Written By: Bandana Gupta

Investing in a high-end restaurant franchise is among the top methods of getting into the fast-growing F&B sector of India. With increased consumer spending on dining out in recent years, restaurant businesses are leveraging the power of franchising to expand and create lucrative business opportunities for entrepreneurs.

For those seeking to invest in high-end restaurant franchises costing over ₹1 crore, there are many renowned brands that offer tried-and-tested business plans, loyal customer base, and all-around franchise support. Though such restaurants come with an initial high cost of investment, they also provide the benefit of being associated with a reputable brand name and system.

In this article, we will discuss the best premium dining restaurants in India above ₹1 crore, along with their investment details, space requirements, profitability, and other important considerations.

Top Premium Restaurant Franchise Brands in India

1. Barbeque Nation

Barbeque Nation is one of the best casual dining restaurant chains in India which offers a live grill and buffet dining experience. This restaurant chain receives customers from families, corporates and special occasions.

*Main Features

Reputed brand

Buffet dining concept

Larger customer base

Marketing support

2. Lord of the Drinks

Lord of the Drinks is a high-end restaurant & lounge brand that provides the guests with an experience of fine dining in a luxury ambiance. This restaurant is quite popular amongst the young executives and high-end diners.

*Features

High-end restaurant brand

Fine dining & lounge concept

Higher disposable income of customers

Ideal for metro cities

3. Haldiram's

Haldiram's is among the most popular food brands in India, providing Indian foods, snacks, desserts, and beverages. The wide menu of food items provided by the company attracts clients from all age groups.

Main advantages

Name reputation of the brand

Wide menu of food items

Large client footfall

Wide sources of revenues

4. Mainland China

Mainland China is one of the upscale chains of restaurants serving Chinese and Oriental foods. It is famous for its high-quality food and elegance of atmosphere provided.

Key Benefits

Specialties of Chinese and Oriental foods

High customer demand

Efficient management

Franchise facilities

5. Yellow Chilli

Yellow Chilli is a premium casual dining restaurant chain founded by celebrity chef  Sanjeev Kapoor. The chain serves Indian cuisine in a contemporary way, which makes it extremely popular among families.

Important features

*Founded  by a celebrity chef

*Serves Indian cuisine

*High brand recall value

*Best suited for premium restaurants

6. Karigari

Karigari is a premium dining brand created by Chef Harpal Singh Sokhi. The restaurant offers authentic North Indian cuisine with modern presentation and focuses on delivering a memorable dining experience.

Key Benefits

• Celebrity chef-led brand
• Premium North Indian cuisine
• Unique dining experience
• Growing brand presence in India

Why Should One Go For Restaurants Franchises With An Investment of More Than ₹1 Crore?

There are some benefits which come along with investment in premium restaurant franchises.

*Strong Brand Value

A strong brand value will have a customer base that is well aware of their brand and will reduce the efforts taken to create the necessary brand awareness.

*Demand for Premium Restaurants Increases

The increase in the demand among urban population for premium restaurants for their family dinners, parties, business meetings, and weekend outings creates great opportunities for the franchise partners

*Tested Business Strategy

Generally, most premium restaurants have standard business strategy with the help of which they conduct their operations.

*Potential for Revenues

Premium restaurants usually have higher revenues per customer when compared to quick service restaurants. With proper management and good location, one can earn huge amounts of money from such businesses.

*Franchise Assistance from Franchisor

Usually, the franchisors of premium restaurant businesses help the franchise partner in:

•           Site Selection

•           Designing and interiors of the restaurant

•           Recruitment and training of the employees

•           Campaigns for marketing

•           Management of inventory

•           Business operational activities

Investment Required for Premium Restaurant Franchise Outlets

The amount of total investment depends upon the brand of the restaurant, the city in which the restaurant is to be established, size of the outlet, and nature of business.

Cost Head Approximate          Cost Involved

Brand Franchise Fees:           ₹10 Lakhs - ₹50 Lakhs +

Interior and Fit-out Costs        ₹20 Lakhs - ₹2 Crores

Kitchen Equipment Cost:        ₹10 Lakhs–₹50 Lakhs

Furniture and Fixtures Cost:    ₹5 Lakhs–₹20 Lakhs

Licenses and Permits Cost:     ₹3 Lakhs–₹15 Lakhs or more

Initial Inventory of Stock            ₹5 Lakhs - ₹15 Lakhs

Campaign Marketing Expenses: ₹2 Lakhs - ₹10 Lakhs

Working Capital Requirement:   ₹10 Lakhs - ₹30 Lakhs

For premium restaurant outlets, the total investment required shall vary from ₹1 Crore to ₹5 Crores and above.

Key Considerations Before Investing

Before you put your money into a fancy restaurant franchise you need to think about some things. You have to consider the following things when you want to invest in a premium restaurant franchise.

* Reputation

The name of the franchise is very important. You should choose a franchise that people know and like.

* Investment Cost

You have to think about how money you need to start the restaurant and how much money you need to keep it running for a few months.

* Location

A fancy restaurant will do well in areas where a lot of people walk by and have money to spend.

* Franchisee Support

You need to think about what kind of help the main company gives you. This includes teaching you what to do, marketing, running the restaurant and getting things from one place to another.

* Profit Potential

You have to look at how money the restaurant can make, what it costs to run, what you have to pay to the main company, and how long it takes to get your money back.

Profit Potential and Return on Investment (ROI)

One of the major motivations for choosing restaurant franchises beyond ₹1 crore is the profitability over time that they offer. Since such brands are established, there is already customer trust and an efficient working mechanism, making it easier for the franchise owners to earn consistently.

Premium restaurants usually provide profit margins ranging from 10%-20%, according to certain variables such as:

•           Customer footfall

•           Order size per customer

•           Sales of food and beverages

•           Rent charges

•           Salaries of employees

•           Operational efficiency

•           Competition

The payback period averages around 24-48 months.

Key Challenges for Premium Restaurant Franchise Owners

Despite offering profitable business prospects, there are a number of challenges associated with running a premium restaurant franchise.

*Initial Investment Costs

There are high initial costs of investment to cater for interiors, cooking utensils, licenses, and capital.

*Expensive Real Estate

A premium restaurant operates effectively in real estate such as malls, business centers, and high street that usually have expensive rental rates.

*Qualified Labor Force

In order to provide top-class customer service, one needs to have skilled chefs and competent restaurant managers.

*Adherence to Branding Specifications

There is a need for the franchisees to adhere to the operational specifications of the brand.

*Market Competitions

There are stiff competitions in the market, and customer experience becomes the key success factor.

Conclusion

High-end dining restaurants will still be able to cater to those seeking good food, unique experiences, and good service. In view of the development of India’s food services sector, spending money on premium dining restaurants that exceed ₹1 crore will enable an entrepreneur to team up with well-known brands that have business models and satisfied customers.

To choose the most profitable and growth-oriented option, consider all of the following aspects in advance: total cost of investment, location demands, support in running the business, profitability, and potential for development.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.