The business model of Barista has earned a reputation for it. Great coffee mixed with otherworldly spells makes Barista very popular. It has a powerful brand name associated with innovative coffee concoctions, fine snacks, and the warmth of Barista’s aura. Barista has an insatiable passion for delivering the finest. How Much Does a Barista Franchise Cost in India? Profit & How to Start in 2024 In this article we will discuss the Complete Details of a Barista Franchise from cost to how to get started.
Table of Contents
About Barista Coffee
Barista Coffee Company, established in 2000, was the first to popularize the coffee culture in India. This offers the perfect coffee experience at its cafes with an ambiance of warmth and comfort to unwind and catch up over a steaming cup of coffee. To be more precise Barista houses in India, Sri Lanka, and Maldives. In addition, they provide much-needed exposure to their franchisee. So if you want to start your business venture, team up with the Barista Brewing Family.
Key Details of the Barista Franchise
- Brand Name: Barista
- Industry: Food Processing and Beverage
- Number of Outlets: 150+ locations in pan India
- Franchise Cost: ₹30 lakhs – ₹50 lakhs
- Profit Margin: 20% – 30%
- Space Required: 500-1000 square feet
- Franchise Agreement: 5 – 10 years
- Official Website: Barista Official Website
Insights into Barista Franchise Ownership
Unique Offerings
Barista offers a wide range of coffee products, including espressos, cappuccinos, lattes, and more, alongside snacks and pastries. Their unique coffee blends and exclusive recipes are a hit among customers.
Supply Chain
Barista ensures a continuous supply of the best quality beans and raw materials, ensuring consistency and standardization from one store to another. The top-grade coffee beans are sourced from leading suppliers to ensure the high quality of the beans used in every cup.
Employee Training
The franchisee and his staff are given rigorous training in barista, customer service, and management skills. This prepares every staff member to offer an irresistible customer experience; training programs also incorporate food safety, hygiene, and operational effectiveness thus enabling the smooth running of the entire business.
Low-Cost Operations
The perspective with which this franchise model was conceived was to aim for a no-frills, low-cost operation involving high efficiency and maximal profits. Barista provides elaborate operational guidelines and related support to the prospective franchisee so that they may come up with simplification in their operations and cost-reduction exercises.
Low Royalty Fees
The barista usually charges very minimal franchise fees, allowing most of the profits to stay with the franchisees. This no doubt makes the franchise model all the more lucrative for many aspiring investors.
How Much Does a Barista Franchise Cost in India?
Starting a Barista Franchise will include several associated costs, which have been explained below.
Franchise Fee
The franchise fee ranges from ₹10 lakhs to ₹15 lakhs, inclusive of the brand name usage, training, and initial support. This then provides the franchisee with a brand reputation built by Barista, increased marketing support, and full training programs.
Starting Up Costs
The expenses for the interiors, furniture, equipment, and other setup costs might fall in the range of ₹10 lakhs to ₹15 lakhs. The investment prepares the café keeping in mind brand standards of Baristas, and it creates an ambiance in which the customer feels comfortable and at home.
Initial Stock
The investment for the first stock of coffee beans, snacks, and other goods will be between ₹5-10 lakhs. This will supply ample quantities to make the café space fully prepared, catering to the demand that promptly originates.
Marketing Fee
Initiated for marketing purposes, an initial marketing fee of around ₹2 lakh is required. It is accompanied by advertising, social media campaigns, and many other marketing investments to attract customers and establish brand awareness.
Working Capital
An estimated working capital of ₹2 lakhs to ₹5 lakhs is needed to meet day-to-day expenses. This will enable the café to run the operational expenditures such as salaries, utilities, and supplies for the first few months of its operation.
Summary of Costs
| Expense | Cost |
| Franchise Fee | ₹8.5 Lakhs |
| Setup Cost | ₹32 Lakhs |
| Initial Stock | ₹5 to ₹10 lakhs |
| Shop Deposit | ₹3 to ₹5 lakhs |
| Marketing Fee | ₹2 lakhs |
| Working Capital | ₹2 to ₹5 lakhs |
| Total Investment | ₹30 to ₹50 lakhs |
Profitability of the Barista Franchise
A Barista franchise can make a monthly income of ₹8 lakhs to ₹12 lakhs, depending upon location and customer traffic. This income would be inclusive of coffee, food items, and merchandise sales.
Gross Profit Margin
Gross profitability for coffee and snacks is around 60%. The margin has always been on the higher side since the entire product line of Barista has a premium associated with it. On the other hand, the franchise adopts effective cost management approaches.
