Why Third Wave Coffee Franchise Is The Best Cafe Franchise In India In 2025?

India’s coffee culture has evolved tremendously over the past few decades. The late 20th century witnessed a paradigm shift in urban lifestyles following economic liberalization and LPG reforms. The emergence of a growing urban middle class, increased disposable incomes, and exposure to global cultures reinvigorated interest in cafe culture, turning what was once considered niche into a booming sector.

Among many players revolutionizing this space, Third Wave Coffee has emerged as a leading name. This brand has skillfully blended international coffee expertise with local tastes and sensibilities, creating an inviting, innovative cafe experience that resonates deeply with India’s diverse urban population.

Today, Third Wave Coffee cafes are not just places to grab a quick cup — they are community hubs for working professionals, students, and coffee aficionados alike. Whether it’s for a casual business meeting, a study session, or simply relaxing with friends, these cafes offer more than coffee — they offer experiences.

For entrepreneurs looking to enter the flourishing cafe franchise market, the Third Wave Coffee franchise model presents a compelling opportunity to tap into India’s fast-growing coffee scene with a trusted brand and proven business model.

Understanding Third Wave Coffee: A Brand Overview

Origins and Founders

Founded in 2017 by Ayush Bathwal, Anirudh Sharma, and Sushant Goel, Third Wave Coffee Roasters began with a clear vision — to redefine coffee culture in India. The founders sought to provide freshly roasted, ethically sourced, and artisanally brewed coffee that emphasizes quality and transparency.

As one of the frontrunners in India’s third-wave coffee movement, the brand focuses on creating a premium coffee experience that educates consumers and celebrates the nuances of coffee as an art and science.

The Third Wave Philosophy

The “third wave” concept in coffee refers to a movement that treats coffee as an artisanal product rather than a commodity. It emphasizes:

Single-origin beans with traceable origins.
Ethical and sustainable sourcing directly from farmers.
In-house roasting with precise profiles for distinct flavor notes.
Varied brewing techniques such as pour-over, Chemex, AeroPress, and French Press.
Customer education through tastings and cuppings.

Third Wave Coffee embraces these principles fully, providing customers with a transparent, quality-first coffee experience. The brand sources 100% Arabica beans from ethically certified farms and uses state-of-the-art roasting to highlight the beans’ unique characteristics.

Product Range and Offerings

Third Wave Coffee’s menu goes beyond espresso-based drinks to offer:

Pour-over and filter coffees brewed fresh.
Single-origin and blended coffee beans for retail.
Cold brew and nitro coffee options.
Specialty teas and curated food items.
Coffee subscription and membership plans for regular home deliveries.

The brand also organizes coffee workshops and tastings, fostering an engaged and educated community of coffee lovers.

Why Third Wave Coffee Franchise Stands Out in India’s Cafe Market

India’s cafe franchise market is growing rapidly, with many players entering the space. Here’s why Third Wave Coffee is among the best franchise opportunities in 2024:

1. Authentic Third Wave Coffee Experience

Unlike typical cafes that focus mostly on quick service, Third Wave Coffee delivers an authentic, artisanal coffee experience. Their focus on brewing technique, bean quality, and customer education distinguishes them in a competitive market.

2. Ethical Sourcing & Sustainability

The franchise prides itself on direct relationships with coffee farmers, ensuring transparency, fair prices, and sustainable farming practices. This commitment appeals to socially conscious consumers increasingly demanding ethical products.

3. Robust Franchise Model with Proven Profitability

Third Wave Coffee’s franchise model balances affordability with profitability. With moderate setup costs, flexible space requirements, and reasonable royalty fees, franchisees enjoy a lucrative business opportunity backed by a strong brand.

4. Diverse and Innovative Menu

From single-origin brews to seasonal blends, the menu caters to the discerning tastes of modern coffee consumers who value variety and experimentation.

5. Community-Oriented Spaces

Their cafes are designed to be welcoming social hubs that promote community building, hosting events, workshops, and tastings — boosting footfall and brand loyalty.

