Xero Degrees Franchise is owned by Xero Degrees Cafe Private Limited, which was founded by Kashish Aneja and Shivam Kakkar in 2018. They have multiple locations across India and are expanding through traditional methods such as opening new locations through company ownership.
Xero Degrees is a chain of bars and restaurants that offers unique and delicious food. The company is known for its Indianized American cuisine, which takes traditional American dishes and adds an Indian twist to them. This can include ingredients, flavors, and spices that are commonly used in Indian cuisine, resulting in a unique and exciting dining experience.
The menu at Xero Degrees features a variety of dishes, including spicy French fries, cheesy pizza slices, and delicious drinks. These dishes are carefully crafted and served piping hot, ensuring that the food is both delicious and satisfying.
In addition to the food, Xero Degrees is also known for its warm and inviting ambiance. The company places a strong emphasis on the interiors and decor of its locations, creating a welcoming and comfortable environment for its customers. The company’s goal is not just to be a place where people can have a meal but also a place where people can escape the daily grind and find “a world full of happiness.”
Xero Degrees Franchise Cost in India
To become a franchisee of Xero Degrees, an initial investment of ₹60,00,000 Rupees is required, according to the business model. In addition to this, a franchise fee of ₹15,00,000 Rupees plus GST will also be charged. To open a Xero Degrees franchise, a minimum area of 1000 square feet is required. The company also charges a royalty fee of 8% plus GST on sales, which will be added to the ongoing expenses of the franchise. Below is Xero Degrees Franchise Cost breakdown.
| Expenses | Amount (in Rupees) |
|---|---|
| Franchise Fee 15 lakhs + 18% GST | 17,70,000 |
| Interior and Furniture cost | 22,00,000 |
| Machinery Cost | 18,00,000 |
| Advance Raw Material | 1,30,000 |
| Other Expenses | 1,00,000 |
| Total Cost | 60,00,000 |
Terms of Xero Degree Franchise
- The franchise agreement will be valid for a period of 5 years.
- Franchisees will receive complimentary training to ensure their success.
- The company will provide the necessary raw materials for the operation of the franchise.
- Franchisees will also receive online marketing and support from the company.
Xero Degrees Franchise Profit in India
We will analyze the profit of the Xero Degrees Franchise in India, considering 3 sales scenarios of the stores to get better figures for the profit margin.
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Monthly Gross Sales | 9,00,000 | 6,00,000 | 4,00,000 |
| Raw Material (40% of sales) | -3,60,000 | -2,40,000 | -1,60,000 |
| Shop Rent | -90,000 | -75,000 | -65,000 |
| Electricity and Water Bills | -28,000 | -22,000 | -18,000 |
| Employee Salaries | -1,10,000 | -90,000 | -80,000 |
| Royalty 8% + GST | -75,000 | -50,000 | -33,500 |
| Aggregator Commission (Zomato, Swiggy) | -30,000 | -25,000 | -18,000 |
| Other expenses | -30,000 | -20,000 | -15,000 |
| Total Net Profit | 1,77,000 (19.66% of sales) | 78,000 (13% of sales) | 10,500 (2.62% of sales) |
The above calculation shows that the average net profit of the Xero Degrees franchise considering all 3 scenarios(19.66%, 13%, 2.62%) is 11.76% of total monthly sales. Which is an average level profit margin in this fast food industry.
Effective local marketing and branding can lead to an increase in sales, with an estimated monthly revenue of 9 Lakh Rupees and a profit margin of 20% on sales, or 1,80,000 Rupees in profit.
The location of the franchise is a crucial factor in determining its success, alongside the quality of food and service offered. It is important to choose a location with high footfall, ideally in a main market area or in close proximity to colleges, corporates, or other places where young people congregate and enjoy snacks and chaat.
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FAQs about Xero Degrees
How to get Xero Degrees Franchise in India?
To apply for Xero Degrees Franchise in India, visit https://xerodegrees.in/franchise-application and fill the application form. One of the representative will contact you within short time.
What is the Xero Degrees Franchise Cost in India?
Xero Degrees Franchise cost nearly ₹60,00,000 Rupees which includes their franchise fees of 15 lakhs rupees.
What is the profit margin of the Xero Degrees Franchise?
The average net profit of the Xero Degrees franchise is 11.76% of total monthly sales. These figures may vary depending on the location of the store and demand in your area.
Who is the owner / Founder of Xero Degrees?
Kashish Aneja and Shivam Kakkar are the founder and owners of Xero Degrees Cafe Private Limited.
