Sagar Ratna Franchise Cost in India: Model, ROI, Eligibility Criteria & Steps to Apply

When it comes to authentic South Indian cuisine in North India, one name that stands tall is Sagar Ratna. Founded in 1986 by Mr. Jayaram Banan in Delhi, Sagar Ratna started as a humble South Indian vegetarian restaurant. Over the years, it has become a leading chain of casual dining restaurants (CDRs), offering a wide range of South Indian delicacies like dosas, idlis, uttapams, and thalis, along with North Indian and Chinese items.

With over 90 outlets across India, Sagar Ratna has established itself as a trusted and profitable brand in the Indian food industry. Many entrepreneurs are now looking at Sagar Ratna franchise opportunities as a way to enter the booming Indian food & beverage sector. In this article, we’ll explore franchise cost, models, ROI, eligibility criteria, and the step-by-step application process.

✅ Why Choose Sagar Ratna Franchise?

Before diving into investment details, let’s understand why Sagar Ratna makes a strong business opportunity:

• Trusted Brand: Over 35 years of legacy with strong customer loyalty.
• Pan-India Recognition: Widely recognized in North India and expanding across the country.
• South Indian Specialty: Known for authentic South Indian vegetarian cuisine.
• High Demand: South Indian food has wide appeal across all age groups.
• Franchise-Friendly: The brand actively promotes franchise partnerships.
• Proven Success Model: Many franchise outlets are running successfully in malls, highways, and high-street locations.

💰 Sagar Ratna Franchise Cost in India

The franchise cost depends on the model of the restaurant, outlet size, and location.

1. Fine-Dine Restaurant Model

• Franchise Fee: ₹20 – ₹25 Lakhs
• Setup & Interiors: ₹70 Lakhs – ₹1 Crore (depending on size & city)
• Kitchen Equipment: ₹15 – ₹20 Lakhs
• Working Capital: ₹10 – ₹15 Lakhs
• Total Investment: ₹1.2 – ₹1.5 Crores (approx.)
• Space Required: 1,500 – 3,000 sq. ft.

2. Food Court / Small Outlet Model

• Franchise Fee: ₹10 – ₹12 Lakhs
• Setup & Interiors: ₹25 – ₹35 Lakhs
• Kitchen Equipment: ₹7 – ₹10 Lakhs
• Working Capital: ₹5 – ₹8 Lakhs
• Total Investment: ₹50 – ₹60 Lakhs (approx.)
• Space Required: 500 – 1,000 sq. ft.

👉 The investment figures may vary slightly based on city, real estate cost, and brand negotiations.

📊 ROI & Profitability of Sagar Ratna Franchise

Food businesses in India are growing rapidly, and Sagar Ratna’s popularity ensures steady footfall.

• Gross Profit Margin: 20% – 30%
• Monthly Sales (average restaurant): ₹15 – ₹25 Lakhs (depending on location)
• Monthly Net Profit: ₹3 – ₹6 Lakhs (after expenses)
• Break-Even Period: 24 – 30 months

Restaurants in malls, metro cities, highways, and premium localities tend to generate faster ROI due to higher customer flow.

🏢 Eligibility Criteria for Sagar Ratna Franchise

To qualify as a franchise partner, you need to meet certain requirements:

1. Financial Capability: Ability to invest ₹50 Lakhs – ₹1.5 Crores (depending on model).
2. Space Requirement:
   • Fine-dine: 1,500 – 3,000 sq. ft.
   • Food court: 500 – 1,000 sq. ft.
3. Location Preference: Malls, high-street markets, highways, and commercial hubs.
4. Business Background: Prior experience in F&B or hospitality is helpful but not mandatory.
5. Manpower: Capability to manage kitchen staff, chefs, and service staff.
6. Commitment: Willingness to maintain hygiene, taste, and service as per brand guidelines.

📌 Steps to Apply for Sagar Ratna Franchise

Here’s the step-by-step process to start a Sagar Ratna franchise outlet in India:

Step 1: Initial Research & Contact

Visit the official Sagar Ratna website (www.sagarratna.in) and head to the Franchise section. Alternatively, you can directly email or call their corporate office in Delhi.

Step 2: Application Form Submission

Fill out the franchise inquiry form with details like:

• Personal information
• Investment budget
• Proposed outlet location & property details
• Business background

Step 3: Review & Discussion

The Sagar Ratna team reviews your application and conducts discussions to understand your financial capacity and business vision.

Step 4: Site Visit & Approval

If shortlisted, the company will inspect your proposed property/location.

Step 5: Agreement Signing

Once approved, you sign a franchise agreement covering terms, fees, responsibilities, and duration (generally 5–9 years).

Step 6: Setup & Training

• Interiors and setup are done as per Sagar Ratna’s brand design.
• Kitchen equipment installation and trial runs.
• Staff training for kitchen operations and service.

Step 7: Outlet Launch

The outlet is launched with local marketing campaigns, menu promotions, and brand support.

📌 Support Provided by Sagar Ratna

Sagar Ratna provides complete support to its franchise partners, including:

• Outlet Design & Branding – Assistance in interiors, layout, and ambiance.
• Menu & Recipes – Standardized recipes for consistent taste.
• Staff Training – For chefs, waiters, and managers.
• Marketing & Promotions – Guidance in digital, print, and local campaigns.
• Supply Chain Support – Assistance with raw materials and vendors.
• Operational Guidance – Continuous monitoring to maintain brand standards.

⚖️ Pros & Cons of Sagar Ratna Franchise

✅ Advantages

• Strong brand presence and goodwill.
• Authentic South Indian specialty (less direct competition in casual dining).
• Wide appeal across India.
• Attractive ROI in high-footfall areas.

❌ Challenges

• High initial investment (₹50 Lakhs – ₹1.5 Crores).
• Requires larger space compared to fast-food kiosks.
• Strong operational commitment needed in staffing and quality control.
• Competition from other South Indian chains like Vasudev Adiga’s, A2B (Adyar Ananda Bhavan), and even local restaurants.

🏁 Final Thoughts

The Sagar Ratna franchise in India is a great opportunity for entrepreneurs passionate about the food business. With its investment ranging between ₹50 Lakhs – ₹1.5 Crores, it falls in the mid-to-premium range of franchise models.

While the cost is higher than QSRs like Sagar Gaire or Wow! Momo, the brand strength, authentic cuisine, and customer loyalty ensure sustainable profitability. On average, franchise owners can expect to break even in 2 to 2.5 years, provided the outlet is in a prime location.

If you’re looking to invest in a proven Indian restaurant brand with nationwide recognition, Sagar Ratna is a solid option worth considering.