6. Tech-Enabled Consistency

By leveraging technology in roasting, supply chain management, and customer engagement, Third Wave Coffee ensures consistent product quality and an exceptional customer experience across franchises.

The Indian Cafe Franchise Market: Growth and Trends

Rapid Market Expansion

India’s coffee cafe market is estimated to grow at a CAGR of over 13% between 2023 and 2029. Rising urbanization, digital penetration, and evolving lifestyles are fueling this boom.

The Indian foodservice market is projected to reach USD 125 billion by 2029, with cafe franchises making up a significant chunk.
In 2023, the cafe franchise market capitalization in India was approximately INR 40 billion.
The retail coffee chains segment alone was valued at USD 128 million in 2016 and continues to surge.

Changing Consumer Preferences

Indian consumers increasingly seek:

Premium, artisanal coffee experiences over generic brands.
Ethically sourced and sustainable products.
Cafes as lifestyle destinations for work, socialization, and leisure.
Convenient ordering options including subscriptions and delivery.

Third Wave Coffee is well positioned to capitalize on all these trends.

Third Wave Coffee Franchise Model: How It Works

Investment and Setup

Franchise fee: INR 6 lakhs (inclusive of taxes)
Royalty fee: 5% of gross revenue
Initial investment: INR 25-50 lakhs, depending on location and size
Minimum space required: 500 to 1000 sq. ft.

This flexible model allows entrepreneurs to start small and scale as the business grows. The brand supports franchisees throughout the process — from site selection to staff training.

Revenue Streams

Besides in-store sales, franchisees benefit from:

Coffee bean subscription plans for regular shipments to customers.
Membership programs offering exclusive blends and discounts.
Merchandise sales like branded mugs, equipment, and apparel.

These diversified revenue streams provide stability and customer loyalty.

Support and Training

Third Wave Coffee offers comprehensive training covering:

Barista skills and brewing techniques.
Customer service standards.
Billing, inventory, and operations management.
Marketing and local promotional strategies.

Continuous support ensures franchisees maintain high standards and grow their business efficiently.

Step-by-Step Guide to Setting Up Your Third Wave Coffee Franchise

1. Conduct Thorough Market Research

Analyze:

Local demographics and footfall.
Existing coffee competitors.
Real estate costs.
Consumer behavior and preferences.

Develop a detailed business plan aligned with Third Wave Coffee’s franchise model.

2. Submit Franchise Application

Visit the official Third Wave Coffee website or approach their franchise team. Franchise consultants can also assist in the application process.

3. Secure Investment and Location

Arrange funding based on estimated initial costs. Choose a strategic location, preferably in bustling commercial or high-traffic urban areas, with adequate space and visibility.

4. Complete Training Program

Attend the brand’s training to learn operational protocols and product details.

5. Design and Renovate Space

Customize the outlet per brand guidelines to reflect Third Wave Coffee’s aesthetic and ambiance.

6. Procure Equipment and Inventory

Purchase approved coffee machines, grinders, brewing tools, furniture, and raw materials.

7. Hire and Train Staff

Recruit local talent and train them on barista skills, customer handling, and POS systems.

8. Develop Marketing Plan

Coordinate with corporate marketing for launch promotions and plan local advertising campaigns.

9. Host Grand Opening

Organize an event to build buzz and attract customers, highlighting your cafe’s unique offerings.

10. Monitor, Adapt, and Grow

Track sales, customer feedback, and operations to optimize performance and profitability continuously.

Benefits of Owning a Third Wave Coffee Franchise

High Profit Margins with Moderate Investment

With a strong brand presence and efficient supply chain, franchisees can achieve gross profit margins between 15-20%, making this an attractive business proposition.

Access to Quality Raw Materials

Direct sourcing from farmers ensures:

Fresh, high-quality coffee beans.
Competitive pricing.
Support for sustainable agriculture.

