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Compliances and licenses to take in a restaurant: All about liquor license, FSSAI, and others

Launching a food-service outlet in Delhi demands navigating a complex web of regulations: from FSSAI for food safety to GST for taxation; state-level excise permits for alcohol; municipal health/trade, Fire NOCs, and pollution consents; plus niche licenses like Tea & Snack Shop, PESO LPG storage, and Weights & Measures. Additional requirements include Shops & Establishments registration, Public Liability Insurance, Signage approvals, Music performance rights, and more. Planning 4–6 months for application, inspection, and renewal processes will ensure a smooth, compliant launch.

1.1 FSSAI License

  • Fee: Basic registration is ₹100, State licence ₹2,000–₹7,500, Central licence ₹7,500 .
  • Timeline: Issuance in 30–60 days; renewal 30 days before expiry .

1.2 GST Registration

  • Thresholds: Mandatory at ₹20 L turnover (₹10 L in NE/hill states).
  • Rates: 5% (no ITC) for non-AC/no-seating; 18% (with ITC) for AC/with seating or delivery .
  • Filing Frequency: Monthly returns; penalties up to ₹10,000 for delays.

2. State Excise & Liquor Permits

2.1 Delhi Excise Licences

  • Permit-I (Restaurant ≥ 30 seats): Application fee ₹10,000, security deposit ₹5 L, renewal ₹7,500 p.a. .
  • Permit-II (Bar): Fee ₹8,000, deposit ₹3 L, renewal ₹6,000.
  • Permit-IV (Beer/Wine Only): Fee ₹5,000, deposit ₹2 L, renewal ₹4,000.
  • Process Time: 60–90 days, includes Police, Fire, Trade, and FSSAI NOCs .

State Variations:

  • Mumbai (Type-B/C): Licence fee ₹15,000–₹25,000, deposit ₹10 L .
  • Bangalore: Fees ₹10,000–₹20,000, deposit ₹5 L .

3. Municipal Approvals

3.1 MCD Health & Trade Licence

  • Fee: ₹2,000 initial; renewal ₹1,000.
  • Validity: 1 year; timelines 30 days .

3.2 Tea & Snack Shop Licence

  • Fee: ₹1,500 p.a. for outlets ≤ 20 seats.
  • Penalties: Fines up to ₹5,000/day for non-compliance .

3.3 Shops & Establishments Registration

  • Fee: ₹500–₹1,000 depending on employee count.
  • Deadline: Within 30 days of opening .

4. Safety & Environmental NOCs

4.1 Fire-Safety Certificate (DFS)

  • Area Threshold: Built-up ≥ 60 m² (~ 645 sq ft) mandatory; ≥ 200 m² requires hydrants.
  • Fee: ₹1,000 application; renewal ₹500 biennially.
  • Process: Inspection within 15–30 days .

4.2 DPCC Pollution Consents

  • CTE: Fee ₹5,000, valid 5 years.
  • CTO: Fee ₹2,000, valid 1 year.
  • Process: 45–60 days .

5. Specialty & Miscellaneous Licences

5.1 PESO (LPG Storage)

  • Fee: ₹5,000–₹10,000 depending on cylinder capacity.
  • Process: Design approval and annual audits .

5.2 Legal Metrology

  • Fee: ₹250 per weighing/billing device; verification every 1–2 years .

5.3 Public Liability Insurance

  • Premium: ₹10,000–₹50,000 p.a. based on risk profile.
  • Coverage: Mandatory for hazardous substances .

5.4 Occupancy Certificate

  • Fee: ₹5,000; includes structural safety and fire exits.
  • Timeline: 30–45 days post fit-out .

5.5 Plastic Waste Management

  • Fee: ₹1,000 registration; annual compliance reporting.
  • Rules: Bans on certain disposables from 2022 .

5.6 Food-Handler Training

  • Fee: ₹2,000–₹5,000 per supervisor; health checks ₹500 p.a.
  • Validity: 3 years .

5.7 Music & Public Performance

  • PPL: ₹5,000–₹15,000 p.a. based on seating.
  • IPRS: ₹3,000–₹10,000 p.a. .

5.8 Signage / Advertisement

  • Fee: ₹2,000–₹5,000 depending on size; renewal ₹1,000.
  • Violation Penalty: ₹5,000–₹10,000 .

5.9 Lift/Elevator Certificate

  • Fee: ₹1,000 initial; annual inspection ₹500.
  • Regulator: Delhi Lift Directorate .

6. State-Wise Snapshot

LicenceDelhiMumbaiBangaloreKolkata
FSSAI₹100–₹7,500₹100–₹7,500₹100–₹7,500₹100–₹7,500
GST5%/18%5%/18%5%/18%5%/18%
Excise (Liquor)₹5k–₹10k + deposit ₹2L–₹5L₹10k–₹25k + deposit ₹5L–₹10L₹10k–₹20k + deposit ₹5L₹5k–₹15k + deposit ₹2L–₹5L
Trade License₹2,000/₹1,000₹3,000/₹1,500₹2,500/₹1,200₹2,000/₹1,000
Tea & Snack Shop₹1,500₹7,000₹2,000₹1,800
Fire NOC₹1,000/₹500₹1,200/₹600₹1,000/₹500₹1,000/₹500
Pollution Consent₹5k (CTE)/₹2k (CTO)₹6k/₹3k₹5k/₹2k₹5k/₹2k
PESO LPG₹5k–₹10k₹5k–₹10k₹5k–₹10k₹5k–₹10k
Metrology₹250/device₹250/device₹250/device₹250/device
PLI₹10k–₹50k₹10k–₹50k₹10k–₹50k₹10k–₹50k
OC₹5,000₹6,000₹5,000₹5,000
Plastic Waste₹1,000₹1,200₹1,000₹1,000
Food Training₹2k–₹5k₹2k–₹5k₹2k–₹5k₹2k–₹5k
Music (PPL/IPRS)₹8k–₹25k total₹8k–₹30k₹8k–₹25k₹8k–₹25k
Signage₹2k–₹5k₹3k–₹6k₹2k–₹5k₹2k–₹5k
Lift Certificate₹1,000/₹500₹1,200/₹600₹1,000/₹500₹1,000/₹500

