Best Low-Cost Food Franchises in India with Low Investment
Published: 2025-06-03 11:15:48
If you're looking to tap into the booming Indian food industry without burning a hole in your pocket, you're in the right place. This detailed guide explores the best low-cost food franchises in India with low investment, especially ideal for young entrepreneurs, small business seekers, and foodies looking to monetize their passion. Let’s start with three trusted hospitality giants making waves:
Guide to Investing in Low-Cost Food Franchises in India
Looking for a way to launch your dream food business? Here's how to get started with the best low-cost food franchise in India with low investment.
How to Choose the Right Low-Investment Food Franchise
When choosing a food franchise, keep these points in mind:
- Local demand: Will people buy it?
- Franchisor support: Training, supplies, setup.
- Investment options: Some offer zero investment food franchise models in India with revenue-sharing.
- Location potential: Is it near colleges, offices, or malls?
Explore the Top 10 Restaurant Franchises in India to discover lucrative opportunities in the food and beverage industry.
Top Budget-Friendly Food Franchises in India
Here are some promising names that require very low startup capital:
1. Ministry of Daru
Website: https://www.ministryofdaru.com/
Location: Near Noida Electronic metro station
Gallery: Ministry Of Daru
Ministry of Daru has become synonymous with innovative bar experiences and premium food fusion. Known for its trendy decor, live music, and crowd-pulling ambiance, this brand has carved a niche among food and beverage lovers. Its recent venture into franchising offers a golden opportunity to investors looking for a low-investment food franchise in Delhi and Noida.
Investment Details:
- Starting Investment: INR Rs. 1-2 Cr
- Ideal for: Urban centers and nightlife-centric zones
- Support: Franchisees receive branding, staff training, menu curation, and supply chain assistance
- USP: Known brand recognition, high footfall areas, hybrid bar-dining model
2. The Beer Garden
Website: https://www.thebeergardenindia.com/
Location: Near Noida Sector 62
Gallery: The Beer Garden
If you're exploring a premium yet budget-friendly option, The Beer Garden is your go-to food franchise. With a strong focus on ambiance, curated drinks, and contemporary food, it’s become a recognizable brand in major Indian cities. The Beer Garden’s scalable franchise model allows entrepreneurs to start small and expand with time.
Investment Details:
- Starting Investment: INR Rs. 1-2 Cr
- Ideal for: Metro cities with a thriving nightlife scene
- Support: Branding, marketing, staff recruitment, and operations management
- USP: High brand recall, modern aesthetic, and youth-focused strategy
3. CB Crown Banquet
Website: https://www.crownbanquetnoida.com/
Location: Near Vaishali Metro Station
Gallery: CB Crown Banquet
Known for its grand banquet services, CB Crown Banquet is diversifying into the food franchise segment with a focus on compact, food court-style setups. It targets malls, IT parks, and public zones where space and investment are minimal but traffic is high.
Investment Details:
- Starting Investment: INR Rs.1-2 Cr
- Ideal for: Entrepreneurs looking for a food franchise under 2 lakhs in India
- Support: Business setup, marketing, and branding collateral
- USP: Affordable packages, established brand reputation, great for entry-level investors
Explore the Best Franchise in India – Scope & Guide to understand the dynamics of franchising in India's diverse market.
Factors to Consider Before Investing in a Food Franchise
- ROI Period: How soon will you start earning?
- Supply Chain: Is it easy to source inventory?
- Franchise Fee vs Profit Margin: Is it sustainable?
- Brand Support: Is it a recognized name in India?
Success Stories of Low-Investment Food Franchises in India
Take Ravi Mehta from Delhi, for example. He invested in a food franchise under 1 lakh called Quick Curry Corner. Within a year, he scaled to three outlets. His success shows how smart choices and dedication can help you grow from a small outlet to a local brand.
Others have ventured into zero-investment food franchises in India models where they only share profits. This strategy works especially well for cloud kitchens.
Common Mistakes to Avoid When Investing in Food Franchises
- Not checking the legal documents
- Ignoring local food preferences
- Investing more than your budget
- Overlooking digital presence
Top Low-Investment Fast Food Franchises in India
India’s thriving food and beverage industry offers a wide range of fast food franchise opportunities that require minimal investment and promise high returns.
Steps to Start a Low-Investment Food Franchise
- Do your market research
- Choose the right franchise tier – under 1 lakh, 2 lakhs, or 10 lakhs
- Finalize a location
- Get necessary licenses
- Sign the franchise agreement
- Begin training
- Launch your outlet with a bang!
Explore our comprehensive Best Multi-Cuisine Franchise Cost Guide to understand the investment requirements and benefits of owning a multi-cuisine restaurant franchise in India.
Legal Requirements for Starting a Food Franchise in India
- FSSAI License
- GST Registration
- Local Municipal Trade License
- Fire Safety & NOC
- Franchise Agreement & Compliance
Market Analysis: Why Invest in Food Franchises?
