10 Best Cafe Franchise in India

Posted by 7k Network
April 10, 2025

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In India the social environment generates its vibrant energy through its innovative cafes which have become critical common spaces. These facilities serve beyond their beverage function as they have evolved into vital social centers where people work and meet friends while finding time to relax throughout the entire country. The rapid growth of the Indian cafe industry creates a major economic opportunity because the yearly market value reaches above INR 5,000 Crores. Due to growing incomes and shifting social patterns the market shows swift expansion potential that exceeds forecasted 10% yearly growth for the near future.

Venturing into this active market becomes a challenging route for potential business owners chasing opportunities. Constructing both a brand and operational system requires extensive work that includes substantial levels of risk. Franchising presents entrepreneurs with an appealing business model where they can combine with proven corporate partners to access successful business operations and compete successfully in the profitable coffee sector. The research investigates the best cafe franchise in India which includes a study of market conditions combined with crucial details regarding leading franchisors and essential criteria for investment choices.

The Booming Cafe Culture in India & Franchise Opportunities

India’s growing popularity of cafes stems from a combination of social, economic and various other influences.

Rising Disposable Incomes: India’s per capita income continues to rise, especially among the urban middle class. As of FY24–25, per capita income is estimated to exceed ₹2 lakh annually, supporting increased consumer spending on lifestyle and leisure..
Urbanization: According to government data, over 35% of India’s population lives in urban areas as of 2025, with Tier 2 and Tier 3 cities seeing the fastest café growth, due to increasing demand for branded experiences and social spaces.
Young Population & Western Influence: Over 65% of India’s population is under the age of 35, and this group heavily drives consumption trends. Western cultural influences and global lifestyle aspirations continue to shape café culture, especially among Gen Z and Millennials.
Changing Work Culture: The gig economy, hybrid work models, and startup ecosystems have made cafes a preferred spot for work and meetings. This trend was accelerated post-pandemic and continues to influence café design and services in 2025.

Overview of the Indian Cafe Market

The Indian causerie market is one of the most dynamic and rapidly expanding sections of the Indian food service sector. It remains in a vigorous upward trend, increasing at a rapid rate compared to previous years.

Market Size & Growth:

Although exact numbers for 2025 are estimates, industry reports consistently value the Indian café franchise market at approximately INR 5,200 to INR 5,600 Crores (around USD 628–670 million) annually. The market is projected to grow at a CAGR of 8–12% in the coming years.

Encouraging trends suggest even greater growth potential in Tier 2 and Tier 3 cities, where café culture is still emerging. The organized café segment—including chains and franchises—is expanding significantly faster than the unorganized sector made up of independent cafés. This growth is fueled by rising urbanization, increasing disposable incomes, and a growing preference for premium coffee experiences.

The key segments are:

Coffee-focused Chains: Dominated by international and large domestic players (e.g., Cafe Coffee Day, Starbucks, Barista, Costa Coffee).
Tea-centric chains (Café Format): Chains that bank on India’s age-old love for tea in modern cafe setups (e.g., Chaayos, Chai Point, Chai Sutta Bar, Tea Time).
Hybrid Models: Offering a balanced mix of coffee, tea, food, and often unique beverages or themes.
Specialty Coffee Shops: An expanding category focused on a wide choice, single-origin beans, unique methods, pour-over, and coffee schooling.

Dominant Players:

Despite facing corporate issues at some point earlier, Cafe Coffee Day (CCD) still has a considerable chunk of its presence thanks to its vast network. The best cafe franchise in India, with significant international players in this regard, are Baristas and Costa Coffee, who possess good brand value. Several domestic chains, including Chaayos, Chai Point, Theobroma (more patisserie-cafe), and more, are also growing fast.

Why Choose a Cafe Franchise?

In the competitive Indian market starting a best cafe franchise in India presents a series of attractive benefits compared to developing your own independent establishment.

