How To Get Araku Coffee Franchise: Cost & Profit

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

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

Araku Coffee Franchise Cost

Araku 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. Royalty charged will be 6% 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

The Agreement will be of 7 Years
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

Araku Coffee Franchise Profit

We will analyze the Araku 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
Royalty @6%	(18,000) Rupees
Other expenses	(5,000) Rupees
Net Profit	72,000 Rupees

We can conclude that the Profit Margin of the Araku Coffee Franchise is 24% 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 28% on Sales or 1,12,000 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.