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5 Arguments in Favor of Starting a Coffee Franchise in India

5 Arguments in Favor of Starting a Coffee Franchise in India

A significant portion of the F&B business is made up of coffee chains and cafés. espresso bars like Starbucks. Due to their established brands and laid-back environments, Gloria Jeans, Costa Coffee, and the Coffee Republic have all had enormous success. For instance, Starbucks may be mistaken for a coffee shop that also operates as a library. Because so many members of Generation Z and Millennials choose to work, study, and hang out at coffee shops like Starbucks, it has thoroughly embedded itself into our way of life and become an essential component of our society.

Shortly put, coffee chain locations provide more than just tasty brew. However, this market is highly competitive, and reputable coffee franchises in India frequently face competition from independent coffee shops and cafes. Due to this, business owners and chefs in the sector are always being compelled to innovate and actively interact with their clients. Although one would want to write off the coffee culture as just an American whim, the market is also incredibly ripe in India. Over half of Indians, it has been estimated, routinely consume coffee from cafés.

By introducing us to international menus, the quick invasion of foreign companies like Starbucks, Dunkin Donuts, and Cafe Mocha has also fueled the consumption of coffee. Furthermore, there is a growing need for coffee to go. More than 80% of those who drink coffee do it at home or at work. A coffee start-up in India named Blue Tokai recognised this trend and offers online coffee shopping with doorstep delivery for coffee enthusiasts. Given that India is one of the top 10 coffee-producing nations, the proliferation of Indian coffee companies is not unexpected.

These figures indicate that the coffee shop and cafe industry provide an appealing investment and business potential. An indication that coffee consumption is rising along with the industry’s rapid expansion is India’s multicultural, fast-paced development. If there was ever a good time to buy a coffee franchise in India, it is right now. In order to swiftly develop in India, some coffee shops have also turned to the coffee franchise model. Costa Coffee, Brewberry’s Cafe, Starbucks, Cafe Coffee Day, and Georgia Coffee are among the businesses on the list.

Reasons to start a Coffee Franchise in India

Little Space | Big Profits
Consistent growth | Global exposure
Simple access to skilled workers | Training Support
Brand recognition and marketing assistance
Possibilities for networking and space for creativity

There are a number of reasons why you should think about investing in a coffee chain, including the burgeoning franchise sector, the availability of a tried-and-true business model, and potential for innovation. The top five are as follows:

Little Space | Big Profits

The vending machines are very tiny and can simply be fitted in a small location, so a coffee shop doesn’t need much room to operate. You also don’t need a large seating area because most customers like to consume their coffee while travelling or on the go. These elements work together to help you save quite a lot on your real estate purchase or rental. Additionally, because you are investing in a tried-and-true company strategy, your time to break even is shortened and you have access to a network of devoted clients.

Consistent growth | Global exposure

A Deloitte and FICCI analysis projects that by 2025, India’s per capita income would rise to Rs 2, 66,500 and discretionary expenditure will rise by up to 45%. A healthy level of consumption is being driven by the economic expansion of India and the rise in disposable income. Indians in big cities today don’t hesitate to pay Rs 200–400 on a single coffee cup. Indians are not averse to exploring foreign food and novel goods or services, since various multinational chains are spreading in the country. Due to the increased exposure abroad, Indians will also be less reluctant to pay more for outstanding coffee, design, and atmosphere.

Simple access to skilled workers | Training Support

It’s not difficult to learn how to operate a coffee vending machine, and it’s simple to find skilled personnel who can run the counter efficiently. Since a strong workforce is essential to a company’s success, buying a coffee franchise in India won’t require you to spend hours searching for the ideal candidate. Also with minimal to no experience, you could recruit someone and have them prepared for the first day of work in less than one week. Additionally, the majority of Indian coffee franchise businesses provide thorough training.

Brand recognition and marketing assistance

The fact that a brand doesn’t have to be created from scratch is what attracts so many individuals to invest in a coffee franchise in India. Brand value, awareness, and recognition—all vital components of a successful business—are there from the start. As previously said, this aids in saving money that would have otherwise been spent on marketing and client acquisition. With such a strong consumer base, you can expect steady business from the moment you open for business.

Investing in a coffee business also entails receiving essential marketing assistance. A franchise owner must pay a fee that covers marketing and advertising expenses. This implies that the franchisor constantly conducts marketing efforts and aids in your client attraction, which helps you save time and effort and allocate it to managing your coffee shop more effectively.

