Short answer: Mumbai, Bengaluru, Chennai, Pune and Hyderabad are five of India's six largest organised food services markets, according to the National Restaurant Association of India's India Food Services Report 2024. A bigger market brings more customers, but also more competition and higher rent. The right city for a food franchise is the one where you know the property market, can hire and supervise staff, and where the brand already has supply and support in place. After that, the micro market, meaning the exact street, mall or delivery zone, matters more than the city.
This guide is for investors comparing a food or QSR (quick service restaurant) franchise in these five cities. This article is general information, not legal advice.
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How the five cities compare
The India Food Services Report 2024 estimated the size of the organised food services market (chains and branded outlets) in India's top cities. For these five:
| City | Organised food services market (IFSR 2024) | Rank among top cities |
|---|---|---|
| Mumbai | about ₹55,181 crore | 1 |
| Bengaluru | about ₹26,475 crore | 3 |
| Chennai | about ₹15,596 crore | 4 |
| Pune | about ₹12,181 crore | 5 |
| Hyderabad | about ₹10,161 crore | 6 |
Delhi NCR was second, at about ₹42,002 crore. These are market sizes, not measures of how easy it is to run an outlet. A large market can also mean more outlets competing for the same customers and the same shop fronts. Use the figures to understand scale, then do the local checks below.
Food franchise in Mumbai
Mumbai is the largest organised food services market in the report's list, and the report counts about 1,41,456 restaurants across the organised and unorganised segments. On delivery, Swiggy said Mumbai placed close to 5 million burger orders in the year to May 2024, second only to Bengaluru.
What to check: rent and deposits are among the highest in India, so a compact or delivery led format may suit better than a large dine in outlet. Commute patterns matter: footfall near stations and offices can drop sharply on weekends, while residential suburbs may do the opposite.
Food franchise in Bangalore
Bengaluru is the third largest organised market, and it led Swiggy's burger orders in the year to May 2024 with more than 6 million. It is also home base for several food brands, including the Beamer Brands group behind Biggies Burger, OBC and Smsh'd.
What to check: many brands already have outlets here, so ask the brand exactly how close another outlet can open to yours. Tech park areas can be busy on weekdays and quiet on weekends, while residential areas may be the reverse. Traffic also shapes delivery radius, so a location that looks close on a map may be far in delivery time.
Food franchise in Chennai
Chennai is the fourth largest organised market in the report's list. Tamil Nadu is also a key growth region for some burger brands: Biggies Burger's founder told The Hindu BusinessLine in October 2024 that the brand had expanded to smaller Tamil Nadu cities such as Salem, Coimbatore and Hosur.
What to check: local taste preferences, the vegetarian share of the menu, and how the brand's supply reaches Chennai and the cities around it. Ask whether the brand already has a warehouse or supply partner in the state, or whether stock travels from another region.
Food franchise in Pune
Pune is the fifth largest organised market. Large student and young working populations make it a natural city for quick service formats.
What to check: demand near colleges can be seasonal around holidays and exams, and rents in the most popular areas have risen. Ask existing franchisees how sales hold up in slow months, and how much of their business comes from delivery.
Food franchise in Hyderabad
Hyderabad is the sixth largest organised market, with about 74,807 restaurants, of which 41,144 are in the organised segment, according to the report as covered by The Times of India. The same coverage said Hyderabad residents eat out about 3 times a month against a national average of 3.7, but spend more per person, about ₹990 against ₹970.
What to check: with slightly fewer visits but higher spend, menu pricing and average order value matter. Hyderabad is a current focus city for OBC master franchise enquiries, but master territories are exclusive, so ask about availability first.
Seven checks that decide whether a location works
- Catchment. Who lives, works or studies within a short walk or delivery radius, and at what times of day.
- Rent as a share of sales. Ask existing franchisees what share of monthly sales goes to rent in similar locations.
- Delivery reach. Whether the location sits well for delivery platforms in your area.
- Staff. Whether you can hire and keep kitchen and counter staff nearby.
- Brand supply. How often the brand delivers to your city, and what it costs.
- Territory protection. How close the brand can open another outlet, including outlets of its other brands.
