Mud Coffee franchise is one of the great coffee Franchise in India. We will discuss Mud Coffee Franchise Cost, Profit, Review, and How to Start the Franchise.
There are two mud coffee brands in India, Mud Cups, and Red Mud. The franchise has 100+ outlets in India of both brands in total. You can directly enroll for the Mud Coffee Franchise by filling up the Google Form.
Table of Contents
Mud Coffee Franchise Cost
Mud Coffee Franchise Cost ₹20,00,000 Rupees as an initial investment. The Franchise Fee is ₹5,50,000 Rupees+GST. The minimum area required is 200 Square Feets. Royalty charged will be 5% on Sales. The exclusive territory given by the brand is 5 km.
The bifurcation of the cost is given below-
|Particulars||Amount (Dine-In Model)|
|Franchise Fee||5,50,000 Rupees|
|18% GST on Investment||99,000 Rupees|
|Machinery and Kitchen Equipments||6,00,000 Rupees|
|Interior, Civil Work and Furniture||6,70,000 Rupees|
|Other Expenditure |
(POS, Marketing, Misc)
|Total Investment||20,00,000 Rupees|
- The Agreement will be of Lifetime
- 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
Mud Coffee Franchise Profit
We will analyze the Mud Coffee Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 5,00,000 Rupees i.e. 16,666 Rupees per day.
|Gross Sales||5,00,000 Rupees|
|Food Cost @40%||(2,00,000) Rupees|
|Electricity and Water Supply||(15,000) Rupees|
|Salary of Workers and their Expenses||(65,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(10,000) Rupees|
|Royalty @5%||(25,000) Rupees|
|Other expenses||(15,000) Rupees|
|Net Profit||1,00,000 Rupees|
We can conclude that the Profit Margin of the Mud Coffee Franchise is 20% for the Sales of 5,00,000 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 9 Lakh Rupees per month and the profit margin will be 30% on Sales or 2,70,000 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.
How to Get Mud Coffee Franchise?
To get the Mud Coffee 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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