Written By: Gouri Ghosh

In India, the food franchise business is growing by leaps and bounds, and is, therefore, a lucrative opportunity for those considering starting one's own business. Due to changing lifestyles, urbanization, and growing preferences for eating out, the demands for QSRs, cafés, and cloud kitchens are on the rise. But opening a restaurant entails great investment and high risk. Requiring an investment of under 20 lakhs, food franchises represent an excellent alternative. For those looking to enter into the food business with limited risks, investing in a food franchise is a smart decision, given the franchisor's proven business model, a strong brand presence, and operational support. In this blog, we’ll review the very best food franchise opportunities under 20 lakhs to start in 2025, including investment overview, business models, and unique selling propositions.

Why Invest in a Food Franchise Business below 20 Lakhs?

If you are planning to start a food business, the franchise model comes with many advantages, namely:

• Low Investment, High Returns – Most food franchises require an investment of under 20 lakhs, which gives high returns in 1 to 2 years' time.
• Increasing Demand – Food industry in India is witnessing exponential growth, driven by the other of young population with increasing disposable income.
• Brand Recognition – An established brand associate ensures customer trust and quicker growth of business.
• Operational Support – The franchise brands provide training, marketing, and operational support which reduces the risks of understanding and running a business.
• Flexible Business Models – Create a QSR, café, kiosk, or a cloud kitchen depending on budget and location. 

1. Xero Degrees

• Investment: ₹18-20 Lakhs  
• Franchise Model:Café, Dine-in  
• Unique Selling Proposition (USP):Strong social media interaction, visually appealing food presentations, ideal for urban environments.

Xero Degrees represents a contemporary café franchise that enjoys significant popularity among millennials and Generation Z customers. This brand is particularly famous for its cheesy fries, pizza jars, burgers, and shakes. By utilizing Instagram-friendly food aesthetics, it has effectively positioned itself as a viral sensation within social media realms. The café atmosphere is tailored to attract youthful audiences in high-traffic locales such as shopping malls, educational institutions, and commercial districts.

2. Momo Nation Café

• Investment: ₹10-15 Lakhs 
• Franchise Model: Café, Quick Service Restaurant (QSR)  
• Unique Selling Proposition (USP): Established brand recognition, extensive menu options, low operating expenses.

Momos have emerged as one of India's favorite snack items; Momo Nation Café takes full advantage of this trend by offering products like tandoori momos, steamed varieties filled with fusion flavors, alongside distinct dipping sauces. Unlike traditional momo vendors across India’s landscape that often provide basic fare at lower prices Momo Nation embodies a premium dining experience without compromising affordability – making it a model ripe for scalability.

3. Rolfi

• Investment: ₹ 8-12 Lakhs
• Franchise model: Kiosk, QSR
• USP: Low investment, high margins and easy scalability

Rolfi is a growing fast food franchise specializing in wraps, rolls and kebabs which are quick to make, easy to eat on the go and high volume in a Kiosk/QSR format. A must. Takes up the least amount of space Low investment, high return business….

4. Lassie House

• Investment: ₹ 10-12 Lakhs
• Franchise model: Café, Kiosk
• USP: Year-round demand, low operating costs and high beverage margins

Lassi House specializes in Lassi, Milkshakes, Fresh Juices and Smoothies making it a profitable venture in the Indian beverage industry. With the increasing demand for healthy and refreshing beverages, the brand has a strong customer base in urban and semi-urban markets.

5. Amul Ice Cream Parlor

• Investment: ₹5-10 Lakhs
• Franchise Model: Retail, Kiosk
• USP: A strong brand, low-risk investment, steady foot traffic.

Amul is India's largest dairy brand, and the parlor is a trusted, low-risk business model that serves a variety of ice creams, dairy products, and frozen desserts. Amul's great brand loyalty and proud heritage make its products sometimes a default choice for many people.

6. Belgian Waffle Company

• Investment: ₹ 12-15 Lakhs
• Franchise model: Kiosk, QSR
• USP: Premium waffles with high customer engagement

Belgian Waffle Company is one of the fastest growing waffle franchises in India, offering freshly made waffles with a variety of fillings.The brand has a strong following of fans due to its premium quality. Affordability and innovative menus. The Grab-and-Go model is suitable for shopping malls, high streets and college areas.

7. Chicago Pizza

• Investment: ₹ 15-18 Lakhs
• Franchise Model: QSR, Take Away
• USP: Customizable pizza slices ensure high repeat customers

Chicago Pizza is India's most respected pizza franchise, offering customizable pizza slices and full pizzas. Unlike traditional pizza chains, it specializes in single slices, making it affordable and convenient for customers.

8. Gianni's ice cream

• Investment: ₹ 12-15 hundred thousand
• Franchise model: Kiosk, Parlor
• USP: Premium ice cream brand with strong customers

Gianni’s is a Heritage Ice Certificate. In 1956, premium ice cream premium and Sunday The brand has a very loyal customer base to ensure that there are consistent needs.

9. Chai Garam

• Investment: ₹8-12 Lakhs
• Franchise Model: Tea Café, Tuck Shops/Kiosks
• USP: Most consumed beverage in India, so it is a high-demand business.

Chai Garam has a specialty tea café for fine quality teas that are all handcrafted, filled, flavored teas, and nice snacks. The escalating popularity of tea in India makes this franchising business demand-filled and scalable. 

10. Wow! Momo (Small Outlet Model)

• Investment: ₹15-18 Lakhs
• Franchise Model: QSR, Takeaway
• USP: India's largest momo chain has a leading market presence.

Overview:

Wow! Momo is the top momo chain across India, offering steamed, fried, and tandoori momos and MoBurgs (momo burgers). Having a superb brand identity and widespread expansion across the nation makes as one of the safe bets for a franchise model.

How to choose the best food franchise business under 20 lakhs?

Important considerations before investing in a franchise are: 

• Track the brand: Reviews made by customers, the average success rate of franchises, and the performance of the business.
• Know about the terms of franchise agreement: Take an insight into the terms of trade like franchise fees, profit-sharing, and operational guidelines.
• Check the viability of the location: Go for high-footfall areas like malls, offices, or colleges.
• Analyze the training and support: Make sure the franchisor does provide enough headway to market, assist with employee training, and give operational help.

Conclusion

Starting a food franchise business under 20 lakhs is, in fact, a great way to enter the food industry with relatively low risk. Franchise business opportunities under 20 lakh in India would be either QSR, cafe, kiosk, or cloud kitchen in 2025.

The ball is in your court to select the best food franchise that suits your budget and location and become an entrepreneur by 2025. 

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.