04 Sep, 2026

Cafe Franchise Options Under ₹2 Crore in India

With a budget of ₹2 crores, there are a variety of franchising concepts which can be adopted from proven food service franchises. However, investors need to look beyond just the investment figure. The concept, the size of the outlet, consumer demographics, etc. determine the suitability of a particular franchise in a specific market. The following are three franchise concepts that fall under the budget of ₹2 crores offered by Brands and Branches Services.

 Brand                 Format Investment           SpacePayback Period
Caha  Premium café & casual dining  ₹1.25 – 1.5 Cr  1,500 – 2,000 sq. ft.  2 – 2.5 years
Fairytales  Experience led café & lounge  ₹1.5 – 2 Cr  1,500 – 2,500 sq. ft.  2 – 2.5 years

Caha: Premium Cafe and Casual Dining

The capital investment for the franchise Caha comes in at around ₹1.25–1.5 crore, with a size requirement of 1,500–2,000 sq. ft. Caha is a premium café and casual dining concept, which offers food and dining along with coffee, beverages, desserts, etc. It has been developed to attract young professionals, families and social gatherings.

What makes Caha unique for investors who have a fixed budget is that the format of Caha is relatively smaller than others and gives more room within the limit of ₹2 crores for other investments in the project. The brand cites a 9-year agreement, 7% monthly royalty, and a projected 24–30-month ROI period.

Fairytales: Experience Led Cafe and Lounge

Fairytales needs an investment of ₹1.5-2 crore along with approximately 1,500-2,500 sq. ft. of area. The brand concept comprises premium café, lounge and lifestyle dining wherein the positioning of the brand is based on ambiance, aesthetics and the customer experience. The sources of revenue for this food franchise comes from food and dining, beverages, desserts, specialities, social events and private parties.

The brand mentions 9-year agreement and 7% monthly royalty fee along with a 2 to 2.5 year payback period. An investor who is willing to invest approximately ₹2 crores would find that Fairytales is a much more experience-driven format.

Which Under-₹2 Crore Option Fits Best?

All two of these brands show that having a budget of ₹2 crore does not imply only one kind of food business. Caha has the most affordable starting price, and it operates in a small café style dining system, whereas Fairytales operates in an aesthetic and experience-based format.

Ultimately, the decision depends on how much capital the investor has available, the format they want to adapt and the market.

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