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Zan Cafe Franchise Worth Investing? Alternatives, Cost, & Profit

India unquestionably presents vast opportunities for franchise brands that offer a delightful variety of food options at attractive prices. And with the entry of several international food franchises, the industry has exhibited enormous growth in recent few years.

It is indeed true that, considering the substantial investment requirements and extensive experience needed to operate these international franchises, owning their franchises isn’t possible for everyone.

This certainly emphasizes the need for a low investment high profit margin franchises in India for the aspiring candidates who had dreamed of owning a business.

If you have been actively looking for a franchise business that can be set up with an initial investment of nearly ₹5 lakhs and carries the potential to generate a healthy profit, you might be surprised, right?

Well, It’s possible now, thanks to Zan Cafe. In this comprehensive post, we’ll delve into the details of Zan Cafe Franchise, along with its estimated cost, profit margins, and a few of its alternatives.

Along with this, we’ll answer some of the commonly asked questions about this franchise. Feel free to comment with your queries (in case you have any), and we’ll try to answer them ASAP.

To conclude, we’ll also provide our thoughts on Zan Cafe and whether you should consider buying it or not. Don’t miss our conclusion part.

Zan Cafe Franchise Opportunity
  • Company: Zan Cafe
  • Founded: 2021-22
  • HQ: Chennai, India
  • Industry: Food & Cafe
  • No. of outlet: 7+
  • Model: Franchise
  • Area served: India
  • Franchise Fee: ₹1.5 lakh
  • Profit Margin: ~ 50-70%
  • Area Required: Min. 80 sq ft
  • Total Initial Investment: ₹3 Lakh to ₹5 Lakh

Overview of Zan Cafe Franchise

Overview of Zan Cafe Franchise

Started post-pandemic, Zan Cafe is a new entrant in India’s fiercely competitive food and cafe industry. According to a few reliable source, the chain was established in 2021-22 in Chennai, Tamil Nadu by a team of aspiring entrepreneurs.

The chain serves a diverse range of milkshakes, a vibrant variety of fresh juices, pizzas, burgers, sandwiches, pasta, BBQ, fried chicken, Maggi, momos, and a hot range of snacks, all designed to delight your taste buds.

With over 12 delicious milkshakes categories featuring more than 75 items crafted with fresh ingredients every time, Zan Cafe has successfully built an impressive customer base due to its exceptional food quality and exemplary customer experiences offered at their outlets.

See also: Does Sagar Gaire Franchise? – Alternatives, Cost, & Profit


How is the Zan Cafe’s and its industry’ growth prospect?

Despite of its fresh entry in the India’s food and cafe market, Zan Cafe aspire to disrupt the cafe industry by serving some of its delectable range of healthy milkshakes, pizza, momo, pasta, and juices.

On the other side, According to the Economics Times, the Indian Cafe industry is expected to grow at the rate of 6.9% a year, reaching to a valuation of ₹4540 Crore by 2023.

Therefore, while there is immense growth in the sector, Zan Cafe must strategically plan its future growth and prepare to face competition from renowned brands such as Baskin Robbins, Cafe Coffee Day, Zoop Cafe, Tibet Momo, and others.

Key Facts on Zan Cafe

Sr No.TypePrivate
1Trade NameZan Cafe
2IndustryFood and Cafe
3Founded2021-22
4Founders Or Parent CompanyNA
5Corporate HeadquartersChennai, TN, India
6Number of locations7+
7Area servedPAN India
8ModelFranchise
9Menu OfferingMilkshakes, Momo, Pizza
Burger, Sandwiches,
Fries, and more
10RevenueNA
11Websitehttps://zancafe.in/

Why consider owning a Zan Cafe Franchise?

  1. Affordable startup cost:
    • An interested candidates can start a Zan Cafe in their locality with an initial investment of just ₹3 lakhs, which includes the franchise fee and the equipment costs.
      • The initial investment will draw attention of franchise enthusiasts seeking to delve into the world of food and cafe industry with a minimum capital.
  2. Low royalty fee and high profit potential:
    • Unlike other renowned franchises, you wouldn’t require to share a significant share of profit with Zan Cafe. As a franchisee, you’ll be liable to pay a royalty fee of merely ₹3000 monthly.
      • A low royalty fee will inevitably help you to earn a few extra margins.
  3. Required low carpet area:
    • Zan Cafe can be initiated with a minimum store area of 80-100 sq feet, necessitating a reasonable one-time rental deposit and low monthly rent expenses.
  4. Quick ROI:
    • According to its official website and considering its initial investment and profit margin, franchisees can anticipate recouping their investment within the first few months of operations.
  5. Training and support:
    • To run a Zan Cafe hassle-freely, the franchisor provides an extended training support and other on-going support that allows any new and inexperienced franchise owner to operate this outlet and make a great chunk of profit out of it.

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How much does Zan Cafe Franchise Cost?

