Thursday, April 11, 2024
HomeTea & Café FranchiseIs Barista Franchise Worth Investment? Cost, Review, Profit, Alternatives

Is Barista Franchise Worth Investment? Cost, Review, Profit, Alternatives

Have you been considering owning a premium coffee franchise in your city? Did your recent visit to the nearest coffee house sparked your interest in India’s lucrative business opportunities in coffee industry?

Or, maybe recently you read an article on Coffee industry and its growth prospects, which inspired you to start your own venture in the ever-growing industry?

If you have answered “yes,” you might be interested in learning about one of India’s leading Coffeehouses, Barista Franchise that has created quite a wave in the industry by opening over 350+ outlets in just two decades and plans to make it 500+ in the next two years.

Barista Franchise Opportunity
  • Company: Barista Coffee
  • Founded: 2000
  • CEO: Rajat Agrawal
  • Industry: Coffee and Cafe
  • No. of Locations: 350+
  • Model: Franchise
  • Area served: India & Neighboring countries
  • Franchise Fee: ₹6 Lakhs to ₹20 lakhs
  • Area Required: Min. 200 sq ft
  • Total Initial Investment: ₹15 Lakh to 90 Lakh

Overview of Barista Franchise

Overview of Barista Franchise

Barista is one of India’s premier and well-established coffeehouses, predominantly renowned for its diverse offerings of coffee, tea, shakes, desserts, snacks, sandwiches, and cakes at its best-in-class cafe house.

The chain was founded in 2000 in New Delhi, India, and being currently headed by its Rajat Agrawal, CEO.

Under the visionary leadership of Rajat Agrawal, Barista embarked on a remarkable growth journey, successfully establishing over 350+ cafes across various cities in India. However, the chain’s expansion efforts didn’t halt there.

In line with the latest updates, the CEO has unveiled an ambitious future plan, and Barista is actively inviting franchise applications to extend its best-in-class cafe business presence not only to metro cities but also to Tier 2 and Tier 3 cities across India.

As mentioned earlier, the chain currently boasts over 350+ cafe houses in India and its neighboring countries like Sri Lanka, Nepal, Bangladesh, Maldives, and other middle east countries.

It is noteworthy to mention that within the next two years, Barista has set ambitious goals to expand its presence to a total of 500+ stores, reaching into other well-penetrated cities across India.

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The Journey of Barista

The humble beginning of Barista started with setting up a single outlet in New Delhi to making it a chain of over 350+ outlets is simply astonishing.

The chain were quite choosy in selecting the high footfall locations, which in turn given them the immense growth and the countrywide expansion.

Currently, the Barista primarily competes from a brand like Café Coffee Day, Tim Hortons, Tata Starbucks, and more. And with the entry of International brand like Pret-A-Manger, Costa Coffee, Tim Hortons, and Tata Starbucks have certainly created a competitive atmosphere in the Industry.

As per the reliable information, Barista franchise is considered as second-largest coffeehouses in India with 350 locations, after the CCD(Cafe Coffee Day) which presently operates over 1384 outlets as of February 2023.

The franchise also holds a prominent position in the coffee industry in Maldives and Sri Lanka. Interestingly, Barista is the largest coffee store chain in Sri Lanka, further solidifying its foothold and popularity in the region.

Key Facts on Barista Franchise

Sr. NoTypePrivate
1Trade NameBarista Coffee
2IndustryFood and Coffee
4Founders Or Parent CompanyRajat Agrawal, CEO
5HeadquartersNew Delhi, India
6Number of locations350+ outlets
7Area servedIndia, Sri Lanka, Maldives,
Nepal, and more
9Menu offeringCoffee, Tea, Smoothies, Cookies,
Sandwiches, & more
10Revenue₹ 190 Crore in FY 23

Why consider owning a Barista Coffee Franchise?

Owning a Barista Franchise

There could be several reasons to own a Barista coffee franchise in your city. If you are a coffee enthusiast or have a deep interest in the coffee business, then you should be interested in understanding the points below:

  1. Affordable business setup:
    • Barista offers a flexible business model to its aspiring entrepreneurs, and one can take up its franchise with a minimum investment of 14 lakhs, making it highly accessible and affordable franchise business.
      • However, the dining model of Barista chain may need an investment up to ₹80 lakhs to ₹ 1 Crore.
  2. More than a decade long experience:
    • Barista boasts two decades of experience in the coffee industry, which has been growing exponentially over the last few years, with Barista playing a significant role in this growth.
      • This humongous experience may play a vital role in offering a proven business model and a lucrative opportunity for interested candidates.
  3. Extensive range of delicious menu:
    • Barista is renowned for offering a wide range of delicious coffee beverages, teas, desserts, snacks, and more. As a franchisee, you can leverage the uniquely procured and prepared recipes to cater to your local customers’ tastes and preferences.
  4. Rapidly growing India’s coffee market:
    • Indeed, India’s coffee culture is steadily growing, and more people are seeking specialty coffee experiences. Owning a Barista Coffee house in your city may provide several benefits and could prove to be a great investment for you.
  5. Leading position in the India’s coffee market:
    • Having renowned for its authentic coffee flavors and leading position in India, Barista outlet owner may leverage the brand’s existing customer base and further solidify its name among in other part of the country.

