Affordable Restaurant Franchise in India to Start Under 20 Lakhs

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November 15, 2025
timesofhospitality
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The restaurant industry in India is booming like never before. With rising disposable income and a growing love for dining out, entrepreneurs are increasingly exploring restaurant franchise in India as a secure and profitable investment. But for many aspiring investors, the challenge is balancing low investment with high returns. If you’re looking for an affordable

The restaurant industry in India is booming like never before. With rising disposable income and a growing love for dining out, entrepreneurs are increasingly exploring restaurant franchise in India as a secure and profitable investment. But for many aspiring investors, the challenge is balancing low investment with high returns.

If you’re looking for an affordable restaurant franchise in India under 20 lakhs, this guide will help you discover the best opportunities and understand how brands like Ministry of Daru, powered by Sparkly Hospitality, are making restaurant ownership easy, profitable, and scalable.

Table of Contents

Why Choose a Restaurant Franchise in India?

Owning a restaurant franchise is one of the smartest business decisions today. Instead of starting from scratch, you partner with an established brand that already has:

A proven business model
Established marketing channels
Brand recognition and customer trust
Operational and training support

This reduces your business risk significantly while increasing your chances of early success. The best part? Many low-cost restaurant franchise in India options now allow you to start even with a small investment — some under ₹20 lakhs.

Also Read: Best Restaurant Franchises in India 2025 – High-Profit Food Franchise Opportunities

The Growing Scope of Food & Beverage Franchises in India

India’s food service industry is estimated to reach over ₹7 lakh crore by 2030, driven by urbanization, changing lifestyles, and increasing food delivery trends. Entrepreneurs across metros and Tier-2 cities are finding food franchise in India an excellent long-term investment option.

Whether it’s a café franchise in India, a bar restaurant franchise in India, or a multi-cuisine food outlet, the scope for growth is massive.

To explore detailed insights into franchise trends, visit Top Food Franchises in India.

Best Affordable Restaurant Franchise in India Under 20 Lakhs

Starting a restaurant under ₹20 lakhs might sound challenging, but with the right franchise model, it’s completely achievable. Let’s look at some top-performing categories that offer high returns at a reasonable cost:

1. Cloud Kitchen Franchise

These are delivery-only restaurant setups requiring minimal space and manpower. Perfect for startups or investors with limited budgets.

2. Quick Service Restaurants (QSR)

With fast food in high demand, QSRs like burgers, momos, or wraps can offer high daily footfall at low operational cost.

3. Café and Beverage Franchises

A café franchise in India under 20 lakhs can generate attractive profits, especially near colleges, offices, and malls.

4. Small Food Kiosks

If you’re looking for food franchise in India under 5 lakhs, small kiosks serving snacks, juices, or street food are trending rapidly in Tier-2 cities.

Check out Cheapest Food Franchise in India to explore top affordable options.

Top Brand Spotlight: Ministry of Daru

When it comes to famous restaurant franchise in India, one brand that truly stands out is Ministry of Daru (MOD) — a concept powered by Sparkly Hospitality.

Ministry of Daru Franchise Details

Head Office: Delhi, India
Training & Support: Yes (complete operational & staff training)
Expansion Locations: Pan India
Monthly Royalties: 4% – 7%
Area Requirement: 3500 sq. ft.
Agreement Terms: 5 years
Capital Investment: ₹2.5 – ₹3.5 Crores

Though the flagship model requires higher investment, MOD also offers franchise partnership models and smaller sub-concepts under Sparkly Hospitality’s network, making it accessible for investors looking to start affordably with guidance from industry experts.

To understand detailed profitability and ROI models, explore Profitable Franchise Restaurants in India.

Also Read: High-Profit Restaurant Franchises in Noida Under 10 Lakhs Investment

Why Partner with Sparkly Hospitality

Sparkly Hospitality is one of India’s leading restaurant franchise consultants helping entrepreneurs start, expand, and manage restaurant businesses successfully.

