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BBFT Success Story Franchise stories

Brewing Ambition: NBC’s Journey to a $2.3 M Pre‑Series A Round || A BBFT‑Fueled Growth Story

Nothing Before Coffee (NBC) first opened its doors in Jaipur in 2017, offering freshly brewed, mass‑premium coffee at prices as low as ₹100. Within six years, it had captivated urban drinkers and sold over Ten million cups, growing to 84 outlets across twenty‑six cities. From Jaipur  to Porto in Portugal, NBC’s rapid rise never felt accidental—it was a result of a compelling brand promise, data‑driven site choices, and the right strategic partners.

A Fresh Infusion of Capital

Earlier this year, NBC secured a $2.3 million pre‑Series A round led by Prath Ventures, valuing the company at $6.26 million. Rather than merely topping up cash reserves, NBC’s leadership views this investment as a cornerstone for their next chapter. Funds will be allocated to:

  • Tier II/III Expansion: Building on underserved markets revealed by internal analytics.
  • Tech Upgrades: Implementing AI‑based tools to refine site selection and optimize store performance.
  • Menu Innovation: Scaling bestseller items like the signature “Shrappe” shakes and experimenting with seasonal offerings.

Co‑founder Akshay Kedia reflects, “This round isn’t just about capital—it’s a vote of confidence in our mission to make quality coffee an everyday luxury for every Indian.”

From Eight Stores to Seventy‑Five: The BBFT Edge

While NBC’s in‑café experience and product innovation won customer loyalty, BBFT’s strategic storytelling and market analysis quietly amplified NBC’s investor visibility. In early coverage, BBFT explored how NBC balanced affordability with a premium feel—serving a broad menu of over a hundred beverages at ₹100–₹240—and how this pricing strategy enabled a 48 percent repeat rate. By sharing bespoke coffee market heatmaps and consumer‑trend snapshots, BBFT helped NBC’s leadership pinpoint ideal zip codes for new outlets, reducing site‑scouting time by nearly a third.The collaboration reached a new milestone when NBC opened its first international café in Porto, Portugal

Rohit Singh, Founder and CEO of BBFT, recalls, “Joining NBC’s journey as an accelerator has been incredibly rewarding. When they first approached us, they had just eight outlets. By tapping into our investor network and guiding their fundraising, we helped them grow to 84 locations in just two years—and then celebrate a successful exit in record time.”

Brewing the Next Chapter: Innovation and International Footprints

With $2.3 million now fueling their ambitions, NBC plans to open over 150 outlets by 2026, particularly in Tier II and III towns where coffee access remains limited. Technological enhancements—such as mobile pre‑ordering and AI‑powered loyalty programs—are set to roll out later this year. Meanwhile, NBC’s first European café in Porto signaled its readiness for global expansion.

Conclusion: From Cup to Capital, a Recipe for Success

Nothing Before Coffee’s $2.3 million pre‑Series A raise is more than a financial milestone—it exemplifies how a strong product, guided by market intelligence and backed by strategic partnerships, can scale rapidly. By aligning NBC’s consumer insights with BBFT’s franchise expertise and investor network, the brand transformed from an eight‑store startup into a coffee powerhouse on track for eighty four. For F&B entrepreneurs and investors alike, this story offers a clear lesson: when innovation, data, and collaboration come together, the results can be truly transformative.

If you’re ready to unlock similar growth for your F&B venture, explore how BBFT’s strategic partnerships can help you connect with the right investors and optimize your expansion blueprint.

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Brand Stories Industry Story

Indonesian Coffee giant Kopi Kengagan Enters India; Sneak peak into Kopi Kenangan’s Journey to India

Introduction

India’s love affair with coffee is getting stronger — and the latest entrant into this evolving space is a brand that’s already stirred up Southeast Asia. Meet Kopi Kenangan, Indonesia’s coffee unicorn, entering India as Kenangan Coffee with plans to open 50 outlets in the next 3 years, backed by a ₹40 crore investment.

This isn’t just another international café chain eyeing India. Kopi Kenangan is bringing a mix of tech, emotion, and affordability — setting it apart in a crowded market.

A Unicorn with a Purpose: Brewing Memories, Not Just Coffee

Founded in 2017 by Edward Tirtanata and James Prananto, Kopi Kenangan was born out of a gap between overpriced global coffee chains and inconsistent local cafés. Their vision? Serve high-quality coffee at an affordable price.

With over 1,000 outlets across Southeast Asia, funding from Sequoia Capital, and a valuation exceeding $1 billion, the brand became Indonesia’s first F&B unicorn — and they’re just getting started.

The name Kopi Kenangan translates to “Coffee with Memories” — a powerful brand emotion that now travels to India under the name Kenangan Coffee.

Edward Tirtanata, Co-Founder of Kopi Kenangan says, “We’re not just selling drinks. We’re offering people a moment to remember — every single time,”

India Playbook: Go Big, Move Fast, Stay Local

Kenangan Coffee’s India strategy is well thought out, aggressive, and hyper-local:

  • Café Formats: Launching with both full-sized cafés (800–1000 sq. ft.) and grab-and-go outlets (200–300 sq. ft.) across Delhi NCR and Mumbai.
  • Digital DNA: A mobile-first experience from day one — app-based ordering, loyalty programs, and delivery built in.
  • Adapted Menus: Featuring 35+ beverages and 20+ food items, tailored for Indian taste preferences.
  • Revenue Mix: Unlike their other markets, food will contribute 25% to revenue in India — a nod to how food-centric Indian café visits are.

What Sets Kopi Kenangan Apart?

India already has its fair share of café brands. But Kopi Kenangan stands out with a few powerful USPs:

1. Gula Aren – The Palm Sugar Gamechanger

Their signature ingredient — Gula Aren (a traditional Indonesian palm sugar) — replaces refined sugar, delivering a rich, caramel-like flavor that’s also more natural and healthier.

2. Tech at the Core

Kopi Kenangan isn’t just a café — it’s a tech-enabled F&B company. Their app drives orders, engagement, and loyalty, offering a seamless experience across touchpoints.

