Cost of Opening a Café in India: Complete Guide 

Cafés have become a huge part of urban life in India. They’re no longer just about grabbing a quick coffee. Today, cafés double as workspaces, social hangouts, date spots, and creative corners. Because of this growing culture, the India Cafes & Bars market is expected to reach USD 30.11 billion by 2030, rising from USD 18.83 billion in 2026 at a 9.84% CAGR.

The opportunity is big, but so is the financial commitment. Many new café owners underestimate the cost structure. Expenses like interiors, equipment, barista training, and rental deposits can quickly exhaust your funds if you don’t plan well.

To help you avoid surprises, here is a clear, easy breakdown of how much investment you need to open a café in India and what factors influence costs.

Why Are Cafés Growing So Quickly in India?

1. Rising Coffee Culture

Young professionals and millennials prefer premium coffee, creative beverages, and comfortable spaces. Specialty drinks and curated menus have boosted demand for independent cafés as well as big chains.

2. Growth of Tier-2 and Tier-3 Markets

Smaller cities now have higher disposable incomes and are adopting modern dining habits. These areas offer great opportunities with lower rentals and increasing demand.

3. Cafés as Lifestyle Spaces

Many customers use cafés for meetings, studying, remote work, or casual dining. This keeps footfall high and encourages repeat business.

4. Digital Ordering and Delivery

Delivery apps, social media visibility, and online branding help cafés reach a larger audience without heavy investment in multiple locations.

5. Lower Entry Barriers

Compared to full-service restaurants, cafés need smaller spaces, simpler menu planning, and moderate staffing. This makes them popular among first-time entrepreneurs.

Popular Types of Cafés in India

A. Specialty Coffee Shops

Focus on premium coffee beans, brewing styles, and skilled baristas. Ambience is clean, simple, and quality-focused.

B. Café Bakeries

Combine coffee with cakes, bread, and pastries. Works well for customers looking for light meals along with beverages.

C. Grab-and-Go Cafés

Compact, fast-moving outlets for busy professionals. Minimal seating and a quick-service model.

D. Co-working Cafés

Blend workspace facilities with café service. Offer Wi-Fi, power points, and comfortable seating. Earn through food sales plus workspace charges.

Cost of Opening a Café in India

On average, opening a café in India costs ₹15 lakhs to ₹50 lakhs, depending on the space, location, concept, interior style, and equipment needs.

Below is a detailed breakdown of café startup and operational costs.

1. Location and Space Costs

Location affects footfall, brand image, and overall monthly expenses.

1.1 Rent and Deposits

• Metro cities: ₹1.5–2 lakhs per month
  
  

• Security deposit: 3–6 months (₹4.5–6 lakhs for 3 months)
  
  

• Tier 2/3 cities: ₹50,000–₹1 lakh monthly rent
  
  

• Security deposit: 2–3 months of rent
  

1.2 Renovation

Renovation ensures smooth movement, safe kitchen operations, and customer comfort.

• Basic renovation: ₹5–15 lakhs
  
  

• Premium makeover: ₹20 lakhs or more
  

1.3 Interiors and Ambience

Good interiors create a memorable café experience and improve customer stay time.

• Standard cafés: ₹5–15 lakhs
  
  

• Theme-based or premium cafés: ₹20–40+ lakhs
  

2. Equipment Costs

Equipment determines how efficiently your café runs. This is a major upfront investment.

Typical budget: ₹2–5 lakhs

Common equipment includes:

• Espresso machine
  
  

• Coffee grinder
  
  

• Refrigerators
  
  

• Ovens and microwaves
  
  

• Blenders, toasters, induction, etc.
  
  

• Tableware and serving items
  

3. Licenses and Permits

Legal compliance is essential. Costs vary by city.

3.1 FSSAI License

• Around ₹7,500
  

3.2 GST Registration

• No government fee
  
  

• Accounting support: ₹10,000–15,000 yearly
  

3.3 Trade License

• ₹5,000–₹50,000 (depends on municipality)
  

3.4 Fire NOC

• ₹5,000–20,000, depending on the seating capacity
  

3.5 Shop & Establishment

• Up to ₹4,000 per year
  

3.6 Music License (IPRS/PPL)

• ₹5,000–10,000 yearly
  

4. Inventory Costs

Startup inventory includes coffee, milk, snacks, syrups, packaging, and cleaning supplies.

Estimated cost: ₹50,000–₹1.5 lakhs for the first month

Regular restocking depends on sales and menu size.

5. Technology Costs

Even small cafés use tech for billing, orders, and sales tracking.

• POS hardware: ₹25,000–65,000
  
  

• Installation: ₹2,000–8,000
  
  

• POS software subscription: ₹1,000–5,000/month
  
  

Tech helps reduce errors and improves operational control.

6. Branding and Marketing Costs

6.1 Visual Identity

Logo, menu boards, signage.
Cost: ₹50,000–₹2 lakhs

6.2 Pre-Launch Marketing

Social media teasers, influencers, local promotions.
Cost: ₹25,000–₹1 lakh

6.3 Ongoing Promotions

Loyalty programs, seasonal offers, ads.
Cost: ₹10,000–₹50,000 per month

7. Operational Expenses

7.1 Staff Salaries

• Baristas: ₹12,000–25,000/month
  
  

• Supervisors/Chefs: ₹35,000–50,000/month
  
  

• Annual training costs also apply
  

7.2 Utilities & Maintenance

• Electricity, water, AC, equipment service
  
  

• ₹25,000–70,000 monthly
  

7.3 Delivery Aggregator Commission

Delivery platforms charge 15–25% per order.

Conclusion

Opening a café in India requires thoughtful planning and clear budgeting. From choosing the right location to investing in good equipment and interiors, each decision affects your profitability.

With the right concept, efficient operations, and consistent marketing, your café can attract regular customers and scale smoothly. A well-planned investment ensures you stay cash-positive, avoid common mistakes, and build a café brand that lasts.

FAQs

How much money is needed to open a cafe in India?
Opening a cafe in India usually needs 5–15 lakhs depending on size, location, kitchen setup, licenses, branding, and equipment costs.

Is cafe business profitable in India?
Yes, a cafe can be profitable with good footfall, strong menu planning, smart pricing, efficient staff, and proper location selection.

Can I start a coffee shop with 50k?
Starting with 50k is tough, but possible for a small home-based setup, kiosk-style model, or basic takeaway concept.

How to open a cafe with a low budget in India?
Choose a small space, simple menu, used equipment, minimal interiors, and strong marketing to reduce setup cost while staying profitable.

Cost of opening a café in India?
Total cafe setup cost ranges from 5–15 lakhs depending on concept, space, equipment, licensing, interiors, and operating expenses.

Cost of opening a cafe in Mumbai?
A cafe in Mumbai usually costs 8–20 lakhs due to higher rent, premium locations, licensing, staff salaries, and quality equipment.

Cost of opening a cafe in Kolkata?
Cafe setup in Kolkata typically costs 4–10 lakhs depending on area, interiors, menu type, and overall kitchen and equipment needs.

Cost of opening a café in Delhi?
Opening a cafe in Delhi usually requires 6–15 lakhs based on location, rent, concept, interiors, licensing, and kitchen setup.