Established Brand Recognition: The franchised brand automatically brings recognized brand names and established dedication from customers. The brand recognition extends to customer recognition of the company name along with its logo together with established quality standards regarding products and services. This mandatory reduction of build-time and expense makes it possible to develop a brand into existence significantly faster.
Proven Business Model: The franchisors learned their business model elements including operational systems, menus, pricing strategies and marketing techniques through their experience. When franchisees begin operations they receive an established system of success that lowers the expense and time needed for trial-and-error development.
Comprehensive Training: Professional franchisors deliver full-scale educational programs teaching their franchisees to do beverage preparation while instructing them about food handling and customer service and inventory management and financial administration. Such assistance proves critical for both beginners in business and individuals who are new to running food service establishments.
Ongoing Operational Support: Franchisors’ support continues without interruption to franchise owners, who receive checks from operations managers, product troubleshooting help, practical methods, and data-driven performance monitoring.
Marketing & Advertising Muscle: Franchises receive the marketing advantages of national and regional advertising efforts run by the franchisor that embrace TV commercials and digital marketing along with social media promotion and public relations services. The franchisees also obtain marketing instructions and promotional materials to support local store advertising.

List of Best Cafe Franchises in India to Invest In

Franchise Name	Estimated Investment Range (INR Lakhs)	Estimated Franchise Fee (INR Lakhs)	Estimated Space Req. (Sq. Ft.)	Projected ROI (Annualized – Highly Variable)
Cafe Coffee Day (CCD)	15 – 30+	3 – 5	300 – 1500+	15% – 25% (Pre-COVID data, check current)
Barista	30 – 60+	5 – 10	500 – 1500+	18% – 30%
Costa Coffee	50 – 80+	10 – 15	800 – 2000+	20% – 35%
The Coffee Bean & Tea Leaf (CBTL)	40 – 70+	8 – 12	600 – 1800+	20% – 30%
Gloria Jean’s Coffees	35 – 60+	6 – 10	400 – 1200+	18% – 28%
Chaayos	30 – 50+	5 – 8	400 – 1200+	20% – 35%
Chai Point	20 – 40+ (Varies by format)	4 – 7	150 – 1000+ (Kiosk to Cafe)	18% – 30%
Brewbakes Cafe	15 – 40+	3 – 6	300 – 1500+	25% – 40% (As claimed by brand)
Coffee Culture	40 – 70+	7 – 10	1000 – 3000+	20% – 30%
Chai Sutta Bar	10 – 20+ (Kulhad focus)	2 – 4	150 – 800+	30% – 50% (As claimed by brand)

Top 10 Cafe Franchise in India (2025)

The description focuses on ten best cafe franchise option in India —investment opportunities operating in India along with essential features aimed at the year 2025.

1. Cafe Coffee Day (CCD)

Indian consumers have long recognized CCD as the leading brand best cafe franchise in India due to its wide geographical presence. The brand recognition of this business is exceptional across both first and second-tier town and cities even after its past corporate management struggles. The business environment accommodates familiar comfort and caters to customers with a broad selection on its menu.

Investment Range: The franchise investment costs for CCD span from INR 15 Lakhs to 30 Lakhs or more.
Franchise Fee: The franchise fee amounts to INR 3 Lakhs to 5 Lakhs.
Space Requirement: 300 sq. ft. (Express) to 1500+ sq. ft. (Lounge/Square).
Support Offered: The company assists franchisees through brand implementation along with site selection help and design services, owner and staff training, operational expertise, supply chain management as well as marketing support.
What makes this franchise attractive? What makes this franchise attractive? Its widespread brand reputation in India and wide retail network joins extensive operational protocols and multi-format stores to appeal for youth along with working professionals.

2. Barista

Barista is one of the best cafe franchises in India. It is the primary originator of the cafe movement and delivers high-quality Italian coffee beverages to its customers. The brand offers high-quality espresso-based drinks through its cozy interior, which specifically attracts customers who value both atmosphere and beverage excellence.

Investment Range: Approx. INR 30 Lakhs to 60 Lakhs+.
Franchise Fee: The franchise acquisition fee demands around INR 5 Lakhs to 10 Lakhs from potential investors.
Space Requirement: 500 sq. ft. to 1500+ sq. ft.
Support Offered: This franchise supports its businesses through its established brand status and complete training program (including Barista Training Academy), site selection services, design assistance, purchasing help, across-the-board marketing support and regular operational feedback.
What makes this franchise attractive? The brand excels at brand recognition and maintains a reputation for premium coffee beans and occupies choice places serving an above-average upscale patronage alongside regular menu modernization.

