Burger Franchise Investment Details: Cost, ROI & Setup Guide
The burger industry in India is booming, making burger franchises a highly profitable business opportunity. However, understanding the investment details—including setup costs, operational expenses, and expected return on investment (ROI)—is crucial before making a decision.
This blog will provide a detailed cost breakdown and essential insights for starting a burger franchise in India.
1. Initial Investment for a Burger Franchise
The total investment required for a burger franchise depends on the business model, location, and brand requirements. Here’s an approximate cost breakdown:
| Expense Category | Estimated Cost (₹ Lakhs) |
| Franchise Fee | ₹5 – ₹15 Lakhs |
| Interior Setup & Equipment | ₹8 – ₹25 Lakhs |
| Kitchen Equipment | ₹5 – ₹15 Lakhs |
| Licensing & Permits | ₹1 – ₹3 Lakhs |
| Initial Raw Materials | ₹2 – ₹5 Lakhs |
| Marketing & Branding | ₹2 – ₹5 Lakhs |
| Staff Hiring & Training | ₹3 – ₹6 Lakhs |
| Working Capital (6 months) | ₹5 – ₹10 Lakhs |
| Total Investment | ₹20 – ₹60 Lakhs |
💡 Tip: Cloud kitchens and small-format outlets require lower investments, while dine-in restaurants demand higher setup costs.
2. Types of Burger Franchise Models & Their Investment
Dine-In Restaurant
- Investment: ₹30-60 Lakhs
- Space Required: 600-1200 sq. ft.
- ROI Period: 18-24 months
Takeaway & QSR Outlet
- Investment: ₹15-30 Lakhs
- Space Required: 300-600 sq. ft.
- ROI Period: 12-18 months
Food Truck
- Investment: ₹10-20 Lakhs
- Space Required: Mobile unit
- ROI Period: 9-15 months
Cloud Kitchen (Online-Only Model)
- Investment: ₹8-15 Lakhs
- Space Required: 200-400 sq. ft.
- ROI Period: 9-12 months
- 💡 Tip: If you have a lower budget, a cloud kitchen or food truck is the most affordable option with faster ROI.
3. Licensing & Legal Requirements
Before launching a burger franchise, obtaining the necessary licenses and permits is essential:
✅ FSSAI License – Mandatory for all food businesses
✅ GST Registration – Required for taxation compliance
✅ Trade License – From local municipal authorities
✅ Fire & Safety Compliance – Fire safety certification
✅ Shop & Establishment Act License – For operating a physical store
✅ Trademark & Branding Agreement – To use franchise branding
💡 Tip: Ensure all legal formalities are completed before opening your outlet to avoid delays.
4. Key Factors Influencing Franchise Investment & Profitability
Location & Real Estate Costs
- High-traffic locations lead to higher sales but require larger investment.
- A food truck or cloud kitchen reduces rental expenses.
Brand Franchise Fees
- Franchise fees can range from ₹5-15 Lakhs, depending on the brand’s reputation and support.
- Some franchises charge ongoing royalty fees (4-8% of revenue).
Marketing & Promotions
- Strong digital marketing and influencer collaborations boost visibility.
- Local SEO and social media ads help drive footfall.
Staff Hiring & Training
- Well-trained staff improve service quality and customer retention.
- Some franchises provide training support for a smoother launch.
Food Supply Chain & Operational Costs
- Efficient supply chain management reduces food costs and improves margins.
- Investing in inventory control software prevents wastage.
💡 Tip: Optimizing operational costs and efficient marketing ensures maximum profitability.
5. Expected ROI & Profitability
Investment Amount Expected Monthly Revenue Profit Margin ROI Period ₹10 – ₹15 Lakhs ₹3 – ₹8 Lakhs 25% – 35% 9 – 12 months ₹20 – ₹30 Lakhs ₹5 – ₹12 Lakhs 20% – 30% 12 – 18 months ₹40 – ₹60 Lakhs ₹10 – ₹20 Lakhs 18% – 25% 18 – 24 months ✔️ Higher investment = Greater revenue potential
✔️ Lower operational costs = Faster break-even💡 Tip: A food truck or cloud kitchen has faster ROI compared to a dine-in outlet.
Frequently Asked Questions (FAQs)
The investment ranges from ₹10 to ₹60 Lakhs, depending on the franchise model, brand fees, and location.
Monthly expenses include raw materials, staff salaries, rent, utilities, marketing, and royalty fees (if applicable).
Most burger franchises break even within 9 to 24 months, depending on investment size and sales volume.
Cloud kitchens and food trucks require lower investment (₹8-20 Lakhs) and offer higher profit margins (25-35%).
Yes, most burger franchises offer training, supply chain support, and marketing assistance to franchisees.
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 business with strategic planning and cost management. Whether you opt for a dine-in restaurant, takeaway, food truck, or cloud kitchen, understanding investment details, operational costs, and ROI is crucial for long-term success.
At Skyland d Global, we offer The Burger Nation franchise, a trusted brand in India’s burger industry. Looking to start your own successful burger business? Contact us today and take the first step toward franchise success!