Next Steps:

  1. Aggregate Fees & Deposits: Budget approximately ₹5–10 L for all licences and NOCs.
  2. Map Application Timelines: Sequence licences to avoid launch delays (start FSSAI & fire ~3 months prior).
  3. Engage Local Experts: Compliance consultants can fast-track Police, Fire, and Excise NOCs.
  4. Track Renewals: Maintain a digital calendar—penalties for lapses can exceed ₹50,000 per licence.

With this exhaustive licence and fee breakdown, your Delhi restaurant, café, or QSR will meet every regulatory requirement—allowing you to focus on operations and customer delight.

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Brand Stories

Top Franchise in Delhi

A Vibrant Market Primed for Franchising

Delhi’s foodservice sector is one of India’s most dynamic, with organized players capturing over 40 percent of consumer spending amid surging incomes, millennial dining trends, and tech-enabled delivery platforms. From upscale cafés in Connaught Place to fusion QSRs in GK and community-driven kiosks across Noida, Delhi offers proven demand corridors—Which offers Quick break-even and High EBITDA margins ranging between 25-30%. This combination of density, diversity, and disposable income makes Delhi an ideal launchpad for franchise concepts seeking rapid scale and reliable returns.

ATE (Altogether Experimental)

ATE transforms the café model into a creative community hub, rotating 20–30 percent of its menu seasonally—from Choccy Chip Banana Bread Pancakes to Soba Noodle & Teriyaki Bowls—within Instagram-worthy Santorini-inspired interiors . Co-founded by restaurant consultant Vicky Mandal and pastry chef Anukriti Anand, ATE focuses All day brunch, with Modern coffee paired with Freshly prepared desserts

MetricBoutiqueFlagship
Investment₹70–80 L (1,000 sq ft)₹1–1.25 Cr (1,800+ sq ft)
Payback~18-24months~24 – 30 months
ROI40–45 percent60–65 percent
AOV~₹1,000~₹1,000
Footprint (NCR)2 Live outlets + 2 in pipeline 2 Live outlets + 2 in pipeline

Sheikh Chang Singh

Since its 2020 debut in Hauz Khas, Sheikh Chang Singh has redefined QSR by uniting shawarmas, momos, rolls, kebabs, and biryani under one “plug-and-play” menu of 85 items—centralized for consistency and 18–20 percent EBITDA margins . Founders Akshay Sharma and Karan Chachra leveraged student and office hubs across Delhi NCR, signing 20+ franchise agreements in three months.

MetricValue
Investment₹18–25 L
Payback15–18 months
EBITDA Margins18–20 percent
AOV₹350
Royalties5 %+ 2 % Central marketing
Footprint (NCR)15 live outlets; +5 upcoming

Tan Coffee

Tan Coffee, launched in Hauz Khas in 2018 by Nishant Mittal and Shivank Verma, scaled from 3 to 11 outlets in 1.5 years by pairing specialty coffee with in-house Continental, Italian, and Mexican menus—achieving 25–30 percent EBITDA and ₹950–1,000 AOV across Delhi, UP, Hyderabad, Raipur, and Punjab .

MetricValue
Investment₹75–80 L
Payback~24 months
EBITDA Margins25–30 percent
AOV₹950–1,000
Footprint (NCR)11 live outlets; +4 pipeline
Royalties Profit Share

Café Wink

Since 2011, Café Wink’s curated Italian menu (crepes, coffees, desserts) and “Best Instagram-Worthy Café” accolades have driven ~₹7 Cr annual revenue per outlet, coupled with 50 K Instagram followers and a 4.4 Zomato rating .

MetricValue
Investment₹1.5–2 Cr
Payback18–24 months
ROIEBITDA-sharing FOCO model
AOV₹1,300–1,500
Footprint (NCR)1 live (Anand Vihar); +3 pipeline

Wakhra Swaad

Founded in 2016 by Chef Arjun Thakkar and Ravi Bajaj, Wakhra Swaad brings Punjabi dhaba classics to Delhi diners with modern operational rigor, achieving 40–50 percent annual ROI on ₹80–90 L investment .

MetricValue
Investment₹80–90 L
Payback18–24 months
ROI40–50 percent p.a.
AOV₹700–2,500
Royalties9–10 percent
Footprint (NCR)4 COCO + 1 FOFO outlets

Indus Flavour

Since 2011, Indus Flavour’s pure-vegetarian, Indo-fusion menu—dishes like Butter Paneer Pizza—has driven youth and family dining in GTB Nagar and Pitampura, with multiple NCR outlets and pan-India expansion plans .

MetricValue
Investment₹2–2.5 Cr (₹40 L franchise fee)
Payback18–24 months
ROI40–45 percent
AOV₹400–500
Footprint (NCR)Multiple outlets (GTB Nagar, Pitampura)

Cafeteria & Co

Cafeteria & Co’s 4,000–5,000 sq ft “flavour-packed” cafés offer fusion crepes, pizzas, and desserts in Delhi’s premier malls, commanding ₹500–600 AOV per visit .

