Xero Degrees Franchise: Comprehensive Review, Cost, Profit & Margin
Xero Degrees Franchise is one of the fastest-growing fast-food joints in India. It is well known for its mouth-watering foods, such as Burgers, Pizzas, Pastas, Fries, Burgers, coolers, and much more, all related to snacking!
The brand has a wide presence of over 35 outlets across multiple locations in India.
The Xero Degrees Café Private Limited owns the two brands Xero Courtyard and Xero Degrees.
The journey of Xero Degrees Franchise started to serve mouth-watering fast food at its locations in 2018 to expand to several other cities with over 35 locations. By further planning up for a mesmerising future as well.
If you are passionate about casual fast food serving American cuisine franchises, this blog is for you!
Here, we will offer a snippet about the Xero Degrees which will excite you!
We will provide comprehensive yet well-researched information regarding Xero Degrees, along with investment costs, profit margins, and, most importantly, the reason why you must choose Xero degrees for your investment!
Overview of the Xero Degrees Franchise
Xero Degrees has carved itself as one of the most trendy and fast-casual dining brands. Started in the year 2018 by Kashish Aneja and Shivam Kakkar, the Xero Degrees Franchise is one of the most well-known and casual fast food café franchises in India especially known for its delicious Indianized American cuisine.
Moreover, the brand is famous for its creative take on food as well especially those which are jar-based shakes, insta postable dishes, and loaded fries.
The brand also caters to a young, vibrant audience. With multiple outlets in major cities, Xero Degrees has gained popularity for its fun, fusion-style menu that sets it apart from traditional dining experiences. The further plan of outlet expansion in India and abroad will benefit its franchisee unitholders.
Market Position and Popularity
Xero Degrees has definitely positioned itself as the go-to destination for Gen Z and the millennials as well as it not only offers the food, but a unique experience which blends with social media appeal, innovation and of course scrumptious food. Its growing footprint in the Indian market has made it a favourite in the fast-food franchise space.
Xero Degrees Menu and Offerings
As Xero degree is well known for its wide variety of items and Instagram-worthy food and drinks. It specialises in a blend of traditional comfort food which offers creative modern twists and makes it unique among food lovers which goes by:
Signature Dishes and Beverages
Xero Degrees is famous for its loaded fries, gourmet burgers, and indulgent shakes served in glass jars. These signature offerings make the brand a favourite among young customers looking for a unique dining experience.
Customer Appeal and Menu Flexibility
The fusion-style menu, filled with Instagrammable dishes, keeps customers coming back for more. The brand also regularly updates its menu to keep up with evolving food trends, ensuring long-term customer engagement.
Why Choose Xero Degrees Franchise?
Owning up this chain is a benefit, given to its potential for future expansion as well as on its strong brand recognition. The following are the main benefits you should read on owning this franchise:
Unique Selling Proposition (USP)
Xero Degrees stands out with its quirky presentation and fusion of flavours that are both affordable and appealing. The brand’s unique offering of serving food in jars and trays instantly grabs attention, making it a hit on social media platforms, where visual appeal drives consumer behaviour.
Brand Appeal and Target Audience
The primary audience for Xero Degrees consists of young, urban consumers who enjoy quick bites, fun dining experiences, and shareable, photogenic dishes.
Its brand appeal resonates strongly with foodies who seek more than just taste—people who look for a complete dining experience that includes presentation, ambience, and social media worthiness.
Growth Potential
With India’s evolving food culture and the booming fast-casual dining sector, Xero Degrees has positioned itself for rapid expansion. Its franchise model is designed for scalability, offering entrepreneurs a business with high growth potential in metropolitan and tier-2 cities alike.
Expertise In the Field: The chain is established and mentored by experienced and visionary founders, which adds considerable value to its brand. Additionally, it allows them to gather and understand the market needs and facilitates innovative changes.
Affordability & Varieties In Menu: It is one of the essential elements of the fast-food chain. The ability to offer a variety of menus at a reasonable price offers a competitive edge over its competitors.
Higher Profit margin: Xero Degrees chain offers high-profit margins to its franchisee unit holders at a low investment cost. It allows the unit holders to run this franchise seamlessly for a long.
Robust Future Growth Prospects: The chain has established itself as a prominent player in the segment, and with its robust future growth prospects and expansion plan, it will benefit its franchise prospects.
