Are you searching for an affordable Cafe franchise? Starting A Samocha franchise will be the best option and would end your research on Cafe franchises.
In this guide, we’ll dive deep in to Cafe industry growth prospects along with the Samocha and its model with capital requirements, fee, profit, and step-by-step guidelines to set up this franchise outlet – and answer some common questions about the same.
- Brand: Samocha
- Franchise fee: Rs. 2-3 lakh + GST
- Space Requirement / Floor Area: 150-300 sq. ft.
- ROI Period: 10-15 month
- Royalty Fee: 5% of Gross sales
- Total Initial Investment: Rs. 4-5 lakh for Kiosk and Rs. 7-9 lakh for mini outlet
Understanding a Cafe chain growth prospects:
A tea shop or café would always be open and bustling with customers, regardless of the season. Due to the wide range of options available, it has evolved into a crucial component of our daily breakfast and evening munchies.
As per the survey by the Tea board of India, The local population consumes more than 80% of the total tea produced, making it a more competitive market. There are several growth opportunities associated with owning a Chai franchise. For more details, please check our other article on Chai Sutta Bar, MBA Chai Wala, & Chai Garam Cafe franchise.
There have been several studies from different entities & everyone has accepted the growth potential of the Tea cafe industry in India. Just for a glance, let me inform you that,
As per the research done by a renowned research company – LSI Financial Services, They have suggested the growth of the Tea industry will be a CAGR of 6.23% between 2019 to 2025.
Samocha Snippet:
Samocha is one of the famous Tea and Cafe chains in Kanpur(India), looking for expansion. They are known for offering a variety of flavored Tea, Coffee, Shakes, and other prominent snacks to its consumers. The chain is looking for expansion across tier 2 and tier 3 cities on FOFO(Franchise owned- Franchise Operated) basis.
As of now, they have a presence of more than five outlets. One can opt for the franchise outlet based on their offering models, such as Samocha Go and Samocha Mini Model.
Please continue reading if you are an avid consumer of Tea and other beverages & this little snippet about the Samocha and Tea and Cafe Industry growth prospects of India excites you.
We will offer comprehensive and well-researched information regarding the Samocha chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
Table of Contents
Overview of Samocha Franchise
Founded by Two Colleagues, Shivendra and Akash, in 2017, Samocha is one of the famous and rising Cafe chains in India, predominantly in Kanpur(India). They are renowned for offering Quality ingredients, Hygienic Preparation, Fresh Food and Great Customer service.
The concept of expansion through franchising would offer immense opportunities to the franchise owner to lure the success of an established brand. Currently, the franchise outlets are available at more than five locations in India.
Below is the range of products that Samocha caters to,
- Chai
- Coffee
- Green Tea
- Iced Teas & Coolers
- Cold Coffee
- Shakes
- Samosa & more
- Maska Bun
- Maggie
- Sandwiches
- Burgers
- Pasta
To know more about their exotic menu collection, check this link.
Stories around Chai
Samocha
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Why to Own a Samocha Franchise?
Before owning any franchise, one should understand their business model and products and offering. A good market research will aid the franchise owner to estimate the future growth and earning potential of the outlet at proposed location.
Below is the reason supporting the above case,
- Expertise in Industry: The Samocha crew is thoroughly skilled in brewing unique tea varieties for its customers, which will also help new outlet owners benefit from them.
- Varieties in menu: The chain offers a wide range of beverages and other fast food items. It also provides over 40 different flavored tea that are famous across different cities in India.
- Healthy Food and Beverages: Samocha believes in offering Quality ingredients, Hygienic Preparation, Fresh Food, and Great Customer service, enabling them to build a loyal fan base & Ultimately garnering an impressive profit margin.
- Low Investment and High return: The franchise has a modest initial investment requirement and provides substantial returns to its unit owners.
- Brand presence over other Channels: Samocha holds a prominent position on various food and beverage platforms, such as Zomato & Swiggy, etc., enabling the unit holder to gain sales through multiple channels.
- Extensive Training program: The chain offers an extensive training program to the franchise owner and its staff that enables them to understand the daily activities of the business.
- Flexible model: Samocha provides a flexible outlet system that doesn’t require a specific chef to work. One can opt for owning an outlet based on their financial budget.
- Continuous Upgrading their menu: The franchise is committed to offering a delicious & variety of lip-smacking menus, and they are achieving this by continuously upgrading their menu.
Other than above supporting cases, the franchise emphasizes upon ,
- a tried-and-true strategy that offers successful business setup from the first week.
- Continuous management support as and when necessary.
- Rated among top cafe chain in operating location.
- No business experience required.
- Renewable license for 5 years.
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How much does a Samocha Franchise Cost?
Samocha offers an flexible franchise model, such as Samocha Go(Kiosk) and Samocha Mini (Mini Cafe).
Below is the cost involved in setting up a Samocha outlet,
Samocha Go(Kiosk)
| Essentials | Amount and Other details |
|---|---|
| Space Requirement / Floor Area | 150 Sq Ft (Commercial Space) |
| Franchisee Fee | Rs. 2 lakh + GST |
| ROI Period | 9-12 Months |
| Royalty Fee | 5% of Net sales( free for first six months) |
| Agreement Period | 5 Years |
| Electricity requirements | 5 KW with Power Backup |
| Is the Agreement renewable? | Yes |
| Investment (excluding franchise fee) | Rs. 4-5 Lakh (excluding civil work) |
Samocha Mini (Mini Cafe)
| Essentials | Amount and Other details |
|---|---|
| Space Requirement / Floor Area | 250-300 Sq Ft (Commercial Space) |
| Franchisee Fee | Rs. 3 lakh + GST |
| ROI Period | 15-18 Months |
| Royalty Fee | 5% of Net sales( free for first six months) |
| Agreement Period | 5 Years |
| Electricity requirements | 7 kW with Power Backup |
| Is the Agreement renewable? | Yes |
| Investment (excluding franchise fee) | Rs. 7-9 lakh (excluding civil work) |
You can get a ballpark sense of the cost of opening an outlet for you using the aforementioned amount. One should be aware that in addition to the franchise fee, the franchise owner is also responsible for covering ongoing costs like rent, electricity bills, employee salaries, and others.
