Does Zoop Cafe Franchise WORTH Owning? – Cost & Profit

Have you been looking around for an affordable food franchise in your city? Do you have a limited budget but an immense desire to enter the food industry?

Are you an avid consumer of pre-cooked food and looking to serve the same to your customers? Or, have you been contemplating owning a Zoop Cafe but want to know more about its potential for future growth?

Your extensive search ends here! In this all-inclusive piece, we will delve into the Zoop Cafe Franchise, including its cost, fees, and profits, and address some frequently asked questions about the chain.

Affordable franchises are hard to find these days, and with a minimum investment of only ₹2 lakh, Zoop Cafe paved the way for the list of the top 5 food franchises under 2 lakhs in India.

• Company: Zoop Cafe
• Founded: 2014
• HQ: Mumbai, MH, India
• Industry: Food & Beverage
• No. of outlet: 150+ locations
• Model: Franchise
• Area served: India
• Franchise Fee: Not Required
• Royalty Fee: Not Required
• Area Required: 200 – 400 sq ft
• Total Initial Investment: ₹ 1.75 lakhs to ₹2.5 lakhs

Overview of Zoop Cafe Franchise

Zoop Cafe, established in 2014 by Aditya Malpani and Amol Lanke, is a renowned food chain known for its wide selection of pre-cooked foods.

Their menu features an array of delectable options, ranging from mocktails, desserts, and milkshakes to vadapav, momos, pizza, and various popular regional cuisines.

The chain takes pride in offering a franchise model that can operate successfully without the need for a chef or cook, making it highly accessible. Moreover, the company has achieved significant expansion, with a presence in over 150+ locations across seven states, spanning 28+ cities.

With almost a decade of experience in the food industry and a diverse culinary range, the chain has successfully served over 1 crore customers.

Building on this accomplishment, the franchise is currently inviting applications from enthusiastic candidates interested in joining their proven business setup.

Does this little snippet on Zoop cafe excite you to become their partner? Hold on, we have a lot more interesting topic to cover on this, which will allow you to understand more about this business.

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The Journey of Zoop Cafe

Zoop Cafe embarked on its journey a few years ago in 2014 as a modest fast food joint. Since then, the founders have introduced a wide range of regional cuisines in a pre-cooked format.

This strategic move has enabled the chain to effectively meet the high and ever-growing customer demand. By offering a diverse menu selection, Zoop Cafe has successfully established a strong and loyal customer base across various cities in India.

Key Facts on Zoop Cafe

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How much does Zoop Cafe Franchise Cost?

The cost of owning a Zoop Cafe may depend on several factors, including the location, market potential, available floor area, and much more.

The franchise claims to provide a flexible business setup, and franchise applicants can choose their model based on their investment budget.

Here are the list of franchise model offered by the Zoop cafe;

1. Mini Model
2. Cafe Model

Nevertheless, to become an approved Zoop Cafe franchise owner, one may only require an initial investment of ₹1.75 lakhs to ₹2.5 lakhs for a floor area of 200–400 sq feet.

In addition to that, the initial investment covers the cost or fee for the security deposit (not applicable here), equipment, and other miscellaneous expenses.

Notably, Zoop Cafe sets itself apart by not requiring any franchise or royalty fees for its franchise opportunities. This unique approach allows aspiring franchisees to join the Zoop Cafe family without the additional financial burden of such fees.

How much is the Zoop Cafe Franchise Fee?

Irrefutably, Starting a Zoop Cafe outlet entails a low initial investment. However, it is interesting to mention that Zoop Cafe doesn’t demand any franchise fee or deposit to become their approved partner.

Additional cost for Zoop Cafe

In the case of Zoop Cafe, The franchisee is exempted from paying Royalty fee and marketing fee, enabling the outlet owner to operate the chain hassle-freely and increase their margin to a certain extent.

What are the other cost involved to setup a Zoop Cafe outlet?

The costs mentioned below provide a breakdown of the total initial investment:

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Does Zoop Cafe offer its master franchise?

Indeed, Zoop Cafe offers the opportunity to become a master franchisee to individuals who align with the founders’ vision.

It is important to note that to become a master franchisee, a minimum investment of ₹5 lakhs may be required, enabling you to expand the Zoop Cafe business in your designated area.

This master franchise arrangement allows entrepreneurs to take on a leadership role, oversee multiple outlets, and contribute to the growth and success of the brand within their specific region.

How much is the Zoop Cafe Franchise Profit Margin?

The profitability of a Zoop Cafe can vary depending on several factors, such as location, overhead costs, supply chain, varieties of product served, market conditions & demand, and much more.

Additionally, Considering the Zoop Cafe’ significant presence across the 28+ cities, diverse range in menus, competitive pricing, moderate setup cost with high growth potential, A Zoop Cafe franchise aspirant may anticipate a gross profit of 40-45% and a Net profit of 15-22%.

Then, is it safe to take their franchise? Well, we are yet to answer it, read further for more information.

