Thinking of opening a Quick Service Restaurant franchise in India? You’re tapping into one of the fastest-growing segments of the F&B sector.
QSRs are built on speed, consistency, and convenience, perfect for today’s fast-paced urban lifestyle.
This step-by-step guide walks you through every stage, from investment and brand selection to setup, operations, and profitability.
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Step 1: What Does Starting a QSR Franchise Really Mean?
A Quick Service Restaurant (QSR) franchise allows you to run an established food brand’s outlet in your area. You get the brand name, recipes, systems, and marketing support, while maintaining their quality standards.
In short: Franchise = Franchisor (brand owner) + Franchisee (you)
You Get:
- Brand identity, recipes, and SOPs
- Equipment and kitchen setup guidance
- Staff training and vendor network access
- Marketing and promotional support
You Give:
- Franchise fee and monthly royalty
- Commitment to brand standards
Quick Takeaway: A QSR franchise lets you start fast, gain customer trust instantly, and reduce risk compared to starting your own restaurant.
Click here: How to Start a Franchise Business in India? – Step-by-Step Guide (2025)
Step 2: Choose the Right QSR Format
Different QSR formats come with varied investments and returns. The format you choose should match your target audience, location, and capital.
Common QSR Formats in India
| Type | Space Required | Investment Range | Best For |
| Kiosk / Express Counter | 100–250 sq. ft. | ₹10–20 lakhs | Malls, food courts, metro stations |
| Takeaway / Cloud Kitchen | 200–400 sq. ft. | ₹15–25 lakhs | Online orders, delivery apps |
| Dine-in QSR Outlet | 600–1200 sq. ft. | ₹30–70 lakhs | High-footfall areas, malls |
Checklist before choosing:
- Visit existing outlets
- Analyse peak-hour footfall
- Check the brand’s menu diversity
- Compare franchisor support
Pro Tip: Start with a takeaway or kiosk format, easier to manage and ideal for testing local demand.
Step 3: How Much Does It Cost to Start a QSR Franchise?
The total cost depends on the brand, outlet format, and location.
Typical Cost Breakdown
| Expense Head | Estimated Cost (₹) |
| Franchise Fee | ₹5–15 lakhs |
| Kitchen Setup & Equipment | ₹6–20 lakhs |
| Interiors & Furniture | ₹4–10 lakhs |
| Licenses & Registrations | ₹1–2 lakhs |
| Working Capital (3 months) | ₹3–5 lakhs |
Total Investment: ₹15–70 lakhs
Royalty Fees: 5–8% of monthly sales
Actionable Step: Prepare a 12-month financial plan with estimated monthly sales, staff costs, and rent.
FYI: Reserve 10% of revenue for local marketing, promotions, and delivery app commissions.
Step 4: Evaluate and Select the Right Brand
Choosing the right brand is key to long-term success. Research before signing any deal.
Due Diligence Checklist
- Visit 2–3 franchise outlets
- Talk to current franchisees about profitability
- Review menu popularity and local fit
- Understand the franchisor’s marketing and logistics support
Contract Checks
- Franchise tenure and renewal terms
- Territory exclusivity rights
- Exit or resale clauses
- Price control flexibility
Pro Tip: Avoid franchises that hesitate to share contact details of existing partners it’s a warning sign.
Step 5: Funding Your QSR Franchise
Starting a QSR requires capital, but funding options are available.
Funding Options in India
- Bank Loans: SBI, HDFC, Axis offer F&B business loans
- Government Schemes: Mudra Loan (up to ₹10 lakh) under PMMY
- NBFC/Fintech Lenders: Quicker approvals for smaller amounts
- Franchisor Partnerships: Some brands tie up with banks or NBFCs
- Private Investors: Ideal for multi-outlet expansion
Actionable Step: Prepare a one-page business plan highlighting brand choice, setup cost, and expected break-even.
Step 6: Legal and Licensing Requirements
Running a QSR involves mandatory government registrations.
Essential Licenses
- FSSAI License (Food safety compliance)
- Shop & Establishment License
- GST Registration
- Trade License (Municipal approval)
- Fire & Health NOC
- Music License (if applicable)
Actionable Tip: Apply all licenses under the same business entity registered in your franchise agreement.
Pro Tip: Hire a local compliance consultant to handle FSSAI and GST; it speeds up approvals.
Click here: 6 Best Government Subsidy Loans for Business
Step 7: Location, Setup, and Launch
Your location and ambiance determine success.
Location Checklist
- High-footfall zones (malls, offices, colleges)
- Visible storefront and easy parking
- Avoid proximity to identical QSR brands
Setup Steps
- Follow the brand’s layout and kitchen design
- Install approved equipment and branding
- Complete staff training
- Conduct trial runs before launch
Launch Marketing Ideas
- “Buy 1 Get 1” or combo offers
- Tie-ups with Swiggy/Zomato for online visibility
- Local influencer collaborations
Pro Tip: Launch during weekends or local events to attract early buzz.
Step 8: Run Your QSR Profitably
Operational discipline ensures profitability.
Daily KPIs to Track
- Footfall & order volume
- Average order value
- Food cost percentage
- Wastage and labour costs
Cost Control Tips
- Track daily ingredient usage
- Reduce peak-hour delays
- Use combo offers to increase ticket size
Customer Delight Tips
- Reward repeat customers
- Offer quick delivery and clean packaging
- Keep service times under 5 minutes
FYI: Successful QSRs achieve 20–30% profit margins after the first 6–12 months.
Step 9: Scaling or Exiting Your QSR Franchise
Once you’ve stabilized your first outlet, it’s time to expand or plan an exit.
Scaling Options
- Open outlets in nearby localities
- Explore cloud kitchen or food truck formats
- Negotiate multi-unit rights
Exit Plan
- Maintain clean books for resale value
- Check the franchise contract for resale permissions
Pro Tip: Reinvest early profits into your next outlet. Scaling is faster when you already know the process.
Step 10: QSR Franchise vs. Starting Your Own Brand
| Factor | QSR Franchise | Own Brand |
| Risk | Low (proven concept) | High (trial and error) |
| Investment | Higher (franchise + royalty) | Flexible |
| Brand Value | Established instantly | Takes time |
| Support | Provided by franchisor | Self-managed |
| Creative Control | Limited | Complete |
Summary:
- Go for a QSR franchise if you prefer a faster setup and lower risk.
- Start your own brand only if you have strong culinary and marketing experience.
Action Plan: 90-Day QSR Launch Roadmap
Phase 1 (Days 1–30): Brand & Research
- Shortlist 2–3 QSR brands
- Visit existing outlets
- Assess investment & break-even
Phase 2 (Days 31–60): Legal & Funding
- Register business (LLP/Pvt Ltd)
- Apply for FSSAI, GST, and trade licenses
- Finalise funding or a loan
Phase 3 (Days 61–90): Setup & Launch
- Lease property
- Complete interiors & equipment setup
- Hire and train staff
- Plan soft launch campaign
End Result: Fully operational QSR franchise with trained staff, approved licenses, and active customer base within 90 days.
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Conclusion
Starting a Quick Service Restaurant franchise in India is one of the most rewarding F&B opportunities in 2025.
With a booming market, evolving tastes, and supportive franchisors, it’s the perfect time to enter.
Focus on consistent quality, fast service, and smart marketing and your QSR can become a local favourite in no time.
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Learn how to start a Quick Service Restaurant (QSR) franchise in India with this 2025 step-by-step guide covering investment, setup, licensing, funding, operations, and profit strategies.