Net Profit Margin
After deducting all operating expenses, the net profit margin may lie around 20%-30%. This consists of various overheads like rent, salaries, utilities, and other miscellaneous expenses to be made to run the store.
Monthly Earnings
By this net profit margin, a Barista franchise can give monthly profit ranging from ₹1.6 lakhs to ₹3.6 lakhs. This again largely depends on location, customer traffic, and how efficiently a store is run.
Return on Investment
A barista is usually capable of providing an ROI period of 18 months to 24 months. The very short span for ROI makes it a lucrative opportunity for entrepreneurs who want to begin a high-paying start-up venture.
Revenue and Profit
| Metric | Amount |
| Revenue Per Month | ₹8 lakhs – ₹12 lakhs |
| Gross Profit Margin | 60% |
| Net Profit Margin | 20% – 30% |
| Profit per Month | ₹1.6 lakhs – ₹3.6 lakhs |
| Return on Investment | 18 months – 24 months |
How to Open a Barista Franchise?
Age and Education
Age: 21 years or above
Educational: Preferably with a basic qualification
Financial
Investment: ₹30 to ₹50 lakhs towards establishment and working capital
Professional
Experience: Not necessary, though full training on all aspects is provided
Space/Infrastructure
Space: 500-1000 square feet for the café
Location: Prime high street/mall locations/ good business areas
Manpower
3 to 5 Trained people for operating the café
Interest in coffee
Believes in maintaining the brand image of Barista
Good service outlook toward customers
Documents To Be Submitted
Given below are the requirements for documentation to franchise for barista.
Documents to be furnished include a copy of any of the following—passport, driver’s license, or Aadhaar card.
Address Proof
Documents to be issued include address proof of residence, like utility bills, bank statements, or rent agreements.
Legal Documentation
Copies of certificates of incorporation, partnership deeds, or any such document for the existence of a legal entity.
Franchise Agreement
The agreement should mention the terms and conditions of the franchise relationship without ambiguity and the corresponding rights and duties of both the franchisor and his/her franchisee.
GST Registration
Evidence of GST registration to ensure that there is no offense in matters regarding taxation.
Shop Act and Trade Licence
Copy of the shops and establishments act registration of the business entity or trade license, having the concerned business address for verification that the business concerned is as per statute.
Steps to Get a Franchise for Barista
To establish a franchise with Barista in India, the steps that have to be followed are:
1. Go to their official website and under the bottom green section, click on “Franchise with us!”
2. Email Barista at Leads.franchise@barista.co.in.
3. Make a call at 9319392273,9899303032 or 8699500444.
4. Visit their head office: Barista Coffee Company Limited, B-1/H-1, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110044, India.
Pros and Cons of a Barista Franchise
Pros
- Brand: In the coffee industry, Barista is an established brand.
- Product Variety: We provide an extensive range of coffee products and snacks.
- Consistency: Premeasured consistency.
- Low Royalty: Most profits remain with the franchisee. .
- Product Line: The café provides a wide range of coffees, teas, snacks, and cakes that will cater to all client needs.
- Support System: Training, advertising assistance, and access to our already developed product line from the parent company are also provided by Barista.
Cons
- Competition: The café market is highly competitive.
- Initial Investment: A high initial investment is needed.
- Location Sensitivity: Success is too much dependent on the location.
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Conclusion
In Conclusion, How Much Does a Barista Franchise Cost in India? Profit & How to Start in 2024. Barista is one of the most promising prospects for the budding entrepreneur. With a brand name, manifold products, and extensive support, there is ample scope for a Barista franchise to be successful. Though, initially the amount is high, its profitability, and support make it a feasible business proposition.
FAQ
How much capital is required to open a Barista franchise in India?
₹30 to ₹50 lakhs is required to open a Barista franchise in India including franchise fee, working capital, initial stock, setup cost, marketing fees, and others.
Is the Barista franchise profitable?
Yes, approximately ₹8 lakhs to ₹12 lakhs can be availed every month, with a net profit of 20%-30%. This makes it a highly profitable business with a return on investment within 18 to 24 months.
Why Choose a Barista Cafe Franchise?
But before we get down to the nitty-gritty of the franchise business, let us address first why a Barista café franchise is simply the smartest choice. With over 410 bars of Barista Coffee Espresso and Barista Coffee Crème in more than 140 cities in India and expanding every day, Barista Coffee Company Limited also has coffee shops in Sri Lanka, Oman, and the United Arab Emirates.
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