By Saksham Arora To be honest, one fast food restaurant chain that can give you kinda a tough competition to even McDonald’s is for sure Burger King and that’s not just the case in the Western part of the world, that’s pretty much the scene right here in India too. So if you want to capitalize on how well things are going for Burger King in India, then you must be interested in the Burger King Franchise opportunity, correct? Well, today, we are here with super valuable information like Burger King Franchise Cost in India, who is actually eligible to apply for it, what would be the profitability or ROI, and things like that. So, if that’s what has piqued your interest recently, just keep on reading.
Burger King Franchise Investment Breakdown
The amount of money required to open a Burger King franchise in India is considerable, to be clear from the very start. Let’s take a good look at the breakdown of the costs and all the investments you must make in order to run a Burger King franchise of your own right here in India:
1. Franchise Fee: Just so you know, this is the upfront payment you make in order to use the Burger King trademark. This fee is ranging from ₹11 lakh to ₹37 lakh.
2. Setup Costs: The cost of setting up the business premises such as the commercial kitchen, the interior decoration, the chairs, the tables, and the sign will require an investment of around ₹1.5 crore to ₹2.5 crore.
3. Royalty Fee: The monthly sales of the company should include a 4.5% royalty which is the payment to Burger King in return for the benefits of the continuous support and maintenance of the brand, you know?
4. Advertising Fee: Then there is a 4% advertising fee primarily intended for the central and regional promotion of the Burger King brand.
5. Working Capital: You should also consider setting aside about ₹50 lakh to account for the daily outflows aka things like salaries, stock, and utilities until the business generates income.
In total, setting up a Burger King franchise in India will cost you close to ₹3 crore to ₹5 crore according to the location and the size of the restaurant.
Eligibility Criteria
See, if you are thinking of becoming a Burger King franchise owner, here is what you must fulfill:
- Financial Requirements: A net worth of no less than ₹3 crore. Keep in mind though, a minimum of ₹1.5 crore should be liquid assets (an asset that is easily convertible into cash like cash or a bank deposit or current asset in the trade).
- Business Experience: Experience in the food and restaurant industry is considered an advantage however it is not a certain requirement, that’s mainly because full training is given by Burger King in order to assist in business operations.
- Space Requirements: A 1000 to 1200 square feet space in a high footfall area like a mall or a shopping center is required, why though? Well, this is important since it will directly determine the volume of trade.
Return on Investment (ROI) and Profitability
Now, let’s discuss how much revenue is likely to be made, and at what point profit will be introduced, you know? Just so you know, daily, the franchise of Burger King in India brings sales worth ₹20,000 to ₹30,000. Nevertheless, this value might be influenced by the place of your establishment. Albeit, it is expected that after all costs are covered one would net a profit margin from 6% to 9% on every sale. As for the monthly profit, it could result in a net gain of ₹4 to ₹5 lakh monthly depending on how effective the business is running, just so you know.
And what of the Break-Even Period? Well, to be honest, if you are allocated a spot that is busy and you have perfect management, recovering the investment should be possible within 3 to 5 years. After that, it is all profits, and some ongoing costs, that’s all.
NOTE: While this is the investment and cost information available regarding Burger King Franchise Cost In India as of 2024, things may change a bit in the future. And what does that mean for you though? Well, you should keep yourself updated with the information about the costs and some other terms set by Burger King in India for their franchisees.