MetricValue
Investment₹4–5 Cr (₹40 L fee)
Payback12–24 months
ROIEBITDA-sharing FOFO model
AOV₹500–600
Footprint (NCR)5 FOFO outlets (Connaught, Select Citywalk)

Echoes

Echoes, operated by deaf and mute staff, pairs social impact with global-fusion comfort food in 1,200 sq ft+ cafés, targeting ₹300–400 AOV from Delhi’s socially conscious diners .

MetricValue
Investment₹50–80 L
Payback18–24 months
ROIEBITDA-sharing FOFO model
AOV₹300–400
Footprint (NCR)Planned GK & Hauz Khas

Dhaba Estd. 1986

With 22 outlets across Delhi NCR—including Vasant Kunj and Promenade Mall—Dhaba Estd. 1986 delivers Punjabi highway classics (Butter Chicken, Dal Makhani) in modern 2,000–3,000 sq ft venues .

MetricValue
Investment₹1–2 Cr
Payback12–24 months
ROIEBITDA-sharing FOFO model
AOV₹300–400
Footprint (NCR)22 outlets


Your Next Move
Whether you’re an angel investor eyeing high-growth concepts or an entrepreneur seeking a proven brand to scale, our franchise advisory team will partner with you at every step—market analysis, territory negotiation, financial modeling, and operational launch—so you hit your ROI targets in under 30 months. Connect now to schedule your one-on-one Franchise Strategy Session, receive customized investment projections, and lock in your preferred territory before it’s gone






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BBFT Success Story Franchise stories

The Best Franchise Opportunities in the Indian Food Industry in 2025

India’s Food Franchise Gold Rush in 2025

India’s organized foodservice market—now over ₹4 trillion—continues to surge at a 12–15 % CAGR, fueled by rising incomes, urban lifestyles, and an appetite for novel dining experiences. For investors seeking strong returns with managed risk, franchising remains the fastest track: proven concepts, built-in brand equity, and break-even often within 18–30 months. Below are seven hand-picked franchise opportunities that combine vibrant brand stories with robust unit economics.

ATE (Altogether Experimental)

ATE is more than a café—it’s a canvas of culinary creativity. Founded by restaurant strategist Vicky Mandal and pastry artisan Anukriti Anand, ATE fuses Australian brunch vibes with global flavors, rotating 20–30 % of its menu seasonally—from Choccy Chip Banana Bread Pancakes to Soba Noodle & Teriyaki Bowls—to keep guests coming back for fresh experiences .

  • Investment & Format:
    • Boutique (1,000 sq ft): ₹70–80 L → 40–45 % ROI
    • Flagship (1,800+ sq ft): ₹1–1.25 Cr → 60–65 % ROI
  • Payback: ~24 months
  • AOV: ~₹1,000
  • Model: FICO (brand-managed operations, EBITDA-sharing)
  • Footprint: 2 live outlets (Saket & Safdarjung) + 2 in pipeline (Gurgaon, GK)

Sheikh Chang Singh

In 2020, Akshay Sharma and Karan Chachra launched a QSR that marries shawarma, momos, rolls, kebabs, and biryanis under one roof—hence the name. A centralized kitchen guarantees 18–20 % EBITDA margins and menu consistency across all outlets. Despite pandemic headwinds, the brand now counts 15 live locations (3 COCO, 12 FOFO), with five more set to open this quarter .

  • Investment: ₹18–25 L
  • Payback: 15–18 months
  • AOV: ₹350
  • Royalties: 5 % + 2 % marketing
  • Footprint: 20+ agreements signed, targeting Delhi NCR, Jaipur, and Delhi–Punjab highway corridors

Tan Coffee

Tan Coffee’s rise from three outlets to eleven in just 1.5 years epitomizes India’s specialty-coffee surge. Founders Nishant Mittal and Shivank Verma blend artisanal brews with in-house Continental, Italian, and Mexican dishes, achieving 25–30 % EBITDA and ₹950–1,000 AOV across Delhi, UP, Hyderabad, Raipur, and Punjab. Four more outlets are in the pipeline .

  • Investment: ₹75–80 L
  • Payback: ~24 months
  • Footprint: 11 live outlets; 4 upcoming
  • Model: FOFO (company-operated, EBITDA-sharing)

Café Wink

An East Delhi icon since 2011, Café Wink grew from a 40-cover outlet to a social-media phenomenon—5 million+ guests, 50 K Instagram followers, and a 4.4 Zomato rating. Its Italian-inspired crepes, coffees, and desserts generate ₹7 Cr / yr per outlet at ₹1,300–1,500 AOV.

  • Investment: ₹1.5–2 Cr (2,000 sq ft)
  • Payback: 18–24 months
  • Model: FOCO (franchise-operated, EBITDA-sharing)
  • Footprint: 1 live (Anand Vihar) + 3 pipeline (Noida, Dwarka, Gurgaon) .

Wakhra Swaad

Chef Arjun Thakkar and co-founder Ravi Bajaj revived authentic dhaba cuisine with modern operations, translating century-old recipes into dishes that resonate with today’s urban diners. With ₹80–90 L capex, 9–10 % royalty, and 40–50 % ROI p.a., franchisees break even in 18–24 months.

  • Investment: ₹80–90 L
  • Payback: 18–24 months
  • ROI: 40–50 % p.a.
  • AOV: ₹700–2,500 per ticket
  • Footprint: 4 COCO + 1 FOFO outlets

Tribal Brew

Tribal Brew’s “coffee on-the-go” kiosks source micro-lot beans from a 90-year-old estate, delivering bean-to-cup freshness at ₹200–250 AOV. At ₹20 L capex and EBITDA-sharing, franchisees break even in 18–24 months.

