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Franchise (Food & Beverage)

QSR / Chai-Snack Franchise

Business Ideas

QSR / Chai-Snack Franchise

Current Detail Project Report

Franchise (Food & Beverage)

Low

Investment

Payback

5–7 years

Break-even

1.02–1.10 Lakh/month

Gross Margin

45%

Top Subsidy

25% - 35%

Own Contribution

10% - 5%

Location Suitability

Best suited for Urban — high footfall: college areas, bus stands, railway stations, office zones, market areas
State / Region focus All India. Nagpur, Pune, Aurangabad, Nashik — every city with college/office footfall.
Nearest raw material hub Local dairy (milk), tea wholesale, bakery suppliers for snacks.
Nearest MSME cluster Restaurant/cafe clusters near colleges and commercial areas

Monthly Revenue

Rs. 7.13 Lakh

Break-even

Rs. 2.50 Lakh = 120 bills/day

Gross Margin

45%

Net Surplus (in Lakh)

Rs. 3.70–4.00 Lakh

Payback

5–7 years

* All financial figures are indicative only. Actual results vary based on location and management.

Strengths

  • Brand recognition brings footfall from Day 1 — no customer acquisition cost
  • Chai has 80%+ gross margin — Rs. 8 cost, Rs. 40–80 selling price
  • Standardised menu + franchise training eliminates chef dependency
  • College/office areas guarantee footfall regardless of economy — chai is non-discretionary

Alert

  • Franchise fee (Rs. 3–8L) is sunk cost — not recoverable if business fails
  • Royalty (5–8%) on gross revenue reduces net margin permanently
  • Location dependency — 80% of franchise success depends on location choice
  • Franchise agreement may have unfavourable terms — mandatory purchases, restricted territory

Opportunities

  • Multi-unit expansion — once first outlet is profitable, open 2nd and 3rd
  • Own-brand pivot — after learning operations via franchise, launch own chai brand later
  • Evening/night crowd — chai + snacks is a 6 AM to 11 PM business
  • Delivery-only virtual brand — add biryani/meals as a delivery brand from same kitchen

Threats

  • Franchise company mismanagement — brand damage affects all franchisees
  • Rent escalation — landlord increases rent after seeing your success
  • Chai price sensitivity — Rs. 50 chai faces pushback vs. Rs. 10 tapri chai
  • Food safety incident — one viral social media complaint can damage local reputation
🏛️
PMEGP
25% / 35%
✓ New food service — NOTE: franchise fee may NOT be eligible under PMEGP. Only equipment + fit-out eligible.
🏛️
CMEGP
25% / 35%
✓ Maharashtra. Same caveat on franchise fee.
🏛️
MUDRA Tarun
Loan only
✓ Equipment + working capital. Franchise fee may be covered.
🏛️
Stand-Up India
MCLR loan
✓ SC/ST/Women

Quick Facts

Space needed

150–400 sq ft.

Manpower

4

Power

2–3 HP single phase

FSSAI

Women SHG

Home-based

Daily commitment

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