The food business is never failing in India. If we start thinking about food businesses, there are many food varieties. Let’s talk about the fast food business. Everyone is addicted to certain fast food, from children to older individuals. Starting a fast food business is a 100% profitable choice, but these food businesses may fall due to changes in chefs and food tastes. To avoid all the burden of hiring chefs, training employees, and other things, you can choose Kathi Junction, an Indian fast food brand famous for serving a variety of roles. Kathi Junction is offering franchise opportunities for aspiring entrepreneurs. How much does a Kathi Junction franchise cost? Profit in 2024: In this, we will discuss the initial investment, profit margins, requirements, and how to get a franchise.
Table of Contents
About Kathi Junction
Kathi Junction is an Indian fast food chain established in 2009 by founder and director Navneet Sajwan. He always looked for mouth-watering, delicious food in his school days. With that habit, he entered the fast food business and founded Kathi Junction.
Kathi Junction is famous for serving Veggie Roll, Babycorn Chilli Rolls, Mushroom Rolls, Paneer Tikka Roll, Soya Chunks Chilli Roll, Paneer Chilli Rolls, Aloo Rolls, Soya Chunks Rolls, and others.
Kathi Junction has established more than 165 franchise outlets in India. It has already earned the trust of a huge customer base in India.
Key Details of Kathi Junction Franchise
- Brand Name: Kathi Junction
- Industry: Fast Food
- Number of Outlets: 165+
- Franchise cost: 5 to 12 lakhs
- Profit Margin: 25%
- Space required: 150 to 1500 sq ft
- Franchise Agreement: 3 to 4 years
- Royalty Fees: 4%
Kathi Junction Franchise Models
Kathi offers two franchise models with the aim of being affordable for everyone and allowing them to start their business in a small space.
Model A (Food Court Express): a smaller food court franchise model suitable for compact outlets or malls. The Food Court Express franchise model requires only 150 to 300 sq ft of space, including the kitchen, billing area, and sitting area.
Model B (Dining Restaurant): larger restaurant franchise model, traditional outlets for standalone restaurants or high-traffic areas. This dining restaurant model requires an area between 400 and 1500 sq ft.
How Much Does a Kathi Junction Franchise Cost?
Kathi Junction, a popular fast food chain in India assures a high profit margin and offers low investment franchise opportunities. It charges a reasonable franchise fee of 3 to 4 lakhs as a franchise fee for both franchise models, to grant access to open outlets with a brand name, operational support, and their recipes, and well-trained chefs to the franchise.
Kathi Junction has been charging affordable royalty fees compared to other brands to provide marketing support, ongoing support, training to the employees, and advertising support from banner ads to social media ads. For all this support it charges a monthly 4% royalty fee from the net sales.
The total investment required to start the Kathi Junction Food Court Express franchise is between 5 to 8 lakhs including franchise fees, initial inventory, working capital setup cost, and others. To start the Kathi Junction Dining Restaurant franchise requires an investment of between 9 to 12 lakhs.
| Headings | Food Court Express | Dining Restaurant |
|---|---|---|
| Franchise Fees | INR 4 lakhs | INR 4 lakhs |
| Estimated Setup cost | INR 2 to 3.5 lakhs | INR 4 to 6 lakhs |
| Royalty Fees | 4% | 4% |
| Working Capital | INR 1 lakhs | INR 2 to 3 lakhs |
| Initial inventory | INR 50,000 to 1 lakhs | INR 2 lakhs |
| Agreement Year | 3 to 4 years | 3 to 4 years |
| Total Investment | INR 5 to 8 lakhs | INR 9 to 12 lakhs |
How Profitable is the Kathi Junction Franchise?
Kathi Junction franchise is a profitable franchise opportunity; let’s discuss how. An average Kathi Junction food outlet or restaurant can earn revenue between INR 5 and 8 lakhs, and each outlet in Kathi Junction is listed on online food delivery platforms like Zomato and Swiggy. Through this franchise outlet, Kathi Junction can make 3000 to 5000 in revenue per day. As a franchisee of Kathi Junction, you can expect a profit margin of 25% on each sale. With this profit margin, franchisees can earn between INR 2.5 lakhs and INR 3 lakhs. Within 9 to 15 months, the franchisee can easily recover the initial investment.
Requirements to Start Kathi Junction Franchise
Age and Qualification: To be a franchisee of Kathi Junction, an applicant must be 21 years old and have passed a minimum of 10 qualifications.
Financial stability: The applicant should be financially strong, and he or she should be ready to invest up to 8 to 10 lakhs as the initial investment in the franchise.
Business experience: If the applicant has 2 to 3 years of business experience in the food or retail industry, it will be beneficial for you to reach early success. Prior experience is not mandatory to get a franchise.
Required Area: To set up a franchise at Kathi Junction, it requires between 150 and 1500 sq ft, depending on the franchise model you choose.
Location: Franchisees need to choose malls or high-footfall streets for the food court model, and high-footfall markets and commercial areas are profitable for the restaurant franchise model.
Required Staff: To run a franchise of Kathi, it requires 3–8 trained employees to manage all work.
Kathi Junction Franchise Pros and Cons
Pros
Established Brand: Kathi Junction is a recognized brand that has been serving food since 2009 and has a presence of 165 franchise outlets in India. It has a hugely loyal customer base and a successful track record in the fast food industry.
Low Investment: The franchise models are affordable for everyone; the initial investment for a franchise starts at 5 lakhs, especially the food court model, which starts at 5 to 8 lakhs.
Customizable Menu: The franchisee is free to change or modify the menu based on the location of the outlet and local tastes and preferences.
Chef Support: A highly trained chef is provided by the brand to maintain the same taste of food at every outlet, and support ensures consistent quality and innovation.
ROI Period: Kathi Junction assures franchisees they can recover the initial investment in just 9 to 15 months.
Growing Market: Indian fusion food is popular, and Kathi Junction caters to this demand.
Cons:
Royalty Fees: Kathi Junction charges a minimal 4% royalty fee on the net sales. This figure is not so big because it reduces the profit of the franchise owner.
Competition: The fast food market is competitive, so location selection is crucial.
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Conclusion
In conclusion, how much does a Kathi Junction franchise cost? Profit in 2024: Kathi Junction is the finest franchise opportunity for people who want to enter the food business with a very low investment of 5 to 8 lakhs. Also, franchisees will benefit from chef support, training support, ongoing support, and advertising support. The main thing is that the brand offers 96% of revenue to the franchise owner; only 4% will be deducted as royalty fees. Franchisees can earn a 25% profit margin on each sale after deducting employee salaries and others. If you choose a high-foot-fall area suitable to start a business, you will be a successful business owner, and within 9 to 15 months, you can recover the initial investment.
FAQ
What is the Kathi Junction franchise profit margin?
As a franchisee of Kathi Junction, you can expect a profit margin of 25% on each sale.
What is the initial investment in the Kathi Junction franchise?
To start a franchise, Kathi Junction requires an affordable investment of 5 to 8 lakhs, including the franchise fee, initial stock, working capital, setup cost, and others.
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