3. Affordable Premium Positioning

It’s not luxury pricing, and it’s not low-cost café fare either. Kenangan Coffee hits the sweet spot — specialty coffee and elevated experience without breaking the wallet.

Why India is Ready for Kopi Kenangan

India’s urban coffee market is growing at 10–12% CAGR. With more Gen Z and millennials spending time at cafés for work, hangouts, and lifestyle, the demand for experience-driven, health-conscious, tech-first brands is at an all-time high.

Kenangan Coffee checks all the right boxes:

  • Emotional connect through storytelling.
  • Healthier, unique ingredients like palm sugar.
  • Frictionless digital experience for convenience-driven consumers.

The Bigger Picture: A New Wave of Global Disruptors

Kopi Kenangan’s entry isn’t just about one brand — it reflects a broader trend of global F&B disruptors eyeing India. With recent entrants like Tim Hortons, Pret A Manger, and Popeyes, the Indian market is becoming a hotspot for globally scalable, tech-savvy brands.

For franchise partners, Kenangan Coffee presents a high-potential, proven model with room for fast, local growth.

For customers — it’s a refreshing new story in their coffee routine.

Final Thoughts: A Cup Full of Potential

Kopi Kenangan isn’t just testing the waters in India. It’s here to make an impact — blending global brand power with deep local insights.

If it continues on its current path, Kenangan Coffee could become a breakout brand in India’s café culture, offering not just better coffee, but a more meaningful experience.

So next time you’re deciding between the usual brew or something new — take a sip of memory. You might just find your new favorite.

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Industry Story

What Indian F&B Investors Can Learn from the Fall of Major F&B Brands

 In 2023, India’s F&B sector witnessed over 200 brand closures, even as the market reached an impressive valuation of ₹5.5 lakh crore. The contrast between soaring market potential and frequent brand failures offers a stark lesson for investors. From the localization blunders of Dunkin’ Donuts to the reckless expansion strategies of Barista, the failures of these brands underscore key missteps that can be avoided. This guide details five crucial lessons to help investors navigate the competitive landscape.

 Misreading the Indian Consumer: Hyper-Localization Wins

A recurring pitfall in the Indian F&B space is the failure to adapt global models to local preferences. A 2023 Zomato report revealed that 65% of Indians prioritize regional flavors when dining out, while only 12% prefer standardized global menus. Dunkin’ Donuts, which operated in India from 2012 to 2018, stubbornly adhered to its international menu of donuts and coffee. As a result, its metro city outlets experienced footfall figures that were 30% below the industry average. In contrast, Third Wave Coffee, which operated from 2021 to 2023, successfully blended global specialty offerings with hyper-localized items such as masala chai croissants and filter coffee cold brews. This strategic adaptation drove a remarkable 150% revenue growth and enabled the brand to expand to 45 outlets within just two years. The lesson here is clear: brands that invest in hyper-localization not only win customer loyalty but also significantly boost repeat patronage, as Nielsen’s 2023 findings suggest localized menus drive 22% higher repeat customer rates.

 Overexpansion Without Strong Unit Economics: Sustainable Growth Beats “Scale First, Profit Later”

Many brands have fallen prey to the temptation of rapid expansion without establishing profitable unit economics. Research from McKinsey in 2022 indicates that brands expanding before achieving break-even status at the outlet level often suffer up to a 40% decline in overall profit margins. Barista, for instance, was once a dominant coffee chain but expanded too quickly between 2000 and 2010, opening more than 200 outlets without adequately controlling operational costs. In contrast, Café Coffee Day, which operated between 1996 and 2015, employed a focused strategy targeting highways and college campuses. This measured approach resulted in operational costs that were significantly lower, and the company maintained an 18% EBITDA margin. Café Coffee Day’s “hub-and-spoke” model, which effectively connected high-margin city hubs with suburban outlets, kept costs roughly 30% lower. Investors should, therefore, seek out brands that prioritize sustainable, profit-driven growth over aggressive and unchecked expansion.

 Location Strategy: Data Over Instinct for Higher Margins

The choice of location is pivotal to the success of any F&B venture. Premium mall locations often come with steep rental costs, which can erode profit margins by as much as 25%. Research shows that rent can account for 15–20% of revenue in these areas, compared to only 8–12% in high-footfall locations such as transit hubs and mixed-use spaces. Jamie’s Italian, operating from 2017 to 2020, provides a clear example of the pitfalls of poor location strategy. By opting for premium mall spaces, the brand suffered a 30% lower occupancy rate despite boasting an average order value of over ₹2,500. In contrast, the brand Social, which has been operational since 2015, targeted mixed-use spaces that cater to both work and leisure. This strategic choice enabled Social to generate between ₹8 and ₹10 lakh per month per outlet with average bills around ₹1,200. The evidence underscores the importance of data-driven site selection that aligns with customer demographics and spending patterns.

 Operational Pitfalls: Avoid the Supply Chain Time Bomb

Operational efficiency is the backbone of any scalable F&B operation, yet many startups falter due to supply chain inefficiencies. The NRAI 2023 Report notes that such inefficiencies can result in operational costs that are 15% higher, contributing to the failure of 35% of F&B startups within their first year. Subway provides a noteworthy example of how effective operational strategies can create a competitive advantage. By partnering with local dairy cooperatives for cheese and employing AI-driven demand forecasting, Subway was able to reduce costs by 18% and cut waste by 25%. These operational innovations not only streamlined the supply chain but also ensured consistent product quality across outlets. For investors, the key takeaway is to favor brands with robust supply chain management and a proven ability to control costs through operational excellence.

 Digital Transformation: No Apps, No Growth

In today’s digital era, an app is not a luxury—it’s essential for survival. Data from Swiggy in 2023 shows that brands leveraging mobile apps and loyalty programs enjoy up to 50% higher peak sales, while those without a digital strategy risk experiencing a 30% decline in sales. The decline of Nirula’s, which operated between 2010 and 2018, illustrates the perils of neglecting digital transformation. Without an app and with limited delivery options, Nirula’s saw its sales plummet by 30% after 2015. On the other hand, Chaayos, which has been expanding since 2016, capitalized on technology by offering customizable options like “adrak-lemon chai” through its app and building a loyalty base of 1.2 million users. This digital edge allowed Chaayos to expand rapidly, reaching over 200 outlets. The lesson for investors is clear: in the modern F&B landscape, technology integration is not optional but a critical driver of growth and customer engagement.