- The food delivery and QSR segment is growing at 20% CAGR
- India’s youth population favors eating out
- Rising demand for budget-friendly and tasty food
- Growth in cloud kitchens and food franchises under 5 lakhs in India
Profitability of Low-Cost Franchises
- Initial profits within 6–12 months
- Higher margins for food items like rolls, biryani, and beverages
- Franchise support can reduce marketing costs by 30%
Financing Options for Food Franchise Investments
- Mudra Loans for Startups
- Personal/Business Loans from NBFCs
- Revenue sharing models – ideal for those looking for the best low-cost food franchise in India with low investment without investment
- Peer-to-peer financing or crowdfunding
Affordable Fast Food Franchises to Consider
Here are some popular names for food franchises under 10 lakhs in India and under 5 lakhs in India:
- Frankie Nation – A modern twist to street food. Entry at INR 1 Lakh.
- Idli Express – Great for high-footfall South Indian food stalls. Entry at INR 2 Lakhs.
- Burger Bee – For burger lovers, investment is around INR 5 Lakhs with dine-in features.
Learn more about our premium dining and event venues by checking out the Sparkly Hospitality Brands Overview.
How to Run a Successful Fast Food Franchise on a Budget
- Keep staffing lean and efficient
- Use social media marketing instead of traditional ads
- Offer seasonal deals to increase footfall
- Optimize packaging and delivery models
Brand Recognition and Customer Loyalty in Fast Food Franchising
Choosing a brand like The Beer Garden or Ministry of Daru means instant credibility. People already trust the name, which leads to:
- Easier customer acquisition
- Greater word-of-mouth marketing
- Repeat orders and loyalty
Innovative Marketing Ideas for Food Franchises
- Loyalty points on food apps
- Collaborate with micro-influencers on Instagram
- Run "Happy Hours" or student discount days
- Host pop-up stalls at events or festivals
Choosing a Location for Your Low-Cost Fast Food Franchise
Pick places with high visibility and easy access, like:
- Outside metro stations
- Food courts in malls
- Near hostels and PGs
- Office complexes and business parks
Interested in partnering with us? Reach out through our Contact Us page to explore exciting opportunities.
FAQS
1. What is the best low-cost food franchise in India with low investment?
Some of the best options include the Ministry of Daru, CB Crown Banquet, and The Beer Garden. These brands offer strong brand support, training, and scalability for first-time entrepreneurs.
2. Can I start a food franchise in India without any investment?
Technically, zero-investment food franchises in India are rare. However, some companies offer models where costs are recovered from profits or offer low EMI-based investment plans. Still, some capital (₹50K–₹2 Lakhs) is typically needed for licensing, setup, or marketing.
3. Which food franchise is available under ₹2 Lakhs in India?
CB Crown Banquet offers compact food-court style setups starting from ₹2 Lakhs. Some local food stalls, cloud kitchen brands, and kiosk-based models also fall in the food franchise under 2 lakhs in India category.
4. Are there food franchises under ₹50K in India?
Yes, but they are extremely limited and usually involve home-based cloud kitchens, food carts, or distribution-focused models. These require strong local marketing and are often unbranded or emerging startups.
5. What’s the ROI on a food franchise under ₹5 Lakhs in India?
For brands like Ministry of Daru or CB Crown Banquet, ROI typically starts showing in 6 to 18 months, depending on footfall, location, marketing, and menu margins. Franchises under ₹5 Lakhs can earn 20–35% monthly profit margins if managed well.
6. What documents do I need to start a food franchise in India?
You'll need:
- FSSAI license
- GST registration
- Shop & Establishment License
- Franchise agreement
- Trademark consent (for brand use)
These legal steps are mandatory for all registered franchise models.
7. How can I get a food franchise in Delhi with low investment?
Delhi offers a huge market. Brands like Ministry of Daru and CB Crown Banquet are expanding in Delhi NCR with low-entry models. Look for localised cloud kitchens or food kiosk franchises under 1 lakh or 2 lakhs for easier market entry.
8. Can I run a food franchise part-time or without experience?
Yes. Many low-cost food franchise models offer training, operations manuals, and centralized supply chains. Brands like The Beer Garden offer franchise support, making it possible even for beginners or part-time owners.
9. What are the main risks in low-investment food franchises?
Common risks include:
- Poor location choice
- Inconsistent food quality
- Inefficient marketing
- Low footfall
- High employee turnover
Minimize risk by choosing brands with a proven model and strong franchisee support.
10. Which franchise is better: dine-in, takeaway, or cloud kitchen?
For low investment, cloud kitchens and kiosks are the most affordable. Dine-in models like The Beer Garden offer higher returns but need more capital. For first-time investors, compact takeaways or food stalls offer quicker breakeven.
Conclusion
From zero investment food franchises in India to food franchises under 50k, 1 lakh, 2 lakhs, 5 lakhs, and even 10 lakhs, the Indian food franchise landscape is rich with opportunity. Whether you're in Delhi or a small town, brands like Ministry of Daru, The Beer Garden, and CB Crown Banquet offer options suited for every budget. With careful planning and the right location, your food franchise dream can become a profitable reality.
So if you’re ready to make your mark, dive into the world of the best low-cost food franchise in India with low investment today!