  • Footprint: 2 COCO outlets (Bengaluru); 4 pipeline (Sarjapur, Church St., JP Nagar, Mysore)
  • Model: FOCO (franchise-operated, EBITDA-sharing)

Dhaba Estd. 1986

A legacy of Punjab’s highway cook-shacks, Dhaba Estd. 1986 brings Butter Chicken and Amritsari Kulcha into 2,000–3,000 sq ft venues. With ₹1–2 Cr capex, 7 % royalty, and ₹300–400 AOV, franchisees achieve break-even in 12–24 months across 22 outlets nationwide .

Indus Flavour

Indus Flavour, founded in 2011 in GTB Nagar, New Delhi, has built its following on 100 % pure-vegetarian, Indo-fusion menus—think Butter Paneer Pizza and Makhani Pasta—that appeal to youth and families alike . Its vibrant, modern décor and innovative dishes position it strongly in the vegetarian casual-dining segment.

Franchise Metrics:

  • Investment Range: ₹2–2.5 Cr per outlet (including ₹40 L franchise fee)
  • Royalty: 9 % of sales
  • ROI / Payback: 40–45 % ROI; ~18–24 months payback
  • AOV: Approx. ₹400–500 per customer
  • Footprint: Multiple Delhi-NCR outlets; planning pan-India expansion
  • Support: End-to-end site analysis, training, operations SOPs, and marketing guidance

Cafeteria & Co

Context & USP: Cafeteria & Co (est. 2018, New Delhi) brands itself as a “flavour-packed adventure” café with a global-fusion menu—from prawn pizzas to German chocolate shakes—set within stylish 4,000–5,000 sq ft spaces that accommodate casual dining and events .

Franchise Metrics:

  • Investment: ₹4–5 Cr CapEx including ₹40 L franchise fee
  • Royalties: 7–9 % of monthly sales
  • Payback: 12–24 months
  • AOV: ₹500–600 per visit
  • Footprint: 5 outlets in Delhi-NCR

Echoes

Echoes is India’s first multi-cuisine café concept operated by deaf and mute staff, delivering social impact alongside Fusion-global menus in warm, inclusive environments of 1,200 sq ft+ . This “bean-to-cup” model sources premium coffee and pairs it with comfort-food dishes, creating a feel-good dining experience.

Franchise Metrics:

  • Investment: ₹50–80 L initial CapEx (includes fit-out & equipment)
  • Royalties: 8 % of sales
  • Payback: ~18–24 months
  • AOV: ₹300–400 per customer (coffee + snack)
  • Footprint: Planning pan-India expansion; territory sizes 1,200 sq ft+

Peter Rabbit Coffee Roasters

Founded in 2023 in Chandigarh, Peter Rabbit Coffee Roasters bridges artisanal coffee and fresh, in-house food—with breads, sauces, and pastries made on-site for unmatched freshness—targeting health-conscious urban consumers .

Franchise Metrics:

  • Investment: ₹1–1.25 Cr CapEx (franchise fee included)
  • Royalties: 8 % of sales
  • Payback: 24–30 months
  • AOV: ₹1,100 per customer
  • Footprint: 3 COCO outlets (Elante Mall & Sector 7 Chandigarh; Mohali)



Investors targeting ₹50 L–₹1 Cr franchises can tap into these seven dynamic concepts—each with proven unit economics, clear ROI paths, and strong consumer appeal—poised to thrive in India’s ₹4 Tn+ foodservice marketplace.

Next Step: Contact BBFT’s franchise advisory team for detailed term sheets, territory mapping, and a personalized investment roadmap for 2025.

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BBFT Success Story Franchise stories

Seizing India’s F&B Gold Rush: Food Franchise opportunity in India

India’s organized foodservice sector has surpassed the ₹4 trillion mark, fueled by rising incomes, urbanization, and an evolving taste for both convenience and culinary experiences. Over the next five years, analysts project the market will expand at a 10–12 % CAGR, transforming everything from quick-serve cafés to premium dining concepts into high-growth opportunities. Franchising lets investors plug into this momentum with proven models—reaping 18–30 month break-evens, strong unit economics, and built-in brand equity—while capitalizing on established supply chains and marketing engines.

1. ATE (Altogether Experimental)

ATE blends Australian brunch vibes with global flavors, inventive desserts, and specialty coffee. Co-founders Vicky Mandal (restaurant consultant) and Anukriti Anand (pastry chef) rotate 20–30 % of their menu seasonally—from Choccy Chip Banana Bread Pancakes to Soba Noodle & Teriyaki Bowls—keeping the experience fresh and community-focused.

Franchise Metrics:

  • Formats & Investment:
    • Small (1,000 sq ft): ₹70–80 L → 40–45 % ROI
    • Large (≥1,800 sq ft): ₹1–1.25 Cr → 60–65 % ROI
  • Payback: ~24 months
  • AOV: ~₹1,000
  • Profit Model: EBITDA-sharing
  • Footprint: 2 live stores (Chandigarh, Golf Course Ext.) + 2 in pipeline (GK, Noida)

2. Sheikh Chang Singh

Founded in 2020 by Akshay Sharma and Karan Chachra, Sheikh Chang Singh’s name—“Sheikh” for shawarma & falafel, “Chang” for rolls & momos, “Singh” for kebabs & curries—captures its 85-item fusion menu. A centralized kitchen ensures consistency, even as the brand scales rapidly across Delhi NCR, Jaipur, and highway corridors.

