How to Start Burger Singh Franchise in India | Cost, Fee, and 35% Profit Margin

Introduction

Thinking about venturing into the world of quick-service restaurants (QSRs) and interested in starting a Burger Singh franchise in India? You’ve come to the right place! In this article, we will provide you with a comprehensive guide on how to kickstart your journey into the exciting world of Burger Singh. From understanding their business model to exploring the step-by-step application process, as well as delving into the cost, fees, profit margin, and weighing the pros and cons, we have got you covered. So, let’s dive in and explore this enticing entrepreneurial opportunity!

Business Model of Burger Singh Franchise

Burger Singh, a leading fast-food brand in India, is known for its delectable range of burgers that are a fusion of international flavors with an Indian twist. The company has successfully carved a niche for itself in the highly competitive QSR market, offering a unique and captivating culinary experience to its patrons. By becoming a Burger Singh franchisee, you get an opportunity to be a part of this thriving brand and leverage its well-established business model.

At Burger Singh, a special focus is given to using high-quality ingredients and spices that appeal to the Indian palate. The brand’s mouthwatering menu offers a wide assortment of burgers with innovative names inspired by Indian culture and Bollywood. This creative approach sets them apart from the typical fast-food chains and has helped Burger Singh gain a loyal customer base.

How to Apply/ Step-by-Step Application Process

To apply for a Burger Singh franchise in India, follow these simple steps:

Research and Initial Inquiry: Begin your journey by conducting thorough research on Burger Singh’s franchising opportunities. Visit the official website and explore the franchise section to gather essential information about the brand, its requirements, and expectations. Once you have a clear understanding of the franchise model, fill out the initial inquiry form available on the website.

Pre-Qualification: Upon receiving your initial inquiry, the Burger Singh franchise team will review your application. If you meet their pre-qualification criteria, you will be contacted for further discussions.

Discussion & Disclosure: In this stage, you will have a detailed conversation with a representative from Burger Singh who will provide you with a Franchise Disclosure Document (FDD). This document will contain crucial information, such as the brand’s history, financials, franchise agreement terms, and support provided by the franchisor.

Location Selection: Once you are satisfied with all the details provided in the FDD, it’s time to scout for a suitable location for your Burger Singh outlet. The brand typically prefers high-visibility locations with a significant footfall, such as high streets, malls, or commercial complexes. However, it’s essential to consult with the franchisor regarding location requirements and obtain their final approval.

Agreement Signing and Payment: After finalizing the location, you will be required to sign the franchise agreement and pay the necessary fees. Ensure you carefully review all the terms and conditions before signing any legal documents. The franchisor may also assist you with the necessary legal formalities.

Training and Setup: Once the agreement is signed, Burger Singh will provide you with comprehensive training on their operations, recipes, and quality standards. It’s vital to adhere to their guidelines and maintain consistency in delivering the brand’s unique taste experience.

Grand Opening and Ongoing Support: Now it’s time to launch your Burger Singh franchise! With the guidance and support from the franchisor, execute an impactful grand opening event. Post-launch, the brand will continue to provide ongoing support in various aspects, including marketing, procurement, and operations, to maximize the success of your franchise.

Cost and Fees 

Before embarking on any franchise venture, it’s crucial to have a clear understanding of the financial obligations. Here is a breakdown of the cost and fees associated with starting a Burger Singh franchise:

Franchise Fee: Burger Singh charges an initial franchise fee, which gives you the right to use their brand name, trademarks, and business systems. The franchise fee for a Burger Singh outlet in India typically ranges from INR 5 lakhs to INR 10 lakhs.

Store Setup and Equipment: As a franchisee, you will be responsible for setting up your outlet according to Burger Singh’s specifications. This includes the cost of leasehold improvements, decor, furniture, kitchen equipment, point-of-sale systems, and other essentials. The estimated investment required for the store setup can range from INR 21 lakhs to INR 49 lakhs, depending on the outlet size and location.

Inventory and Working Capital: It’s essential to have sufficient working capital to cover your initial inventory expenses, employee salaries, and other operational costs. Burger Singh recommends having approximately INR 5 lakhs to INR 10 lakhs as working capital, which may vary depending on the outlet size and location.

Royalty Fees: As a franchisee, you will be required to pay a monthly royalty fee, typically a percentage of your gross sales, to the franchisor. The royalty fee structure may vary, so it’s crucial to clarify the exact percentage with Burger Singh during the application process.

Marketing and Advertising: Burger Singh conducts national and regional marketing campaigns to promote the brand collectively. As a franchisee, you will contribute a certain percentage of your monthly sales towards local marketing and advertising efforts.