Conclusion: The Investor Checklist

As the F&B market in India continues to evolve, the brands that succeed will be those that learn from past failures. Investors must ask tough questions: Does the brand localize its menu as effectively as Third Wave Coffee? Does it expand sustainably like Café Coffee Day? Is its pricing strategy in tune with consumer expectations, as evidenced by Starbucks’ post-2016 adjustments? And does it leverage digital technology to stay competitive? By addressing these questions and relying on data-driven insights, investors can avoid costly mistakes and identify the next big success in India’s fiercely competitive F&B market.

For those seeking to delve even deeper into the nuances of F&B investment, a comprehensive investor checklist is available, featuring unit economics benchmarks, location heatmaps for 15 major Indian cities, and a detailed supply chain audit template.

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Franchise stories Industry Story

5 Biggest Mistakes First-Time Franchise Investors Make (And How to Avoid Them!)

Thinking of Investing in a Franchise? Read This First!

Franchising is one of the fastest-growing business models, offering investors a proven path to success. According to the Franchise Business Economic Outlook, the F&B franchise industry in India is valued at over ₹5,000 crore and growing at 30-35% annually.

With numbers like these, investing in a franchise might seem like a no-brainer. However, nearly 30% of new franchise businesses struggle or shut down within the first five years due to mistakes that could have been avoided.

Before you sign any franchise agreement, avoid these five costly mistakes!

1. Mistaking Popularity for Profitability

Just because a franchise is trending doesn’t mean it’s a smart investment. Many first-time investors get caught up in the hype of viral brands—a burger chain all over Instagram or a bubble tea shop with long queues—without asking the most important question: Is this business actually profitable?

Rohit Singh, Founder and CEO of BBFT, emphasizes, “A franchise isn’t successful just because it’s popular today. True success comes from a solid business model, not social media buzz. A trending franchise today can vanish tomorrow if it lacks a strong business model.”

How to Avoid This Mistake:

✔ Study the Brand’s Financials: Review the Franchise Disclosure Document (FDD) for revenue, profitability, and expenses.

✔ Talk to Existing Franchisees: Get real feedback on challenges and profitability.

✔ Check Market Demand: Is the product a long-term need or just another short-term trend?

2. Underestimating the True Cost of Ownership

Most franchise brands advertise their franchise fee, which can range from ₹10 lakh to ₹1 crore. However, that’s just the tip of the iceberg. Many investors underestimate the real cost of running a franchise.

Additional Costs That Should Be Taken Into Account:

✅ Real Estate & Rent: A prime location can cost lakhs in monthly rent.

✅ Interior Fit-Outs & Equipment: Custom branding, furniture, and kitchen setup add to expenses.

✅ Marketing & Royalty Fees: Most brands charge 5-10% of revenue as royalties, plus additional advertising costs.

✅ Working Capital: Brands may require 3-6 months of operational funds before turning profitable.

Case Study: Starbucks vs. Local Coffee Brands

A Starbucks franchise in India requires ₹3-5 crore in investment, whereas brands like Tan Coffee or Altogether Experimental need significantly less with a faster break-even period. Picking a franchise that fits your financial capacity is crucial.

How to Avoid This Mistake:

✔ Create a detailed financial plan covering all costs before investing.

3. Picking the Wrong Location

The #1 reason franchises fail? Poor location choices. Even the most popular franchise can struggle in a bad spot.

What Defines a Good Franchise Location?

  • High Footfall Areas: Malls, corporate hubs, and high streets ensure steady traffic.
  • Right Demographics: A premium café won’t work in a price-sensitive neighborhood.
  • Balanced Competition: Too many similar brands nearby can hurt your sales.

Real-Life Example: Domino’s Location Strategy in India

Domino’s India (operated by Jubilant FoodWorks) doesn’t just pick locations based on visibility—they use heatmaps, data analytics, and income-level studies to determine where a new store can thrive. Franchisees benefit from a research-backed location strategy rather than relying on guesswork.

How to Avoid This Mistake:

✔ Use data-backed location research instead of relying on instinct.

4. Chasing Short-Term Hype Instead of Long-Term Growth

Many first-time franchise investors focus only on what’s popular today rather than evaluating whether the brand can sustain long-term success. Just because a franchise is booming now doesn’t mean it will thrive 5-10 years down the line.

Why Long-Term Growth Matters:

✅ Market Saturation: Some brands expand too quickly and struggle to maintain quality.

✅ Scalability: A concept that works in metro cities may fail in smaller towns.

✅ Supply Chain Strength: A weak backend can create operational bottlenecks.

Case Study: The Boom & Slowdown of International QSR Brands in India

Several global QSR chains—like Dunkin’ Donuts—entered India with high expectations but struggled due to poor adaptation to local preferences and an unsustainable expansion pace. By 2018, Dunkin’ shut over 50% of its outlets in India, proving that expansion without a long-term plan can backfire.

Rohit Singh, Founder and CEO of BBFT, advises, “The best franchise investments aren’t the ones making the most noise today—they’re the ones quietly building a foundation for the next decade.”

How to Avoid This Mistake:

✅ Assess the Brand’s Expansion Roadmap – Does it have a clear, sustainable plan?

✅ Analyze Industry Trends – Is demand increasing or just a short-term fad?

✅ Look at Financial Performance – Is revenue stable, or does it fluctuate?

5. Not Understanding the Franchise Agreement

The franchise agreement is legally binding, but most first-time investors don’t read the fine print. This can lead to unexpected restrictions and financial losses.

Key Clauses to Watch Out For:

✅ Territorial Rights: Does the brand allow another franchisee near your location?

✅ Exit Clauses: What happens if you want to sell your outlet?

✅ Renewal & Royalty Fees: Some brands increase fees every few years.

