Madras Coffee House Franchise Cost in India: Franchise Model, ROI, Eligibility Criteria & Steps to Apply

Madras Coffee House (MCH) is a rapidly growing South-Indian filter-coffee brand that’s turned the simple ritual of filter coffee into a replicable café format. If you’re evaluating coffee/quick-service food (QSR) franchises in India, MCH stands out for its focused product (authentic filter coffee), compact store formats and a franchise package that’s transparent enough to model. Below I break down realistic franchise costs, the business model, ROI expectations, eligibility, step-by-step application process and practical tips — using official franchise materials and reputable franchise portals as sources.

Quick headline numbers (what investors want first)

• Franchise fee: commonly published at ₹3.00–4.00 lakh + GST (one-time), depending on format.
• Typical total investment: ranges reported from ~₹5 lakh up to ₹16 lakh, depending on format (kiosk, shop, café) and location. Expect smaller kiosk models at the low end; a fully built café in a mall/high street pushes toward the higher end.
• Recommended shop size: 100–250 sq. ft. for kiosk/compact counters; larger café formats require 250–500 sq. ft. or more.
• Contact / enquiry: MCH invites prospective franchisees to contact its franchise team through the official site emails listed on the contact/franchise pages.

These headline figures are useful for initial screening — always request the official Franchise Information Memorandum (FIM) and an itemised cost sheet from MCH for accurate numbers tied to your city/location.

Franchise model — how Madras Coffee House operates

Madras Coffee House runs a franchise model that supports compact, high-turnover outlets focused on South Indian filter coffee, tea, and quick bites. The brand offers multiple formats — kiosk, counter, and full café — which makes it attractive for different budgets and site types (mall, high street, food court, petrol pump, transit hub). Franchise agreements are typically multi-year (often 3–5 years) and include brand usage, training, and supply-chain support. The company provides layout/design guidelines, raw-material sourcing, and operational training — but day-to-day retail operations are franchisee-run.

Detailed cost breakup (typical components)

Below is the practical way to think about startup costs (figures indicative; confirm via MCH FIM):

• Franchise fee (one-time): ₹3–4 lakh + GST.
• Interior & fit-out: ₹2–6 lakh (kiosk vs shop vs café finishes vary widely).
• Equipment: ₹2–4 lakh (espresso/boiler/filter equipment, display units, POS).
• Initial stock & supplies: ₹0.5–1.5 lakh.
• Rental advance / deposits: ₹1–3 lakh (city dependent).
• Working capital (3–6 months): ₹1–2 lakh.
• Branding, licences & launch marketing: ₹0.25–0.75 lakh.

That yields a total project cost typically in the ₹5–16 lakh range depending on format and location. Some franchise portals and the brand’s presentation provide example line items and ranges that match this scale.

Revenue, margins and ROI — realistic expectations

Franchise listings and MCH materials suggest the model is designed for quick turnover and modest margins per transaction but strong unit economics through volume. Reported payback times vary:

• Conservative industry estimates place payback/ROI in the 12–24 month window for a well-located outlet. Some optimistic estimates for very high-footfall sites show shorter paybacks, while low-traffic locations will take longer.
• Profitability depends on average ticket value, daily customer count, cost of goods sold (COGS), rent and wage cost. Beverage-centric QSRs often have higher gross margins on drinks but still require tight control of rent and labour to realise strong net profits.

A conservative projection exercise — model best/average/worst monthly sales, apply expected gross margin on drinks (industry typical 60–75% gross on beverages before fixed costs), then subtract rent, wages and utilities to estimate net. That will show your expected months to recover the initial outlay.

Who should apply? Eligibility & ideal franchisee profile

Madras Coffee House looks for franchise partners who can demonstrate:

• Sufficient capital to fund the chosen format (kiosk to café) plus working capital.
• Site ownership/lease capability: ability to secure 100–250 sq. ft. (or larger) suitable space in a visible, high-footfall area.
• Hands-on commitment or a trusted manager — QSRs need daily oversight for consistent quality.
• Compliance readiness — licences (FSSAI), GST registration, municipal permits and local regulations.
• Willingness to follow brand SOPs (recipe, hygiene, layout, staff training).

MCH’s franchise kit will spell out any minimum financial or experience requirements; many beverage franchises accept first-time entrepreneurs if financials and location are solid.

Step-by-step: how to apply

1. Research & visit stores — try the product, note peak hours and staff behaviour. See nearby MCH outlets for real-world insight.
2. Contact MCH franchise team via the official franchise/contact page and request the Franchise Information Memorandum (FIM).
3. Share site details — proposed location, size, lease terms and basic financials.
4. Site evaluation & approval — brand will evaluate footfall, demography and catchment.
5. Sign agreement & pay fees — review territory, renewal and exit clauses carefully.
6. Setup & training — implement store layout, equipment, staff training and initial openings under brand guidance.
7. Launch & monitor — use brand launch support, track KPIs and optimise.

Practical tips & red flags

• Get the FIM & itemised costs — ensure what the franchise fee covers (training, raw materials, branding).
• Negotiate rental or fit-out support where possible; some franchisors offer launch marketing support.
• Ask for sample unit economics from an existing outlet in a comparable city.
• Check renewal & exit terms — know your rights if the outlet underperforms.
• Talk to current franchisees — nothing replaces peer feedback on supply chain and support.

Closing thought

Madras Coffee House can be a compelling franchise for entrepreneurs wanting a beverage-centric QSR with a compact footprint and established brand playbook. With one-time franchise fees in the lakhs and total investments that scale by format, the opportunity can fit both mid-budget kiosk investors and higher-budget café entrants — provided you secure the right location and run tight operations. Start by requesting the official franchise presentation/FIM and visiting a few stores — I can draft an email template to MCH’s franchise team or build a 12-month P&L model for a 150–250 sq. ft. outlet if you’d like.