Cost of Burger Franchise in India: Investment & Profitability
The burger industry in India is booming, making it one of the most profitable franchise opportunities in the food sector. With increasing demand for quick-service restaurants (QSRs), investing in a burger franchise is an attractive business option.
However, before starting a franchise, it’s essential to understand the cost structure, investment requirements, and potential profitability. This guide breaks down the cost of a burger franchise in India, helping you make an informed business decision.
1. Factors Affecting the Cost of a Burger Franchise
Several factors impact the total investment required for a burger franchise:
✔️ Franchise Brand – Well-known brands have a higher franchise fee but offer better brand recognition.
✔️ Business Model – Dine-in restaurants cost more than takeaway outlets or cloud kitchens.
✔️ Location & Rent – High-traffic locations increase rental costs but also drive higher sales.
✔️ Kitchen Equipment & Interiors – Costs vary depending on quality and customization needs.
✔️ Marketing & Branding – Initial promotions, signage, and online advertising add to the investment.
💡 Tip: Choosing the right franchise model and location can significantly impact profitability and cost efficiency.
2. Investment Breakdown for a Burger Franchise
Here’s a detailed breakdown of the approximate costs involved in opening a burger franchise in India:
Expense | Estimated Cost (₹ Lakhs) |
Franchise Fee | 3 – 10 |
Outlet Setup & Interiors | 5 – 15 |
Kitchen Equipment | 3 – 7 |
Raw Materials & Inventory | 1 – 3 |
Marketing & Branding | 1 – 5 |
Staff Training & Salaries | 2 – 5 |
Licenses & Permits (FSSAI, GST, etc.) | 0.5 – 2 |
Miscellaneous Costs | 1 – 3 |
Total Investment | 12 – 30 Lakhs |
💡 Tip: Some franchises offer flexible investment plans, allowing small-scale investors to start with lower capital.
3. Types of Burger Franchise Models & Their Costs
Standalone Dine-In Restaurant
- Space Required: 800-1500 sq. ft.
- Investment: ₹25-50 Lakhs
- Best for: High-footfall areas like malls and commercial hubs
Takeaway & Small QSR Outlet
- Space Required: 300-700 sq. ft.
- Investment: ₹12-25 Lakhs
- Best for: Busy streets, office areas, college zones
Food Truck Model
- Space Required: No fixed location (mobile)
- Investment: ₹10-15 Lakhs
- Best for: Events, festivals, food truck hubs
Cloud Kitchen (Online-Only Model)
- Space Required: 150-500 sq. ft.
- Investment: ₹8-15 Lakhs
- Best for: Online orders via Swiggy, Zomato, and direct deliveries
💡 Tip: If you’re starting with a lower budget, a food truck or cloud kitchen can be a cost-effective option.
4. Additional Costs to Consider
Franchise Fee & Royalty Charges
Most burger franchises charge an initial franchise fee (₹3-10 Lakhs) and a monthly royalty fee (4-8% of sales).
License & Permits
To operate legally, you need:
✔️ FSSAI License – ₹10,000-₹50,000
✔️ GST Registration – ₹5,000-₹10,000
✔️ Shop & Establishment License – ₹5,000-₹15,000
✔️ Fire & Health Permits – ₹10,000-₹25,000
Staff Training & Salary
Hiring and training employees costs around ₹2-5 Lakhs, depending on the number of staff.
Marketing & Branding
Initial marketing campaigns, social media promotions, and launch offers require ₹1-5 Lakhs.
5. Profitability & Revenue Potential
A well-managed burger franchise can generate monthly revenue between ₹5-20 Lakhs.
Revenue Factor
Estimated Figures
Daily Sales
₹15,000 – ₹50,000
Monthly Revenue
₹5 – ₹15 Lakhs
Profit Margin
18% – 30%
Breakeven Timeline
12-18 months
✔️ Higher Sales = Faster ROI
✔️ Optimized Costs = Higher Profitability💡 Tip: Profitability depends on location, marketing, menu pricing, and operational efficiency.
6. Steps to Start a Burger Franchise in India
Step 1: Research & Choose a Franchise
Compare different burger franchise options, investment requirements, and franchise benefits.
Step 2: Submit Application & Secure Location
Find a high-footfall location and apply for a franchise agreement.
Step 3: Setup & Licensing
- Set up the kitchen, interiors, and branding.
- Obtain FSSAI, GST, and health permits.
Step 3: Setup & Licensing
- Set up the kitchen, interiors, and branding.
- Obtain FSSAI, GST, and health permits.
Step 4: Staff Hiring & Training
Train staff for customer service, food preparation, and hygiene standards.
Step 5: Marketing & Grand Opening
Use social media, local influencers, and discount offers to attract customers.
💡 Tip: Partnering with food delivery platforms can increase online sales.
Frequently Asked Questions (FAQs)
The investment starts at ₹8-15 Lakhs for a cloud kitchen or food truck, and ₹12-30 Lakhs for a QSR outlet.
Yes! With high demand and a strong brand, burger franchises earn 18-30% profit margins.
Most franchises recover their investment within 12-18 months, depending on sales volume and location.
Franchise costs cover setup, kitchen equipment, branding, training, and initial inventory.
No! Most franchisors provide complete training and operational support.
To apply for a franchise, contact us today and our team will guide you through the process.
Conclusion
Investing in a burger franchise in India can be a highly profitable venture with the right brand, location, and business strategy. The cost varies based on franchise type, location, and operational expenses, but returns are promising with the growing fast-food market.
At Skyland d Global, we offer The Burger Nation franchise, a trusted brand in India’s QSR industry. Want to start your own burger outlet? Contact us today and kickstart your entrepreneurial journey!