Case Study: KFC Franchise Agreements in India

Several franchisees of KFC India found themselves facing unexpected royalty hikes and operational constraints after signing agreements. Some struggled with rising supply costs dictated by the brand, making profitability challenging. Without proper legal review, these issues became long-term financial burdens.

How to Avoid This Mistake:

✔Hire a franchise lawyer to review the agreement before signing.

Final Thoughts: Be a Smart Franchise Investor!

Franchising can be a highly profitable investment, but only if done the right way. Avoiding these five mistakes can save you lakhs in losses and set you up for long-term success.

Quick Recap:

✅ Research Beyond the Hype – Trends fade, solid brands stay.

✅ Calculate Total Costs – Factor in hidden expenses.

✅ Choose the Right Location – Footfall, demographics, and competition matter.

✅ Focus on Long-Term Growth – Look at scalability and market sustainability.

✅ Read the Agreement Carefully – Know your rights and obligations.

Looking for the Right Franchise Opportunity?

Want to invest in a franchise with confidence? BBFT helps investors like you find the most profitable opportunities.

Contact us today to start your franchising journey the right way!

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Industry Story

Why Franchising is the Fastest Way to Scale a Business?

The Franchise Boom in Indian F&B

The Indian food and beverage (F&B) industry is one of the fastest-growing sectors, expected to reach USD 66 billion by 2025 (Source: FICCI-PwC Report 2022). Within this, the franchise model has emerged as a dominant force, contributing over 30% of the organized F&B market (Source: National Restaurant Association of India – NRAI Report 2023). This success stands in stark contrast to the 50-60% failure rate (Source: India Food Services Report 2022, NRAI) of independent restaurants within their first three years. The challenges of running an independent F&B business—ranging from operational inefficiencies to regulatory complexities—are particularly pronounced for entrepreneurs from non-F&B backgrounds. Franchising, however, provides a structured, scalable solution that minimizes risks and maximizes growth opportunities.

How Franchising Accelerates Scaling and Mitigates Risks

Franchising eliminates the guesswork associated with launching a restaurant. Established brands provide standardized operating procedures, comprehensive staff training, and a well-structured supply chain. Franchisees benefit from tried-and-tested business models that optimize kitchen workflows, reduce food wastage, and enhance service quality. This structured approach minimizes inefficiencies, ensuring quicker scalability. Franchisees also receive extensive training and operational support, ensuring staff efficiency and service excellence from day one. Standardized processes streamline kitchen operations, inventory management, and customer service, significantly reducing costly mistakes.

Data-Driven Decisions and Market Insights

Franchisors leverage advanced analytics to offer franchisees data-driven insights on menu optimization, customer preferences, and peak business hours. In India, where consumer preferences vary across regions, access to such data allows franchisees to make informed decisions on product localization and pricing strategies. Franchisors also use predictive analytics to guide location selection, ensuring high footfall and revenue potential. This data-driven approach helps franchisees avoid financial miscalculations and operational blind spots that often lead to failure.

Shared Risk, Branding, and Marketing Support

Marketing is a major challenge for independent restaurant owners, requiring significant investment in brand building and customer acquisition. Franchising mitigates this risk through collective marketing funds, where franchisees contribute to national and regional advertising campaigns managed by the franchisor. A recognized brand name brings immediate customer trust and footfall, eliminating the struggle of brand-building. Franchisees benefit from national advertising campaigns, professional marketing strategies, and social media promotions, enhancing visibility and customer engagement.

Robust Supply Chain and Cost Control

Sourcing quality ingredients at competitive prices is a significant challenge, especially for independent restaurateurs. Franchisees benefit from bulk procurement deals, reducing costs and ensuring supply chain reliability. Franchisors maintain strong relationships with suppliers, ensuring quality consistency and cost-effectiveness. Centralized procurement allows franchisees to access high-quality ingredients at reduced rates, eliminating supplier-related disruptions.

Faster Market Penetration with Local Partners and Regulatory Compliance

Franchising enables rapid expansion by leveraging local entrepreneurs who understand their market demographics. This local expertise is crucial in India, where consumer behavior, taste preferences, and cultural norms vary significantly between states and even cities. By partnering with local franchisees, brands can customize offerings while maintaining operational consistency, allowing for faster and more effective market penetration. Additionally, franchisors assist in obtaining necessary licenses and adhering to health and safety regulations, reducing the administrative burden on franchisees. Regular audits and compliance support further mitigate legal risks, ensuring smooth operations.

Financial Stability and Predictability

Franchisors provide clear financial frameworks, including investment breakdowns, expected ROI, and operational cost projections. This transparency helps franchisees plan better, reducing financial risks and ensuring a realistic path to profitability. Unlike independent restaurateurs who often underestimate costs and overestimate revenue, franchisees have access to well-documented financial models, minimizing the risk of business failure.

The Pitfalls of Independent F&B Ventures

Operational Blind Spots

Running an independent restaurant involves managing inventory, labor costs, and customer service. Without experience, entrepreneurs often struggle with excessive food wastage, inefficient staffing, and poor service standards. In India, where food costs and rental expenses are rising, such inefficiencies can quickly erode profitability.

Regulatory Hurdles

India’s F&B sector is highly regulated, with multiple licenses required, including FSSAI certification, health and fire safety approvals, and state-specific liquor licenses. Navigating these regulatory requirements can be daunting for newcomers, leading to compliance failures, fines, or even business shutdowns.

Branding and Consumer Trust

Brand recognition plays a crucial role in attracting customers. Independent restaurants must build their brand from scratch, often requiring years of investment in marketing, customer engagement, and reputation management. Many fail to establish a strong identity, resulting in inconsistent customer footfall and low brand recall.

Supply Chain Challenges

Sourcing quality ingredients at competitive prices is a significant challenge, especially for independent restaurateurs. Franchisees, on the other hand, benefit from bulk procurement deals, reducing costs and ensuring supply chain reliability. In India, where supplier inconsistencies and logistical delays are common, having a structured supply chain network is a game-changer.