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How much does Barista Franchise Cost?

Barista Franchise Cost

The initial cost for a Barista Coffee franchise may actually depends on your investment budget, the proposed location, market potential, and more.

The franchise provides a flexible and affordable business setup that can be taken up with an initial investment of at least ₹15 lakhs.

However it is duly noted that there are several other models available for a Barista and the entire investment can go up to ₹1 Cr for a dining model.

In addition to that, to become an approved Barista Franchise owner, one may need an initial investment of ₹15 lakhs to ₹80 lakhs for a minimum floor space ranging between 100 sq feet to 2000 sq feet.

This initial investment of Barista Coffee outlet does cover the franchise fee, marketing fee, and other necessary expenses.

Notably, Barista offers three different types of model, namely, Kiosk, Cafe, and Diner.

The Kiosk model of Barista may require an investment of ₹15 lakhs, while Café requires around ₹35 lakhs to ₹45 lakhs and Diner model demands a capital of over 90 Lakhs.

How much is Barista Franchise Fee?

The franchise fee for Barista is purely dependent on the model you choose, and one may need to pay a franchise fee of ₹6 Lakhs to ₹20 lakhs, excluding the GST.

Furthermore, Barista hasn’t mentioned any detail on its required net worth and liquidity. However, Interested applicants should at least have initial funding to own at least 3 Kiosk or Cafe outlet in their location.

That makes an initial asking of ₹45 lakhs to ₹ 90 lakhs for Kiosk and Café model respectively.

Additional Cost for Barista

Typically, To run and operate a Barista location, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.

The Barista chain demands a royalty fee of 8%, including the ad marketing fee, which will be calculated based on the monthly gross sales.

Type of CostKioskCaféDiner
Model6 Lakhs + GST8.5 Lakhs + GST20 Lakhs + GST
Space100 – 400 Sq. ft.800 – 1100 Sq. ft.1500-2000 Sq. ft.
Setup Cost₹ 8-9 Lakhs₹ 22-32 Lakhs₹ 65-70 Lakhs
ROI14 – 16 Months16 – 22 Months14 – 24 Months
Total Investment₹ 15 Lakhs₹ 35-45 LakhsOver ₹ 90 Lakhs

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How much is Barista Franchise Profit Margin?

Barista Franchise Profit

The profitability of a single Barista outlet is highly dependent on the outlet’s geographical location, average customer footfall, order value, and the owner’s capabilities to mange and run an outlet efficiently, while adhering to the company’s standards.

Furthermore, Barista follows distinct pricing standards that vary based on the location. The chain offers its wide range of menus at affordable prices in non-metro cities, but it charges slightly higher prices in its cafes located in metro cities like Mumbai, Delhi, Chennai, Hyderabad, Bengaluru, and more.

It enables them to offer a menu range similar to what Starbucks and Tim Hortons provide but at a more affordable price, around 10-20% lower.

In addition to that Barista enjoys a robust outlet presence across the major cities in India that is only behind the Cafe Coffee Day.

Overall, Barista’s legacy of over two decade, moderate and flexible setup cost, premium and wider product offering, competitive pricing strategy, and growing customer base & market demand may allow a franchisee to anticipate a gross profit margin of 40-50% and an approximate net profit margin of 12-16%.

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What will be the requirements to Own a Barista Franchise?

First and most important – One should be financially well-qualified and have good credit to start a Pret A Manger location, and should be ready to invest minimum 2 Crores to ₹4 Crores.

  1. First and most important – Prospective investors should have strong financial qualifications and be prepared to invest a minimum of ₹50 lakhs to ₹90 Lakhs to effectively manage and operate the Barista location.
  2. Interested franchisees should have a passion to work in the Coffee and Cafe industry and should possess an entrepreneurial spirit to grow the Barista business with complete ownership.
  3. Applicants are advised to secure a suitable location that should meet Barista’s franchise requirements, such as high visibility and easy accessibility with a min floor space of 100 – 2000 sq feet.
  4. Applicants interested in owning Kiosk and Cafe model should have initial funding to own at least 3 outlet in the city.
  5. Like other Cafe franchises, The potential prospects are liable to pay the royalty fee of 8% to the franchisor, which will be usually charged on a monthly basis.

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Is There any alternatives to Barista Franchise?

Undoubtedly, Barista coffeehouses that holds a legacy of over 23+ years is growing at an exceptional pace and it carries all the right attributes to compete with the International brand like Tim Hortons and Pret A Manger and Starbucks.

While these opportunities might seem enticing, they can be quite challenging to pursue.

Let’s explore the alternative options available in the market.