3. Costa Coffee

As a British coffee enterprise owned by Coca-Cola and operating worldwide, Costa Coffee provides its customers with genuine European coffee house atmospheres. The company delivers premium Mocha Italia blend coffee accompanied by comfortable seating arrangements, including plush furnishings. Devyani International Ltd functions as the operator of Costa Coffee, the best cafe franchise in India.

Investment Range: Approx. INR 50 Lakhs to 80 Lakhs+. The amount invested serves to position the business at exceptional quality standards across international markets.
Franchise Fee: The franchise fee requirement amounts to between INR 10 Lakhs to INR 15 Lakhs.
Space Requirement: 800 sq. ft. to 2000+ sq. ft., typically high-street or premium mall locations.
Support Offered: As a franchise partner you will access international brand strength together with detailed training and high performance benchmarks alongside localized worldwide marketing resources and development site evaluation support and signature product distribution network services.
What makes this franchise attractive? The franchise appeals through brand recognition worldwide and its association with top-quality products and authentic experiences while offering international business practices and thriving in metropolitan and airport locations in addition to delivering superior revenue potential per customer.

4. The Coffee Bean & Tea Leaf (CBTL)

This US-based premium chain operates worldwide with a broad variety of coffee beverages including their signature Original Ice Blended® drinks. The cafe brand offering CBTL presents itself as an upgraded yet mellow coffee establishment.

Investment Range: Approx. INR 40 Lakhs to 70 Lakhs+.
Franchise Fee: The franchise expenses encompass approximately INR 8 Lakhs to 12 Lakhs.
Space Requirement: 600 sq. ft. to 1800+ sq. ft.
Support Offered: The coffee chain provides global branding, comprehensive product training, layout construction assistance alongside marketing plans, operational procedures and supply chain relationships for special products.
What makes this franchise attractive? Scallop Coffee has built its operations on premium beverages that include Ice Blended® products along with international quality coffee and tea while appealing to a sophisticated market presence in Indian cities.

5. Gloria Jean’s Coffees

An Australian specialty coffeehouse chain with a global presence. Gloria Jean’s operates as a chain that specializes in flavored coffees together with specialty espresso beverages and tea selections and light food items within shopping centers and busy locations and best cafe franchise in India.

Investment Range: Approx. INR 35 Lakhs to 60 Lakhs+.
Franchise Fee: The franchise fee requirements amount to INR 6 Lakhs to 10 Lakhs.
Space Requirement: 400 sq. ft. (kiosk) to 1200+ sq. ft. (cafe).
Support Offered: This brand provides international recognition and ongoing training to new franchises together with site selection help alongside lease negotiations and design/construction support and marketing tools and operational consulting.
What makes this franchise attractive? The coffee brand benefits from worldwide recognition, high-quality reputation and extensive beverage variety options and focuses on flavored drinks suitable for Indian customers and operates multiple franchisable store formats throughout the world.

6. Chaayos

Irrespective of their Indian cultural roots the leading Chain “Chai Cafe” labored to evolve tea consumption with innovative new ways. The best cafe franchise in India operates through Chaayos’ contemporary settings which provide more than 12,000 different chai combinations alongside snacks after introducing technological advances for customers.

Investment Range: Approx. INR 30 Lakhs to 50 Lakhs+.
Franchise Fee: The franchise agreement requires a payment between INR 5 Lakhs and INR 8 Lakhs.
Space Requirement: 400 sq. ft. to 1200+ sq. ft.
Support Offered: The company provides franchisees access to strong technical expertise together with the popular customized chai concept and extensive site selection help and innovative design services and provides technical capabilities (apps and loyalty programs) and supply chain integration with marketing support.
What makes this franchise attractive? The company exploits India’s tea devotion while offering an updated format which combines exclusive service along with steady brand allegiance and rapid network growth and technological systems that improve operational performance and customer satisfaction.

7. Chai Point

The organized chai cafe segment features Chai Point as one of its significant operators who specializes in authentic chai products and Indian snacks. The company runs its operations through various chains, including retail stores, corporate kiosks, and ‘garden’, and maintains a robust delivery service tagged ‘Chai-on-Call’, Leading the best cafe franchise in India.