Also Read: How to Find Pizza Franchise Near Me to Start Business
Xero Degrees Franchise Cost and Investment
The franchise cost breakdown of Xero Degree is quite straightforward. However, we advise the franchise candidates to conduct thorough market research and industry analysis before making a final decision. Since this will give them a better understanding of the industry analyses, we have listed the cost involved in setting up a franchised outlet of Xero degrees below.
1. Initial Franchise Fee
To become a part of the Xero Degrees family, franchisees are required to pay an initial franchise fee, typically ranging between ₹8 to ₹10 lakhs. This fee grants you the license to use the brand’s name, recipes, and operational systems.
2. Setup and Infrastructure Costs
The setup cost for a Xero Degrees outlet includes the cost of interior design, kitchen equipment, branding, and other infrastructure requirements. On average, the total setup cost can range from ₹15 to ₹20 lakhs, depending on the size and location of the outlet.
3. Ongoing Royalty Fees
Franchisees are expected to pay a royalty fee of approximately 6-8% of their monthly revenue. This fee helps support the brand’s marketing efforts, national campaigns, and ongoing franchisee support systems.
Xero Degrees Franchise Profitability
One must understand that the profitability of a franchise is not solely assured as it depends on several variables such as the location of the outlet, surroundings of the community, other expenses as well as on the state of the market. However, one can still expect the below profit margins all subject to market conditions and basic understanding of Xero Degrees business operations.
1. Gross Profit Margins
In the fast-casual dining segment, gross profit margins typically range between 60-65%, and Xero Degrees is no exception. With its efficient cost structure and premium pricing strategy, franchisees can expect to achieve strong gross margins.
2. Net Profit Expectations
After deducting expenses like rent, salaries, and operational costs, Xero Degrees franchisees typically see a net profit margin of 20-25%. The location and customer footfall will directly influence the net profitability of the outlet.
3. Return on Investment (ROI)
Given the brand’s high gross and net profit margins, franchisees can expect a favorable return on investment within 18-24 months, depending on the outlet’s performance and location.
Documents Required for Xero Degrees Franchise
The interested prospects must present the following documents:
- Aadhar Card or PAN Card
- Bank Passbook
- Franchise Agreement
- GST certificate or registration certificate
- Passport-size photos of the candidate
- Address proof of site
- 360-degree view/video of the proposed location
- NOC or other requested document
Franchise Support Provided by Xero Degrees
Below are some of the key supports which is given by the brand:
1. Training and Onboarding Support
Xero Degrees offers comprehensive training programs for both franchise owners and staff. The training covers everything from food preparation to customer service, ensuring that your outlet meets the brand’s high standards.
2. Marketing and Promotional Assistance
Franchisees benefit from Xero Degrees’ robust marketing efforts, which include national advertising campaigns, digital marketing strategies, and social media promotions that help generate buzz and drive foot traffic.
3. Supply Chain and Inventory Management
Xero Degrees provides a well-established supply chain network, ensuring that franchisees receive quality ingredients and products promptly. They also offer guidance on inventory management to optimize operations.
4. Ongoing Operational Support
The brand offers continuous support to franchisees in areas such as operations, menu updates, and troubleshooting to ensure smooth daily functioning and long-term success.
Xero Degrees Franchise Location Selection
Choosing a location plays a vital role, below are some points you must take into consideration while planning for one.
1. Site Criteria and Ideal Location
Xero Degrees helps franchisees choose an ideal location based on market potential, foot traffic, and demographics. Busy urban centres, high-street areas, and malls are considered ideal locations for a Xero Degrees outlet.
2. Location Approval Process
Once a potential site is identified, the Xero Degrees team assists with the approval process. This ensures that the location meets the brand’s standards for visibility, accessibility, and market appeal.
How to Apply for Xero Degrees Franchise
Application Process Step-by-Step:
- Initial Inquiry: Reach out via the official website or email to express your interest in the franchise.
- Application Submission: Fill out and submit the official franchise application form.
- Franchise Interview: Attend an interview with the Xero Degrees team to discuss your business plans and goals.
- Location Approval: Once approved, the team assists with finalizing the location.
- Franchise Agreement: Sign the franchise agreement and pay the franchise fee.
- Training and Setup: Begin training and set up your outlet.
Xero Degrees Franchise Agreement Details
The franchise agreement outlines the rights, obligations, and operational guidelines for franchisees. It also details the financial commitments, including royalties and fees.
Timeline from Application to Store Opening
Typically, the entire process, from the initial inquiry to the grand opening, takes around 4-6 months, depending on factors such as location finalization and setup duration.
