Barista is a coffee brand that is well-known in India and offers excellent quality coffee, especially way more affordable than Starbucks, you know? That’s not only why people like this brand way too much right here in India, you see, established in 2000, it was one of the earliest brands to introduce café culture in India. If a coffee business is in your consideration, then the best chance is that you get a Barista franchise. Since other coffee and cafe franchises cost way too much, why not try something else, like Barista which already has a huge fan base in the country? That’s kinda the main reason we are here with this post where we will be going over the Barista franchise cost in India, their different models, profitability, and all that. Alright, let’s get started then, shall we?

Barista Franchise Models and Costs

Well, just like many other franchise offering brands in India, of course, Barista offers three different franchise models to suit different budgets and locations. And what are those specifically? Well, we’re talking about these:

1. Diner Model: The Diner Model requires the most investment, you know, ranging from INR 85 lakhs to INR 1 crore. Just so you know though, it’s aimed at larger shops, such as restaurants or cafes, where the main concept is a relaxed dining experience.
2. Cafe Model: The cafe Model requires an investment of around INR 35 lakhs to INR 40 lakhs and is a medium-sized setup, and as you can already guess, this model is typically for coffee shops in better places like malls or busy streets.
3. Kiosk Model: The shops are made from kiosks which are usually very small and need an investment of INR 10 lakhs to INR 20 lakhs. These are pretty small and require kinda less investment from the get-go, well, they are mostly set up in places like hospitals, offices, or educational institutions where there is regular foot traffic.

Franchise Cost: Well, as you could have already guessed, yes, depending on the model, the franchise fee is between INR 6 lakhs and INR 15 lakhs. And just so you know, this fee is actually for the brand name of Barista, the initial set-up support, and training, which you will receive at the beginning, simple as that!

• Expenses: As you see, fixing the coffee shop’s furnishing together with the Barista brand guidelines will cost anywhere between INR 10 lakhs and INR 15 lakhs.
• Initial Stock: On the basis of the first order of coffee beans, snacks, and some accessories, you will have to pay from INR 5 lakhs to INR 10 lakhs again.
• Marketing Fee: Just so you know, you see, Barista suggests that just for starters, a marketing and promotion budget of INR 2 lakhs should be made to attract profit-making customers.
• Working Capital: You should also reserve an amount between INR 2 lakhs and INR 5 lakhs to be able to run normal days, like giving salaries and acquiring purchases for the cafe, you know?

So, what’s the number if you add it all up? Well, we’ll put it simply and straight, you see, depending on the model and location of the shop, it costs at least INR 30 lakhs to the absolute max of INR 1 crore.

Profitability and Return on Investment

Alright, now let’s come to the main part, which is about how profitable a Barista franchise can be in India. So, let’s say you are ready to invest in that huge sum and you are just ready to apply for it, but before that, you must learn a thing or two about profitability, right? Well, to be honest, a Barista franchise literally can be a super lucrative option, at least in our opinon. Why do we say that? Here’s why:

• Monthly Revenue: In a month, a Barista can generate from 8 to 12 lakh INR depending primarily on the location of the cafe or outlet, you know? All in all, to put it simply, the greater the place of the café the more traffic it gets.
• Gross Profit Margin: On average, the profit margin for coffee and snacks for Barista cafés is about 60%. This means a lot of the things that you sold went back into your pocket after paying the cost of the ingredients.
• Net Profit Margin: Just so you know though, after covering expenses like rent, salaries, utilities, and royalty payments, the net profit margin is usually in the range of 20% to 30%. For instance, if your cafe generates 10 lakh INR revenue in one month, you can expect to keep about 2 to 3 lakh INR as profit, and that’s a pretty great deal if you think about it for a sec.
• Return on Investment (ROI): The composition of normal common business activity means that most franchise owners return their initial investment in a period of 18 to 24 months. In other words, it could take only about two years to start to start earning real profits, which straight goes into your pocket. How does that sound?