Hence, to setup an outlet, one would at least require Rs. 4-5 lakh for kiosk model and Rs. 7-9 lakh for Mini cafe model.
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Samocha Franchise Profit Margin
The Samocha offers a significant payout to its franchisee in exchange for a modest initial investment required to acquire an outlet. The outlet’s profitability depends on several factors, such as location visibility, customer footfall, and local market.
However, Interested applicants should be selective about location, as it is one of the highly affecting factors. Below is the list of few locations that one should choose,
- Hypermarket
- Busy street
- Malls
- Near Educational Institutes
To run a Samocha outlet, one would at least require minimal manpower and related expenses are mentioned below. It is as per our best estimate and it may vary depending on location to location.
| Essentials | Related Expenses Cost |
|---|---|
| Gross Sales | Rs. 3 lakhs (Estimated) |
| Raw Material(@40%) | (Rs. 1.2 lakhs) |
| Gross Profit | Rs. 1.8 lakhs |
| Staff Salary | (Rs. 40,000 ( Minimum 4 staff)) |
| Rent | (Rs. 20,000) |
| Electricity and Water Bill | (Rs. 15,000) |
| Marketing and other Expenses | (Rs. 25,000) |
| Royalty Fee @5% +GST | (Rs. 17,700 ) |
| Net Profit | Rs. 62,300 |
The franchise provide great return on its investment & based on above analysis, one can anticipate a profit margin of 50-60% and net profit margin of 18-20%.
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Samocha Franchise Return on Investment
With its low investment cost and high return strategies, the franchise owner can churn an outstanding profit margin of 18-20% and get back their invested amount in 10-15 months.
Samocha ROI is usually between 10-15 months.
Samocha franchise License period
The Cafe chain offers a renewable franchise license for a period of 5 years. Interested applicants can renew their license after paying a minimal fee.
Samocha franchise Support
Below is the key supports offered by the franchise,
- Registrations / licenses
- Site selection and site assessment
- Store layout design and setup
- Procurement of equipment
- Training for staff (At franchise partner location)
- Operational support for sourcing raw material and other supplies
- Marketing and Promotions on online and offline channels
- Detailed operating manual for efficiently managing store operations
- Expert management guidance in opening and operating the franchise
- Current IT systems being used (POS / Inventory Management Module, CCTV Monitoring, etc.) included in all the franchise models
- End to End Management Support
How to apply for Samocha Franchise?
Once you are ready with the franchise’s financial and site requirements and prepared to take up this franchise, you need to visit the official website franchise form. The highlighted link will navigate you to the Samocha franchise page.
You should fill up the required details like Name, State, City, Email ID, Phone Number.
After form submission, somebody from the cafe’s sales team will reach out to you over call for further processing.
Or you can directly contact for franchise at below details,
Call them directly on +91-7411481716 OR +91-8505995798. You can also mail them at- shivendra@samocha.co
Good Luck!! Happy Franchising!!
Conclusion
Founded in 2017 by Shivendra and Akash, Samocha chain is one of the famous Cafe chains in India, Thanks to its varieties in menu, expertise of owner in cafe Industry, and affordability. The Chain is looking for interested applicant for every expanding tea industry. The franchise currently operates at more than five different location in India.
They offer a variety of products under its menus offering over 40 varieties of freshly brewed Chai, Hot and Cold coffee, Shakes, Coolers, Iced Tea, and other lip-smacking fast food items.
With a low investment cost of Rs. 4-5 lakhs for Kiosk and Rs. 7-9 for Mini outlets, Samocha offers a net profit margin of 18-20%(depending on locations) and ROI period of 10-15 months.
If you are passionate about the Tea & Cafe industry, are optimistic about it, then you should consider starting this franchise.
That’s it from my side. Friends, I sincerely believe that my guide on “Start a Samocha Franchise – Cost, Fee, & Profit” was helpful and educational, but if you’d need more details, you can check out the franchise’s official website. If you like this piece, kindly let me know by leaving a comment and spreading the word to as many of your friends as you can; Your comments offer us more inspiration to keep producing high-quality material for you. Many thanks.
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FAQ
How much is a Samocha Franchise?
Ans: Owning an Samocha Outlet would require at least require a Total investment of Rs. 4-5 lakh for kiosk and Rs. 7-9 lakh for mini outlets. Some of the key expenses involved in the setting up an outlet is mentioned below,
Franchise fee: Rs. 2-3 lakh + GST
Space Requirement / Floor Area: 150-300 sq. ft.
ROI Period: 10-15 month
Royalty Fee: 5% of Gross sales
Total Initial Investment: Rs. 4-5 lakh for Kiosk and Rs. 7-9 lakh for mini outletIs Samocha franchise Profitable?
Ans: Absolutely, yes! The Samocha would undoubtedly be profitable for its unitholder as a well-known chain that offers low investment and a proven business model to churn higher profit margins.
The franchise offers Quick ROI (Return on Investment) – 9 to 12 Months and High Margins on the complete menu.How to get a Samocha franchise?
Ans: It’s simple to apply for a Samocha outlet; all you have to do is go to their official website, give them a call, or send them an email. The official details are mentioned below,
Phone number: +91-7411481716 OR +91-8505995798
E-mail – shivendra@samocha.co
Official Website: https://www.samocha.co/franchise/ (Franchise page)