Key Benefits of Partnering with Sparkly Hospitality:

100+ successful franchise setups across India
Expertise in QSRs, cafes, bars, and fine dining franchises
End-to-end setup and training assistance
Access to affordable low-cost restaurant franchise in India
Assistance with licensing, staff hiring, design, and marketing

You can also read their expert articles on topics like:

Restaurant Franchise Models Under 20 Lakhs

Here are some popular business models available through Sparkly Hospitality that can start with a budget of ₹5–20 lakhs:

Franchise Type	Approx Investment (₹)	Area Required	ROI Timeline
Food Kiosk	4–6 Lakhs	100–150 sq. ft.	12–18 months
QSR Setup	6–9 Lakhs	200–300 sq. ft.	12 months
Beverage Café	10–20 Lakhs	250–400 sq. ft.	10–14 months
Cloud Kitchen	5–8 Lakhs	150–250 sq. ft.	8–12 months

Explore more at Low Cost Food Franchises in India.

Also Read: Best Restaurant Franchise in India: Low Investment, High Profit Opportunities

High ROI Opportunities with Low Investment

One of the biggest reasons entrepreneurs are attracted to low cost restaurant franchise in India is the high return potential.

When you partner with a trusted franchisor like Sparkly Hospitality, your business benefits from:

Strategic location selection
Menu curation and pricing guidance
Pre-established brand reputation
Centralized marketing campaigns
Supplier and vendor tie-ups

This integrated model ensures that your investment generates consistent ROI, typically within 12–18 months. For more insights, read Top Profitable Restaurant Franchises in Delhi NCR.

How Sparkly Hospitality Supports Franchise Partners

Sparkly Hospitality offers 360° support for franchise owners, including:

Market research & brand matching
Business plan creation
Site selection & layout design
Licensing and compliance help
Launch & marketing support
Ongoing operations and staff training

Their mission is simple — to make restaurant franchising in India easy, transparent, and profitable for every investor.

Also Read: Best Restaurant Franchise in India with High ROI Opportunities

Get expert guidance from:
📍 Address: H1 A/25, Sector 63, Noida, Uttar Pradesh 201301
📞 Phone: +91 9218089677
📧 Email: support@sparklyhospitality.com

Tips to Succeed with a Restaurant Franchise in India

Choose the Right Brand: Select a brand with proven performance and strong customer loyalty.
Understand the Market: Analyze your target audience, location, and local competition.
Leverage Training: Use the franchisor’s training programs to ensure smooth operations.
Focus on Customer Experience: Consistent quality and service will ensure repeat customers.
Engage in Marketing: Local promotions and social media marketing play a key role in ROI.

For more information, check out Best Franchise in India Scope Guide.

Conclusion

Investing in an affordable restaurant franchise in India under 20 lakhs is one of the best business opportunities for first-time entrepreneurs. The growing food culture, strong franchise ecosystem, and expert guidance from Sparkly Hospitality make it easier than ever to build a successful food business.

Whether you want to open a QSR, café, or food kiosk, Sparkly Hospitality connects you to the most profitable and low investment restaurant franchises in India — ensuring you start small but grow big.

For professional franchise consulting, connect today with:
📍 Sparkly Hospitality
H1 A/25, Sector 63, Noida, Uttar Pradesh 201301
📞 +91 9218089677
📧 support@sparklyhospitality.com

FAQs on Affordable Restaurant Franchise in India

1: Which is the best affordable restaurant franchise in India under 20 lakhs?

If you are looking for the best affordable restaurant franchise in India, several low-investment concepts like food kiosks, cafés, cloud kitchens, and QSRs fall easily under ₹20 lakhs. These models offer fast ROI, low operational cost, and high market demand. Sparkly Hospitality regularly lists top-performing low-budget brands suitable for Tier-1, Tier-2, and Tier-3 cities. You can explore expert recommendations in this detailed guide on cheapest food franchise in India to find the right franchise opportunity based on your budget, city, and target audience.

2: What is the ROI for a low-cost restaurant franchise in India?