Possibilities for networking and space for creativity

There is frequently very little potential for originality left in almost any well-established franchise concept. However, you have a lot more options with a coffee business. Because of this, no two Starbucks are exactly same. You have significantly greater latitude and control over how you wish to handle the mood, design, and style of the firm. Investing in a coffee franchise should be at the top of your list if you want to inject some innovation into your company. Additionally, this is a wonderful chance to meet new people and give back to the neighbourhood. In addition, having a franchise may help you expand your network, mingle, and get active in your community.

Before starting a coffee franchise in India, there are certain things to consider

Let’s concentrate on the information you need to know before signing a contract with your franchisor now that you are aware of why a coffee franchise in India is an excellent business opportunity. Here are four among the most crucial factors you need to carefully take into account:

Do you recognise the client?

One of the most crucial things a coffee franchise owner can do in order succeed is to comprehend the main clientele. For a very obvious reason, Starbucks and other well-known worldwide coffee businesses first encountered opposition in the Indian market. They didn’t spend enough time getting to know their consumers. What is successful in the US or European markets may not always be successful in India. In a nation where tea drinkers predominate, the technique of “Indianization,” or adapting to the Indian market, is essential for a coffee business. How can you persuade someone to purchase a pricey cup of coffee drinks when they are happy with the widely accessible and significantly less priced “filter coffee”? Do you know what the majority of Indians choose to eat with their coffee or what sort of coffee they typically drink? What is the typical age of your clientele? What kind of occupations do they have?

Before you consider purchasing a coffee franchise in India, you need know the answers to a few key questions. In order to truly understand your consumers, it’s also a good idea to seek input through a market study and delve deeply into its findings.

Would you be open to automating?

You should be receptive to automation to save expenses and boost productivity, from the PoS system to internet marketing. You must take into account this trend since India’s digital services have grown rapidly, encouraging a cashless and paperless economy. Having useful technology in your coffee shop not only increases productivity but also enhances client satisfaction, which encourages repeat business. Free Wi-Fi, a sufficient number of charging stations, and support for wireless charging are also included in this.

Have you got the proper address?

In India, what could be effective in a metropolis might not be in a non-metropolis. This relates to the menu, setting, and cost. Before choosing a place, you might wish to evaluate a few other options. Although a busy location may benefit your business, it’s vital to keep in mind that people don’t often buy coffee on a whim. Professionals and groups of friends that visit your coffee shop do so because of the cuisine, services, atmosphere, and experience you provide. Therefore, it makes no difference where your business is located if you can commit to providing a distinctive coffee experience because people will flock to you.

Are you able to provide a satisfying client experience?

Customers visit coffee shops for more than simply their daily caffeine fix, as was already said. It is also where crucial gatherings like study groups and get-togethers with friends take place. For this reason, your coffee shop has to have a warm, hip, and relaxed atmosphere. With the decor, you want to entice guests and keep them returning for more. You must make sure that the user experience is smooth from the moment a customer arrives until they are served their coffee.

The same includes the over-the-counter service as a crucial component. In particular, if the menu is vast or contains unfamiliar international names, the person working the counter has to be kind, amiable, and informed in order to assist the consumer in making a choice. The ability for customers to place an order in advance and pick it up at the counter or place an order from their table is another way that a technology-first strategy may assist to enhance the experience. No matter what you choose to add, be sure to have a distinct value proposition and to prevent people from going to your competitors’ websites.

Are you prepared to open your own franchise for coffee?

With this information in hand, you should be able to choose which coffee franchise in India provides the most degree of freedom, the highest profit margins, and the appropriate assistance and training. Spend some time imagining how you would like to operate the business and the distinctive business model you can add to it as you choose the best franchise to invest in. If you need further help with any of the above-mentioned questions, think about speaking with a franchise solutions partner like FranFindr. We provide aspiring investors and business owners with a comprehensive range of franchise solutions, including as legal, financial, and real estate services. We will contact you when you complete the Investor Query Form.

An engineer by qualification, Gaurav started his career in sales and marketing due to his affinity towards networking with people. After learning the tips and tricks of the trade, he made a fresh start as an entrepreneur in the franchising industry back in early 2018, with a vision to bring order and transparency to an unorganized sector. He founded and spearheaded Frankart Global Private Limited, where he consulted, developed, and scaled more than 120 domestic and international brands all over India ranging from different industries such as food & beverage, beauty & wellness, and FMCG retail to name a few. Post-Covid, in mid-2021, he developed FranDocX, India’s first ready-to-use franchise documentation service portal, for the MSME entrepreneurs who were severely affected by the pandemic, and wanted to avail an affordable franchise solution service. His aim is to regularize ethical business practices in the franchising sector so that a greater number of investors can participate and avail the benefits of a structured franchise framework.

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