Investment Range: Approx. INR 20 Lakhs to 40 Lakhs+ (highly dependent on format).
Franchise Fee: The franchise fee demands between INR 4 Lakhs and 7 Lakhs.
Space Requirement: 150 sq. ft. (kiosk/delivery) to 1000+ sq. ft. (cafe).
Support Offered: As a chain brand leader Chai Point provides diverse outlets with excellent operational systems and quality standards and selection assistance and marketing initiatives while delivering food efficiently.
What makes this franchise attractive? The company holds a dominant market position in chai segment while providing flexible outlets for various investment levels that include corporate spaces. They focus extensively on operational technology excellence and their delivery network realm.

8. Brewbakes Cafe

This Indian cafe chain operates under rapid expansion while offering customers a full cafe menu including drinks and substantial meals which include pizza along with pasta and sandwiches. Customers visit this place to experience an active gathering environment including best cafe franchise in India.

Investment Range: Approx. INR 15 Lakhs to 40 Lakhs+.
Franchise Fee: To start a franchise of Brewbakes Cafe an investor needs to pay INR 3,00,000 to 6,00,000.
Space Requirement: 300 sq. ft. to 1500+ sq. ft.
Support Offered: Franchise support includes assistance from a growing domestic business brand with affordable start-up costs compared to international competitors and extensive menu options
What makes this franchise attractive? This franchise welcomes a broader selection of food to satisfy beverage-focused consumers while reducing initial investment and enabling quick development of new outlets throughout Tier II/III locations at venues designed for young customer segments. This franchise shows good potential for high returns (verify this information independently).

9. Coffee Culture

Coffee Culture is known for its spacious locations, unique atmosphere and a wide menu that goes beyond regular cafe options including sizzlers and international dishes. It aims to offer a lounge-like experience making it perfect for longer visits and group hangouts. Top Hygines best cafe franchise in India ,

Investment Range: Around INR 40 Lakhs to 70 Lakhs+. The higher investment is needed because of the larger space and detailed setup.
Franchise Fee: About INR 7 Lakhs to 10 Lakhs.
Space Requirement: Between 1000 sq. ft. and over 3000 sq. ft.
Support Offered: A unique brand identity and atmosphere and a broad menu help with choosing locations project management assistance operational advice and marketing and event support.
What makes this franchise attractive? Its lounge concept attracts a specific audience, the extensive food menu leads to higher sales, the unique and Instagram-worthy interiors are eye-catching and it has a strong presence in Western and Central India with plans to expand further.

10. Chai Sutta Bar

Chai Sutta Bar is a unique and fast-growing chain that serves tea in traditional clay cups (kulhads). It aims at young people with its affordable prices and lively, often rustic decor, creating a hangout vibe. Although the name includes ‘Sutta’ (meaning cigarette), the main focus is on tea and snacks and affordable cafe franchises in India.

Investment Range: About INR 10 Lakhs to 20 Lakhs+. This is one of the more affordable options.
Franchise Fee: Approximately INR 2 Lakhs to 4 Lakhs.
Space Requirement: From 150 sq. ft. to over 800 sq. ft.
Support Offered: A popular concept (kulhad chai) lower investment needed fast expansion for better brand visibility, training, basic operational assistance and marketing guidance that appeals to young people.
What makes this franchise attractive? Its affordability encourages high sales volume, the unique selling point (kulhad) appeals strongly to students and young adults, it is rapidly growing and generating buzz and it has a lower financial entry barrier. They also claim a very high return on investment (ROI) but it’s best to verify this independently.

Factors to Consider When Choosing a Cafe Franchise

Choosing the best cafe franchise in India is very important. There are many things to think about besides just the numbers.

Your Budget & Financial Capacity: First consider your budget and financial capacity. Be honest about how much money you can invest. This includes not only the franchise fee and setup costs but also the money you will need to cover expenses for the first six to twelve months. You should think about possible extra costs for renovations and your personal living expenses. If you need help, look into financing options.
Franchisor’s Reputation & Track Record: It is also important to check the franchisor’s reputation and track record. Do some research on the franchisor. Talk to current franchisees both those who are doing well and those who are struggling. Look for any legal issues they may have had. You should also assess their financial health and future plans.
Level of Support & Training: Another important factor is the level of support and training offered. Look into how good and thorough the training is. Is it just a one-time session or do they provide ongoing help mentorship and marketing support?
Market & Location Analysis: Finally analyze the market and location. Even if the brand is great, the location matters a lot. Research your target area thoroughly. Check the demographics of traffic competition, visibility, accessibility and rental costs. Find out if the franchisor helps with site selection.
Personal Interest & Passion: Lastly, think about your personal interest and passion. Running a cafe even as a franchise takes long hours and hard work. Choose a brand and idea that you truly care about. This passion will keep you motivated when faced with challenges.