Franchise Metrics:

  • Investment: ₹18–25 L
  • Payback: 15–18 months
  • AOV: ₹350
  • EBITDA Margins: 18–20 %
  • Royalties: 5 % + 2 % marketing fee
  • Footprint: 15 live outlets; 5 more opening this quarter

3. Tan Coffee

Since 2018, Nishant Mittal and Shivank Verma have grown Tan Coffee from 3 to 11 outlets in 18 months, offering an extensive beverage menu alongside in-house Continental, Italian, and Mexican dishes. Their minimalist interiors and outdoor seating have made it a go-to specialty café across Delhi, UP, Hyderabad, Raipur, and Punjab.

Franchise Metrics:

  • Investment: ₹75–80 L
  • Payback: 24 months
  • AOV: ₹950–1,000
  • EBITDA Margins: 25–30 %
  • Footprint: 11 live outlets; 4 more in pipeline
  • Profit Model: EBITDA-sharing

4. Wakhra Swaad

Launched in 2016 by Chef Arjun Thakkar and Ravi Bajaj, Wakhra Swaad reinterprets North Indian dhaba cuisine with modern techniques. Drawing on age-old family recipes, it delivers consistent, bold flavors across its outlets.

Franchise Metrics:

  • Footprint: 4 COCO outlets + 1 FOFO outlet
  • Investment: ₹80–90 L
  • ROI: 40–50 % p.a.
  • Payback: 18–24 months
  • Average Ticket Size: ₹700–1,500 (couples), ₹1,500–2,500 (families)
  • Royalties: 9–10 % of sales

5. Tribal Brew

Tribal Brew brings bean-to-cup freshness on the go, sourcing micro-lots from a 90-year-old family estate and serving them through compact urban kiosks. Its sustainable, transparent approach appeals to busy professionals seeking quality coffee quickly.

Franchise Metrics:

  • Model: FOCO
  • Investment: ₹20 L
  • Payback: ~18–24 months
  • AOV: ₹200–250
  • Profit Model: EBITDA-sharing
  • Footprint: 2 COCO outlets (Bengaluru); 4 new in pipeline (Sarjapur, Church St, JP Nagar, Mysore)

6. Café Wink

Since its founding on September 1, 2011, Café Wink has evolved from a modest takeaway outlet into one of East Delhi’s most Instagram-worthy cafés. Over the past 13 years, it has served more than 5 million customers, maintained a 4.4 Zomato rating, and built a 50,000-strong Instagram following with a 60 million-reach campaign during Christmas 2023.

Franchise Metrics:

  • Investment: ₹1.5 – 2.0 Cr for a 2,000 sq ft outlet
  • Payback Period: 18 – 24 months
  • Average Order Value (AOV): ₹1,300 – 1,500 per customer
  • Annual Revenue: ~₹7 Cr per outlet
  • Footprint: 1 live outlet (Anand Vihar) + 3 in pipeline (Noida, Dwarka, Gurgaon)
  • Profit Model: FOCO (Franchise Owned, Company Operated) with EBITDA-sharing 

Your Next Move – Connect with BBFT

Ready to capitalize on India’s fastest-growing café and QSR concepts—brands that deliver 40–65 % annual ROI and break even 18-24 months? Partner with BBFT today to secure your exclusive territory in ATE’s trendsetting experiential cafés, Sheikh Chang Singh’s fusion QSR network, Café Wink’s premium Italian outlets, Tan Coffee’s specialty brewhouses, Wakhra Swaad’s modern dhabas, or Tribal Brew’s on-the-go kiosks—each vetted for robust unit economics and rapid scale. Submit your inquiry now to receive our Investor Prospectus, reserve your franchise rights, and start earning from day one.

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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

Tan Coffee Opens Flagship Store in Connaught Place: A New Chapter in Delhi’s Speciality Coffee Scene

Tan Coffee continues to be a pioneer in India’s specialty coffee market, by announcing the launch of their flagship outlet in Connaught Place. This iconic location, alive with energy and steeped in history, serves as the perfect backdrop for the brand to share its passion for crafting exceptional brews and delicious food. Under the visionary leadership of founders Nishant Mittal and Shivank Verma, and in collaboration with BBFT (Building Brands For Tomorrow), Tan Coffee is making significant strides in its mission to redefine the Speciality coffee experience in India, showcasing impressive market positioning and strategic expansion.

A New Era of Flavor: Tan Coffee’s Signature Creations

With the launch of their flagship store, Tan Coffee is staying true to its core philosophy of continuous evolution and innovation, elevating the coffee experience by expanding their menu like never before.

Tan Coffee’s current menu boasts an impressive selection, ranging from specialty coffees, manual brews, specialty mocktails and a wide selection of innovative beverages like their Kerala Spiced Cappuccino, Tiramisu Latte, Pistachio Iced Latte, Strawberry Espresso Tonic, Basil Gimlets and many more, paired with 100+ gourmet fresh food options across cuisines like Italian, Mexican, Continental and American.

The New Addition

Staying true to their traditions while continuously evolving, Tan Coffee has also unveiled an array of new signature dishes. Their menu now boasts a Pan Asian section featuring comforting ramen bowls and flavorful Pad Thai noodles, perfectly complementing their popular Ema Datshi rice bowl. In the Italian section, alongside their signature wood-fired pizzas and pastas, they’ve added a delicious new lasagna to the lineup. For those with a sweet tooth, the signature in-house-made Lotus Biscoff cheesecake, is now paired beautifully with their latest creation—Flushed Croissants. Among these, the choco banana croissant stands out as a must-try.

