Hand-picked: Top 5 Food franchise under 2 lakh in India

Owning and operating a successful franchise will certainly remain in demand forever, and we have provided numerous reasons for it.

Some of the major reasons are their proven business model, years of experience in building a brand, immense customer base, and last but not least, the flourishing franchise sector.

It is true that India’s economy is growing at an unprecedented pace, and year-on-year there has been a huge rise in entrepreneurs who have built a brand, or some new hustlers are seeking to delve into the business segment with the least investment.

Obviously, they don’t have enough capital or risk-bearing capability to invest in any international franchises. Then, why not consider checking out some of our top 5 food franchise under 2 Lakhs in India?

Before we start, let’s set out an expectation from this article.

Key learning will include:

1. Why consider buying a food franchise under 2 lakh?
2. What’s the mindset a franchisee should have?
3. What are the top 5 picks from FranchiseGoal India?

In case you want to learn more about the future business in India 2025 or learn more about the Tea franchise under 2 lakh, then we have recently covered an article on this. Please do check that out.

Why consider buying a food franchise under 2 lakh in India?

Unlike franchises of international or big brands, one needs to have a significant investment and risk-bearing capability. While these chains offer a comprehensive training program, prior experience in the industry is a must.

To avoid all these headaches, you can go ahead with low-cost franchises, which we’ll discuss in the upcoming sections.

Here are the reasons for partnering with low-cost businesses:

1. Low-capital and high-learning opportunity:
   • Obviously, you’ll require a little capital that not only reduces the extra overhead costs but also provides an ample opportunity to explore and understand the business from scratch.
2. Viable options for all ages and categories:
   • You need to just be eligible to start a firm and have a keen interest in learning business tactics. Thus, these low-cost franchises are ideal for entrepreneurs of all ages, coming from any background.
3. Low risk:
   • Starting a new business certainly demands enormous investment, and making it a profitable venture is a different challenge altogether that requires a significant investment of your time, money, and skills.
     • It could even take more than a year to make it profitable. However, that’s not the case with a franchise.
4. Higher income opportunity:
   • If you manage to partner with a profitable brand, then none can stop you from making significant wealth. With an investment of ₹2 lakh, you can potentially earn more than ₹20,000 or more. What else will one need?

What are the top 5 food franchise under 2 lakh in India?

We have already discussed the potential benefits of owning low-cost franchises. Now, let’s look at those franchises.

1. Amul franchise
2. Rowdy Momo franchise
3. Zoop Cafe franchise
4. Aavin franchise
5. Idli Guru franchise

AMUL Franchise

Amul is certainly a renowned face in India’s food franchise industry that has concreted its presence among its customers like no other brand even stands next to it.

The chain was established in 1946 and has its roots in Gujrat, India. Currently, they have a presence across the country and have even expanded their reach to several international locations.

It serves a diverse range of dairy products, including butter, milk, curd, ready-to-bake bakery items, and much more. AMUL has already solidified its position in northern, eastern, and western India, and the recent announcement of their entry into the southern market has stirred up a political row.

Franchise Investment:

The initial investment in Amul is surprisingly low; it only requires ₹2 lakh and a retail space of at least 150 square feet from its interested candidates to get started with their franchise journey.

However, if you plan to open their ice cream parlor, then you may need to pour in at least ₹6 lakh.

Royalty Fee:

Unlike other food franchises, you don’t need to pay any royalty fees to Amul. It’s a 100% royalty-free franchise.

Model available:

The investment mentioned is for Amul’s preferred outlet. There are other options available, such as scooping parlor, parlor at railway stations, and parlor at CoE, but for that, you should at least have ₹6 lakhs handy.

Learn more: Why should you own an Amul Franchise? : Cost, Profit, & Review

A few alternatives: Mother Dairy franchise, Arun Ice cream

Rowdy Momo Franchise

Rowdy Momo is another popular food franchise in India. Actually, if you closely follow the food franchises, you may have witnessed a parabolic rise in the number of momo franchises.

Rowdy Momo is based in Navi Mumbai, and it currently operates nearly five outlets in the city.

With its more than 75 mouth-watering food options, the rowdy momo not only possesses the potential to grab market share but also provide an impressive return to its franchisees.

Franchise Investment:

The total investment for Rowdy Momo can amount to ₹2.65 lakh, which is basically their take-away model. The space required for this model can be nearly 150–200 square feet.

Royalty fee:

Again, like AMUL, the Rowdy Momo franchise also doesn’t require any royalty or franchise fee. In fact, the total investment only consists of equipment costs, interior store build-up, and a security deposit.

Model available:

There are two models: one is takeout, and the other is dine-in. For the latter one, you need to invest at least ₹3.65 lakh.

