How To Get Diggin Cafe Franchise: Cost & Profit

Diggin Cafe Franchise is a great club franchise in India. We will discuss Diggin Cafe Franchise Cost, Profit, and How to get the franchise.

It is a Homely cafe with a casual menu served on a charming patio decked out with greenery. Diggin Cafe Franchise currently has 5+ outlets PAN India. The USP of the Diggin Cafe Franchise is its great theme with an amazing club experience.

You can directly enroll for the Diggin Cafe Franchise by filling up the Google Form or Whatsapp.

Diggin Cafe Franchise Cost

Diggin Cafe Franchise Cost ₹2,60,00,000 Rupees as an initial investment according to the business model. The Franchise Fee is ₹50,00,000 Rupees+GST. The minimum area required is 5000 Square Feets. The Royalty charged will be 7%+GST on Sales.

The bifurcation of the Cost is given below-

Particulars	Amount (Express Model)
Franchise Fee	50,00,000 Rupees
18% GST on Franchise Fee	9,00,000 Rupees
Machinery and Equipment Cost	50,00,000 Rupees
Interior, Civil Cost, and Furniture (depending upon outlet Size 3000 Rupees per Square Feet)	80,00,000 Rupees
Service Equipments	20,00,000 Rupees
Branding and Fixtures	41,00,000 Rupees
Marketing and Opening Ceremony	3,00,000 Rupees
Other Expenditure	7,00,000 Rupees
Total Investment	2,60,00,000 Rupees

The franchisor will provide all the operational expertise but all cost for Implementation & running will be borne by the Franchisee.
The franchisor will provide all the marketing & branding support but all cost for Implementation & running will be borne by the Franchisee.
The concept of the restaurant & design will be taken care of by the franchisee but the contractual work & implantation on site will be taken care of by the franchisee.
Breakeven of the F & B business would be minimum of 1 Year.

Diggin Cafe Franchise Profit

We will analyze the Diggin Cafe Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 12,00,000 Rupees i.e. 40,000 Rupees per day approximately.

Particulars	Amount
Gross Sales (after GST)	12,00,000 Rupees
Cost of Material @30%	(3,60,000) Rupees
Rent	(1,20,000) Rupees
Electricity and Water Supply	(30,000) Rupees
Salary of Workers and their Expenses	(1,00,000) Rupees
Royalty @7%+GST	(94,000) Rupees
Aggregator Commission @20% (Dineout, Nearby, Zomato, Swiggy) (for 2,50,000 Rupees Sales)	(50,000) Rupees
Marketing and Events	(70,000) Rupees
Other expenses (Admin, Maintainance and Misc)	(76,000) Rupees
Net Profit	3,00,000 Rupees

We can conclude that the Profit Margin of the Diggin Cafe Franchise is 25% for the Sales of 12,00,000 Rupees. The outlet may have less profits in the initial days but Cafes have great demand in the market.

After good Local Marketing and Branding, the Sales will increase to 18 Lakh Rupees per month and the profit margin will be 35% on Sales or 6,30,000 Rupees as Profit.

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