The ROI for a low cost restaurant franchise in India generally ranges between 12 to 18 months, depending on factors like location, brand, footfall, and operational efficiency. Affordable franchise formats such as QSRs, beverage kiosks, and cloud kitchens usually achieve faster breakeven due to low setup and manpower costs. To understand ROI comparisons across different types of restaurant models, explore Sparkly Hospitality’s expert breakdown on profitable franchise restaurants in India and make informed investment decisions that offer stable revenue and long-term growth potential.

3: Can I start a food franchise in India under 5 lakhs?

Yes, you can easily start a food franchise in India under 5 lakhs, especially if you choose kiosk-based or small-format food models. These formats require minimal space, fewer staff, and lower inventory costs while still ensuring strong daily sales. Popular options include tea cafés, momo outlets, snack kiosks, and beverage counters. Sparkly Hospitality recommends multiple startup-friendly models. For more budget-friendly options, visit this guide on food franchise in India under 5 lakhs and choose a suitable business that fits your investment.

4: Are café franchises profitable within a 20 lakh investment?

Yes, many café franchise in India models are profitable even within a 20 lakh budget. Small beverage cafés, tea cafés, and compact seating concepts are extremely popular among students and working professionals. These models offer high repeat customers, low food wastage, and excellent margins on beverages like coffee, shakes, and teas. To explore café concepts suitable for low investment, check Sparkly Hospitality’s curated list of top food franchises in India designed to deliver strong profitability with a small initial setup cost.

5: Is a restaurant franchise better than starting my own brand?

A restaurant franchise in India is often better than starting your own brand because it comes with established branding, proven systems, marketing support, menu engineering, and operational training. This significantly reduces risk and speeds up profitability. Franchise models also offer standardized recipes, vendor tie-ups, and a business plan that’s already working successfully. If you want a complete understanding of why franchising is safer and more effective, read this comparison guide on restaurant franchises in India published by Sparkly Hospitality.

6: How do I choose the most profitable restaurant franchise in India?

To choose the most profitable restaurant franchise in India, consider factors like brand reputation, average monthly sales, location demand, ROI timeline, royalty fees, and operational support. High-performance categories include QSR, cafés, kiosks, bars, cloud kitchens, and multi-cuisine outlets. Sparkly Hospitality provides expert advice and curated lists of profitable franchise models. You can explore top-performing brands and selection tips in this comprehensive guide on most profitable restaurant franchise in India to make the right investment.

7: What is the demand for restaurant franchise businesses in India?

The demand for restaurant franchise in India is growing rapidly due to urbanization, rising food delivery culture, increased dine-out frequency, and the popularity of branded food concepts. Investors are increasingly choosing franchise models because they offer established operational systems and quicker ROI. Whether you are starting a café, QSR, or food kiosk, the growth potential is high across metro and Tier-2 cities. Learn more about fast-growing franchise formats in Sparkly Hospitality’s detailed analysis: best restaurant franchise in India.

8: Can I franchise a bar restaurant in India under a low budget?

Starting a bar restaurant franchise in India usually requires higher investment due to licensing, space size, and premium interiors. However, Sparkly Hospitality offers smaller bar concepts and lounge formats designed for investors with moderate budgets. For understanding profitable bar and lounge opportunities, investment structures, and ROI breakdowns, read their in-depth guide on low investment club lounge bars franchise India and explore models that match your financial capacity.

9: What are the most famous restaurant franchises in India right now?

Some of the most famous restaurant franchise in India include popular QSR chains, beverage cafés, multi-cuisine outlets, and bar concepts. These brands have strong market presence, high footfall, and consistent customer demand. Sparkly Hospitality highlights the top-performing brands suitable for beginners and seasoned investors. To discover the best-ranked brands and categories, explore this expert list: top rated restaurant franchises in India and choose the model that aligns with your business goals.

10: How do I apply for a restaurant franchise through Sparkly Hospitality?

Applying for a restaurant franchise in India through Sparkly Hospitality is simple. Their team helps you choose the right brand, understand investment structure, evaluate ROI, and complete legal and operational setup. You can contact them directly or explore available franchise brands on their website. To begin, read their complete franchise guide here: best restaurants to franchise in India or contact their team for personal assistance at +91 9218089677.