Ever thought that whenever you go to any random mall, there is one similarity among all the malls in India: you will find a Burger King outlet.
Launched in 2014, Burger King currently has 478 restaurants in India. It has won the hearts of Indians with its affordable prices, Indian-friendly menu, and a strong brand name. You won’t believe that it is now one of the fastest-growing chains in the food industry.
If you’re one of those who want to start a franchise business, then consider the Burger King franchise. However, I will explain in the article what the Burger King franchise cost is in India and much more that you should know!
Before I explain the costing part, it is essential to understand why it is growing in India.
Additionally, it is crucial to recognise that when starting any business, you should also consider the marketing scope. Right?
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Why is Burger King growing in India?
After McDonald’s, Burger King is the second most famous burger brand in India.
Here are the reasons:
1. Rapid expansion strategy
Burger King is not following a safe and comfortable zone; in fact, its motto is to expand widely. It focuses on opening in malls, highways, and metro cities. As you have observed, it has begun to open in Tier 2 and Tier 3 cities as well.
Its main objective is to expand to as many locations as possible. Here is the main reason people are gaining easy access to this outlet.
2. Affordable pricing and valuable deals
The primary reason for Burger King’s success in India is that it offers burgers at a highly affordable price. They are offering burgers at only Rs 50, which is cheaper than many of the street outlets’ burgers.
You will get two burgers for Rs 99, which shows that Burger King adjusts its strategy according to their target audience. Their target audience consists of middle-class individuals who seek high-quality food at the best price.
3. India-specific menu offerings
Burger King knew that to succeed in India, they had to add a vegetarian section to their menu, and guess what, they applied the strategy. Nearly 40% of their menu is dedicated to the vegetarian section.
Like:
- Veg whooper
- Paneer Royale Burger
- Crispy veg burger
4. Strong delivery and Digital presence
For a restaurant company, you should not rely solely on customers visiting your physical outlet. You need to be dynamic enough to collaborate with food delivery companies and should have a good digital presence.
According to Statista, 40% of the revenue comes from the food delivery company, which is a significant amount. It shows that people can easily access the outlet and enjoy the food in their comfort zone.
5. Growing QSR(Quick Service Restaurant) Marketing in India
As India grows, so does their spending. India is rapidly urbanizing, and with rising disposable income, people are now spending to improve their quality of life. On weekends, people often prefer to eat outside the home, which is why restaurants are highly profitable.
6. Flexible Store Formats for Faster Entry
You know that Burger King follows different formats, such as mall locations, compact stores, and highway-accessible locations in tier 2 and tier 3 cities.
This flexibility allows businessmen to:
- Enter cities with no requirement for ample commercial space
- Minimise operational costs
- Reachable to the metro station, airports, and colleges
Burger King Franchise Cost in India
Total Investment (Initial Cost)
You can expect Rs 2-5 crore – Rs 10 crore, depending on location, outlet size, and format (e.g., mall, highway, 2-floor stores)
It includes the cost of acquiring the brand license, construction, and business operations during the first few months.
1. Franchise (License) Fee
For a franchise fee, you need to pay a one-time fee that ranges between Rs 25 lakhs and Rs 35 lakhs, depending on the location and format.
2. Outlet Setup (Construction, Interiors & Equipment)
Includes:
- Construction costs
- Interior décor (flooring, seating)
- Kitchen setup (grills, ovens, and fridge)
- Branding and signage
- Projected cost: Rs 1.5- Rs 2.5 crore.
- Equipment and fixtures
- Decor package
3. Working Capital (First 3–6 Months)
You need to have at least 3-6 months of funds in your pocket to pay the fixed expenses
Such as:
- Staff salaries
- Raw materials (buns, sauces, patties)
- Utilities and first marketing
It was estimated in the range of Rs 15 lakh to Rs 70 lakh
4. Occupancy Cost / Real Estate
The advance or security deposit for rent in a high-footfall mall or street is typically ₹67 lakh – ₹6 crore, depending on size (~2000–3000 sq ft) and location.
5. Licenses & legal Permits, Insurance
You need to have a valid licence, legal permits, and insurance to run the franchise.
It includes:
- Property insurance’
- FSSAI license
- GST registration
- Local permit fees
You need to pay between RS 4 lakh to Rs 22 lakh.
6. Control Desk and Billing Systems
While opening a franchise, you also need to have control desks and billing systems to automate your financial and order queries.
It includes:
- Kitchen display systems
- Barcode scanner
- Touch screen billing machines
- CCTV cameras
- Customer feedback system
- Integrated billing software
- Digital menu boards
- IT infrastructure
The estimated cost, which has to be paid between Rs 25 lakh- Rs 45 lakh
7. Royalty fees
- You need to pay 4%-6% of royalty fees to the company
- It has to be paid monthly to the parent company.
For more accurate results, apply and to find more Information, you need to visit this site, Burger King International-Franching.
Eligibility Criteria
To qualify for this franchise, you need to be eligible to meet the following requirements:
1. Financial requirement
- You need to have a minimum of 5 crores as a net worth
- You must have a liquid capital of Rs 2.5 crores
2. Business Experience
- Desired Restaurant/ retail/ hospitality/ Real estate background
- Previous knowledge in operations or human management will be an added advantage.
3. Location and Format Requirements
- Must have a commercial space of 1000-3000 sq/ft
- Must be at least 2-2.5km from the existing Burger King outlet
- Should be located in highly populated areas, such as malls, highways, or business hubs.
4. Business Commitment
- You must also comply with Burger King’s global standards in terms of hygiene, branding, design, operations, customer service, and most importantly, your food quality.
- Must be willing to work on a full-time basis
FAQs
How long does it take to open the outlet after approval is received?
Usually, it takes 4-6 months after you sign the franchise agreement. Essentially, this period is utilized for location approval, construction, installation, your training, and setup.
Can I open a Burger King franchise as an individual, or do I need to form a company or a partnership to do so?
The Burger King franchise is available for any type of firm. However, having a private limited company is easier for funding, scalability, and operations.
How much profit can I make from a Burger King franchise?
Profit depends on various factors; however, many people achieve a 10-15% margin after covering all expenses.
You also need to consider that the better you manage your outlet by dedicating time, the more profit you will get. It is expected that within a year, you will be able to recover your initial investment.
What kind of support does the Burger King franchise provide?
You are in safe hands because the Burger King franchise provides full support, such as:
- Store design and construction
- ‘Helps you in choosing a location
- Staff training
- Equipment and bill set up
- Promotions
What documents are required for a Burger King franchise?
You will need to submit various documents to prove your identification, financial status, business registration, and property details.
Such as:
- Adhaar card
- Pan Card
- ITR ( last 3 years)
- Passport-size photo
- Address proof
- Networth certificate
- Bank account statements of the previous 6 months
- FSSAI license
- GST certificate
- Ownership paper or lease agreement
Conclusion
Starting a Burger King franchise in India will be full of opportunities to earn a good amount of money, provided that you have financial backing. Considering the growth of QSR in India, I assume you are choosing the right franchise.
Moreover, high disposable income provides a positive signal that this franchise will also be profitable in the future.
So what are you waiting for? Go and open your franchise in your area and earn lots of money!
Sources:
https://visitinbangalore.com/burger-king-franchise-in-india-2024
https://thebusinessblaze.com/burger-king-franchise-cost-in-india
