Vegetarian Restaurant Franchises Are Becoming Popular & Profitable

Sneha Santra
Sneha Santra Jul 18 2019 - 4 min read
Vegetarian Restaurant Franchises Are Becoming Popular & Profitable
The increased health consciousness & empathy towards animals have made many people switch from non-veg to veg, especially millennials

The food industry never fails to surprise us. The industry is constantly evolving and bringing forth new trends. It’s not like a vegetarian restaurant is new to the Indian market, but the demand has definitely increased in the past few years. India has been considered a vegetarian nation. According to statistics, India has the lowest rate of meat consumption in the world. In fact, India has more vegetarians than the rest of the world put together!

Therefore, it isn’t rocket science to understand that a vegetarian restaurant will definitely do well in the Indian market. Even though vegetarianism has been there for a long time in India, deep-rooted in its culture & religious beliefs but, what makes it such a trend in today’s time?

The increased health consciousness &rising empathy towards animals have made many people switch from non-veg to veg, especially the millennial. Today’s generation is increasingly realising the positive impact on sustainability and animal welfare without the need to sacrifice taste or style and making a conscious effort to imbibe vegetarianism, which is becoming a norm now. This has created a new entrepreneurial opportunity in the food industry.

Capitalising on the Trend

Veganism is in trend too. The number of vegans in this country has risen by 360 per cent in the past decade, driven mostly by the young crowd. Even among the majority of non-vegetarians in India, consumption of meat is restricted to a fixed few days of the week due to religious proscription.

According to a survey, 40% of the Indian population is vegetarian. Entrepreneurs see these dietary changes as an opportunity to capitalise on a trend. Existing franchises are introducing veg options in their menu, while new franchises are opting for vegetarian restaurant franchises. 

International brands that are entering India have customised their menu by including vegetarian options to cater to a large section of people, like Wrap it Up, Which Wich etc.

Location is a Critical Factor

If you are interested in investing in a vegetarian restaurant, location is a critical factor. The location has always been the deciding factor in the success of any business, and it especially plays a huge role in the vegetarian restaurant franchise.

This is because owing to India’s cultural diversity, the consumption patterns also differ according to different regions. For instance, in states like West Bengal & Kerala, the population of non-vegetarian consumers are dominant. Hence, starting a vegetarian restaurant franchise there may not be a very profitable business decision even though.

According to government data, Rajasthan has the highest fraction of vegetarians, approx 74.9%. Other states with vegetarians include Haryana (69.25%), Punjab (66.75%), Gujarat (60.95%), Madhya Pradesh (50.6%). The cities with the highest number of vegetarians are as follows:

Indore: 49%

Meerut: 36%

Delhi: 30%

Nagpur: 22%

Mumbai: 18%

Therefore, starting a vegetarian restaurant in these cities & states will be highly lucrative for your restaurant. Thus, choose your location wisely.

Franchising: An Easy Recipe for Success

When it comes to food, people tend to trust an established brand name as they trust the quality & have a connect with the brand. The franchise offers you the advantage of a replicating the success of an established business, with less risk and high profits. There are numerous vegetarian restaurant franchises in India, thus investment criteria differ accordingly.

The investment for a vegetarian restaurant franchise starts from INR 15 lakhs and may even go up to INR 1 crore, depending upon the many factors such as franchise model, brand name & area requirement.

Some restaurants offer a kiosk format also, which is a low-cost investment opportunity with an area requirement of up to 150 sq. ft. For a restaurant format, the area requirement may range from 500-2000 sq. ft. One can expect a return on investment of 40-60%, even 100% in some cases on a vegetarian restaurant format.


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