Barista Franchise Cost | How to Start, ROI, Profit

Are you interested in the Barista Coffee Franchise? How much does a Barista Coffee Franchise cost? In this blog we will learn about the brand profile, investment breakdown, profit potential, requirements, document required, advantages and disadvantages etc. By the end of this guide, you will have a comprehensive understanding of what it takes to start and run a successful Barista Coffee Franchise Business.

Let’s make it simple!

Barista Coffee Franchise Brand Profile

Brand Name: Barista Lavazza Coffee
Founder Name: Pratha Pratim Datta
Founded Year: 2000
Total Outlets: 450+ Outlets and over 147+ cities.
Last Year Revenue: Estimated INR 300-350 crore
Headquarters: New Delhi, India

About the Brand

Barista is one of the founders in the Indian cafe culture. Known for its Italian coffee, cozy ambiance, and a wide range of food and beverage offerings, Barista has established itself as a premium cafe house.

In recent years, Barista has strengthened its position by partnering with Lavazza, a globally recognized Italian coffee brand. This collaboration brings together the Indian coffee experience with the rich Italian coffee heritage, offering customers an elevator coffee taste and experience.

Over the year It has become a favorite hangout spot for young professionals, students and coffee enthusiasts across the country.

Barista Coffee Business aims to triple Barista’s revenue contributing from India, targeting 10% of its global sales from this market within three years.

Barista Coffee franchise Investment Details Breakdown

Expenses	Cost
Franchise Cost	Rs.8.5 Lakhs
Set Up Cost	Rs.32 lakhs
Initial Stock	Rs.5 to 10 Lakhs
Shop Deposit	Rs.3 to 5 Lakhs
Marketing Fee	Rs: 2 lakhs
Working Capital	Rs.2 to Rs.5 Lakhs
Total Investment	Rs.30 to 50 Lakhs

Metric	Amount
Revenue Per Month	Rs.8 Lakhs to Rs.3.6 Lakhs
Gross Profit Margin	60%
Net Profit Margin	20%-30%
Profit Per Month	Rs.1.6 Lakhs to Rs.3.6 Lakhs
Return on Investment	18 Months to 24 Months

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Barista coffee franchise shop Profit Potential and ROI:

The Profit Potential of a Barista Coffee Franchise is promising. The brand’s strong reputation, coupled with the growing coffee consumption in India, creates a favorable environment for franchisees. While exact figures can vary based on location and management, a profit margin of 20-30% is generally considered achievable for a Barista franchise.

However, it’s essential to remember that this is an average, and actual profits may be higher or lower depending on various factors. The profit margins for a Barista Coffee franchise can range from 15% to 20% which translates to a monthly profit of INR 1 Lakh to INR 2 lakh.

ROI- Return On Investment

Typically franchise owners can expect to break even within 2 to 3 years, making the barista lavazza coffee franchise potentially profitable investment with an attractive ROI.

Barista Coffee Franchise stores Requirements

To Open a Barista Coffee franchise, you’ll need to know several essential requirements

Location: A prime location with high-foot traffic is essential. Barista Coffee Franchise prefers locations such as high streets, malls, commercial hubs, and educational institutions.
Entrepreneurial Spirit: You should have a strong desire to run your own business.
Training: Barista Coffee provides comprehensive training for franchise owners and their staff to ensure they meet the brand’s standards.
Space Requirements: The minimum space required for a Barista Lavazza Coffee outlet is 500 to 800 Square feet.

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Documents Required for Barista Coffee Franchise

Proof of Identity: Aadhar Card, PAN Card, Passport etc.
Proof of Address: Utility Bills, Electricity Bills, Agreement or property documents.
Business Registration: GST Registration, Shop and Establishment license.
Financial Documents: Bank Statements, Proof of Funds.
Legal Agreement: Franchise Agreement, Lease Agreement for the property.

Is The Barista Coffee Worth the Investment?

Advantages

Barista Lavazza Coffee is a well-known brand in India, synonymous with quality coffee. The brand’s reputation attracts customers and builds trust.
Brand Support: Barista offers extensive support in terms of training, marketing, and operations.
A proven business model minimizes the chances of failure. Established systems and processes streamline operations.

Disadvantages

High Initial Investment: Established systems and processes streamline operations. The initial investment required can be substantial. There’s a financial risk involved in starting a franchise.
Operational Challenges: Staff management is hiring and retaining qualified staff can be challenging. Effective inventory control is essential to avoid losses. Running a cafe involves daily operations that can be challenging, especially in the beginning.
High Competition: The Barista Lavazza Coffee shop market is highly competitive, especially in urban areas.

Conclusion

In this blog we all learn about the Barista Coffee franchise. It offers a great opportunity for those looking to enter the cafe business with an established brand. With a substantial investment, strong brand support, and potential for profit, it can be a rewarding journey. It’s essential to carefully consider the location and be prepared for the operational challenges that come with running a cafe.

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