Burger King Franchise is an American multinational chain of hamburger fast food restaurants that is headquartered in Miami-Dade County, Florida. The company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida-based restaurant chain. After Insta-Burger King ran into financial difficulties in 1954, its two Miami-based franchisees, David Edgerton and James McLamore purchased the company and renamed it “Burger King”. Over the next half-century, the company would change hands four times, with its third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002.
In India, Burger King began its operations in 2014 with its first restaurant in Delhi. The company has since then expanded its operations to various parts of the country, including major cities such as Mumbai, Bangalore, and Kolkata. In India, Burger King operates through a franchise model, with local partners owning and operating the restaurants. As of 2021, Burger King has over 100 restaurants in India.
In terms of menu offerings, the Burger King franchise in India offers a range of burgers, fries, and other fast food items that are popular in the country, as well as some international favorites such as the Whopper. In addition to its regular menu, Burger King in India also offers vegetarian options, including a range of vegetarian burgers and wraps.
Overall, Burger King has been successful in expanding its operations in India, with a growing customer base and a strong presence in major cities. The company has faced some challenges in the Indian market, such as intense competition from local and international players, but has managed to establish itself as a popular fast-food chain in the country.
Burger King Franchise cost in India
The cost of opening a Burger King franchise in India can vary depending on factors such as location, real estate costs, and the size of the restaurant. However, it is likely to be a substantial investment. According to some estimates, the total investment for a new Burger King franchise in India can range from around 70 Lakhs to 1.5 Crores or more, including the franchise fee, equipment, and initial inventory.
| Expenses (all expenses are examples) | Amount (in rupees) |
|---|---|
| Franchise Fee | 20,00,000 |
| Interior & Civil work | 25,00,000 |
| Machinery & Equipments | 20,00,000 |
| Furniture and Marketing | 14,00,000 |
| Other Expenditure | 10,00,000 |
| Total Cost | 89,00,000 |
Must Read: Mcdonald’s Franchise cost in India.
Opening a franchise restaurant in India can be complex, with a number of legal and regulatory requirements that must be met. It is important to do thorough research and seek professional advice before investing in a franchise opportunity. It’s also important to have a proper business plan before purchasing any franchise in India.
Burger King Franchise Profit in India
The profit potential for a Burger King franchise in India can vary depending on a number of factors, such as location, competition, marketing, and management. Additionally, it is important to keep in mind that the restaurant industry is highly competitive.
Here we will calculate the 3 different scenarios of the monthly sales and will analyze the net profit accordingly.
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Gross Monthly Sales | 10,00,000 | 7,50,000 | 5,00,000 |
| Raw material cost 35% | -3,50,000 | -2,62,500 | -1,75,000 |
| Store Rent | -1,20,000 | -100,000 | -85,000 |
| Electricity and Water Supply | -33,000 | -25,000 | -20,000 |
| Employee Salaries | -1,20,000 | -1,00,000 | -90,000 |
| Zomato, Swiggy, etc.. commission | -50,000 | -35,000 | -25,000 |
| Royalty & Advertisement Fee 8.5% + GST | -94,000 | -70,500 | -47,000 |
| Transportation | -25,000 | -20,000 | -18,000 |
| Other expenses | -50,000 | -40,000 | -30,000 |
| Monthly Net Profit | 1,58,000 (15.8% of sales) | 97,000 (12.93% of sales) | 10,000 (2% of sales) |
From the above profit margin calculation of 3 sales scenarios, we conclude that taking an average from the above calculation (2 + 12.93 + 15.8 / 3) is 10.24%. That means the average profit of burger king franchise in India is 10.24%. These figures may vary depending on your city size and the location of the store.
Burger King Franchise requirements in India
As a franchisee, it is mandatory to complete a corporate training program to gain knowledge about the fast-food industry and business operations. This training will provide the necessary skills to successfully operate a burger shop.
When choosing a location for the restaurant, there are three options available:
- Institutional places (such as transportation hubs, sports arenas, and government buildings)
- commercial places (like retail malls)
- non-traditional sectors (like gas stations or grocery stores).
It is also a requirement that the franchisee only uses the chosen location for the operation of a Burger King restaurant and adheres to the designated operating hours outlined in the franchise agreement.
How to Start Burger King Franchise in India?
To start a Burger King franchise in India, the following steps should be taken:
- Review the qualifications: As a franchisee, you should have experience in the restaurant industry and have the financial resources to open and operate a Burger King restaurant.
- Submit an application: Submit an online application or contact the company directly to express your interest in opening a franchise.
- Review the Franchise Disclosure Document (FDD): The FDD will provide detailed information about the franchise, including the initial investment required, ongoing fees, and the company’s expectations for franchisees.
- Meet with a franchise development representative: This is an opportunity to discuss the franchise opportunity in more detail and to ask any questions you may have.
- Review the franchise agreement: If you decide to proceed with the franchise, you will be provided with a franchise agreement to review and sign.
- Obtain financing: Secure the necessary financing to cover the initial investment and ongoing expenses.
- Complete training: Complete the required training program to learn about the fast-food industry and business operations.
- Find a location: Identify and secure a suitable location for your franchise, following the guidelines provided by Burger King.
- Open for business: Once the location is secured and training is completed, you can open your franchise.
FAQ
What is the Burger King Franchise cost in India?
According to some estimates, the total investment for a new Burger King franchise in India can range from around 70 Lakhs to 1.5 Crores or more, including the franchise fee, equipment, and initial inventory.
What is the profit margin of Burger King Franchise in India?
The average profit of burger king franchise in India is 10.24%. This figure may vary devepending on the demand in your city and location of your store.
Where to apply for Burger King franchise in India?
To apply for a Burger King franchise in India, you can visit the Burger King India website and submit an online application form. The website typically includes information about the qualifications and requirements for becoming a franchisee, as well as a detailed overview of the franchise opportunity.
Website: https://www.burgerkingpartners.in/
Email: [email protected]