Nishant Mittal, Co- founder, Tan Coffee added, “We’ve been dreaming of this day for a long time, and it’s finally here! Our flagship store is opening its doors, and we couldn’t be more excited. We’ve poured our hearts and souls into creating a space that’s both inviting and inspiring. Our new menu is a big deal — it’s more refined and diverse than ever. We can’t wait to share our love for coffee with Delhi

A Heritage Location

Connaught Place stands as Delhi’s most iconic and heritage-rich destination. Renowned for its stunning colonial architecture and lively atmosphere, this area is not just a shopping and dining hub; it’s a cultural landmark that attracts millions of visitors each year. With an impressive annual footfall exceeding 60 million, Connaught Place is a vibrant mix of both history and modernity, making it the ideal setting for Tan Coffee to establish its presence and connect with coffee enthusiasts across the city.The flagship outlet is strategically located in one of the busiest lanes of Connaught Place, directly across from the expansive 28,000 square-foot H&M outlet. This prime location witnesses a remarkable daily foot traffic of over 25,000 people, offering Tan Coffee a unique opportunity to engage with a diverse audience and cultivate a community of coffee lovers eager to experience what the brand has to offer. 

The Perfect Blend of Tradition and Modernity

As Tan Coffee opens its doors in the heart of Delhi, it artfully balances the charm of the area’s rich heritage with a fresh, contemporary twist on the coffee experience. 

At this flagship store, Tan Coffee combines a thoughtfully crafted ambiance—featuring warm, artisanal décor—with a focus on offering a coffee experience that delights both traditionalists and modern coffee enthusiasts. The interiors have been designed with a minimalistic and soothing approach, with an emphasis on subtle tones, while still maintaining a sense of aesthetic appeal. This careful balance creates a warm and cozy vibe, making it the perfect setting for customers to enjoy their coffee and food. The harmonious blend of ambiance and design ensures a welcoming atmosphere where guests can explore new flavors while soaking in the vibrance of the space.

An Investment with Strong Returns

Tan Coffee is not just about great coffee; it’s also an attractive business opportunity. With its unique positioning as an experiential specialty coffee and gourmet food brand, it offers an impressive payback period of around 20-24 months for investors with a net profit margin of 20-25%. With a capex investment of 60-70 lakhs, Tan Coffee provides a unique investment opportunity that blends passion with profitability. The flagship outlet in Connaught Place sets the stage for future growth and showcases the brand’s potential to deliver both a premium customer experience and robust financial returns. 

Rohit Singh, Founder and CEO of BBFT, highlights the brand’s strategic approach: “From day one, our focus has been on quality over quantity, ensuring that each new outlet delivers consistent returns and is a true representation of what Tan Coffee stands for. Launching in a landmark location like Connaught Place marks a significant opportunity for investors to partner with a brand that is not only poised for significant growth but also committed to setting new standards of excellence in the specialty coffee industry.

Conclusion

The launch of Tan Coffee’s flagship store in Connaught Place marks a pivotal moment for both the brand and the thriving coffee culture of Delhi. This flagship store will serve as a blueprint for future locations, embodying the brand’s core values of continuous evolution, exceptional coffee, and culinary delights—all while delivering an unparalleled customer experience against the backdrop of this historic location.


Categories
Industry Story

How Blue Tokai Coffee Roasters Revolutionized Coffee Culture in India

From Home Roasting to Coffee Roastery Success

In a country where chai has been the undisputed king, a new challenger emerged—a brand that dared to disrupt India’s tea-dominant culture. Enter Blue Tokai Coffee Roasters, a company that has become synonymous with specialty coffee in India.

Founded in 2013 by Matt Chitaranjan and Namrata Asthana, Blue Tokai set out to change the way Indians experience coffee. What began as a passion project soon evolved into a full-fledged mission to introduce premium, high-quality coffee to a nation still primarily brewing chai.

The Early Days: Crafting a Revolution, One Cup at a Time

Imagine a small 1 kg roasting machine in a home kitchen. Long nights were spent roasting beans, packing orders, and fulfilling the budding demand for something different—something that spoke of authenticity and quality. That’s how Blue Tokai began.

Matt and Namrata’s journey took a pivotal turn when they secured ₹3 crore in seed funding, enabling them to move from their humble kitchen to a warehouse in Saket. With a larger space came even greater ambitions. By 2013, the brand opened its first roastery in Delhi. Soon, Blue Tokai expanded into new cities, including Bombay, and even secured a kiosk at the Australian Embassy.

The early success wasn’t just about selling coffee—it was about educating a tea-loving nation on the nuances of coffee culture.

Cracking the Code: Blue Tokai’s Road to Success

1. Unwavering Focus on Quality

At the heart of Blue Tokai’s rapid rise lies its commitment to quality. Using pure Arabica beans, the brand ensures that each cup offers the same, consistent flavor profile across batches. Customers can taste the dedication to freshness with every sip—most deliveries in metro cities are fulfilled within 24 hours.

“At Blue Tokai, consistency isn’t just a goal—it’s our promise to our customers,” says co-founder Matt Chitaranjan.

2. Branding: More Than Just Coffee

Positioned as a premium coffee brand, Blue Tokai’s appeal extends far beyond its product. Their focus on branding and education resonates with a new generation of consumers. The company’s Instagram presence and website are built to create a community of coffee aficionados, guiding them through the intricate world of specialty coffee.

Blue Tokai’s commitment to sustainability and ethical sourcing also plays a central role in their brand story. By including the names of the farmers on each packet, they’re connecting consumers directly to the source.

3. Strategic Expansion: Growing One Café at a Time

Blue Tokai’s growth strategy is as refined as their coffee. Their cafes are strategically placed in high-footfall areas across Tier 1 metro cities and emerging Tier 2 cities. Over the past 12 months, they’ve doubled their presence, with 130 outlets now serving fresh brews across India.

“We didn’t just want to open cafes. We wanted to create experiences,” says Namrata.

