Did you know that it was as recent as 2012 when Starbucks made its entry into the Indian market with the help of Tata Group? That’s true! But the craze for Starbucks is super high in India right now, correct? And if you are particularly a business-minded person, you may be thinking of capitalizing on that. If so, just keep on reading this post because we are about to tell you about Starbucks franchise costs in India, ongoing costs you should be aware of, how to apply, and things like that. Alright, here we go now.

Can You Own a Starbucks Franchise in India?

To start with, you see, if you’re considering becoming the owner of a Starbucks franchise in India, there is one important point you need to consider, and what would that be? Well, Starbucks does not operate a traditional franchise route where you buy a franchise and run the store by yourself totally. They have a “licensed store” model for this. In this model of operation, you may operate a Starbucks store only if you have acquired a special license from Starbucks, which is mandatory for opening the store, and follow the guidelines that breweries are applying for Starbucks. Essentially, even though the physical space is yours, it will still be Starbucks that keeps the controls, though, you’ll be the one managing the day-to-day operations, just to be clear from the very start.

How Much Starbucks Franchise Cost in India

Alright, now onto the main stuff, which is to tell you how much it actually costs to own a Starbucks franchise in India right now. So, opening a Starbucks-licensed store in India can be an expensive deal without a single doubt, and make sure you get it right that it requires an investment of maybe ₹5,3 crore or so. Based on the area to be developed, this figure includes many other expenses such as setting up the store, buying the necessary equipment, and hiring staff.

• Licensing Fee: This fee is significant among the investments, which is about ₹2.3 crore, and why’s that? Well, this fee is imposed by Starbucks if you want to use their brand and systems in your business.
• Location Costs: This is the key emphasis by Starbucks where they open stores in select sites like malls, airports, and business hubs. The expenses for taking such locations can be as low as ₹4 lakhs or can go up to ₹10 lakhs depending on the city in question.

Ongoing Expenses and Profitability

When a Starbucks store is opened, there are ongoing expenses on a day-to-day basis for the customers so that the store can carry out its services, you know? And just so you know, these expenses include rent, staff salaries, electricity, and other costs that arise. Payment to Starbucks for advertising is a part of the royalty fee, which they deduct from the sales revenue.

Not to mention that in the case of profits, a Starbucks that is situated in the right location and is operated correctly can earn an annual revenue of around ₹9.36 crore. Though, it is true that the actual take-home profit can vary widely depending on various factors, such as the location, the efficiency of the operations, and the management of the store.

Application Process for a Starbucks Licensed Store

Let’s say you now know how much it really costs to start a Starbucks franchise in India, and now you want to know how to proceed next, like how to apply for it, right? Well, here’s how you should go about it:

• Financial and Business Requirements: You need to have a minimum asset level of ₹5.2 crore at the time of applying, and just so you know, it is an added advantage if you have a background in the food and beverage business.
• Submit an Application: First, you make their web application. You will provide your business experience, financial condition, and location, which Starbucks outlet you wish to get your license, on the form.
• Evaluation: Only then, the Starbucks team will assess your application, verify your financial status, and decide if you are a good fit for managing a Starbucks store. Let’s say if they find your information is good enough for a start, they will get back to you for further negotiation.
• Training and Agreement: After approval, you and your staff need to participate in training programs to get familiar with the Starbucks store operations, which are an important part of the Starbucks license program, you know? Only after that, do you sign a franchise agreement, which elaborates on the obligations and instructions to be followed in the operation of your store.

NOTE: Make sure you know that it is not a good thing to always consider the words written on the internet 100% and facts. You should be doing a little bit of your own due diligence too because with the investment side of things with many franchise opportunities, things are changing quite a bit in a matter of just a few years.