Low-Cost Cafe Franchise Options in India

There are best cafe franchise in India for entrepreneurs with limited money. Some of these options are smaller and focus on specific needs.

Kiosk Models: Kiosk models are a good choice. Big brands like Chai Point and Gloria Jean’s have kiosks. These work well in malls or busy places. They need less space, usually about 100 to 300 square feet and cost less to set up.
Express Outlets: Express outlets are another option. These are smaller cafes that focus on quick service and takeaway. They require about 250 to 500 square feet and can cost less than full-sized cafes. For example CCD’s Value Express is one of these.
Tea-Focused Brands (Lower Tier): Some tea-focused brands offer lower costs. Brands like Chai Sutta Bar have simple setups and need less space. Their startup costs usually range from INR 10 to 20 lakhs making them affordable.
Specialty Beverage Kiosks: Specialty beverage kiosks are also available. These franchises serve only coffee or specific drinks like shakes or juices. They often cost less than full-service cafes.
Homegrown Regional Chains: Homegrown regional chains can be a good choice too. These smaller chains want to grow and may offer franchises with low startup costs. It’s smart to research local cafe options in your area.

Key Considerations for Low-Cost Options:

Key considerations for best cafe franchise in India are as follows:

Lower Revenue Potential: Smaller cafes usually make less money. They have lower prices which means they earn less per customer. Larger cafes can sell more and earn more overall.
Location Sensitivity: Kiosks need to be in busy places. If they are in a bad location they will struggle to attract customers.
Limited Menu: These small cafes often only sell drinks and a few snacks, which limits their income.
Brand Recognition: New or smaller brands may not be as well-known, and people might not remember them as they do established brands.

The Franchise Application Process: What to Expect

To get the best cafe franchise in India you usually follow these steps.

Initial Inquiry & Research: First you need to research. Look for franchises that fit your interests and budget. Check their websites, download brochures and contact them through an online form or email.
Receive Information Package: Next you will receive an information package. The franchisor sends you important details about their brand investment needs and an application form.
Submit Application Form: After that you submit your application form. Fill it out with your background financial status, business experience and preferred locations.
Preliminary Discussion/Interview: Then there is a preliminary discussion or interview. If you are shortlisted a franchise representative will call or meet you. They will ask questions to understand you better and see if you are a good fit.
Review of Franchise Disclosure Document (FDD) / Agreement Draft: If both sides are interested, you will review the Franchise Disclosure Document (FDD) and agreement draft. This step is very important. Read these documents carefully and it’s a good idea to have a franchise lawyer help you.
Financial Arrangement: Next you need to arrange your finances. Make sure you have enough money for the total investment, whether it’s personal funds or loans.
Signing the Franchise Agreement: Finally you will sign the franchise agreement. Once your location is approved, your finances are set and everything is legal, you sign the agreement and pay the initial franchise fee.

Conclusion

There are many coffee franchises to choose from. Some are big names like Costa Coffee and CBTL. Others are popular in local markets such as CCD and Barista. There are also new ideas like Chaayos and Chai Sutta Bar. Each option fits different budgets and customer needs. Finding the best cafe franchise in India is important. You should look for a brand that matches your money, skills, and interests. It’s not only about picking a popular name.

Explore More Franchise Ideas:

FAQs

Is owning a cafe franchise in India profitable in 2025?

Owning a cafe franchise can be very profitable but it’s not guaranteed. Success depends on many factors such as the brand you choose, the location, how well you run the business, your marketing efforts and the general economy.

What is the cheapest cafe franchise option in India?

Typically tea-focused brands like Chai Sutta Bar or smaller kiosk/express models from different chains require less money to start.

Do I need experience in the food or beverage industry to get a cafe franchise?

Having experience can help but it’s not always necessary. Most well-known franchisors offer thorough training that teaches everything you need to know to run the business.

How long does it usually take to open a cafe franchise after signing the agreement?

Usually it takes about 3 to 9 months to open a cafe franchise. This time includes finalizing the location, setting up the store, getting licenses, hiring and training staff and marketing before the launch.