Barista is another hot name in the brewing industry of coffee in India. It is also one of the few successful cafe chains started in India, prominently operating in other foreign countries. Barista has a legacy with Indian founders, Italian coffee, and a customer base fond of its espresso and other coffee products.
Barista is also a topic of discussion for business-minded people looking for ventures with a successful chain. The coffee chain offers franchises and distribution and which is, in fact, quite profitable and rewarding. So, if you’re also from the faction of people who would love to open a coffee shop in your city and make it handsomely while making excellent coffee, then this article is for you. Read further.
About Barista
Barista was initially established in the year 2000 in New Delhi, India, by Barista Coffee Company Limited and was a success. Lavazza later acquired the coffee chain, and it was the turning point for the chain of cafes, as Lavazza brought lots of success with several expanding cafes and Italian heritage with a love of espresso coffee.
The brand grew from few coffee shops to a whopping number of 220 by 2019 all over the country and with branches in foreign countries like Sri Lanka, Bangladesh, Nepal, Myanmar, and the Maldives. As of 2020, the company wishes to double the number of cafes to 500 by 2022 and stores selling its products to 10,000 via distributorship.
It is the second-largest cafe chain in India, offering a singular coffee experience with its supply of coffee from the same roaster, Fresh and Honest roaster right from its establishment. The consistency and quality of coffee beans from the same roastery offer a fantastic coffee experience. Fresh and Honest roaster is based in Chennai and was owned by Barista Coffee Company and now by Lavazza and still supplies coffee to Barista.
Barista also manufactures and sells instant coffee in different blends, chai mixes, hot chocolate mix, cookies, chocolates, honey, and various other bakery and coffee products.
Opportunities
The opportunities with a Barista franchise are high with the growing culture of cafes lately and more with the sit and sip coffee concept popular with friends hanging out and a place to sit and work. Also, with the acquisition by Amtex, the Barista is on expansion, willing to double the number of cafes in India, which is an excellent opportunity with expanding chain and flourishing cafes. The franchise will be easy to obtain with the plans of expansion, and business will be on rising with the buzz around the expansion.
Also, Barista offers multiple franchise options that are different models. The model provides options catering to different business budgets, investments, space, and more.
The opportunity with the Barista is not just available with its franchise but also with its dealership. The coffee chain also offers distributorship of its coffee products and other snacking options packed in striking packaging.
Products available for distributorship include instant coffee in different blends, chocolate and coffee bars, fruit and nut bars, cookies in different flavors, ginger honey, instant chai, and many more exciting products, which customers will pick.
The opportunity with Barista coffee is rewarding as India lacks coffee joints offering premium coffee and a singularity of products and services across its chains. With few prominent players in the market, it is an excellent opportunity to indulge in a business chain. The return on investment with the brand is pretty quick and takes no more than a year or two.
Another deal-maker with the Barista franchise is technical and operational support from the brand and franchise model offers. The model support in the following domain:-
- Supply chain support
- Business planning and marketing support
- Operational, Human resource, and training support
- Product and quality support
- Assistance with NPD data and more
- Food technology and software support,Â
- Billing facility
- Support for online delivery and tie-ups, and more
Apart from business opportunities with the brand, the company also offers impactful campaigns for advertising and marketing in its cafes, offering various businesses to advertise their products and services in the cafeteria to its customers.
Cost, fees, and other requirements for Barista Cafe Franchise
Barista offers multiple options for their franchise in different scale and size with different requirements, fees, and setup costs.
Models available are Barista Kiosk/Express, Cafe, and Diners.
To establish and acquire a franchise of Barista Kiosk/Express that is a small booth, one needs transformable or furnish able 100 to 400 square feet of area. The kiosk’s franchise fee will be around 6 lac rupees and 8% royalty, which goes to the brand. The setup cost, including interiors and installation, will be about 14 to 15 lac rupees.
The cafe model needs a space of around 800 to 1000 square feet, with the setup cost reaching between 30 to 32 lacs. The franchise cost for the cafe is 8.5 lacs and 8% royalty to the brand.
Finally, the Diner model of the Barista franchise requires an investment of 65 to 70 lakhs in setup cost along with franchise fees of INR 20 lacs. The space requirement for the diner is 1500 to 2000 square feet.
The franchise agreement is for nine years and can be renewed. Apart from other requirements, the franchise model requires you to maintain a working capital between 1.5 lac to 6 lacs. The brand with the franchise offers other supports from their end, and those areÂ
How to obtain Barista Franchise?
To obtain a Barista franchise, one can write to them at their registered address in New Delhi or get in touch via the website’s contact form. Also, one can mail them on their registered email.
An application can be sent to the company via any mode mentioned above, along with your proposal and communication stating that you are in possession of requisites to open a franchise.
For dealership and distributorship, inquiry and application can be made via the same mode.
What is the net profit of a Barista?
Barista is one of the leading coffee franchises in India. If you have been meaning to start your Barista franchise in India, you must pay close attention to profit margin.
With Barista, the initial investment that you have to make is roughly around Rs. 15 lakhs, following which it offers a standard profit margin of 12-16% per year for individual franchise owners.Â
While that doesn’t seem like a lot, the amount is pretty significant when it comes to the total amount that you calculate by the end of each year. So, it is a pretty profitable franchise option.
Frequently Asked Questions regarding Barista Cafe
1. Is franchising a good strategy for Barista?
Yes. Franchising offers expansion to a brand. Barista is a good strategy as fellow competitors do not offer franchising, which acts as leverage to establish several cafes around the country.
2. Who is the owner of Barista?
Carnation Hospitality Pvt currently owns Barista. Ltd a subsidiary of Amtek group.
3. How much does the Barista franchise cost?
Barista offers its franchise in three models that are kiosk, cafe, and diner. The franchise fees for the three of them are six lacs, 8.5 lacs, and 20 lacs, respectively. Other costs include set up cost, working capital, and royalty.
4. How can I get a Barista franchise?
To acquire the Barista franchise, you can contact them via the contact form on their website, email them, or write to their registered office with an application.
Conclusion
Franchise of a brand like Barista is always a good idea, and when you get plenty of choices and such brand support, then it’s icing on the cake. Barista is one of the front runners of the coffee chains in India, and associating with such a brand is immensely rewarding. The different franchise models and distribution of the brand’s fantastic product are great business opportunities with guaranteed early return of investment and profits. So, if you have given it a thought, then you are indeed ready to jump in it.
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