Franchise Setup Cost for Restaurants

Setting up a restaurant franchise involves a range of costs depending on the business model—quick service, casual dining, or fine dining. Understanding these components is key to planning and ROI estimation.

Quick Service Restaurants (QSRs) like Wow! Momo, Giani’s, or Burger Singh typically require an investment of ₹8–20 lakhs. These operate from compact spaces (100–300 sq ft) and focus on high-volume, low-wait-time service. Kitchen equipment, branding, and franchise fees form the major cost elements.

Casual dining brands like Biryani Blues or Chaayos may require ₹30–60 lakhs, depending on location and seating capacity. Costs include interiors, kitchen infrastructure, licensing, and staff training. Casual dining usually needs 500–1000 sq ft space.

Fine-dining franchises like Punjab Grill or Mainland China demand ₹1.5–3 crores, mainly due to premium interiors, larger staff, menu complexity, and location requirements (typically 2000+ sq ft in prime urban areas).

Franchisees also need to budget for working capital (3–6 months), marketing, GST registration, FSSAI license, and compliance with safety norms.

Most franchisors charge a one-time franchise fee (₹2–25 lakhs) and may take a monthly royalty (4–8%) on gross sales. ROI timelines vary from 12 months (QSR) to 3 years (fine dining).

Understanding these cost layers ensures informed investment and successful restaurant franchise setup.