Strong Brand Equity and Customer Trust

Third Wave Coffee’s reputation for quality and ethics attracts loyal customers and differentiates franchisees from local competitors.

Marketing and Community Building

The brand’s community events, educational workshops, and membership programs foster repeat visits and organic growth.

Scalable Business Model

Flexible outlet sizes and multiple revenue streams allow gradual expansion and adaptation based on local market needs.

Challenges to Consider

While Third Wave Coffee franchise presents many advantages, potential franchisees should also consider:

Initial capital requirements, which though moderate, may be higher compared to smaller cafe models.
Competition from international chains and local cafes.
Location dependency, as footfall heavily influences revenue.
Operational complexity, requiring training and adherence to brand standards.

With thorough research and strong management, these challenges can be successfully navigated.

Future Outlook: Why 2025 Is The Right Time To Invest

The Indian coffee market is on an upswing, driven by:

Increasing urbanization and office culture.
Rising coffee consumption among youth and millennials.
Growth in online ordering, subscriptions, and home delivery.
Expansion of lifestyle and experiential cafes.

Third Wave Coffee’s franchise model aligns perfectly with these dynamics, making 2024 an ideal year to invest and ride this growth wave.

Popular Franchise Alternatives:

Besides coffee cafes, Hot Dog Harbour and Sugoi Ramen are two exciting and fast-growing food franchise options to consider in India’s vibrant F&B space.

Hot Dog Harbour Franchise

Hot Dog Harbour is India’s largest hot dog chain known for its crispy, flavorful fusion-style hot dogs that appeal to both young and urban consumers. With multiple outlets in Mumbai and Pune, the brand offers franchisees a proven model focused on:

Low initial investment and fast returns.
A unique menu that blends international flavors with Indian tastes.
Strong brand recognition and active digital marketing support.
Flexible outlet formats including cloud kitchens and quick service restaurants.

Owning a Hot Dog Harbour franchise means tapping into the growing demand for fast, flavorful, and affordable snacks with a loyal customer base.

Sugoi Ramen Franchise

Sugoi Ramen is India’s first authentic Japanese ramen brand, serving over 63,000+ customers across Mumbai, Pune, and Hyderabad. The brand specializes in traditional Japanese ramen with a local twist, featuring:

A diverse menu including vegan, vegetarian, and seafood ramen options.
A cloud kitchen-driven model optimized for delivery and takeout.
Moderate investment with comprehensive franchisee training.
Strong consumer interest in niche Asian cuisines fueling growth potential.

Conclusion: Your Gateway To A Thriving Cafe Franchise Business

The Indian cafe franchise market is evolving rapidly, with increasing demand for quality coffee experiences rooted in authenticity and community. Third Wave Coffee stands out as a brand that combines artisanal coffee expertise with sustainable practices and a customer-centric approach.

For entrepreneurs and investors, owning a Third Wave Coffee franchise means joining a fast-growing, innovative brand with a proven business model, strong support, and expanding market presence.

If you are passionate about coffee and looking for a scalable, profitable franchise opportunity, Third Wave Coffee presents one of the best options in India for 2024 and beyond.

Frequently Asked Questions (FAQs)

Q1. What is the typical profit margin for a Third Wave Coffee franchise in India?

Profit margins vary by location and operational efficiency, but gross profit margins generally range between 15-20%, making it a lucrative venture.

Q2. What is the minimum investment required?

The initial setup costs range from INR 25 lakhs to INR 50 lakhs, depending on outlet size, location, and fit-out requirements.

Q3. How long does it take to recover the investment?

The payback period averages between 2 to 5 years, influenced by location, customer footfall, and management.

Q4. Are there any special licenses required?

Franchisees must comply with local food safety, health, and labor regulations. Typical licenses include FSSAI registration, GST registration, and municipal health permits.

Q5. Can I operate a Third Wave Coffee franchise in a mall or standalone outlet?

Yes, the brand supports flexible formats including standalone stores, kiosks, and mall-based outlets, as long as minimum space and operational standards are met.