105 stores in the third quarter last year.
However, the industry slowly picked up in the fourth quarter.
Amid the lockdowns, the fast-food companies found ways to reach their customers. They used online ordering and strengthened the delivery system. This year, some companies have reported a return to pre-pandemic revenues.
Now, India’s fast food or QSR (quick service restaurants) industry looks brighter than last year. And it will continue to grow with the resiliency it showed. This optimism in the fast-food business makes it lucrative. The list given here will help you decide on which company you will buy a franchise from.
It’s time to consider and then decide.
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