How To Get Kumbakonam Coffee Franchise: Cost & Profit

Kumbakonam Coffee franchise is one of the great coffee Franchise in India. We will discuss Kumbakonam Coffee Franchise Cost, Profit, Review, and How to Start the franchise.

The franchise has 50+ outlets in India. You can directly enroll for the Kumbakonam Coffee Franchise by filling up the Google Form.

Kumbakonam Coffee Franchise Cost

Kumbakonam Coffee Franchise Cost ₹8,00,000 Rupees as an initial investment. The Franchise Fee is ₹2,00,000 Rupees+GST. The minimum area required is 200 Square Feets. No Royalty will be charged on Sales. The exclusive territory given by the brand is 3 km.

The bifurcation of the cost is given below-

Particulars	Amount (Dine-In Model)
Franchise Fee	2,00,000 Rupees
Machinery and Kitchen Equipments	3,00,000 Rupees
Interior, Civil Work and Furniture	2,25,000 Rupees
Other Expenditure (POS, Marketing, Misc)	75,000 Rupees
Total Investment	8,00,000 Rupees

No renewal charges on Agreement
Raw Materials will be provided by the franchisor
Training will be provided by the franchisor and hiring should be done locally by the franchisee or can be provided by the franchisor
Software training on billing and inventory management software will be provided.
The return on Investment will be around 1 year

Kumbakonam Coffee Franchise Profit

We will analyze the Kumbakonam Coffee Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 3,00,000 Rupees i.e. 10,000 Rupees per day.

Particulars	Amount
Gross Sales	3,00,000 Rupees
Food Cost @40%	(1,20,000) Rupees
Rent	(40,000) Rupees
Electricity and Water Supply	(10,000) Rupees
Salary of Workers and their Expenses	(30,000) Rupees
Aggregator Commission (Zomato, Swiggy)	(5,000) Rupees
Other expenses	(5,000) Rupees
Net Profit	90,000 Rupees

We can conclude that the Profit Margin of the Kumbakonam Coffee Franchise is 30% for the Sales of 3,00,000 Rupees. The outlet may have less profits in the initial days but Coffee will gain high popularity eventually and will have great demand in the market.

After good Local Marketing and Branding, the Sales will increase to 4 Lakh Rupees per month and the profit margin will be 21% on Sales or 85,000 Rupees.

Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service.

The location should have a very high footfall. It should be in the main market of that area. A corner outlet is the most preferable option.

You can open the outlet nearby colleges, corporates, or any place where young people love to have Coffee.