Pret A Manger Franchise

Pret A Manger, famously known as Pret, is a popular cafe shops and one of Iconic coffeehouse of London.

Recently, they ventured into the Indian market by opening one of its first lavish dining model spread over 2500 sq feet in Mumbai. The store was inaugurated by the Apple’s CEO, Tim Cock.

Like Barista, Pret also has strong presence in the International market but more towards the Tier 1 countries like UK, US, Hong Kong, France, Dubai, Switzerland, Brussels, Singapore and Germany.

Though the Pret Cafe opportunity might be enticing, it’s disheartening to know that Pret A Manger doesn’t sell its franchises. Instead, the brand has entered into a collaboration (JV agreement) with Reliance – India’s leading conglomerate – to help them expand their footprints in the Indian market.

Learn more – Pret A Manger Franchise Opportunities – Cost, Fee, & Profit

Tim Hortons Franchise

Another International player in the Cafe industry that has its roots from Canada. Tim Hortons, also known as Tim’s or Timmie’s enjoys an immense and crazy fan following for its delectable and tasty range of coffee and snacks.

You wouldn’t be even surprised to know that on a regular basis we received over 50+ queries on our platform for Tim Hortons franchise.

Tim Horton is one of World’s leading and largest quick service restaurants that takes pride in serving a wide range of coffees, cookies, shakes, burgers, and more.

Though the Tim Horton sells its franchises, but one need to have an investment capacity of at least ₹1 Crore, which would be little on higher side than Barista.

Learn More: Tim Hortons Franchise Opportunities – Cost, Fee, & Profit

Third Wave Coffee Franchise

One of India’s leading and renowned coffee houses, Third Wave Coffee (TWC), was established in 2016 by Ayush, Anirudh, and Sushant.

The cafe predominantly serves a premium range of freshly brewed coffee and cold brew bags, catering to coffee enthusiasts seeking high-quality and distinctive coffee experiences.

The chain had started their journey with single outlet operation in Bengaluru to quickly expanding its reach to other part of the country. Currently, the chain operates over 35+ outlets span across major tier 1 cities of India.

Yet again, you might seems interested in owning its franchises, but unfortunately, you can’t own currently. It’s complete 35+ stores are solely-owned and operated by the company itself. The company doesn’t have any plan to embrace the franchise model in near future as well.

Learn More: Third Wave coffee Franchise – Cost, Fee, & Profit

How to Get Barista Franchise?

The franchising application process is quite easy for Barista, where one has to simply submit their necessary personal details, after which you may receive a follow-up call from the team for the further process.

Owning a Barista Coffee outlet owner requires a moderate investment that offers an impressive gross profit margin. Nevertheless, the Barista chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

One can avail this franchise using below mentioned steps;

To get this franchise, you may need to follow the necessary steps;

  1. Visit the official website —>>> Barista Franchise Form
  2. You need to fill in the details like Name, Email ID, Phone Number, and more.

Once you submit the form, the franchise team will revert back with in 24 hours of your form submission.

Official details

Contact Information9319392273, 9899303032, 8699500444
AddressBarista Coffee Company Limited Unit No 301 to 304,
Third Floor, Vipul Agora, MG Road,
Sector 28 Gurugram, Haryana -122002, India.

Final Takeaway – Conclusion

Undoubtedly, Barista presents an exciting range of opportunities for the aspiring candidates looking to venture into the world of coffee and cafe businesses in India.

Having more than 23+ years of experience, a comparatively affordable cafe setup cost than its peers, widespread presence, and growing customer base may provide immense value and support to its aspiring candidates.

Barista has a flexible business model that starts with an initial investment of ₹15 lakhs, which also carries a potential to provide a net profit margin of 12-16% to its franchise owners.

The Bottom Line – Overall, Barista coffeehouse seems like a lucrative and enticing opportunity for coffee enthusiasts who have ever dreamed of venturing into the cafe industry by partnering with a leading coffee brand.

However, one must also take into consideration the royalty fee, which is around 8%, and we believe it to be on the higher side. As a franchisee, negotiating the royalty fee to some extent until you start making a reasonable profit from the outlet could present a great opportunity to embark on your entrepreneurial journey with Barista.

Good Luck!! Happy Franchising!!

Want To Explore More? Then Check Out Below Franchising Opportunities.

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  1. How much does it cost to Start a Barista Franchise?

    To become an approved Barista Coffeehouse owner, one may be required to have an initial investment of ₹15 lakhs and a minimum floor space of 250 sq feet. However, if you looking for lower end model, you may need to at least own 3 kiosk or cafes, which total amounts to ₹45 lakhs.

  2. Is Barista Franchise Profitable?

    The Barista outlet’s profitability depends on several factors, such as location, menu and its pricing, ambiance, and overall customer experience and retention.
    Overall, Barista franchise has established itself as leading brand among its consumers, and its competitive pricing strategy, and flexible business setup may help its partners to earn handsomely.

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