4. Targeting India’s New Coffee Drinkers

With a focus on young professionals aged 25-45, Blue Tokai has successfully onboarded an entirely new demographic of coffee drinkers. Their multi-channel approach, comprising 20% direct-to-consumer (D2C), 10% business-to-business (B2B), and 70% café-driven revenue, highlights the versatility of their business model.

Financial Growth and Future Outlook

As India’s coffee culture continues to grow, Blue Tokai is poised to capitalize on this surge. The specialty coffee market is expanding at a rate of 10-15% annually, and Blue Tokai is at the forefront of this trend. With Series C funding of $35 million and plans to open 220 new stores in the next three years, the future looks promising.

Their expansion into B2B and D2C channels further diversifies their revenue streams, solidifying their position as a dominant player in India’s coffee industry.

Conclusion: Shaping the Future of Coffee in India

Blue Tokai Coffee Roasters has redefined what it means to enjoy coffee in India. Through their unrelenting focus on quality, strategic growth, and forward-thinking branding, they’ve shifted coffee from a mere commodity to an experience.

As they continue to grow, expand, and innovate, Blue Tokai is not just serving coffee—they are shaping the future of coffee in India, one cup at a time.

Categories
BBFT Success Story

Tan Coffee Launches Two New Outlets within 16 Days: Expanding its Specialty Coffee Empire

Tan Coffee, a pioneer in India’s specialty coffee market, has made significant strides by launching two new outlets within just 16 days. Under the visionary leadership of founders Nishanth Mittal and Shivank Verma, and in collaboration with BBFT (Building Brands For Tomorrow), Tan Coffee continues to redefine the premium coffee experience in India, showcasing impressive growth and strategic market positioning.

Strategic Expansion: Mohali and Faridabad

Tan Coffee’s new 2000-square-foot outlet in Sector 68, Mohali, and the 900-1000 square-foot outlet in Faridabad highlight the brand’s robust growth trajectory. The Mohali outlet, near CP 67 mall and housing brands like Blue Tokai, Anytime Fitness, and McDonald’s, accommodates up to 60 guests across two floors. This prime location ensures a steady stream of potential customers and enhances the outlet’s visibility. The Mohali outlet provides a sophisticated and welcoming environment, making it a hub for coffee enthusiasts. Its design caters to both individual and group seating, addressing diverse customer preferences.

The Faridabad outlet, positioned in a high footfall area with a lack of quality cafes within a 4-5 km radius, caters to 25-28 covers. This strategic positioning attracts both dine-in and delivery customers, making it a key asset in Tan Coffee’s expanding portfolio. This strategic entry into Faridabad is expected to drive significant business growth and market penetration in this premium residential area.

Nishant Mittal, Co founder, Tan Coffee, on the launch of Faridabad outlet added “Since our expansion kicked off in October 2023, we’ve rapidly grown to seven outlets, with two more poised to launch in Hyderabad and Connaught Place this quarter. Each location is strategically selected to accelerate our vision of leading India’s specialty coffee market. By FY25, we’re targeting 10 additional outlets, positioning Tan Coffee as a dominant player in the industry. Our aim is clear: to set the benchmark for specialty coffee paired with gourmet dining, making us the top choice for a premium casual experience across the country”

Robust Business Model and Financial Viability

BBFT has played a crucial role in Tan Coffee’s journey from a three outlet in January 2023 to seven outlets by July 2024, with several more in the pipeline. The brand’s innovative franchise model, with a setup cost of 60-70 lakhs, offers net profits ranging from 20-25% and a payback period of 18 to 24 months, presenting a compelling investment opportunity. This rapid expansion highlights Tan Coffee’s strategic approach and business acumen, making it an enticing proposition for investors. Notably, all current outlets of Tan Coffee are profitable, demonstrating the brand’s successful business model.

Enhanced Menu Offerings and In-House Bakery

In line with its expansion, Tan Coffee has introduced new items across its menu, enhancing its appeal and customer satisfaction. New offerings include Chili Pepper Pod Paneer/Chicken, Tandoori Paneer/Chicken Pizza, Fruit Sangria, and Pina Colada. Importantly, all bakery items are now prepared fresh in-house, ensuring superior quality and freshness. This move not only elevates the dining experience but also reinforces Tan Coffee’s commitment to excellence and innovation.

Future Expansions

Tan Coffee is set to open a substantial 3600-square-foot outlet in Hyderabad’s Hi-tech City, embracing a bold and innovative concept tailored for the region’s dynamic market. This expansion further solidifies Tan Coffee’s market position and its commitment to delivering unparalleled coffee experiences.

Rohit Singh, Founder and CEO of BBFT, remarked, “The goal is not to expand rapidly in numbers but to focus on building profitable, high-quality outlets. We prioritize ensuring that each new location offers outstanding experiences, generates strong returns, and makes a lasting impact. Scaling too quickly can pose risks to a business, so we are committed to growing Tan Coffee’s bandwagon through quality rather than sheer quantity’ 

Conclusion

Tan Coffee’s journey from a single outlet in 2023 to its current rapid expansion underscores its innovative vision and strategic execution. The brand’s unique positioning, combining premium specialty coffee and gourmet food, creates a distinct competitive advantage in the F&B market. Investors have the opportunity to partner with a brand that is not only poised for significant growth but also committed to setting new standards of excellence in the specialty coffee industry.

With strong leadership, a dedicated team, and strategic market positioning, Tan Coffee, supported by BBFT, is on a path to revolutionize the specialty coffee landscape in India. The recent launches in Mohali and Faridabad are just the beginning of a broader expansion strategy designed to capture market share and deliver substantial returns to investors.