Financial Miscalculations

Underestimating costs and overestimating revenue potential are common pitfalls for first-time restaurant owners. Many entrepreneurs miscalculate break-even timelines, leading to cash flow issues. Hidden costs, such as licensing fees, unexpected repairs, and seasonal sales fluctuations, further strain budgets, increasing the risk of business failure.

Case Study: How Franchising Transformed an Entrepreneur’s Journey?

The Struggle of an Independent Café

Rohit, a passionate entrepreneur with no prior experience in the F&B industry, dreamed of running a high-end coffee café in Bengaluru. Investing INR 80 lakh, he leased a prime location, hired staff, and launched his brand. However, he soon realized that running a restaurant required more than just a passion for coffee. Vendor inconsistencies led to fluctuating ingredient costs, marketing efforts failed to attract repeat customers, and managing day-to-day operations became overwhelming. Despite pouring his savings into the venture, Rohit struggled with high rental costs and operational inefficiencies. After two years of mounting losses, he was forced to shut down, losing his investment.

The Success of an NBC ( Nothing Before Coffee) Franchise

On the other hand, Akshat, a former tech professional with no prior experience in F&B, was looking for a business opportunity that would allow her to transition into entrepreneurship with lower risk. HE chose to invest INR 60 Lakh in NBC’s franchise, leveraging the brand’s established reputation, structured operational model, and comprehensive training program. With support from the franchisor, he secured a strategic location in Koramangala, ensuring a steady flow of customers.

From the start, Akshat benefited from a centralized supply chain, which meant consistent ingredient quality and cost-effective bulk purchasing. Unlike Rohit, he did not have to navigate supplier negotiations or worry about fluctuating raw material costs. The franchisor also provided a well-structured marketing strategy, including digital campaigns on Swiggy and Zomato, which helped drive online and offline traffic to her café.

Within a year, Akshat was at an ROI of 45%.

Conclusion: Is Franchising the Right Path for You?

For entrepreneurs looking to enter the F&B industry in India, franchising offers a scalable, low-risk business model with structured support and brand recognition. While independent ventures demand extensive industry expertise and high capital risk, franchising provides a well-defined pathway to profitability.

If you’re considering investing in an F&B franchise, the next steps include researching top-performing franchises, consulting industry experts, and evaluating financial commitments. Attending franchise expos and reviewing Franchise Agreement can provide valuable insights before making a decision.

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Industry Story

The Hidden Costs of Franchising: What Every F&B Investor Must Know

More Than Just the Setup—Why Smart Investors Should Look Beyond the Surface

Franchising is often celebrated as one of the most reliable ways to enter the ever-growing food and beverage (F&B) industry. The appeal is clear: you step into a business backed by an established brand, a proven model, and operational support designed to minimize the risks that come with starting from scratch.

But what many first-time investors overlook is that the initial setup cost is only part of the story. Beyond the visible investment lies a series of ongoing and often underestimated expenses that directly impact profitability. Recognizing and planning for these hidden costs can be the difference between long-term success and constant financial strain.

To paint a clearer picture, here’s a deep dive into the real costs behind launching and running a franchise.

The Franchise Fee: Securing the Brand Advantage

Every franchise journey begins with the franchise fee—a one-time payment for the right to operate under a recognized brand. This fee typically falls between ₹10 lakh and ₹20 lakh, depending on the brand’s market presence, outlet format (whether it’s QSR, café, or fine dining), and location.

This fee grants access to far more than just a name. It covers:

  • Operational frameworks
  • Standardized recipes and sourcing partnerships
  • Staff training protocols
  • Marketing support

In short, it fast-tracks your entry into a market with an existing customer base, allowing you to bypass the costly trial-and-error period that independent ventures face.

Marketing Costs: Driving Local Visibility

A strong brand name might get customers through the door once—but it’s local marketing that keeps them coming back. Many investors are surprised to learn that national-level branding doesn’t replace the need for targeted, ongoing marketing at the outlet level.

Typically, a franchise requires a contribution of 2–5% of monthly revenue towards a central marketing fund. For an outlet generating ₹15 lakh per month, this amounts to ₹30,000–₹75,000 monthly.

Alongside this, additional local marketing is essential to capture attention in a crowded market:

  • Swiggy/Zomato promotions: ₹20,000–₹50,000 per month
  • Social media ads and influencer tie-ups: ₹50,000–₹1 lakh annually

These costs are critical for boosting footfall, increasing repeat business, and building community engagement around your outlet.

Taxes: Protecting Margins with Smart Planning

Taxation is another area where hidden costs quietly chip away at profits.

For most F&B outlets, the common tax structure includes 5% GST on sales without Input Tax Credit, meaning setup costs like raw materials, rent, and interiors don’t benefit from tax refunds.

Additionally, franchise fees and royalties attract 18% GST. So, if your franchise fee is ₹20 lakh, expect an additional ₹3.6 lakh in GST, bringing your total payment to ₹23.6 lakh.

Ignoring these obligations during financial planning can leave businesses scrambling to cover shortfalls, so accounting for them early is vital.

Licenses and Compliance: The Price of Legitimacy

Legal compliance is non-negotiable in the F&B industry, and securing the right licenses upfront prevents disruptions and penalties down the line.

Here’s what most outlets require:

  • FSSAI License: ₹15,000–₹25,000
  • GST Registration: ₹5,000–₹10,000
  • Fire Safety License: ₹30,000–₹50,000
  • Shop & Establishment License: ₹10,000–₹20,000
  • Municipality and Health Permits: ₹30,000–₹60,000

These licenses safeguard operations and build consumer trust. Skimping on compliance is never worth the risk.

Real Estate Costs: The High Price of Footfall

Ask any franchise owner, and they’ll tell you location is everything. But securing prime real estate comes with hefty upfront costs beyond monthly rent.

For a location with ₹1.5 lakh monthly rent, landlords commonly expect:

  • Security deposit: ₹4.5- 9 lakh (3-6 months of rent)
  • Advance rent: ₹1.5- 3 lakh (1-2 months upfront)

That’s nearly ₹10-12 lakh committed before even opening your doors. Still, these locations often justify the investment with higher traffic, better visibility, and stronger long-term returns.

