Barista is one of the leading coffee chains in India which has outlets almost all over India. Therefore, many business people are considering investing in a Barista franchise as the coffee culture gains more and more popularity.
But before starting with the franchise details, you need to know the Barista franchise cost in India. This guide will help you disentangle all the costs related to this and give you all the details necessary to make the correct decision.
Why Choose a Barista Franchise?
Barista is a famous brand that has a large following and loyal clientele. This means that when you are choosing the Barista franchise, you are choosing a business that is already popular. Moreover, the company offers training, assistance, and even promotional services to improve the performance of its franchisees.
Breakdown of the Barista Franchise Cost in India
Here is a brief overview of the Barista franchise cost in India:
Initial Franchise Fee
This is one of the costs that you will be required to pay as an investor in the Barista franchise business. The franchise fee ranges from INR 15-20 lakhs for opening up a Barista outlet. This fee entitles you to the license to use the Barista brand name and trade under its standards and policies.
Setup Costs
The setup cost consists of expenses for fixtures and fittings, furniture, equipment, and other items necessary to launch a coffee shop. In the case of a Barista franchisee, these costs can range anywhere between INR 20-30 lakhs based on outlet location and size.
Inventory and Initial Supplies
You will also need to acquire inventory. This includes coffee beans, food, and other necessities that you will use in preparing your meals. The initial inventory cost may take anywhere between INR 5-7 lakhs.
Royalty Fees
The company collects a royalty fee which is often a percentage of the monthly sales. This fee varies generally between 8% to 10% of your sales.
Marketing Fees
The organization’s marketing is another area that involves franchisees’ contributions. The common marketing fee is in the range of 2 – 3% of your monthly sales.
Staff Training and Salaries
Barista takes the responsibility to train your staff to accord with the brand’s set norms. Also, some of the main considerations that you will have to make include the cost of wages for the staff. The costs relating to training and salary of employees depend on the number of employees and the location.
Miscellaneous Costs
Other minor costs include lighting, water and power expenses, permits, and insurance costs. These costs may reach up to INR 1 to 2 lakhs a year.
Total Investment for a Barista Franchise
The total Barista franchise cost falls between INR 45 to 60 lakhs. This consists of the first-time charges, the cost of setting up the Barista outlet, and any expenses that may be required to open and run a Barista outlet.
Key Considerations
Before buying a Barista franchise consider the following:
- Location
Depending on the location, the cost can be high or low. Some areas may demand high rental costs and setting up costs.
- Size of the Outlet
A larger outlet will simply demand greater capital. - Market Conditions
Your cost structure and franchise profitability depend on market conditions and consumers’ characteristics in a particular locality.
Conclusion
To conclude, it is a great opportunity for people who want an entrepreneurial career and have a passion for coffee to invest in a Barista franchise in India. However, it is necessary to know the Barista franchise cost in India to make a plan to invest for the same. With a proper location and planning, you can be able to invest in a Barista franchise and enjoy the benefits of the company.
