From the last decade, we have seen significant growth in the kebab industry of India, and many franchisees are entering this lucrative market through franchise opportunities. In this comprehensive guide we look at all of the initial investments, operational costs and eventually the potential returns when you start up a kebab shop franchise.
Initial Investment Overview
The investment to start a kebab franchise in India usually starts at ₹15 lakhs to around ₹40 lakhs, based on the location, size and brand reputation. Franchise fee is around ₹5 to 10 lakhs for the most active kebab brands & this investment covers franchise fee. Kebab Shop franchise cost vary hugely depending on the strength of the brand and level of support it offers.
Real Estate Costs and Location
The location of one of the main contributing factors for the total investment. Real estate investment in Mumbai, Delhi or Bangalore can get you rental deposits of ₹5-10 lakhs and monthly rentals in the range of ₹50,000 to ₹2 lakhs in prime locations. Tier 2 cities give you better value, which is deposits in the range of ₹3 – 5 L and rentals of ₹30, 000 to ₹75, 000 per month. A standard kebab franchise outlet requires a space between 250 to 500 square feet as an ideal requirement.
Equipment and Infrastructure
Investing in setting up a professional kebab kitchen takes a lot of money. The essentials list includes tandoors, grills, refrigeration units, exhaust system and food preparation station. Typically the total equipment cost lies anywhere between ₹7 to ₹12 lakhs depending upon the brand specifications and quality requirement. Each kebab franchise has different equipment suppliers that maintain kebab consistency across outlets.
Training and Staff Requirements
Matter of fact, professional training is important to maintain food quality and service standards. Initial training programs of staff in most franchise agreements range from ₹50,000 to ₹1 lakh per batch. A kebab outlet needs around 6–8 persons, including chefs, helpers and service. Staff, or monthly expenses involves salaries plus benefits usually between ₹1–1.5 lakhs.
Requirements for Licensing and Legal
To run a kebab franchise, you will need some kinds of licenses and permits; FSSAI registration, shop establishment license, fire safety certificate and GST registration. These licenses can be obtained at a total cost of ₹50,000 to ₹1 lakh. As part of their support services, some franchise brands are involved in procuring these licenses.
Marketing and Branding
Franchises of kebabs usually make franchisees participate in marketing activities. The initial marketing investments will be between ₹2-3 lakhs and monthly marketing contribution will be on the line of 2-3% of revenue. This guarantees the consistent promotion of brand and regional area marketing tasks committed to the driving of the customer footfall.
Working Capital Requirements
For the first three months, a new kebab franchise requires working capital of initially ₹3 to 5 lakhs in order to support operational expenses like inventory, utilities, staff salaries, miscellaneous cost. The buffer insures that initial revenue levels will be reflected smoothly during the set-up period when revenues could be less than anticipated.
Royalty and Ongoing Fees
Franchisees often have to pay ongoing royalty fees of 4–8 percent of monthly revenue. Truly some brands will also charge additional fees on technology support, training, and quality control visits. The recurring cost must be considered in the business plan so as to be profitable.
Return on Investment
If you’re going with a kebab franchise business, it typically has a reputation of paying off well, and outlets run efficiently are profitable within 12 to 18 months. Outlets in the good locations have a monthly revenue potential of ₹5–10 lakhs, with profit margins of approximately 15–25% after all expenditure and royalty payments.
Technology, Operations support and IT
When it comes to technology, many modern kebab franchises provide technology support, with POS systems, inventory management software, and integration for online ordering. There are chances that these systems will need initial investments of ₹1 to 2 lakhs and Monthly Maintenance fees as ₹5000 to ₹10000.
Supply Chain Management
One of the most important parts of a successful kebab franchise is to have a solid supply chain network. The majority of franchise brands have developed relationships with verified suppliers of meat, spices and other important ingredients. Inventory setup typically costs between ₹2-3 lakhs and running monthly inventory expenses are between ₹3-5 lakhs based on sales volume. The ones who insist on you buying from their approved vendors might sometimes result in less profit margins but they assure you of the quality and consistency of servings in some outlets.
Customer Service and Experience Lines
The kebab franchise business is successful if you invest in the customer experience. Here you’ll include setting up comfortable seating arrangements, a feedback system and keeping high service standards. Typically, you will invest in ₹4 to ₹6 lakhs in the investment in furniture, decor, and customer management systems. Furthermore, staff are being trained to give customer service the combustion rate is around ₹25,000 to ₹35,000 per quarter.
Quality Control and Compliance
Kebab franchises that are successful have high quality control measures. As a rule, franchisors regularly keep an eye on the sites, which conduct audits and inspections to confirm the compliance with the brand standards. There might be some additional investment that would be required for storage, maintenance of hygiene and staff training for these quality control measures.
Future Growth Opportunities
Most franchise agreements contain provisions for expansion outside the original territory or multiple outlet opportunities. The key is that successful franchisees will often snap up additional territories at preferential rates of anywhere from 20 to 30 percent less than the initial franchise fee.
Conclusion
Tandooriwala is a substantial force with itself that provides attractive franchise opportunities amidst the chaotic kebab franchise landscaping. A standard outlet in their franchise package costs at ₹20 lakhs and assists in training, equipment specification and ongoing operational support. Tandooriwala’s franchise model is unique with a clear cost structure and a proven business model.
Their tandoori kebab recipes are unique and they have standardized operations manual to offer them. As part of their franchise package, the company offers detailed training programs executed by the dedicated team that selects and set up the location. The market competitive franchisees fee of ₹7 lakhs provide a reasonable royalty structure of 5% of monthly revenue with ongoing support.