Technology and Delivery Costs: Running a Modern Operation

With online orders contributing 30–50% of total sales in many concepts today, efficient technology is no longer optional.

Regular tech costs to factor in include:

  • Aggregator commissions: 15–30% per order on platforms like Swiggy and Zomato
  • POS and CRM systems: ₹5,000–₹15,000 per month

A smooth tech stack keeps operations efficient, enhances customer experience, and reduces errors—all crucial to sustaining repeat business in a digital-first market.

Long-Term Success Starts with Full Financial Clarity

Franchising continues to be one of the most rewarding ways to enter the F&B industry, but only for those who prepare with eyes wide open. These hidden costs may seem secondary at first glance, but they play a defining role in operational stability, customer retention, and profit margins.

A successful franchise isn’t just about the setup—it’s about the strategy behind sustaining it. When you budget thoughtfully and plan comprehensively, the path to scale becomes clearer, smoother, and far more profitable.

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BBFT Success Story Franchise stories

ATE x BBFT|| Where Coffee Meets Creativity|| A Franchise Opportunity Like No Other

ATE—Altogether Experimental—isn’t just a café; it’s a movement. Founded by visionary duo Vicky Mandal, a turnkey restaurant consultant and pastry maestro Anukriti Anand, ATE blends Australian brunch vibes with global flavors, inventive desserts, and specialty coffee. Now, partnering with BBFT, a leading F&B franchise aggregator, ATE is set to bring its unique “community-first” experience to cities nationwide.

A Vision Birthed by Culinary and Creative Expertise

Vicky, a turnkey restaurant consultant , envisioned a space where coffee experimentation and design thinking come together. His co-founder, Anukriti, honed her skills at IHM Pusa and The Oberoi’s pastry kitchen, developing a flair for innovative desserts and seasonal dishes. Together, they’ve cultivated ATE as a place that is “more than just a café,” in Vicky’s words, “but a hub where people can explore new flavors, find community, and experience creativity firsthand.”

Why ATE Stands Out: A Menu That Never Sleeps

Forget static menus in an industry increasingly reliant on frozen and proprietary food items. ATE sets itself apart by preparing the majority of its raw materials in-house, ensuring freshness and authenticity in every dish. Its offerings evolve every few months, with 20–30% of dishes rotating seasonally to keep the experience exciting. From the Choccy Chip Banana Bread Pancake layered with coffee mousseline to the Twice Baked Mushroom, Truffle & Cheese Croissant, ATE’s menu is a bold blend of global inspirations. Standout staples like the Mediterranean Millet Buddha Bowl and the Soba Noodle & Teriyaki Bowl satisfy health-conscious diners, while indulgent specialties such as the Butterscotch Latte and Hazelnut Praline Latte delight those with a sweet tooth. This unwavering commitment to culinary reinvention underscores ATE’s mission to remain future-proof and relevant in a fast-evolving food landscape.

The ATE Advantage: Premium, Rapid, and Transparent

ATE’s partnership with BBFT highlights a range of advantages that set the brand apart. With an average per-cover (APC) above INR 1000, franchise partners have the potential to achieve strong revenue streams in a relatively short span. Behind the scenes, a dedicated project management team ensures a quick turnaround from scouting locations to launching a fully operational café. Every store upholds standardized operations, supported by centralized human resources and a culture of transparency, allowing investors to confidently align with ATE’s values and quality standards.

Rohit Singh, Founder and CEO, BBFT added “You know your game is right when you have absolute clarity on your target audience. Altogether Experimental (ATE) resonates with the next generation, giving them a strong and enduring market position. As a new-age coffeehouse with a niche in artisanal baking and a devoted cult following, ATE is redefining the café experience. With BBFT’s expertise in scaling visionary F&B brands, this collaboration marks the beginning of a transformative journey in experiential coffee culture and artisanal baking.”

FICO Model: A Pathway to Financial Freedom

ATE’s growth hinges on its FICO (Franchise Invested, Company Operated) model, offering an investment range of INR 70–80 lakhs with an EBITDA of 20–25% and a payback period of about two to two and a half years. In this setup, the franchisor manages all daily operations—from staffing to menu engineering—relieving investors of the operational burdens typically associated with F&B ventures. It’s a streamlined route to profit and brand building, ensuring that each new outlet maintains the café’s signature atmosphere and service quality.

Future-Proofing Brunch Culture

ATE’s dedication to staying ahead of the curve is rooted in cutting-edge coffee techniques, modern architecture, and a global culinary outlook. By frequently updating its menu and collaborating with like-minded brands, the café cultivates an ever-evolving experience that resonates with Gen Z, families, and foodies alike. This approach not only drives steady footfall but also cements ATE’s position as a lifestyle destination rather than a mere dining spot.

Vicky sums it up best: “We’re not just expanding a business; we’re growing a community that thrives on experimentation, creativity, and genuine human connections. Partnering with BBFT allows us to bring this vision to more cities without compromising on quality or originality.”

The Road Ahead

With its forward-thinking menu, efficient franchise model, and unwavering commitment to transparency and standardization, ATE stands ready to reshape how people experience all-day brunch. Each new outlet promises the same eclectic menu, vibrant ambiance, and communal ethos that made ATE a beloved spot in New Delhi. For investors seeking a well-structured opportunity in the thriving F&B industry—and for diners craving an immersive café experience—ATE’s partnership with BBFT signals a bold new chapter in India’s brunch revolution.

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BBFT Success Story Franchise stories

BBFT Accelerates Sheikh Chang Singh Expansion: 20+ Outlets Signed in 3 Months, 15 to Launch in the Next 6 Months

In a move set to redefine the quick-service restaurant (QSR) landscape, BBFT—Building Brands For Tomorrow—has taken a giant leap in expanding one of the most dynamic F&B brands in India. With a firm focus on innovation and strategic growth, BBFT has successfully signed over 20 franchise partners for Sheikh Chang Singh and is on track to launch nearly 15 additional outlets over the next three to six months.

