How to Start a Fast Food Franchise in Mumbai: Cost, License & Setup Guide

Mumbai, the city that’s always on the move, seldom has time to pause for lunch. On one hand the lunch breaks don’t go over 30 mins, and on the other the crowded local trains ensure everyone reaches on time. In spite of this every Mumbaikar expects a culinary delight on their plate. With speed the primary requisite here, quick-service eateries don’t just survive, but thrive here. Are you, as an investor, looking to take a dip into this sea of profitable fast food franchises in Mumbai?

If you answered yes, then here’s a how-to guide that will help you realistically. 

Why Choose a Franchise?

The end-to-end set-up of a restaurant brings with it a world of challenges. From setting a menu, figuring out the branding and marketing strategies to keeping a track of vendors, staff, sales, operations etc – all of this needs to be handled individually. As opposed to investing in profitable fast food franchises, which help an investor sidestep this draining grind. Some of the best fast food franchises in Mumbai offer investors with established branding and marketing as well as set menus and tested operational systems in place. For a fast-moving city like Mumbai, skipping the initial trial phase can actually make you money.  

While a rough estimated cost of establishing a franchise may vary, some ballpark figures are generally constant. For instance, if you want to open a franchise of Jumboking,it will cost you anywhere between ₹30–50 lakhs. For more premium brands like McDonald’s and Dominos, the expenses may range between ₹50 lakhs to ₹1 crore. These expenses pertain to infrastructure costs, cooking equipment, fixtures, while at the same time leave certain room for initial operational costs. When we talk about the rental expenses, Mumbai offers a wide spectrum of options. A Bandra store will cost a lot more to rent than a Borivali one. 

When choosing from the top 10 best food franchises in Mumbai, also factor in the costs of royalty payments, marketing promotional expenses, wages, utility bills, inventory refilling and so on. Ensure that you are on top of these numbers and audit periodically whenever you choose to invest. 

What are the Must-have Documents? 

FSSAI License –  This covers food safety and is mandatory to have if you’re looking to set-up a profitable fast food franchise. 

Trade License – The BMC or Brihan Mumbai Council needs to be apprised of the fact that you are following all the guidelines in terms of property, NOC from the landlord and so on. Avoid any verbal contracts. 

GST Registration – When your franchise hits ₹40 lakhs in earnings, you enter a different threshold in terms of compliance layer and taxes, which is why this registration is paramount. 

Safety Checks – While these are not registrations, it is mandatory to have a fire safety permit in place, as well as a health and signage permit need to be in place. 

Labor License – The minute you start hiring a workforce in your franchise, it is important to have this in place so as to stay compliant with all the labor laws. 

Now, surely this paperwork will seem a bit overwhelming in the initial stages, it helps to have a familiar contact within BMC. Additionally, starting off with planning 6 months before will help with steadily building up and ensuring all your paperwork is in place before execution. 

Location Above All

Where you set up shop makes all the difference especially if you are looking to build a profitable fast food franchise. A location close to offices, colleges and even residential areas are definitive options for steady footfall. On the other hand, even a train station or a bus depot bring in constant movement of customers or people who’d want to get something on-the-go. Don’t choose a location which is in a quieter area, or with a spot of traffic as it would quickly become a dead zone and may not give you the leverage or return on investment.    

FAQs 

1. How much does it cost to launch a profitable fast food franchise in Mumbai?

Not every brand carries the same price. Some smaller chains start around fifteen lakhs, others near thirty. One step higher, a known face such as Jumboking could ask for fifty lakh. At the top end, big names such as McDonald’s or Domino’s often need about a crore to get going. Toss in Mumbai’s rental costs, which tend to stack up fast after the first payment. Most investments might need between two and four years to balance out. Locations that are central in terms of the crowds/customers and those that run tight operations get there quicker. How carefully you manage spending at the start decides how much actually ends up in your hands.

2. Do I need restaurant experience to start a franchise?

Most training programs of franchise set-up do include all basics. No background is  required to get started. That being said, skills like guiding people, staying calm when things get intense, or handling everyday tasks help a lot. Some managers also tend to run multiple locations without ever having worked inside a single kitchen or handled a restaurant. It’s all about practical, street-smart skills at the end of the day. 

3. Which are the most profitable fast food franchises in Mumbai?

Location matters. Additionally, how the franchise owner runs things on a day to day matters a lot more than what logo sits up on top of the outlet. Places like Domino’s, Jumboking or Subway manage to stick around, somehow. Franchises like Wow! Momo keeps a decent royalty fee from each sale. Faasos skips high rent by cooking out of shared spaces. So the best/most profitable title is honestly dependent on how you manage initial investment and ongoing operations.