Madras Coffee House is the name that Garden City cafe goers seem to swear by these days when it comes of course, filtering down their brew into foamy froth. The brand has been bringing coffee aficionados from all over the country with its true-blue South Indian filter Coffee and a mix of tradition yet modern setting. Madras Coffee House, born in the heart of Chennai and proliferated at multiple spots boasts traditional coffee culture weaved seamlessly with modern café norms. Entering the thriving cafe business, a Madras Coffee House franchise could be an ideal chance.
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About Madras Coffee House
In the heart of Chennai lies Madras Coffee House, which rightfully happens to be one of the names most mentioned with respect to filter coffee in Southern India. Coffee is the star of the menu, along with a diverse range of traditional South Indian snacks & meals that only complement and add value to its rich, aromatic coffee. Madras Coffee House aims to bring back fond memories of filter coffee blends in a quintessential South Indian ambiance with an approachable service for today’s youth and working professionals alike.
With coffee consumption on the rise as never before, Madras Coffee House has decided to franchise its model so that it can be available in more and even remote locations. Today, the business is looking for interested entrepreneurs to become part of its growing franchise.
Key Details of Madras Coffee House Franchise
Brand Name: Madras Coffee House
Industry: Food & Beverage, Café
Number of Outlets: 150+
Franchise Cost: 14 to 16 lakhs
Profit Margin: 48% to 84%
Space Required: 70 to 300 sq. ft.
Official Website: https://madrascoffeehouse.com/
Madras Coffee House Product Range
While known for its South Indian filter coffee, the menu here includes a large spread of other traditional snacks and light meals. Here are the selected dishes on the dine-in menu Brunch starts at 09:00 and is finished off by The following including handpicked foods.
Beverages: Filter coffee, masala chai, lemon tea and other types of Tea / Coffee
Evening tiffin: Vada, idli, dosa upma, and Sanmali items like Mysore pak.
Light meals: Pongal, curd rice, and sambhar sadam.
The variety of choices means there should be something for everyone, guaranteeing visitors at all points during the day whether they want to stop in for coffee or a quick and casual meal (or just know where treats can be found).
Madras Coffee House Franchise Models
Madras Coffee House offers potential franchisees two business models, each designed to meet different investor needs:
Company-Owned & Franchise-Managed (COFM):
Company-Owned & Franchise-Managed (COFM): Under this method, where the franchisee has to run a company-owned outlet. (Company-Owned & Franchise-Operated) Though Madras Coffee House provides all the branding, training, and support required by it, the Franchisee will have to run its own business smoothly.
Franchise-Owned and Franchise-Operated (FOFO): In this model, the franchisee owner himself runs the outlet strictly as prescribed by a Madras Coffee House SOP. This model provided more leeway over how things were done, but fit within the guidelines of those set for a franchisee.
Both models allow franchisees to leverage the strong reputation of Madras Coffee House while enjoying significant operational support.
How Much Does the Madras Coffee House Franchise Cost?
Starting a Madras Coffee House franchise requires an initial investment that typically ranges from ₹14 lakhs to ₹16 lakhs. This investment includes various costs necessary for setting up and running the café:
Infrastructure Investment: Between INR 4 to 5 lakhs (interior, furniture & brand decor)
Franchise Fee: ₹4 lakhs+GST payable to Madras Coffee House for the license to run under its brand name
Furniture and Fixtures: ₹2 to 4 lakhs for tables, chairs, countertops, or any such interior furniture to support the café business theme.
Startup Inventory: 1 to 2 lakhs for coffee beans, snacks & supplies for the first batch.
Marketing & Promotion: 1 lakh This will cover the initial marketing campaigns, (online as well as offline) to ensure a successful launch.
| Total Investment | 14 to 16 lakhs |
| Franchise Fee | 4 lakhs + GST |
| Infrastructure Investment | 4 to 5 lakhs |
| Furniture and Fixtures | 2 to 4 lakhs |
| Startup Inventory | 1 to 2 lakhs |
| Marketing & Promotion | 1 lakh |
| Royalty Fees | 6% of net sales |
This investment includes everything needed to set up a fully functioning café. While it may seem like a significant investment, the Madras Coffee House brand provides an opportunity for a quick return on investment, thanks to its established customer base and strong market presence.
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Madras Coffee House Franchise Profit Margin and Return on Investment (ROI)
On average, the Madras Coffee House franchise can generate profits between 48% to 84%, depending on location and operational efficiency. The break-even period is 2 to 3 years (provided the boilerplate is located at a high footfall place and further if the café managed systematically).
The return on investment does depend upon numerous
Venue: Cafes situated in the epicenters of bustling cities, commercial spots, or shopping centers tend to be more crowded creating quicker ROI.
Operational efficiency: managing, customer servicing and consistent quality of your product/service will make repeat businesses grow.