A Brand Built on Vision and Resilience

Founded in 2020 by visionary entrepreneurs Akshay Sharma and Karan Chachra, Sheikh Chang Singh rapidly emerged as a game changer in the QSR space. What began as a modest 200 sq. ft. outlet in Hauz Khas, New Delhi, quickly transformed into a powerhouse brand known for its distinctive blend of flavors. The very name—Sheikh for shawarma and falafel, Chang for rolls and momos, and Singh for kebabs, curries, and biryani—captures the essence of an all-encompassing menu that caters to every palate.

Despite the challenges posed by the global pandemic, the brand’s robust operational model and centralized kitchen approach have ensured not only survival but remarkable success. By preparing food centrally, Sheikh Chang Singh guarantees consistency and quality across all outlets, setting a new benchmark for the industry.

Strategic Expansion Across Key Regions

BBFT’s latest milestone is a testament to its strategic vision. Over the past three months, the partnership has resulted in the signing of more than 20 franchise agreements, paving the way for a rapid rollout of new stores. These outlets will be strategically located in high-potential regions such as Delhi NCR, Jaipur in Rajasthan, and along key highway routes connecting Delhi to Punjab, Rajasthan, and Agra. This targeted expansion is designed to tap into bustling markets and drive sustained growth.

A Plug-and-Play Franchise Model That Delivers

At the heart of Sheikh Chang Singh’s success is its innovative plug-and-play model—a system that minimizes the time and effort required from franchise partners while maximizing operational efficiency. With investments ranging between 18-25 lakhs, franchisees benefit from a low-cost entry into the market, fast operational breakeven within 3-4 months, and meticulously defined processes and SOPs that simplify every aspect of day-to-day operations.

Moreover, the brand’s diverse menu of 85 food items—balanced between vegetarian and non-vegetarian options—ensures there is something for everyone, making it an attractive proposition for both food enthusiasts and investors.

Shourya, Head of Expansion at BBFT, explains:

“Sheikh Chang Singh is, without a doubt, the best QSR in the franchise industry today. Its all-inclusive menu, budget-friendly investment, and plug-and-play model set a new benchmark. With every process and SOP meticulously defined by the brand, our franchise partners can hit the ground running with minimal time investment. This streamlined, high-quality operational model makes Sheikh Chang Singh the ideal launchpad for anyone starting their franchise journey.”

The Road Ahead: Innovation and Consistency

As BBFT continues to drive this ambitious expansion, the future looks exceptionally promising. The centralized kitchen model ensures that every outlet delivers the same exceptional taste and quality, reinforcing the brand’s commitment to consistency and customer satisfaction. With strategic locations, a robust operational framework, and a visionary approach to franchising, Sheikh Chang Singh is poised to capture significant market share and become a household name in the Indian QSR industry.

For franchise investors, industry professionals, and F&B enthusiasts alike, this expansion represents a compelling opportunity to be part of a brand that is redefining the norms of quick-service dining. Stay tuned as BBFT and Sheikh Chang Singh set new standards of excellence and innovation in the franchise space.

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Industry Story

Zepto Cafe: Quick Commerce’s Double-Edged Sword— Innovation, Exploitation, and the Road to Reform 

The Rise of Quick Commerce and Its Complex Costs

India’s quick-commerce boom is reshaping urban lifestyles and redefining food delivery. With projections from industry reports estimating the quick commerce market to grow from roughly $3.34 billion in 2024 to nearly $9.95 billion by 2029—and annual quick commerce sales already expected to exceed $6 billion—platforms like Zepto Café promise ultra-fast 15-minute deliveries. However, behind the sleek app interface and soaring valuations lie deep-rooted issues: from escalating worker exploitation and safety concerns to significant regulatory challenges and disruptions in traditional retail. Moreover, the gig economy in India, which employed about 7.7 million workers in 2020–21 and is projected to swell to 23.5 million by 2029–30, forms the backbone of this transformation.

Rider Realities: Racing Against Time and Safety

For delivery riders such as Rahul Sharma in Mumbai, every order is a race against time—and risk. Many riders report working 12-hour shifts to meet algorithm-driven deadlines while earning between ₹24 and ₹50 per delivery. Social media testimonials and public debates—sparked by voices like comedian Kunal Kamra, who demanded transparency on average wages, working hours, and safety records—highlight the severe pressures they face. These conditions have contributed to a surge in road accidents and heightened physical stress among gig workers, who make up a significant fraction of India’s informal labor force.

Restaurants in the Crossfire: Traditional Eateries Under Siege

Traditional restaurants are feeling the squeeze as quick commerce platforms bypass the conventional dining experience. With dark stores enabling platforms such as Zepto Café and Blinkit to deliver up to 125,000 orders daily, restaurants argue that the aggressive pricing and deep discounts—evidenced by a formal complaint from the All India Consumer Products Distributors Federation—undercut the artisanal value of their cuisine. This competitive pressure has forced many eateries to either innovate rapidly or risk losing their customer base entirely.

Consumer Health and Quality: The Price of Speed

The allure of a steaming cup of chai or a freshly baked pastry delivered in under 15 minutes often comes at a hidden cost. Accelerated food preparation can compromise hygiene and quality; surveys indicate that about 73% of online shoppers have encountered issues with the freshness of produce ordered through quick commerce apps, prompting some to return to local markets. Moreover, safety concerns extend beyond the food itself—FSSAI raids on Blink it warehouses have revealed serious food safety violations, raising public health concerns amidst a push for rapid delivery.

Navigating a Shifting Regulatory Landscape

Quick commerce’s meteoric rise has spurred calls for tighter regulation. Traditional retailers and consumer groups have accused platforms like Swiggy, Blinkit, and Zepto of predatory pricing practices that destabilize the market. At the same time, states like Rajasthan have begun pioneering measures—such as the Platform Based Gig Workers (Registration and Welfare) Bill, 2023—to secure social security benefits for gig workers. These initiatives are crucial as the gig workforce remains particularly vulnerable: women, who comprise only about 28% of India’s gig economy (versus 55% in the U.S.), and rural-to-urban migrants face heightened exploitation risks.

