Karim’s is a legendary restaurant brand started near Jama Masjid in Old Delhi known for its authentic Mughlai cuisine such as kebabs, biryani, curries, and grilled specials. Over a century later, the brand has become synonymous with quality Indian non-veg food and has expanded into a franchise model that lets investors open outlets across India under its prestigious name.
Franchising with Karim’s allows you to operate a dine-in restaurant or takeaway model backed by heritage, recipes, and franchisor support — ideal for food entrepreneurs wanting to tap into India’s growing casual dining market.
Investment Cost (INR)
The total investment in a Karim’s franchise varies by format, location, space size, and interior fit-out.
Estimated Investment Range
| Franchise Type | Approx. Investment (₹) | Space Required |
| Takeaway / QSR | ₹23 – ₹33 lakh | ~600 sq.ft |
| Casual Dining | ₹30 – ₹49 lakh | ~1,000 sq.ft |
| Full Restaurant | ₹50 – ₹100 lakh | ~1,200 – 2,500 sq.ft |
| Franchise Fee | ₹5 – ₹12 lakh one-time | — |
👉 Total investment frequently falls between ₹23 lakh and ₹1 crore+ based on outlet format and city.
These figures include fit-out costs, kitchen equipment, initial inventory, furniture, and brand setup fees, though rent/security deposit is typically separate and varies by city.
Franchise Fee & Royalty
Franchise (Brand) Fee
- One-time brand/franchise fee typically ranges from ₹5 lakh up to ₹12 lakh depending on the format and space.
Royalty Fees
- Royalty: Most models charge ~7 % – 8 % of gross sales as ongoing royalty.
Royalty fees are usually payable monthly and cover ongoing brand support, marketing, and operational systems. Always verify royalty terms — percentage and structure — directly in the franchise agreement.
Profit Margin & ROI
Profitability in the restaurant business is influenced by location, pricing, cost control, and customer demand.
Profit & ROI Estimates
| Metric | Typical Range/Estimate |
| Monthly Revenue (Estimate) | ₹3.5 – ₹10 lakh+ * |
| Net Profit Margin | ~15 % – 30 % * |
| Break-Even / ROI | 12 – 24 months * |
*These are rough averages, not guarantees. Actual sales and profit depend heavily on footfall, city tier, marketing, and operating efficiency. Premium sites and strong local demand can improve returns — but costs like rent and salaries will also affect net profit.
Karim’s heritage and loyal customer base often help outlets maintain steady sales, especially in busy commercial or tourist areas.
Space & Manpower Needs
Space Requirements
Karim’s franchise models require varying spaces:
- Takeaway / Express Model: ~600 sq.ft
- Casual Dining Restaurant: ~1,000 sq.ft
- Large Full Service: ~1,200–2,500+ sq.ft
Higher footfall locations like malls, busy markets, food courts, or commercial hubs usually generate better daily revenue.
Staffing Needs
Typical staffing for a Karim’s outlet includes:
- Manager / Supervisor
- Kitchen Chefs (specialised in Mughlai dishes)
- Cooks & Assistants
- Service Staff / Waiters
- Cleaners / Helpers
Depending on size, 7–15 staff members may be needed to manage daily operations efficiently.
Franchisor Support
Karim’s offers support to help franchisees launch and run the business:
✔ Site Selection Support: Help with evaluating suitable locations.
✔ Operational Training: Staff training on recipes, service, and kitchen practices.
✔ Menu Standardisation: Access to signature recipes and ingredients.
✔ Marketing & Launch Support: Guidance on local promotions and branding.
✔ Supply Chain Assistance: Help with vendor network and quality control.
✔ Ongoing Advisory: SOPs, quality checks, and operational manuals.
This support is valuable for new restaurateurs entering the casual dining and quick service food market.
Pros & Cons
Pros
✔ Strong Brand Legacy: Over 100 years of heritage and recognition.
✔ High Demand Cuisine: Mughlai food remains popular with locals and tourists.
✔ Multiple Format Options: Suitable for small to large investments.
✔ Structured Support: Training, marketing, and operations support available.
✔ Potential ROI Within 24 Months: With good location and cost control.
Cons
❌ High Initial Investment: Significant capital needed for a proper outlet.
❌ Royalty Fees: Ongoing percentage on sales affects net profit.
❌ Competition: Falling in casual dining and food court segments.
❌ Operational Complexity: Requires strong kitchen management and service quality.
❌ Location Risk: Poor footfall can slow growth and profits.
Application Process
Here’s a step-by-step process to apply for a Karim’s franchise:
- Research & Contact: Visit the official Karim’s franchise contact page or call their franchise team.
- Submit Franchise Request: Provide details like your business background, investment plans, and proposed location.
- Preliminary Evaluation: The franchisor reviews your application and assesses your suitability.
- Site Assessment: The brand evaluates your chosen location for customer footfall and visibility.
- Franchise Agreement: Review and sign the agreement after confirming all terms and fees.
- Franchise Fee Payment: Pay the agreed franchise/brand fee.
- Training & Setup: Complete staff training and outlet setup with brand support.
- Launch: Start operations with marketing support for your grand opening.
Risks to Consider
⚠ Location Risk: A poorly chosen site can limit customer traffic.
⚠ Operational Costs: Rent, salaries, and utilities can lower net profits.
⚠ Competition: Other restaurants and local food joints compete aggressively.
⚠ Service Quality: Inconsistent food or service can harm reputation.
⚠ Seasonal Demand: Demand may fluctuate with holidays and seasons.
Do thorough local market research and realistic financial planning before signing a franchise agreement.
FAQs (Frequently Asked Questions)
Q1. What is Karim’s franchise cost in India?
A: Typically around ₹23 – ₹100+ lakh depending on the outlet size and format.
Q2. How much is the franchise fee?
A: One-time franchise fee usually ranges ₹5 – ₹12 lakh.
Q3. What is the royalty fee?
A: About 7 % – 8 % of gross sales as ongoing royalty in many models.
Q4. When can I expect to break even?
A: Franchisees aim to break even in 12 – 24 months with good management and location.
Q5. Do I need experience to run the franchise?
A: No strict prior experience is required; the franchisor provides training and support.
Conclusion
Investing in a Karim’s franchise connects you with a century-old culinary legacy and a brand known across India for authentic Mughlai cuisine. With a total investment typically between ₹23 lakh and ₹1 crore+, structured support systems, and multiple outlet formats, it’s a viable option for entrepreneurs in the food & beverage industry.
However, success depends on choosing high-footfall locations, managing operational costs, maintaining food quality and service standards, and realistic financial planning. Avoid unrealistic profit expectations — focus instead on sustainable growth, customer experience, and disciplined operations.