- Format fit. Whether a kiosk, compact, food court or dine in format suits the site. See our guide to franchise formats.
Then test the numbers with our post on unit economics before ambition. If the outlet only works on the most hopeful sales forecast, it does not work.
Questions to ask the brand about your city
Before you shortlist a city, put these questions to the brand and compare the answers with what existing franchisees tell you:
- How many outlets do you have in this city today, and how many opened or closed in the last two years?
- Which areas are already taken or promised to another franchisee?
- Who supplies my outlet, how often, and is there a local warehouse?
- What support do you give in this city for site selection, launch marketing and staff training?
- Can I speak to two or three franchisees here, including one whose outlet is not doing well?
The territory clause in the franchise agreement should match what the brand tells you. Ask a qualified lawyer to review it before you sign. The Franchise Insiider is not a law firm. Our step by step guide to buying a franchise covers the full process, and a Green Flag Assessment (₹50,000, charged only if you sign) reviews a brand and location before you commit.
Your city, not just a big city
You do not have to choose a metro. The report's list of top cities also includes Ahmedabad, Kolkata, Chandigarh, Jaipur and Bhubaneswar, and many brands grow in tier 2 cities. Biggies Burger's founder said in October 2024 that about 60% of its stores were in tier 2 and tier 3 cities. Being local, with family or business ties and knowledge of property, is often worth more than being in the biggest market.
Burger franchise options by city
- Unit franchise: Smsh'd by Biggies Burger offers single outlet franchises, and our current Smsh'd enquiries focus on Mumbai, Pune, Bangalore, Chennai and Hyderabad. Investment details are shared on enquiry. Tell us your city and we will check availability with the brand.
- Master franchise: the OBC master franchise starts from ₹1.5 Cr and covers a territory. Our master vs unit guide explains the difference.
Read our burger franchise guide for market and cost basics and our Beamer Brands explainer for the group behind both brands. The Franchise Insiider takes franchise enquiries for all Beamer Brands, including Biggies Burger, OBC and Smsh'd. Yes, The Franchise Insiider charges brands, and brands pay us. That is how franchising works everywhere.
Talk to The Franchise Insiider
Tell us your city, budget and experience on our enquiry form, and The Franchise Insiider team will check which options are open in your city before you meet a brand. With 300+ franchises awarded, we check fit before anyone signs.
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Market figures are from the National Restaurant Association of India's India Food Services Report 2024 and the sources named in the text. Territory availability and investment figures are subject to each brand's confirmation.
FAQs
Which city is best for a food franchise in India?
There is no single answer. NRAI ranks Mumbai, Delhi NCR, Bengaluru, Chennai, Pune and Hyderabad as the six largest organised food services markets, but bigger markets also bring higher rent and more competition. The right city is one where you know the property market, can manage staff and the brand has supply and support.
How big is the food services market in Bangalore?
NRAI's India Food Services Report 2024 estimated Bengaluru's organised food services market at about ₹26,475 crore, the third largest among India's top cities after Mumbai and Delhi NCR.
Is Hyderabad a good city for a food franchise?
Hyderabad is the sixth largest organised food services market in NRAI's 2024 report, with about 41,144 organised restaurants. Residents eat out slightly less often than the national average but spend more per visit. Location, rent and the brand's support decide whether a specific outlet works.
Should I open a food franchise in my own city or a bigger metro?
Usually your own city, if the brand has demand and supply there. Local knowledge of property, staff and customers matters more than market size, and many brands grow strongly in tier 2 and tier 3 cities.
Which burger franchises can I enquire about in these cities?
The Franchise Insiider runs franchise enquiries for Smsh'd by Biggies Burger (single outlet) and the OBC master franchise. The OBC master franchise starts from ₹1.5 Cr. Availability depends on the city, so tell us yours on the enquiry form.
What should I ask a brand before choosing a city for my food franchise?
Ask how many outlets it has in the city and how many closed recently, which areas are already taken, how supply reaches your outlet, what local launch and training support it gives, and whether you can speak to existing franchisees there. Check that the territory clause in the agreement matches what you are told.