If you didn’t know yet, yes, Cream Stone is a beloved ice cream company that began its journey in the year of 2009. Sure, the remarkable thing is that it allows customers to create their own ice cream by deciding on the flavors and toppings from the available options, which are then mixed on a cold stone slab, you know? Are you familiar with such an idea? Well, just so you know, this brand has built a strong following of people who are attracted by this interactive and one-of-a-kind experience, which has resulted in the rapid growth of over 100 dairy bars in India. In case you are considering initiating a business in the food sector, it is possible to opt for Cream Stone which is an excellent choice.
This name is already widely recognized, and thus, you can hook customers to the use of it instead of your own name, which makes things easier, you know? So, let’s just go over some details like Cream Stone Franchise cost in India, franchise models or options, and profitability to get you started. Here we go.
Cream Stone Franchise Models
You have to know that the entire Cream Stone franchise system is built around the Franchise-Owned and Franchise-Operated (FOFO) model, are you familiar with that? Well, just so you know, in this case, you directly manage your own store which you are responsible for, but this is done under the terms set by Cream Stone including how to do the marketing and sales and the design that has to be followed.
Keep in mind though, with Cream Stone, there is actually no option to get a “master franchise” where you control multiple outlets. What you have instead is each store is individually owned, and the franchise owner is responsible for its success.
Investment Requirements for a Cream Stone Franchise
To put it in the simplest words possible, yes, the budget requirements of setting up a Cream Stone franchise are very significant. Here’s how most of your investment will be used:
- Total Investment: This will be around ₹40 to ₹50 lakhs. Like, you will have to shell out such an amount in order to get your hand on the franchise and establishment of the business, as well as the starting and running costs in a nutshell.
- Franchise Fee: Rs 2 to 5 lakh, and this is just the one-off charge for utilizing the Cream Stone company name and business practice.
- Infrastructure Costs: And just so you know, Rs 15 to 20 lakhs covers the entire cost related to the shop setup like furniture and other equipment like the cold stone slab.
- Equipment Costs: ₹5 to ₹10 lakhs (The freezers, display units, and other necessary items included.)
- Other Expenses: Rs 5-8 lakhs. This sum will cover the initial stock, staff salaries, and marketing expenses to promote your new store, you know?
While yes, we’d agree that this kind of investment is kinda substantial and huge considering it is just an ice cream franchise, looking at the popularity numbers of this brand in India, you’ll likely be making big profits in the long run. That’s for sure. Not only that, Cream Stone’s efficient and well-organized support system will maximize the benefits of this investment.
Profitability and Return on Investment (ROI)
In this world of ice cream lovers, Cream Stone is a highly reputed brand and one that provides a good margin to franchise owners, did you know that? So, what can you actually expect? Let’s have a look at profit expectations:
- Profit Margin: Did you know that a typical Cream Stone franchise has a profit margin of around 35% to 40% on sales? In other words for every ₹100 you generate in sales, your profit net of expenses such as rent salaries and stock would be around ₹35 to ₹40. That is pretty awesome considering or comparing it with other franchise options out there within the same niche, you can do your own research about that.
- Return on Investment (ROI): If the store is well located and properly managed you can expect to earn back your initial investment within 18 to 24 months, which is pretty decent in our opinion. These two years or a little less are quite comfortable for a business in the food and beverage industry to break even, after that, it’ll all be just profits for you.