Corporate Strategic Shifts: Traditional Retail Fights Back

The disruption spurred by quick commerce has prompted traditional retail giants to adapt. For example, Reliance Retail is leveraging its 3,000 supermarkets in 1,150 cities to launch a quick delivery service—targeting a 10–30 minute window—to capture a share of the rapidly expanding market. Such strategic shifts underscore how established players are forced to innovate in response to the growing consumer demand for speed, even as they battle the challenges of rapid packaging, logistical inefficiencies, and higher delivery fees.

Conclusion

Charting a Path Toward Sustainable Quick Commerce
Zepto Café exemplifies both the transformative potential and the underlying challenges of India’s quick commerce revolution. While rapid deliveries cater to an urban appetite for convenience and drive impressive order volumes, they also expose delivery riders to perilous working conditions, strain traditional retail channels, and raise significant public health and regulatory concerns. Addressing these issues—through enhanced worker protections, improved quality assurance measures, and smarter regulatory policies—will be key to ensuring that the future of quick commerce is as sustainable and equitable as it is fast.

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Industry Story

Franchising vs Starting from Scratch: Why Franchising is the Smarter Investment for F&B Brands

Introduction: The Million-Dollar Question

If you’ve ever dreamed of owning a restaurant or café, you’ve likely faced this dilemma: Should you build your brand from the ground up or invest in a franchise? The food & beverage (F&B) industry is lucrative but notoriously challenging, with around 60% of new restaurants failing within their first year and 80% shutting down within five years. 

One path leads to the tried-and-true world of franchising, where you can leverage an established brand to grow your business. The other path takes you into uncharted territory, where you build your F&B brand from the ground up.

Both routes invite success, but which one is the better investment? 

Let’s break it down with real data, industry insights, and expert opinions to help you make an informed choice.

Success Rate: The Cold, Hard Facts

The numbers don’t lie. Independent restaurants have a survival rate of only 20% within five years, while franchises have a survival rate of around 85% over the same period. This staggering difference is due to the proven systems and structured support that franchises provide.

According to a report by the International Franchise Association (IFA), franchised businesses grow at a rate of 1.5x faster than independent businesses, largely due to their access to training, marketing, and operational expertise.

Would you rather reinvent the wheel or drive a car that’s already been fine-tuned for success?

Known vs. Unknown: The Power of an Established Brand

When it comes to F&B, brand recognition is everything. Starting your own brand gives you creative freedom, but it also means building everything from scratch—from the menu and branding to customer acquisition and operational systems. On the other hand, franchising gives you access to a well-established brand name, proven business model, and loyal customer base from day one.

As franchise expert Mark Siebert puts it,

“A strong brand is half the battle won. Franchising allows you to stand on the shoulders of giants. You’re not just buying a business; you’re buying a proven system.”

Let’s take McDonald’s as an example:

When a franchisee opens a McDonald’s, they aren’t just selling burgers; they are leveraging decades of brand equity, global recognition, and trust. In contrast, an independent burger joint would need years and huge investments to build that level of credibility.

Marketing Muscle: Leveraging a Pre- Existing Audience

When starting from scratch, you’ll need to spend heavily on marketing just to get noticed—from digital ads and influencer partnerships to loyalty programs and PR campaigns. Building brand recognition takes several years and a substantial budget.

Franchisees, however, benefit from national and regional marketing efforts funded by the franchisor. Whether it’s a new menu launch, influencer collaborations, or high-budget ad campaigns, franchise brands already have an audience ready to engage.

Example: Starbucks spends over $400 million annually on advertising. A small independent coffee shop could never match that level of exposure. But a Starbucks franchisee? They automatically benefit from it.

Operational Edge: Expert Training and Supply Chain Synergy

One of the biggest advantages of franchising is the comprehensive training and ongoing support provided by the franchisor. Whether it’s standardized recipes, improving customer service, or troubleshooting operational challenges, franchisees benefit from an expert-driven roadmap.

Franchisors offer intensive staff training programs that cover everything from food prep to inventory management. Compare this to an independent owner who has to learn through trial and error—often at the cost of wasted time and money.

Running a restaurant also involves managing suppliers, negotiating deals, and handling logistics—infamously, one of the trickiest parts of the business. Independent owners must navigate these complexities alone, often paying higher prices for ingredients, equipment, and packaging. Franchises, however, leverage their bulk purchasing power to secure better deals.

“The biggest risk in F&B isn’t the idea, but execution,” says Jennifer Patel, a restaurant consultant. “Franchisees get a playbook, while new owners have to figure everything out on their own.”

The Creativity Myth: Franchising Doesn’t Mean Losing Your Spark

One common misconception about franchising is that it stifles creativity. While it’s true that franchisees must follow certain guidelines, there’s still plenty of room for innovation.

Many franchisees add local flavors to their menus or host community events to build customer loyalty.

Franchising gives you a framework, but it’s up to you to bring your personality and passion to the business. 

Franchising strikes the perfect balance between structure and creativity, allowing you to thrive without reinventing the wheel.

Funding & Expansion: The Growth Accelerator

Raising capital is one of the toughest hurdles for any entrepreneur. Banks and investors are often hesitant to fund standalone restaurants due to the industry’s high failure rate. However, franchises are seen as lower-risk investments, making it easier to secure financing.

According to a Franchise Business Review survey, franchise owners are 30% more likely to secure bank loans compared to independent businesses. This advantage extends to expansion as well—successful franchisees often reinvest and open multiple locations within a short time.

A franchisee of a popular coffee chain can expand to 3-4 locations within five years, while an independent restaurant owner might still be struggling with the first outlet.

The Verdict: Why Franchising Takes the Crown

So, which is the better investment? 

For most F&B brands, franchising is the clear winner. It offers lower risk, faster growth, and a proven system for success. That’s not to say starting from scratch doesn’t have its merits—it’s perfect for those who want complete creative control and are willing to take on the challenge.

But let’s face it: In the fast-paced world of F&B, time is money. Franchising gives you a head start, allowing you to focus on what really matters—delivering delicious food and unforgettable experiences.

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