Brand: Madras Coffee House is a recognized brand and it has frequent customer footfall which in turn helps the restaurant to earn consistently well over time.
Space Requirements
Madras Coffee House requires franchisees to provide an optimal space for operations, typically between 70 and 300 square feet. This space should accommodate:
Customer seating: as we all know, the cafe experience simply would not be complete without a pleasant and inviting environment to grab a cup of coffee with friends or sit down for some afternoon work on your laptop. Some properly arranged tables & chairs should seat between 20–40 people
Kitchen and Beverage Preparation Area: All you need in the Kitchen to prepare coffee, tea, snacks, or a meal.
Storage: Has space to keep coffee beans, snacks, and inventory items.
The ambiance: The general feel of the place needs to be traditional South Indian and modern decor so that one can enjoy it with his/her family or come visit after a hectic day at work.
Benefits of Madras Coffee House Franchise
Investing in a Madras Coffee House franchise offers numerous benefits, making it an attractive opportunity for budding entrepreneurs:
Established Brand: Madras Coffee House is a well-recognized name in the café industry, known for its authenticity and quality. By associating with this brand, franchisees gain an instant reputation in the market.
Comprehensive Support: The franchise provides extensive training and operational support, ensuring that even those with no prior café experience can run the business effectively. This includes training in coffee preparation, customer service, and operational management.
Marketing Assistance: Madras Coffee House runs regular promotional campaigns and provides marketing materials to help drive customer traffic to franchise locations. This can include online ads, social media promotions, and local events.
Product Diversity: With a wide range of beverages and snacks on the menu, franchisees can attract a diverse customer base, from students and professionals to families and tourists.
Profitability: With high margins on beverages and low operating costs, Madras Coffee House offers a profitable business model. The ability to offer premium products at affordable prices gives the franchise a competitive edge.
Growing Coffee Market: The coffee culture in India is on the rise, with more people looking for premium café experiences. Madras Coffee House is well-positioned to take advantage of this growing market.
Documents Required for Madras Coffee House Franchise
To start a Madras Coffee House franchise, prospective franchisees need to provide the following documents:
Franchise Agreement: also known as the license agreement which dictates the rules and terms that you, as a franchisee, must abide by.
Identity Proof: Aadhar card, PAN card, and other government identity card photocopies as Identity Proof.
List of Documents: List the documents which include photocopies related to business registration, GST registration, and any such clearances on a legal scale
Evidence of Funds: A franchisee must provide either bank details or a letter from solicitors confirming they have the required funds to invest in a new business.
Location Agreement: Evidence of cafe space ownership or lease.
How to Apply for a Madras Coffee House Franchise?
Securing a Madras Coffee House franchise involves the following steps:
Contact Madras Coffee House: Visit the official website (www.madrascoffeehouse.com) and fill out the franchise inquiry form. Alternatively, you can reach out via the contact number or email listed on the website.
Submit Your Details: Provide your personal information, including name, contact details, and business background. Be sure to highlight your interest in opening a franchise and your chosen location.
Franchise Evaluation: Once your inquiry is submitted, the team at Madras Coffee House will review your application. They will assess the potential of your chosen location and your ability to meet the financial requirements.
Document Submission: If your application is shortlisted, you will need to provide the necessary documents, including identity proof, business registration, and financial documentation.
Franchise Agreement: Upon approval, you will be required to sign the franchise agreement and make the initial investment.
Training and Setup: Madras Coffee House will provide comprehensive training for you and your staff, along with support for setting up the café. This includes assistance with interior design, equipment installation, and initial marketing campaigns.
Launch: After all preparations are complete, you can launch your Madras Coffee House franchise. The company will continue to provide ongoing support and guidance to ensure your business thrives.
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Conclusion
In Conclusion, Madras Coffee House Franchise Cost, Profit & How to Get in 2024. Buying a Madras Coffee House Franchise is the correct decision for entrepreneurs willing to enter an immediately growing café market. The franchise comes in with a reliable brand, top high-quality products, and operational assistance creating it as an example of how to run the business while keeping profits at the same time customer service is offered. A blend of tradition as well as innovation, Madras Coffee House is a must-have for anyone looking to serve unadulterated coffee with just the right hint of modernity.
FAQ
1. What is the total cost of starting a Madras Coffee House franchise?
The total cost of starting a Madras Coffee House franchise typically ranges from ₹14 lakhs to ₹16 lakhs, depending on the location, size of the outlet, and other factors such as interior setup and equipment costs.
2. What is the profit margin of a Madras Coffee House franchise?
Franchisees can expect a profit margin of 48% to 84%, depending on the location, customer footfall, and efficient management of operational costs.
3. How much space is required to open a Madras Coffee House outlet?
The space requirement for a Madras Coffee House outlet ranges from 70 to 300 square feet. This space should be sufficient to include seating areas, kitchen space, and storage for equipment and inventory.
