Investment Details

Rameshwaram Cafe Franchise - Investment Details

1. Estimated Investment Range–

-> According to the official franchise module, the total investment needed is about ₹ 20–60 lakhs.

-> For some formats or cities, this could go up or depend on the outlet size/format.

2. Breakdown of Costs–

Here’s how that total investment can break down (approximate, based on different sources):

Cost Component Estimated Range:

-> Registration fee: ₹ 1,65,200

-> Franchise Fee: ₹ 5 lakhs

-> Infrastructure / Interior Setup: ₹ 10 – 30 lakhs (interior, exterior, furniture, civil work)

-> Kitchen Machinery & Equipment + POS: ₹ 4 – 22 lakhs

-> Security Deposit: ₹ 3 lakhs

3. Ongoing Costs & Fees–

-> Royalty / Revenue Share: 4% – 5% monthly royalty on sales.

-> Space Requirement: ~500 to 4,000 sq. ft. (depending on model) per official franchise-store.

-> Staffing: Minimum 4-6 employees per outlet typically.

4. Revenue Potential & Profitability–

-> Estimated Monthly Sales per Outlet: Around ₹ 10–30 lakh (varies by location) per several sources.

-> Profit Margin: Reported to be between 15% – 20% depending on operational efficiency.

-> Return on Investment (Payback Period): Typically 12–18 months.

5. Franchise Models–

-> The Rameshwaram Cafe offers a FOFO (Franchise-Owned, Franchise-Operated) model.

-> The Rameshwaram Café offers a FOCO (Franchise-Owned, Company-Operated)

-> We provide strong support: training, marketing, operations, supply-chain, etc.

6. Requirements / Eligibility–

-> Requirement of Liquid Capital: You need ₹ 20–60 lakhs in liquid capital for this franchise investment.

-> Location Size: Ideally 500–4,000 sq ft for a good franchise outlet.

-> Footfall & Demographics: Likely need a high-footfall area (mall, high street, busy market) for better returns.

7. Risks & Things to Watch–

-> Variation by City: Costs are quite dependent on where you open (tier-1 city will be more expensive than a smaller city).

-> Royalty Impact: 4–5% royalty is a significant recurring cost — you’ll get to ensure high enough sales to absorb this.

-> Operational Efficiency: To hit the 15–20% profit margin, you’ll likely need tight cost control (food costs, staffing).

-> Market Competition: South Indian QSR is competitive — location selection and brand differentiation matter.

-> Break-even Period: 12–18 months is an estimate — actual ROI could be slower or higher as per the monthly sales will differ for different locations.