Zan Cafe Franchise cost

While the initial cost required to set up a Zan Cafe could range from ₹3 lakh to ₹4 lakh, the total initial capital will largely depend on the outlet’s geographical location, available floor space, and the amount of renovation required to furnish the outlet.

Interested candidates can set up a Zan Cafe outlet in their locality with a minimum floor space ranging from 80 sq feet to 100 sq feet.

Additionally, according to the official website, to become an approved Zan Cafe franchise owner, one may need to have an initial investment of ₹5 lakhs, which includes the franchise fee of ₹1.5 lakh and equipment cost of ₹1.5 lakh.

How much is the Zan Cafe Franchise Fee?

The franchise fee for Zan Cafe is ₹1.5 lakh, which has a lifetime validity. Furthermore, while there isn’t any specific information on required net worth or liquidity, according to industry standards, one should possess a net worth of at least ₹5 lakhs.

Additional Cost for Zan Cafe

Typically, a Royalty and Market Fee is one of the key parameter for any franchise businesses. While some brands doesn’t levy any royalty fee, and other does so.

In case of Zan Cafe, Selected franchisees will be liable to pay a monthly royalty fee of ₹3000.

Investment for Zan Cafe

Type of FeeCost and Other details
Franchise fee₹1.5 lakh
Royalty fee₹3000 (Monthly)
Agreement periodLifetime
Space Requiredmin. 80-100 sq feet
Equipment cost₹1.5 lakh
Interior cost₹50,000 to ₹1 lakhs
Territory Exclusivity2 KM
Total initial investment₹3 lakh to ₹5 lakh

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What are the items included in the equipment investment?

The investment includes are equipment, such as 325L Convertible Deep Freezer, Refrigerator, Pizza Oven, BBQ Machine,Milkshake Blender, Milkshake Jar, Electrical Oil Fryer 2 Quantity, Induction Stove, Sandwich Griller, and Sizzler Plates.

Additionally, it will also have Pizza Serving Plate, Pizza Pan, Noodle Bowl,Pasta Bowl, Sauce Squeezer, Milkshake Serving Trays, Burger Serving Trays, Fries Serving Trays, Big Serving Trays, Topping Shaker, Spoons, Ice Cream Scoop Remover, Pizza Cutter, Pizza Lifter, Measuring Cups,Cotton Gloves, Bowls,Professional Knifes, Containers.

What are the initial stock provided by the brand?

1. Strawberry Shake Crush 5L, Rose Shake Syrup 5L, Butterscotch Crush 5L, Chocolate Sauce 5L, Banana Shake Crush 750ml, Mango Shake Crush 750ml, Pista Shake Crush 750ml, Rose Cooler Shake Syrup 750ml, Blackcurrant Shake Crush 5L, and Tender Coconut Shake Crush 750ml,

2. Kesar Badam Shake Syrup 750ml, Fig&Honey Shake Crush 750ml, Lychee Shake Crush 750ml, Blueberry Shake Crush 750ml, Cranberry Shake Crush 750ml, PanShot Shake Syrup 750ml, Irish Coffee Shake 5Packets, Oreo Biscuits 5Packets, Kit-Kat Chocolate 3Packets, Nutella Hazelnut Spread1Box ,Bubblegum Thick Shake Syrup 750ml.

3. Caramel Topping 1.3 Kg FerreroRocher Chocolate, Green MojitoSyrup 750ml, Blue Curacao Syrup 750ml, Lime Mint Syrup 750ml, Dates1Packet, Topping Gelly 1Box, Topping Sticks,Mayonaise Veg 1Kg, Pizza Sauce 1Kg,Chocolate Topping Chips, Cashew 1 kg, BBQ Masala 2 Kg, Fried Chicken Masala 2Kg.


How much is the Zan Cafe Franchise Profit Margin?

Zan Cafe Franchise Profit

Typically, a cafe situated in a high-traffic area garners a significant customer footfall at the outlet, which in turn allows the owner to generate a healthy revenue stream from the business.

Additionally, it’s not just the location; the brand image, quality of service, and the overall franchisee’s experience in operating any business also play a vital role in building a long-lasting business for the future.

Nevertheless, considering the Zan Cafe’ low setup cost, delicious range of shakes & food optional, optimal space required for outlet operation, franchisees can expect a net profit margin of 20-40%.

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What are the requirements to start a Zan Cafe Franchise?

  1. First and most important – One should have the required funding to get a Zan Cafe outlet, and should be ready to invest at least ₹3 Lakh in the business.
  2. Interested applicants are advised to dedicate themselves to the Zan Cafe Franchise and follow the company standards and maintain their legacy.
  3. Though the chain doesn’t demand any prior experience in operating a Zan Cafe, it expects its franchisee to complete its 4-5 days of necessary training programs.
  4. Interested franchisees should have a passion to work in the fast-food industry and should possess the leadership and financial skills to operate a Zan Cafe outlet.
  5. Applicants are expected to secure a suitable location that meets Zan Cafe’s requirements, such as high visibility, easy accessibility, and a plenty of parking space.

