Top 8 QSR Segments That Are Steaming Hot Franchise Opportunities

Food Industry is no doubt booming at a fast rate, with Full-service restaurants and Quick Service Restaurant (QSR) together accounting for around 73% of the total restaurant industry, as per a recent report.

QSRs have gained popularity with evolving lifestyles, urbanisation, and growing nuclear families. They are growing faster than the full-service restaurants across the globe due to their quick deliveries and competitive pricing that attract consumers. McDonald’s was the first QSR in India followed by various others such as KFC and Dominos.

QSRs have always been a zone of attraction for both consumers and business investors, making its franchises a lucrative segment for investment. QSR can be a one-stop destination for budding entrepreneurs that are stepping in this industry for the first time.

Here are Top 8 QSR Franchises you can invest in:

Tea Cafe

Chai is more than just a cup of tea to start the day in India. It is a drink that Indians can’t live without. The country consumes 837,000 tonnes of Tea every year. With such high consumption of the drink, Chai QSR franchises are emerging as a huge business opportunity.

There are various tea cafes in India that are operating on the franchise model. One such café, Chai Garam offers lucrative franchise opportunities for like-minded entrepreneurs. With an investment of Rs 10-20 lakh, one can expect a high ROI of 40% by operating a Chai Garam franchise.

Burger Joint

Burgers are widely known as the most beloved food of the Americans. On average, Americans eat three burgers a week and about 14 billion burgers a year. After the entry of popular US-based QSR chains like McDonald’s and Burger King in India, burgers have gained popularity in the country too.

Burger’s popularity has made it a lucrative QSR franchise for Indian players. An Indian home-grown brand Burger Singh is also operating on the franchise model. The brand has become one of the most innovative and popular burger chains with a presence in pan Asia and the UK.

Egg-infused food

Eggs are a quintessential part of our daily breakfast. Scrambled, fried, poached, boiled, everybody loves to eat eggs in some way or the other. In recent times, Eggs are no more relegated to a corner of the breakfast menu, they are now being made available in a QSR, food truck and kiosk model.

One such QSR brand, Eggsplore is operating on the franchise model. With an aim to expand in Western parts of India, Eggsplore is offering franchising opportunities to the budding entrepreneurs who wish to foray into the F&B industry.

Indian street food QSR

The F&B industry is picking up business in India. Not only fusion food and casual dining sectors are making its way into the industry, but the Street Food is hitting the Indian restaurant market. Street food, for which India is known for years, is very much into fashion because of the cost-effectiveness and unbeatable taste and flavour.

With this ever-green popularity of street food, many food start-ups have started street food QSR franchise. A well-known brand Chaat Adda runs on a franchising model, focusing on serving the growing demand for value-added quality chaats and breakfast products through its franchise stores across India. 

Ice Cream Parlour

India is one of the fastest growing ice-cream consumption markets in the world. Be it metropolitan cities or cities in the next hierarchical position, ice-creams are the most popular dessert everywhere. Ice cream is something that delights people of almost all ages having their own flavor preferences.

The popularity of ice creams has made many brands to enter this segment. Nirula’s is India's oldest fast food restaurant chain. Recently, the brand has entered into the franchise model by launching its first franchise in Patna. Nirula’s provides franchise opportunities with an investment of Rs 20-30 lakh.

Pizza Restaurant

All of us are different, with different backgrounds and culture, but what unites us all is our love for pizza. Recent studies have shown that pizza is the biggest and the most profitable segment in the Quick Serve Restaurant (QSR) format.

The Indian pizza market is dominated by brands like Domino’s and Pizza Hut, respectively. However, other brands are also making their way in this industry by taking the franchise route. U.S. Pizza and Fried Chicken is one such brand that offers franchise opportunities to entrepreneurs who are looking to venture into the fast food trend.

Momo Outlet

The growing culture of eating out has made momo a roadside hit among the foodies. Momo is being loved by people for its taste and price-effectiveness. Local vendors and small kiosks are found serving momo at every nook and corner.

There are a bunch of eateries offering hundreds of varieties of these mouthwatering delights with most of them taking the franchise route for getting bigger in less time. The brand like Kingdom of Momos has also taken the franchise route to expand its business. With an area of 120-150 sq ft, a person can open Kingdom of Momos franchise by investing Rs 2.5 lakh.

Kathi Roll Chain

Kathi roll is a street-food originating from Kolkata. Its inception can be traced to Nizam’s Restaurant of Kolkata in 1932. With the growing trend for eating out, especially among the youth, school- and college-goers, and working professionals, the on-the-go ease of consuming rolls has played a vital role in expanding its reach among consumers.

Kathi roll has gained popularity within the Indian food service market, being sold largely through the QSR segment. Kathi Junction is one of the leading quick service restaurants in this segment. The brand operates on three franchise models, with varied investment range and space requirements.

Typical QSR Business Model

Investment range: Rs 5-50 lakhs

Area Required: 60-1200 sq. ft.

ROI: 30-70% annually

Note that the above statistics could vary depending upon different QSR brands and their offerings.

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