Burger King is an American global chain of Quick Service restaurants. We will discuss Burger King Franchise Cost and Profit. The USP of Burger King is its different types of Burgers. The company was started in 1953.
Burger King Franchise now have 20,000 Outlets around the World in more than 100 Countries. Burger King have 250+ Outlets in India.
Burger King franchise Cost in India
Burger King Franchise Cost 75 Lakh Rupees of an Initial Investment. There are many components to estimate the Burger King Franchise Cost in India.
Burger King Cost of Franchise Fee
Burger King Franchise Fee depends upon the type of Outlet and Location. Burger King has not revealed its exact franchise fee. But it is around 20 Lakh Rupees+GST.
In exchange for the franchise fee, you will get the right to sell Burger King Products in a particular area. You will be provided the Raw Material in frozen form for making the material. You will also get a great brand name.
Burger King Cost of Burger King Interior
KFC Interior, Civil Work, and Furniture cost 25 Lakh Rupees depending upon the area. The minimum area required to start a Dominos Outlet is 1000 Square Feet of which 200 Square Feet will be allotted to the kitchen area.
Civil Work will cost around 8 lakh Rupees which includes building the kitchen and sitting area. Furniture will cost 10 Lakh Rupees of Investment and the rest of 7 Lakh Rupees will be the Interior Cost that includes Hoarding, Signage and Led TV, etc.
Burger King Cost of burger King Machinery
KFC Equipment and Machinery cost 20 Lakh Rupees which includes the Kitchen Utensils, Oven, Baker, Deep Freezers, Fryers, and many more types of equipment.
Burger King Cost of Other Expenditure
The other Expenditure in Burger King cost 10-15 Lakh Rupees as an Investment that includes training cost, transportation cost, Maintainance, Licensing, Marketing, and many more expenditures.
Burger King Franchise Profit Margin in India
We will analyze Burger King Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 7,50,000 Rupees i.e. 25,000 Rupees per day.
|Gross Sales||7,50,000 Rupees|
|Food Cost @35%||(2,62,500) Rupees|
|Electricity and Water Supply||(25,000) Rupees|
|Salary of Workers and their Expenses||(1,00,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(30,000) Rupees|
|Royalty Fee @4.5%+GST|
Advertisement Fee @4%+GST
|Other expenses (Software, Maintenance and Misc)||(42,000) Rupees|
|Net Profit||1,20,000 Rupees|
We can conclude that the Profit Margin of the Burger King Franchise is 16% for the Sales of 6,00,000 Rupees. The outlet may have less profits in the initial days, but Burgers will eventually gain high popularity and have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 10 Lakh Rupees per month and the profit margin will be 25% on Sales.
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 Burger.
How to get Burger King Franchise in India?
To get the Burger King Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best. However, we are not the franchise givers of Burger King Franchise, only the Company has the right to sell the franchise in India. We can just guide you on chat-
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