Categories
BBFT Success Story

TAN Coffee inaugurates their largest outlet in Punjab’s Jalandhar



As the global specialty coffee market surges to a valuation of $24 billion in 2023 with a CAGR of 11.3%, Tan Coffee stands out as a transformative force in India’s coffee culture. Under the visionary leadership of owners Nisanth Mitthal and Shivank Verma, Tan Coffee has launched its largest outlet in Jalandhar, Punjab, marking a significant milestone in the brand’s journey to redefine the premium coffee experience.

A Visionary Expansion

Tan Coffee’s new 2800 square foot outlet in Jalandhar is strategically positioned to capture the premium market segment in this vibrant city. This expansive venue, featuring both indoor and outdoor seating areas with 100+ covers, is meticulously designed to offer an ambiance of warmth and sophistication. This milestone not only signifies Tan Coffee’s expansion but also underscores its commitment to revolutionizing the coffee landscape in India.

Unique Market Positioning

Tan Coffee has successfully addressed the equation of delivering premium specialty coffee and gourmet food under one roof at affordable pricing with an Average order value of 1500, a unique proposition in the market. While most premium coffee houses focus solely on coffee, Tan Coffee integrates an exceptional food menu that caters to diverse palates, ensuring a holistic dining experience. This approach sets Tan Coffee apart, providing patrons with a seamless blend of high-quality coffee and gourmet cuisine that few can match.

The menu at Tan Coffee is a testament to its commitment to variety and quality. In addition to its signature coffee blends, patrons can enjoy Boba beverages, refreshing fruit pop-ups, and an array of culinary delights. The Jalandhar outlet’s food offerings include the irresistible Food Fire pizza, mezze platter, and Mexican rice bowl, along with an in-house bakery featuring 24 items such as cheesecake slices and artisanal croissants. These diverse offerings ensure that every customer finds something to savor, enhancing repeat visits and customer loyalty.

Financial Viability and Growth

The financial metrics of Tan Coffee’s franchise model present an attractive proposition for potential investors. With a setup cost ranging from 50 to 60 lakhs and a projected payback period of just two years, Tan Coffee offers a compelling opportunity for franchise partners. This model underscores the brand’s financial viability and growth potential, making it an enticing investment in the expanding specialty coffee market.

Strategic Expansion Plans

Following the successful launch in Jalandhar, BBFT led Tan Coffee  to solidify its presence in key locations including Faridabad, Mohali, and Hyderabad’s Hi-tech City. The brand’s ambitious expansion plans include opening 12 new outlets in Punjab alone, underscoring its commitment to making premium coffee accessible to a wider audience. Tan Coffee’s strategic growth trajectory ensures that it remains at the forefront of the specialty coffee revolution in India.

Shaping the Future of Specialty Coffee

Tan Coffee’s journey from a single outlet to a rapidly expanding brand is a testament to its innovative vision and strategic execution. Tan Coffee’s success is built on a foundation of innovation, quality, and customer-centricity. By seamlessly blending premium coffee and gourmet food at affordable prices, Tan Coffee has carved a unique niche in the competitive F&B market. The brand’s focus is on creating a comprehensive and enjoyable experience and capitalize on this trend and set new standards of excellence.

Categories
Franchise stories

Tan Coffee Announces Partnership with BBFT to Launch 15 New Outlets in FY 24-25

Tan Coffee, led by the visionary founders Nishant Mittal and Shivank Verma, is set to embark on an ambitious expansion plan in collaboration with BBFT. With over 7 years of experience in the business, Nishant and Shivank have steered Tan Coffee towards excellence, establishing it as a leading specialty coffee brand known for its premium offerings and exceptional customer experiences. Now, with BBFT’s acceleration, they aim to elevate Tan Coffee to even greater heights by targeting the launch of 15 new outlets in the fiscal year 2024-25.

Tan Coffee has distinguished itself as a leading specialty coffee brand, and here’s why Tan Coffee Franchise is the best coffee franchise for investors: It’s offering a premium coffee experience complemented by a diverse menu featuring Continental, Italian, and Mexican cuisine. With an unwavering focus on freshness and quality, Tan Coffee ensures its food offerings are freshly prepared, including tantalizing bakery items such as cheesecakes and croissants. The brand’s minimalist yet elegant interiors, coupled with outdoor seating options, create a welcoming ambiance for patrons to unwind and savor their favorite brews.

With a modest setup cost of 50 lakhs and a projected payback period of 2 years, Tan Coffee‘s franchise offers an attractive opportunity for potential franchise partners and investors to be part of its growth story. As Nishant, Shivank, and the entire Tan Coffee team embark on this transformative journey, they invite franchise partners, investors, and industry veterans to join hands in shaping the brand’s future success. With BBFT’s support and Tan Coffee’s unwavering commitment to excellence, the stage is set for a remarkable journey toward achieving unparalleled heights of success in the F&B industry.

With a total team of over 100 dedicated individuals, Tan Coffee has achieved remarkable milestones, including the sale of 100,000 cups of coffee since January 2023. Currently operating in Hauz Khas, Prashant Vihar in Delhi, Jalandhar-Punjab, and Noida, Tan Coffee is poised for further expansion, with ongoing construction in Faridabad, Hyderabad – HiTech City, and Mohali, along with plans to add 12 more outlets in Punjab in the near future. Highlighting Tan Coffee’s rapid expansion plans,

Rohit Singh, Founder and CEO of Building Brands For Tomorrow (BBFT), expressed confidence in the brand’s scalability and its potential to disrupt the Indian specialty coffee market. “Tan Coffee’s commitment to quality, innovation, and customer satisfaction aligns perfectly with BBFT’s vision,” said Singh. “Together, we are poised to revolutionize the specialty coffee landscape and create new benchmarks of excellence.”

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