Burger King is one of the most famous fast food restaurant chains of the world. It can be a wise decision to open a Burger King franchise in india. Continued development of the fast-food industry, especially in the urban area, makes Burger King to be among the most preferred business investment opportunities.
In this article we will be discussing the Burger King franchise cost in India and the things that aspiring franchisees need to have or acquire before owning a Burger King franchise.
What is a Burger King Franchise?
Burger King is an international fast food restaurant which is famous for its Whopper burgers. Today the brand operates more than 200 outlets across India and it is still growing. Burger King franchise means that you own a restaurant that operates under the brand name and under the condition of the company’s policies.
Total Cost of Opening a Burger King Franchise Cost in India
Opening a Burger King franchise in India involves several costs. Here’s a breakdown of the major expenses:
- Franchise Fee
Depending on the place and size of the outlet, the initial franchise fee is ₹2 crore to ₹3 crore. This fee gives you a permit to operate under the Burger King brand.
- Infrastructure and Setup Costs
You would have to set aside some capital for purchasing machinery, layout, and equipment for the restaurant. The initial expenses can range up to ₹ 4 crores, which incorporate the cost of the outlet’s furnishing, kitchen equipment, and brand promotions.
- Royalty Fees
Similar to all franchises, Burger King has a policy that mandates that the franchisee should pay for a royalty fee. This fee is a percentage of the revenue and it is averagely 4.5% to 5% of your monthly sales.
- Marketing Costs
There is a national marketing plan for Burger king and the franchise owners are mandated for the accomplishment of the plan. This contribution often tends to be 4% of your monthly sales.
Factors Influencing the Burger King Franchise Cost in India
The Burger King franchise cost in India depends on the following factors:
- Location
Depending on the location where the franchise is, the cost can be greatly affected. It means opening outlets in places like Mumbai, Delhi, or Bangalore will be costly as compared to opening outlets in small towns.
- Size of the Outlet
The bigger the outlet, the bigger investment is made in the process of branding. A small outlet may be cheaper than a large one or an extremely well-equipped full-service restaurant.
- Additional Costs
Besides the initial and royalty costs of setting up the system, there are other expenses which include salaries of employees, upkeep charges, and utility bills.
Key Considerations Before Investing
Before investing in a Burger King franchise, consider the following:
- Financial Strength: You need to have adequate capital to cater for the initial investment and meet daily expenses.
- Location Research: It is imperative to choose the space with a high customer traffic.
- Market Research: Understand the local competition and demand for fast food in your area.
Conclusion
Burger king franchise business is very successful and profitable in India if the franchisee does it the right way. It requires an investment ranging between ₹ 6 Crores to ₹ 8 Crores for the initial setting up depending on the area of operation, the size of the outlet and the infrastructural requirements.
However, if you are able to study the financial aspects well and select the right place, it will be a good business venture. Therefore the Burger King franchise cost in India depends on various factors but gives a good opportunity to be associated with an internationally recognized company having loyal consumers.
