The food franchise business model has emerged as an excellent opportunity for aspiring entrepreneurs looking to start with minimal investment. For those with a budget of INR 1 to 2 lakhs only, several low-investment food franchises are offering substantial profit margins and market potential. I’m also looking for the Top 5 Food Franchises in India Under ₹1-2 Lakhs including India’s best low-investment food franchises in 2025, detailing its requirements, costs, profit margins, and unique features.
Starting a food franchise under ₹1-2 lakhs is an excellent opportunity for entrepreneurs seeking low-risk, high-reward ventures in India’s thriving food industry. By partnering with established brands like Kia Cafe, What a Sandwich, or Joshi Wadewale, you can leverage their reputation and support to grow your business. Evaluate each franchise’s offerings, investment requirements, and profit margins to choose the one that best aligns with your goals. Here check Why Invest in a Low-Cost Food Franchise Business Model;
- Affordable Entry => Franchises under ₹2 lakhs provide an accessible way to start a business.
- Proven Models => Benefit from a tested business strategy and brand recognition.
- Support System => Franchisors offers training, operational assistance, and marketing support.
- High Growth Potential => India’s food industry is expected to grow significantly, offering excellent returns on investment.
List of Top 5 Food Franchises Under ₹1-2 Lakhs
| Franchise Name | Initial Cost | Investment Range | Profit Margin | Key Features |
|---|---|---|---|---|
| 1. Kia Cafe | ₹2,00,000 | ₹10,000 – ₹50,000 | 10% – 20% | A cozy cafe offering affordable coffee, tea, and snacks. Ideal for casual meetups and conversations. |
| 2. What a Sandwich | ₹50,000 | ₹50,000 – ₹2,00,000 | 15% – 25% | Specializes in Desi Submarine Sandwiches and Salads. Operates as a delivery kitchen, reducing overheads. |
| 3. Peet’s Coffee | ₹60,000 | ₹50,000 – ₹80,000 | 20% – 25% | Known for dark-roasted Arabic coffee and espresso beverages. Established international reputation. |
| 4. Joshi Wadewale | ₹50,000 – ₹70,000 | ₹50,000 – ₹80,000 | 20% – 30% | Popular for Maharashtrian snacks like Wada Pav and Samosas. Referred to as the “McDonald’s of Pune.” |
| 5. Bewafa Momos | ₹80,000 | ₹50,000 – ₹2,00,000 | 25% – 35% | Offers fresh, hygienic momos with a unique taste and quick delivery. |
1. Kia Cafe
Kia Cafe is a favorite spot for tea and coffee lovers. With minimal investment, this franchise offers;
- Affordable food options.
- A cozy atmosphere for casual meetings.
- Marketing support to drive footfall.
2. What a Sandwich
Started in 2013, What a Sandwich stands out with its unique menu of Desi Submarine Sandwiches and salads. Highlights include;
- Low operational costs with a delivery-focused model.
- Strong demand due to less competition in this niche.
3. Peet’s Coffee
A globally recognized brand, Peet’s Coffee brings premium coffee experiences to Indian consumers. Franchise benefits;
- Established brand reputation.
- Training and support from the franchisor.
4. Joshi Wadewale
This iconic Maharashtrian fast-food chain has a strong presence in Pune and beyond. Franchise features;
- Popular menu items like Wada Pav and Misal.
- High-profit margins due to its local appeal.
5. Bewafa Momos
Bewafa Momos specializes in hygienic and delicious momos with fast delivery. Key advantages;
- Minimal investment with high returns.
- Strong customer loyalty for fresh, quick snacks.
Benefits of Low-Investment Food Franchises
- Minimal Risk:- Proven business models reduce startup risks.
- Support Systems:- Franchisors offer operational, training, and marketing assistance.
- High Demand:- India’s growing urban population drives demand for fast food outlets.
- Scalability:- Easy to expand with additional locations over time.