Are you looking for a Cafe franchise in your city? Have you ever wanted to own a renowned coffee chain? Would you like to take your love for Coffee to another level by becoming an Owner? Then, Here we have some GOOD News for YOU!
Today, we would be covering an article on another Interesting boutique coffee chain that has made a significant impact on the Cafe industry and has also planned for opening over 300 outlets by 2023.
In the article, we’ll discuss in depth about Third Wave Coffee Franchise along with its capital requirements, fee, and profit margin – and answer some of the frequently asked questions about this chain.
- Company: Third Wave Coffee
- Founded: 2016
- Industry: Café & Boutique
- Headquarters: Bengaluru
- No. of Outlets: 90+ in 6 cities
- Area Served: PAN India
- Est. Revenue: Rs. 100 Cr
- Franchise Fee: Approx. 5 lacs
- Royalty: Approx. 5%
- Total Initial Investment: Rs. 25 lacs – 50 lacs
Table of Contents
Overview of Third Wave Coffee Franchise
Founded in 2016 by Ayush Bathwal, Anirudh Sharma, and Sushant Goel by setting up its first outlet in Bengaluru, Third Wave Coffee is one of the renowned and rapidly growing Coffee-house in India, offering an affordable range of premium freshly brewed coffee and cold brew bags.
The Bengaluru-based Coffee house, Third wave coffee is also promoted by Heisetasse Beverages and has raised over $ 6 million in a Series A funding round that will help the chain for country-wide expansion by 2023.
As per the Company Internal report, In the past 1 year, it has expanded its unit from 10 to over 35 outlets across Major Indian cities such as Hyderabad, Bengaluru, Delhi, Pune, Mumbai.
With over complete control over its supply chain, quality control, and robust plans for opening new outlets in Tier 1 and Tier 2 cities will undoubtedly help the Interested applicants to join in their revolutionary Coffee-house business.
We assure you that, after reading this complete article, you would be in a position to choose the BEST AVAILABLE CAFE FRANCHISE, and certainly help you take an informed decision on the Third Wave Coffee business.
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Third Wave Coffee Boutique – The Journey
Their humble beginning started with a single outlet in Bengaluru to serve freshly brewed coffee to being one of the renowned coffee house with a extensive future expansion that offers delicious coffee flavor and brewing methods.
Key facts about Third Wave Coffee
|1||Trade Name||Third Wave Coffee|
|4||Founders Or Parent Company||Ayush, Anirudh, & Sushant|
|6||Number of locations||Will be 300+ by 2023|
|7||Area served||PAN India|
|9||Menu offering||Freshly brewed coffee, Cold coffee bags, |
and Much more
|10||Revenue||Approx. 100 Crore|
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Why Choose a Third Wave Coffee Franchise?
We believe choosing a coffee franchise will not require a much reason to own it. Moreover, looking at several available option in market may confuse you sometime.
But, don’t worry, to clarify your thought process we have mentioned a few key reasons that can help you to start a Third Wave coffee chain in your city;
- Best menu offering and brewing method:
- Third-wave coffee focuses majorly on the nuances of coffee flavor and brewing methods, emphasizing artisanal techniques.
- Unique customer experience:
- It offers customers a unique experience that values quality over quantity, sustainability, and transparency.
- Fresh Ingredients:
- The franchise sources it complete raw materials directly from farmers that will allow the new outlet holder to serve the same taste across its outlet.
- All-round support:
- As a franchisee owner, you will have access to ongoing training and support systems. It helps them to maintain the same high-quality products & customer experience that customers expect.
- Flexible Franchise Model:
- Third wave coffee offers a flexible franchise model to its investors, and one can start this franchise with a floor size of 70 sq feet to over 500 sq feet.
- Robust expansion plan:
- The franchise is eyeing over 300 plus outlet expansions across Tier 1 and Tier 2 Indian cities. It will allow the interested prospects to open & operate its outlet near to their hometown.
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How much does Third Wave Coffee Franchise Cost?
The franchise cost or Total Initial setup cost for Third wave coffee will depend on your location, size, and the extent of renovations required. In General, one can take up this franchise with a floor area of 500 sq feet to over 1000 sq feet.
Nonetheless, To become a Third wave coffee franchise partner, one would at least require an initial investment of Rs. 25 lacs to Rs. 50 lacs with a min floor area of 500 – 1000 sq. ft.
Third Wave Coffee Franchise Fee
The franchise fee for Third wave coffee will be approximate Rs. 5 lacs + 18% GST. Furthermore, Interested applicants can take up a Unit or Master franchise of TWC and expand their outlets in their location and earn handsomely.
Additional Cost for Third wave coffee
Typically, to run and maintain a Third wave coffee outlet, 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 ongoing royalty fee for the Third Wave Coffee franchise could be approx. 5%, which would be paid by the Franchisee to the Company calculated on total turnover.
|Type of Fee||Cost and Other Details|
|Franchise Fee||Approx. Rs. 5 lacs + GST|
|Floor Area||Min. 500 – 1000 sq. ft.|
|Store Ambiance & Interiors||Rs. 5 lacs|
|IT Support & Online Platforms||Rs. 1 lacs|
|Kitchen Equipment & Machinery||Rs. 5-7 lacs|
|Agreement Period||Approx. 5 Years, Renewable|
|Total Initial Investment||Rs. 25 lacs – Rs. 50lacs|
*Please note that above mentioned cost is just an estimated one, and we will request interested applicants to check with team to get the latest detail on project costing.