Official Contact Details for Xero Degrees Franchise
For more details on franchising with Xero Degrees
Franchise Inquiry Contact Information
For franchise inquiries, you can reach out via:
- Email: franchising@xerodegrees.com
- Phone: +91 87440 66752
Check out this: Monginis Franchise Model: How to Start Cake Shop with Profits
Challenges and Considerations Of Xero-Degrees Franchise
1. Initial Investment:
The upfront investment could be one of the challenges in a franchise as it involves franchise fees, equipment costs, and real estate expenses which have to be in balance investment with expected returns.
2. Fluctuating Demand
Sales may fluctuate due to factors like location, seasonality, and local competition, which can affect profitability. Franchisees need to have a plan for managing off-peak times and marketing effectively to attract a consistent customer flow.
3. Market Competition
Like any other franchise, Xero Degrees faces competition from other fast-food chains and local eateries. However, its unique concept and innovative menu give it a competitive edge.
4. Operational Challenges
Running a food outlet requires a hands-on approach, especially in the initial stages. Franchisees must ensure smooth daily operations, maintain quality standards, and manage staff effectively.
5. Profitability Risks
While Xero Degrees is a profitable franchise model, factors such as location, customer demand, and competition will influence profitability. Careful planning and marketing are essential for success.
Conclusion
Xero Degrees offers a fantastic opportunity for entrepreneurs looking to enter the food and beverage industry with a fast-growing, trendy brand. With strong profit potential, excellent brand support, and a loyal customer base, investing in a Xero Degrees franchise could be your path to entrepreneurial success.
Is It the Right Franchise for You?
If you’re passionate about food, excited by innovation, and ready to manage a vibrant dining experience, Xero Degrees could be the perfect franchise for you. With the right location and commitment, your investment in this franchise can lead to long-term success
Frequently Asked Questions on Xero Degrees Franchise
1. What is Xero Degrees?
Xero Degrees is a fast-casual dining brand known for its creative menu items such as jar-based shakes, loaded fries, gourmet burgers, and visually appealing dishes. It targets young consumers and offers a unique dining experience that combines quality food with Instagrammable presentation.
2. Why should I invest in a Xero Degrees franchise?
Xero Degrees offers a unique blend of food and experience that appeals to a wide customer base, particularly millennials and Gen Z. The brand’s strong presence on social media, quirky menu, and loyal customer following make it a lucrative business with high growth potential.
3. How much does a Xero Degrees franchise cost?
The initial franchise fee for Xero Degrees typically ranges from ₹8 to ₹10 lakhs. Additionally, the setup cost, which includes equipment, interiors, and branding, can vary between ₹15 to ₹20 lakhs depending on the size and location of the outlet.
4. What is the ongoing royalty fee for Xero Degrees franchisees?
Franchisees are required to pay a royalty fee of 6-8% of their monthly revenue. This fee contributes to national marketing efforts, brand management, and ongoing franchise support.
5. How profitable is a Xero Degrees franchise?
A Xero Degrees franchise typically yields gross profit margins of 60-65%. After accounting for operational expenses, the net profit margin is usually between 20-25%. Franchisees can expect a return on investment (ROI) within 18-24 months, depending on the location and performance of the outlet.
6. What kind of support do Xero Degrees provide to franchisees?
Xero Degrees offers extensive franchisee support, including training programs for both owners and staff, marketing and promotional assistance, supply chain management, and continuous operational support to ensure smooth functioning.
7. What are the required documents to apply for a Xero Degrees franchise?
To apply for a Xero Degrees franchise, you will need to submit personal identification (Aadhar Card, Passport, etc.), financial documents (bank statements, proof of funds), and any relevant business background or experience that enhances your application.
8. How can I apply for a Xero Degrees franchise?
You can apply by submitting an initial inquiry via their official website or email. The process involves filling out an application, attending a franchise interview, and going through the location approval and franchise agreement steps. The entire process, from application to store opening, typically takes 4-6 months.
9. What is the ideal location for a Xero Degrees outlet?
Ideal locations for a Xero Degrees outlet include busy urban centres, malls, and high-traffic areas. The franchise team assists with selecting and approving the location to ensure it meets brand standards for visibility and market potential.
10. What menu items do Xero Degrees offer?
Xero Degrees is known for its innovative menu, featuring loaded fries, gourmet burgers, jar-based shakes, and a variety of fusion dishes. Their visually striking presentations are designed to appeal to a young, social media-savvy audience.