What are the alternatives to Zan Cafe Franchise?

Undoubtedly, finding a lucrative business opportunity in the cafe industry, especially with an investment capital of only ₹3 lakh and a royalty fee of ₹3,000, can be quite challenging.

However, based on its investment range, there are some worthwhile options available to consider.

Rowdy Momo Franchise

Rowdy Momo was founded in 2019 in Mumbai, Maharashtra. The chain is indeed a new franchise in the market, but its ‘Zero Royalty Fee and Franchise Fee‘ can attract a significant chunk of franchise enthusiasts looking to venture into the food industry.

With the momo market, which is worth approximately $2.7 billion, starting a Rowdy Momo may prove to be a worthwhile investment.

To be precise, the initial capital required to start a Rowdy Momo could range anywhere between ₹2.65 lakh and ₹3.25 lakh for the dine-in model.

To check out our in-depth analysis on Rowdy Momo.

Read more: Rowdy Momo Franchise for FREE! No Royalty, No Fees – Cost, Alternatives, and Profit


Lassi Shop Franchise

This might seem like a fresh brand to you, but it was conceptualized in 1986, which went on to open its first store in 2014 in Bengaluru.

At present, the chain boasts around 500+ outlets across the Indian cities and in Dubai. The chain is specilized in offering a wide range of Faloodas, mocktails, juices, smoothies, and milkshakes.

Interestingly, to become an approved Lassi Shop franchisee, you may need to make an initial investment of ₹10 lakh (certainly on the higher side). The chain is led by Hussain Jethajiwala and has plans to expand to other cities, enabling the chain to serve its delicious range of desserts to a wider audience.

If you have keen interest in entering into this field, you should consider our in-depth coverage on it.

Read more: How to Get Lassi Shop Franchise? : Cost & Profit

Note: There are a few franchises, which may worth your consideration are – Tibet Momo, Aavin, and Nandini Ice Cream.


How to Get Zan Cafe Franchise?

The application process for the Zan Cafe is quite easy, which just requires an initial investment of ₹3 lakhs and a store space of 80 sq feet and you are all set to partner with Zan Cafe.

Note: Candidates shouldn’t be lured away by its minimum requirements. They should perform the necessary background checks and conduct proper research on the brand’s future growth prospects.

Necessary steps to get a Zan Cafe:

  1. Visit its official website and register your interest by filling up its franchise form, available at its franchise tab.
    • Please note that the website doesn’t have any franchise window; instead you would find the form at its home page.
  2. Or, you can direct visit its HO or call them at 8124320111 , 7200164964

Official Details

Official WebsiteZan Cafe Official
AddressNo.95, Lakshmi Apartments,
Flat E, Peryar Pathai Road,
Choolaimedu , Chennai – 600094
Contact Details8124320111 , 7200164964

Final Takeaway – Conclusion | Should you buy a Zan Cafe Franchise?

Indeed, the demand for cafes and food businesses in India is growing at a rapid pace, leading to the emergence of new food chains every year.

While some businesses succeed in the process and establish a strong foothold in the food industry, others fail to meet customer expectations.

According to the FranchiseGoal India, The key here to choose a successful business is to conduct thorough market research and assess the potential of the brand.

The Bottom line – Editor’s thought

In the case of Zan Cafe, the brand is a recent startup that is still in its growth stage. With only 7 outlets, there is indeed a lot of work to be done. We should give them a few years to establish themselves as a prominent chain and then consider buying its franchises.

However, it shouldn’t be considered as a negative for the chain. It is also noteworthy to mention that the brand has achieved all these success in just one or two years. and with the growing demand, the chain will certainly widen its presence to other parts of the country.

You can also check out some affordable franchises opportunities available at our platform.

Good Luck!! Happy Franchising!!

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

Tea & Café FranchiseIce Cream FranchiseFood & BeveragesDeliveryDealership/DistributorshipBusiness Ideas, and Apparel Franchise


FAQ

  1. How much does it cost to start a Zan Cafe Franchise?

    The initial investment for the Zan Cafe outlet is approximately ₹5 lakhs, which includes a franchise fee of ₹1.5 lakh, equipment of ₹1.5 lakh and nearly ₹50,000 to ₹1 lakh for the interior setup for an outlet of 80 -100 sq feet.

  2. Is Zan Cafe Franchise Profitable?

    Zan Cafe is indeed a fresh startup in the the Indian food industry and certainly with its low setup cost and proposed profit margin of nearly 40%, it will draw attention of several franchise enthusiasts across the nation.

  3. How many cafe does Zan Cafe operates?

    There are approximately 7 Zan Cafe outlets present across the country.

FranchiseGoal India
FranchiseGoal Indiahttps://in.franchisegoal.com
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