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Is Third Wave Coffee Franchise Profitable?
The profitability of coffee chain or any other franchise may depend on several factors such as chosen model, city, average footfall at its outlet, and overall area development.
Moreover, considering the enormous growth in the cafe industry- Specifically freshly brewed premium coffee, A wide range of products, moderate Investment and High ROI, extensive training support, best marketing strategy, exemplary customer service, and regular food innovation, One may anticipate a healthy gross profit margin of 35-40% or net profit margin of 15-20%.
Third Wave Coffee Franchise Profitability Explained
We will try to explain more about profitability with a simple example;
Assuming, if you have opened an outlet in a good area and with given expenses, achieving these numbers throughout the years;
- Rent of Rs. 60000( for 350 sq. ft.)
- Making an average sale of Rs. 5.5 lacs per month
- With an average bill value of Rs. 200
So, below could be your profit structure;
|Type of Cost||Amount|
|Average Monthly Sell||Rs. 5.5 lacs|
|Raw Material Cost (Max 40%)||(Rs. 2.2 lacs)|
|:Gross Profit||: Rs. 3.3 lacs (60%)|
|Royalty Fee(Considered 7% Max)||(Rs. 23,100)|
|Shop Rent||(Rs. 60,000)|
|Chef and Helper||(Rs. 28,000)|
|Electricity & Water Expenses||(Rs. 25,000)|
|Misc. Expenses||(Rs. 10,000)|
|:Net Profit||Rs. 1.84 lacs (33%)|
Please note that profitability for Third wave coffee chains may vary depending on location, expenses, season, customer footfall, and other emergency expenses, and it could range between 18-22%.
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What is the Support offered by Third Wave Coffee Franchise?
- Site Search and Analysis
- Standard Layout support from the company
- Centralized billing systems
- SMS and WhatsApp Marketing Support
- Regular Food Innovations
- Registration Support for Online Delivery Platforms
- Quality checks and Complete Raw Material Support
- Staff Training Support
- Marketing & Sales grow up strategies and guidelines
- All Hands Meetings to improvise the business
- Location-specific promotions during the opening and planning of the launch
What are the requirements to Become a Third wave coffee Outlet holder?
Some of their major Third Wave Coffee franchise requirements are listed below;
- First and most important – One should have the required funding to own a TWC outlet, that is one should be ready to invest anywhere between Rs. 25 lacs to 50 lacs.
- Interested applicants should have a passion to work in the Cafe industry – and should possess the necessary leadership and financial skills with a few years of experience in this industry.
- Applicants should own/rent an outlet area for a minimum of 70 to 500 sq feet(More is better), preferably on the high street, city center, and near schools or universities.
- Interested applicants are advised to dedicate themselves to the Third wave coffee business and follow the company standards and maintain their legacy.
- Interested applicants must undergo and complete the necessary training program offered by the franchise.
- Prospects are advised to do the proper marketing and site research, which will help them to understand the market potential and would certainly boost your morale.
How to Get a Third Wave Coffee franchise?
Becoming a Third wave coffee outlet owner requires a minimal investment that offers an impressive gross profit margin. Nevertheless, the Third wave 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;
- Visit their Contact Us page – and fill in the details such as Name, Email Id, Phone Number, and Reason as “To open a New Third Wave coffee near you” & other required info, and submit the form.
|Apply for Third Wave Coffee||Franchise Form|
Once you submit the form, somebody from the franchise team will contact you within a week to discuss it further and ya it does take time.
Started in 2016 by Ayush, Anirudh, & Sushant, Third wave coffee is one of India’s leading and rapidly growing premium coffee boutiques, offering a variety of freshly brewed coffee & cold beverages.
The franchise boasts over 90 plus franchise networks in six cities and more than 300 outlets planned to release in next year will create tremendous opportunities for interested candidates to grab THIS deal in this ever-growing market.
However, considering the exponential rise in premium coffee demand, 100% fresh ingredients, moderate investment with high ROI, backing from leading firm, extensive training and market support aids an extra advantage for the new franchisee unit holder.
With an Initial investment of Rs. 25 lacs – Rs. 50 lacs, Third wave coffee chain may offer an outstanding profit margin to its stakeholders and one may anticipate an exceptional gross profit margin of 35-40 % and a net profit margin of 15-20%.
Nevertheless, By making some changes in your expenses, one can certainly increase the profit margin extensively.
The Bottom line – In case you are interested in the Cafe industry and want to take advantage of the opportunity with a moderate investment, then you can start a Third wave coffee outlet in India. With its immense legacy, expertise, and robust supply chain, one may experience stable and steady growth in their entrepreneurial journey.
So, what are you waiting for? Go and start your entrepreneurial journey with Third wave Coffee!!
Good Luck!! Happy Franchising!!
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How much does it cost to Start a Third Wave Coffee Franchise?
Ans: The total investment cost for Third wave coffee may vary depending on the city, country, carpet area, and outlet’s geographical locations.
Usually, the total investment for Third wave coffee boutique franchise cost may vary between Rs. 25 lacs to Rs. 50 lacs with a minimum floor area of 500 – 1000 sq feet for restaurant.
How much does a Third Wave Coffee franchise owner make?
Ans: Considering the premium coffee demand, moderate investment, growth prospect, and immense franchise support, one may anticipate to make an earning of over Rs. 70k to 1 lacs per month.