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What does it require to start a Zoop Cafe Franchise?

1. Interested candidates should possess the necessary funding amounting to ₹1.75 lakhs to ₹2.5 lakhs with a proper retail space of at least 200 square feet.
2. Interested applicants are advised to dedicate themselves to the Zoop Cafe business, follow the company standards, and maintain their legacy.
3. Interested franchisees should have passion to work in the Food and Beverages industry and should possess the leadership and financial skills to operate a Zoop Cafe location
4. The Zoop Cafe doesn’t require any background experience, but having prior experience will be an added advantage.
5. The franchisee must be a resident of India, and he or she will be required to verify their personal documents.

Space required for Zoop Cafe Outlet

To own and get started for a Zoop Cafe outlet, you are requested to secure a suitable retail space of 200-400 sq feet. This retail space is expected to be at a higher footfall area, near to other renowned food chain, universities, or educational institute.

Furthermore, it is important to highlight that securing a prime retail space with increased customer footfall at a reasonable rental cost can significantly boost the net profit margin. So, please take care of that.

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Why Consider Owning a Zoop Cafe Franchise?

With the tremendous growth of the Indian food industry, it’s no surprise that everyone is seeking profitable ventures. However, it’s essential to note that not every franchise guarantees profitability.

To learn more, we would request that you read further. (also, some demerits of Zoop Cafe is discussed in later part of the article.)

1. Zero Franchise Fee:
   • Zoop takes pride in offering its franchising program to aspiring entrepreneurs with zero franchise fees.
2. Zero Royalty Fee:
   • The franchise doesn’t charge any royalty or marketing fee from its franchisee, which may certainly help the owner earn a few extra margins.
3. Low-cost setup:
   • One can take up its franchise with a minimal investment of ₹1.75 lakhs for a mini model and ₹2.5 lakhs for its cafe model, making it a highly accessible business setup.
4. No Chef/Cook required:
   • To operate a Zoop Cafe, you may not require a specialized chef or cook to prepare its diverse range of foods.
     • This not only simplifies operations but also provides an additional advantage for the franchisee owner.

Risk associated with Zoop Cafe Franchise

Almost every business has some benefits and flaws, while some flaws can be mitigated and other are hardly avoidable. To elaborate more, we have highlighted a few major factors;

1. Pre-cooked food:
   • Absolutely! You read that correctly. The unique selling proposition (USP) of Zoop Cafe, which is its pre-cooked food, could also pose a potential risk for its franchise success.
     • From the perspective of the average Indian customer, there is a strong preference for freshly prepared snacks rather than pre-cooked food.
2. Shelf Life of their products:
   • The franchise claims to offer its entire menu range of pre-cooked food with a shelf life of 4-6 months.
     • Can you consider yourself eating and serving a samosa that is 4-6 months old? Certainly! No. While the concept may be new, it will take time for Indians to consume these snacks.
3. An official website with no information about its founders:
   • Upon conducting thorough research, it has become evident that Zoop Cafe’s official website lacks any substantial information regarding the franchise’s founders, establishment, and other essential details.
     • This absence of reliable information raises concerns about the transparency and credibility of the franchise.
       • Additionally, it appears to be a food business that is purely concentrated on selling its franchises, which can be considered a significant red flag.
4. Minimal Support:
   • As a franchisee, it is important to note that you may receive minimal support when opening a Zoop cafe. This includes areas such as interior decor and branding, where the company only provides designs to interested prospects for them to print and decorate on their own.

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How to Get Zoop Cafe Franchise?

Starting a Zoop Cafe location will require a relatively least investment that may offer an impressive gross margin(if executed effectively).

Additionally, the Zoop cafe chain may provide several benefits, and interested candidates can take up its outlets in their city through their expertise and minimal support systems.

One can avail this franchise using below-mentioned steps:

1. Visit its official website and submit your necessary details;
   • You may be required to submit the details like Name, Email ID, Phone Number, City, State, Postal code, and other necessary info.

Final Takeaway: Is it worth investing?

Zoop Cafe has gained popularity as a food business in India, expanding its presence to over 100+ locations. Renowned for its diverse range of pre-cooked food menu, the chain has cultivated a sizable fan following.

The franchise opportunity offered by Zoop Cafe comes at a highly affordable price, with a minimum investment of ₹1.75 lakhs for the mini model and ₹2.5 lakhs for the Cafe model.

However, does this automatically make it a reliable and successful brand?

Not necessarily. Our research states that the limited information provided to franchise applicants may raise significant concerns about its future growth.

Additionally, while Indian customers may enjoy the pre-cooked food offered by famous American food chains such as Pizza Hut, KFC, and McDonald’s (because these brands have already made themselves pioneers in the industry), they may not be as receptive to pre-cooked Indian snacks.

At FranchiseGoal, we advise aspiring entrepreneurs to exercise caution and give Zoop Cafe some time to demonstrate exceptional numbers and profit margins. Let them expand and establish themselves as a renowned brand before making a decision to invest.

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