Burger Singh Store format and its investment:

FOOD-COURT OUTLET – The Food Court concept is designed for high-traffic areas with a size need of 200-300 square feet or more. This franchise concept solely offers delivery and food court services. This is great for someone looking to make a low-cost investment with an early break-even point. Also well-suited for Metro and railway stations. burger singh franchise

Operating Expenses:

Summary
Rent 1.2 – 2 Lakhs
Payroll 1.2 – 2 Lakhs
Electricity 60k – 1 Lakh
Marketing 50k
Miscellaneous 25k – 40k
Logistic 30k – 50k
Opex (Monthly) 4 – 6.4 Lakhs

ROI:

Summary
Capital Expenditure+ Franchise Fees 26 Lakhs
Net Margin 20%
Monthly Earning Potential 2.4 Lakhs
Annualized Return 41%
Royalty+ Administration Fees 6% + 2%
Return On Investment on Capital Expenditure 1.44 Crores

DINE IN OUTLET – Carpet area starts at 800 sq ft. This placement must be in a high-traffic area. A minimum of 30 individuals will be accommodated. Dine-in restaurants perform exceptionally well in tier 2 and tier 3 cities. This is our most profitable long-term investment for someone looking to build a long-term business.

burger singh franchise

Operating Expenses:

Summary
Rent 1.2 – 2 Lakhs
Payroll 1.2 – 2 Lakhs
Electricity 60k – 1 Lakh
Marketing 50k
Miscellaneous 25k – 40k
Logistic 30k -50k
Opex (Monthly) 4 – 6.4 Lakhs

ROI:

Summary
Capital Expenditure+ Franchise Fees 44 Lakhs
Net Margin 15%
Monthly Earning Potential 2.1 Lakhs
Annualized Return 23%
Royalty+ Administration Fees 6% + 2%
Return On Investment on Capital Expenditure 1.26 Crores

DRIVE THRU OUTLET – This is our most profitable model. This style appeals to captive highway audiences and starts at 1000 sq ft. Ideal for both landowners and restaurant entrepreneurs. High profit margins and location recall. ROI is one year. 5 year franchise term.

burger singh franchise

Operating Expenses:

Summary
Rent 1.2 – 2 Lakhs
Payroll 1.2 – 2 Lakhs
Electricity 60k – 1 Lakh
Marketing 50k
Miscellaneous 25k – 40k
Logistic 30k – 50k
Opex (Monthly) 4 – 6.4 L

ROI:

Summary
Capital Expenditure + Franchise Fees 59 Lakhs
Net Margin 30%
Monthly Earning Potential 7.2 Lakhs
Annualized Return 49%
Royalty+ Administration Fees 6% + 2%
Return On Investment on Capital Expenditure 4.32 Crores

Profit Margin

While the specific profit margin can vary depending on various factors such as location, operational efficiency, and overall market conditions, Burger Singh offers a competitive profit margin that provides an attractive return on investment. On average, Burger Singh franchisees can expect a profit margin of approximately 30% to 35% after deducting all the expenses and royalties.

Also Read – How to Start Mio Amore Franchise in India | Cost, Fees, and 20% Profit Margin?

Pros and Cons

Before making a final decision, it’s essential to weigh the pros and cons of owning a Burger Singh franchise:

Pros:

  • Established brand with a unique positioning and loyal customer base
  • Comprehensive training and ongoing support from the franchisor
  • Menu innovation and fusion concept offering a differentiated experience
  • Favorable profit margin potential
  • Leveraging on the increasing demand for QSRs in India

Cons:

  • Significant upfront investment required
  • Royalty fees and marketing contributions
  • Competitive QSR market landscape
  • Operational challenges in maintaining quality and consistency

Conclusion

Starting a Burger Singh franchise in India presents an exciting opportunity to join a growing brand in the QSR industry. By following the step-by-step application process and understanding the associated costs, fees, profit margin, as well as weighing the pros and cons, you can make an informed decision. Burger Singh’s fusion concept, focus on quality ingredients, and extensive support provided by the franchisor make it an attractive choice for aspiring entrepreneurs who are passionate about the fast-food business.

F.A.Q

Is prior experience in the food industry necessary to start a Burger Singh franchise?

While prior experience can be beneficial, Burger Singh provides comprehensive training to franchisees on their operational systems, making it accessible to individuals with or without prior food industry experience.

Can I choose my own location for the Burger Singh outlet?

Yes, as a franchisee, you will have the opportunity to suggest potential locations for your outlet. However, it's essential to consult with Burger Singh regarding the location requirements to ensure its viability.

How long does it generally take to set up a Burger Singh franchise outlet?

The timeline for setting up a Burger Singh franchise outlet can vary depending on several factors, such as securing a suitable location, obtaining necessary permits, and completing the store's construction. Typically, it takes around 2 to 6 months to complete the setup process.

What kind of ongoing support can I expect as a Burger Singh franchisee?

Burger Singh provides continuous support to their franchisees, including assistance with marketing strategies, procurement of ingredients, operational guidance, periodic audits, and regular training updates to ensure the success and growth of your franchise.

Can I opt for multiple Burger Singh franchise outlets?

Yes, Burger Singh offers the opportunity for interested franchisees to open multiple outlets, subject to their evaluation and approval process. The brand's expansion plans and your ability to manage multiple outlets efficiently will be assessed before granting additional franchises.

Hey everyone, Vishal here! I'm fascinated by the world of business, especially the exciting potential of franchising and spotting the next big idea. In my writing, expect a mix of in-depth franchise breakdowns, thought-provoking new business ideas, and practical advice to turn those ideas into reality.

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