The Beer Cafe is the best place for beer lovers. We will discuss the Beer Cafe Franchise Cost, Profit, and How to Start the franchise.
The menu has a progressive list of craft beers, the choicest of hard liquors and wines and of course an ever-changing selection of brewtails & cocktails.
The Beer Cafe Franchise Cost
The Beer Bar Cafe Franchise Cost 1,00,00,000 to 1,50,00,000 Rupees as an Initial Investment. The franchise fee is 25,00,000 Rupees +GST. The Royalty charged will be 7.5%+GST on Sales. The minimum area required is 1200-1500 square feet at a prime location.
The bifurcation of the cost is given below-
|Particulars||Rupees (Dine-In Model)|
|Franchise Fee||25,00,000 Rupees|
|GST on Franchise Fee||4,50,000 Rupees|
|Interior, Furniture and Branding||70,00,000 Rupees|
|Setup Cost, Civil Work and Kitchen Equipments||30,00,000 Rupees|
|Other Expenditure |
(Licenses, Marketing, Opening Ceremony, etc)
|Total Investment (Approx)||1,40,00,000 Rupees|
- The agreement will be of 9 years
- Complete business management would be taken care by franchisee with full brand backend support and guidance
- Brand will provide full support which includes project guidance, staff recruitment & training, operations, marketing etc.
The Beer Cafe Franchise Profit
We will analyze the Beer 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 6,00,000 Rupees i.e. 20,000 Rupees per day.
|Gross Sales||6,00,000 Rupees|
|Food Cost @35%||(2,10,000) Rupees|
|Rent and Camera||(120,000) Rupees|
|Electricity, Gas and Water Supply||(30,000) Rupees|
|Salary of Workers and their Expenses||(100,000) Rupees|
|Royalty @7.5%+ GST||(50,000) Rupees|
|Other expenses||(42,000) Rupees|
|Net Profit||48,000 Rupees|
We can conclude that the Profit Margin of the Beer Cafe Franchise is 8% for the Sales of 6,00,000 Rupees. The outlet may suffer loss in the initial days but this cafe will gain high popularity eventually and will have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 8-10 Lakh Rupees per month and the profit margin will be 20% 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 Fast Food.
How to get The Beer Cafe Franchise?
To get the Beer Cafe Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best.
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