Learn more: How can you become one of partner of Rowdy Momo Franchise? – Cost, Profit and Alternatives

A few alternatives: may require more investment.

1. Wow Momo: It’s certainly a great brand, but it doesn’t sell franchises. (Beware of fraudsters.)
2. Tibet Momo : Investment ₹7-16 lakh

Zoop Cafe Franchise

Zoop Cafe is another Mumbai-based food franchise that specializes in serving a diverse range of pre-cooked foods at affordable prices. We also got recommendations from friends to try their desserts and milkshakes, and they were really top-notch.

Aditya Malpani and Amol Lanke founded it in 2014, and since then, they have grown into a chain of over 150 outlets.

The best part of this franchise is that it can be operated without a specialized cook or chef. All you need to do is attend their training, get the fundamentals right, bake their pre-cooked foods, and serve your awesome customers.

However, if you believe that there is a demand for pre-cooked foods and customers are comfortable with the offerings, then you can go ahead and apply for them.

But make sure to have a discussion with at least 4–5 existing zoop cafe owners before finalizing your deal with them. Ideally, you should do this with every brand.

Franchise investment:

For a retail space of 200–350 square feet, the ideal investment for Zoop Cafe may amount to ₹1.75 lakh for the mini model. Surprisingly, Zoop Cafe also doesn’t charge a franchise fee or deposit fee.

Royalty Fee:

There isn’t any royalty fee levy from its franchise, ultimately allowing you to earn a few extra margins from this business.

Model Available:

Basically, it has two models: the mini model and the cafe model. The investment in the cafe model may potentially go beyond ₹2.5 lakh.

Learn more: A perfect cafe franchise with ZERO FRANCHISE AND ROYALTY FEE: Cost, Profit, & Alternatives

A few alternatives: could demand extra capital.

Zan Cafe, Dhakka Mukki

Aavin Franchise

Invest only ₹2 lakh and become a part of dairy franchises that not only boast a gigantic customer base in the state but also come under the government entity. What else can one ask for?

Like other dairy franchises, Aavin unit holders also sell a variety of dairy products, including milk, curd, paneer, lassi, chocolate, and more.

Aavin is a six-decade-old brand and gives tough competition to its peer brands. If you are planning to start a fresh business with the least investment, Aavin should be at the top of the list.

Franchise investment:

For the Aavin milk booth, you’ll only need a retail space of at least 100–120 square feet, which could potentially demand an investment of ₹1 lakh to ₹2 lakh. The security deposit fee of ₹25,000 is also included in the initial investment.

Royalty fee: Again, zero royalty fee.

A few alternatives: Nandini Ice cream

Learn more: How can you buy an Aavin franchise? cost, benefit, profit, and alternatives

Idli Guru franchise

Southern states are known for delicious idlis and sambars, and if you have the passion to serve the most authentic thatte idli to your local customers, there couldn’t be any better franchise than Idli Guru.

Their first outlet was inaugurated on the bust street of Bengaluru, which currently operates in more than 30 locations in the town.

Their recent announcement to open its first outlet in Tamil Nadu and Hyderabad has further boosted demand for its franchise business.

Franchise Investment:

The model is solely based on a cart, and considering its business model, the initial capital for Idli Guru should require at least ₹2 lakh. The more carts you own, the higher the investment will be.

Royalty fee:

There isn’t any official details available, but we believe that royalty fee for Idli Guru will be either Zero or may range between 1-3%

A few alternatives: Naadbramha Idli, Btech Paani Puri

Learn more: What should you know before you BUY AN IDLI GURU FRANCHISE? – Cost, Profit

What should be the mindset while owning a food franchise under 2 lakh?

1. Don’t over-assume or expect:
   • While it’s true that food franchises are booming, expecting quick money from the first month of operation itself may be unrealistic for the brand.
     • Any business takes time, and so do franchises.
2. Needs dedication:
   • If it’s your first business, then focus on learning the basics, including inventory management, customer handling, and general accounting. It can play a crucial role in understanding the brand and your overall growth rate.

Wrap Up: The Final Thought

For a fresh entrepreneur seeking to open their first business in the town, these food franchises under ₹2 lakh can be a perfect go-to brand.

It’s not just about the low investment cost; owning any of these franchises opens the door to your entrepreneurial journey and avoids the risk of starting a local business from scratch.

Note: Please note that the mentioned brands have established themselves as pioneers in the industry (some are new as well). However, one should always perform extensive brand research and market demand in their area before owning any of them.

Want to explore more? Then check out below franchising opportunities.

Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Delivery, Dealership/Distributorship, 

Affordable Franchises, International Franchises, Business Ideas, and Apparel Franchise

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