Wow Momo Franchise Cost ( Investment, Profit)

 

If you are a foodie with entrepreneurial spirit, investing in a Wow! Momo franchise could be your dream come true. As India’s fastest-growing quick-service restaurant (QSR) chain, Wow! Momo has redefined the humble dumpling with a range of flavors, from traditional steamed momos to creative chocolate momos. Before you make the leap, however, it’s important to know about the Wow! Momo franchise cost, investment level, and profit margin.

In this blog, we’re going to analyze all that you need to consider to make the decision whether or not this fast-growing momo brand is suited for your entrepreneurial venture.

About Wow Momo

Wow! Momo, set up in 2008 by Sagar Daryani and Binod Homagai in Kolkata, has witnessed phenomenal growth over the years. From a small beginning, stretching from a humble momos stand to over 680 Wow! Momo outlets across 25 cities in India, the company expects to end the ongoing fiscal year with a revenue of ₹625 crore. This phenomenal growth trajectory places the company at the forefront of the Indian quick-service restaurant (QSR) space. 

In 2024, the company was valued at ₹2,500 crores ($299.33 million), substantiating its market stronghold. citeturn0news19 Wow! Momo plans to go public in 2 years and aims to increase its revenue to ₹1,000 crore within 30 months to further consolidate its footprint in the competitive QSR field.

The firm has ambitious goals, hoping to double its revenue to ₹1,000-1,200 crore and earn an EBITDA of ₹50-80 crore by 2027. Its two-year-old FMCG business has already contributed ₹60 crore to overall revenue. With its speedy growth, solid customer base, and emphasis on quality, Wow! Momo continues to rule the Indian fast-food sector with its one-of-a-kind and flavorful experience.

The brand’s menu features momos in more than a dozen varieties, including steamed, fried, and pan-fried ones. Fillings include chicken, vegetables, and even more experimental combinations such as cheese and corn. The company’s innovative attempts in cuisine include varieties like ‘Moburg’, which combine a burger with a momo. 

Wow! Besides momos, the company has launched sizzlers, thukpa, and chocolate momos to suit all tastes. On the expansion front, the company has opted for multiple formats such as dine-in, takeaway, and cloud kitchens, adapting very well to changing consumer behavior and market dynamics. This focus on quality and service, combined with gentle innovations, allowed Wow! Momo carves out a unique niche in the Indian fast-food scene, based on the traditional and modern.

Unique Selling Proposition of Wow! Momo

• Innovative Product Line: Wow! Momo offers a wide range of menu items, as well as the truly distinctive ‘Moburg’ and chocolate momos. This innovation attracts these customers in spacious numbers who are out exploring new avenues of culinary experiences. 
• Strategic Expansion: The brand has quite literally positioned itself in places where there’s the maximum population in malls, tech parks, and airports, hence giving good visibility and accessibility to its customers, thus significantly contributing to its revenues.
• Multiple Formats: The multi-format operations of dine-in, takeaway, and cloud kitchens allow Wow! Momo to address all types of customer preferences to optimize its reach and profitability.
• Strong Brand Identity: Building customer trust and loyalty through consistent branding and quality control has resulted in repeat business and further sustained revenue streams.
• Supply Chain Efficiency: The efficient supply chain gives fresh ingredients and timely service, thus further enhancing customer satisfaction while keeping operational efficiency at its best.
• Aggressive Marketing Strategies: Cunning marketing activities and collaborations have increased brand visibility, thereby pulling the footfalls and sales in all the outlets.

Wow Momo’s Business Model

Wow! Momo has a multi-channel business model consisting of quick-service restaurants (QSRs), cloud kitchens, and a growing presence in the FMCG space. This is how its business model functions:

Quick-Service Restaurants (QSRs)

Wow! Momo has a majority presence through its standalone restaurants, food court stalls, and mall-based outlets, serving a range of momos, burgers, and fusion fast food. The company targets high-footfall areas to maximize visibility and sales.

Cloud Kitchens

With the growth of online food ordering, Wow! Momo has ventured into cloud kitchens, minimizing operational expenses while maximizing delivery coverage. This enables the brand to cover areas without the need for a full-fledged physical store.

Franchise & Company-Owned Model

Wow! Momo has a predominantly company-owned model, with quality control and brand consistency. It has also added franchise options to speed up expansion while ensuring robust brand control.

FMCG Expansion

Over the past few years, Wow! Momo has ventured into the packaged food segment, retailing frozen momos in modern retail and online channels. This expansion diversifies revenue streams and captures the increasing trend of ready-to-eat foods.

Strategic Partnerships & Omni-Channel Approach

The firm partners with food aggregators such as Swiggy, Zomato, and hyperlocal ones such as Blinkit to increase online sales. It also utilizes corporate tie-ups and pop-up stores to grow its customer base.

Through a combination of physical stores, cloud kitchens, franchising, and FMCG, Wow! Momo has established a scalable and high-growth business model that serves both dine-in and delivery customers.

WOW! Momo Franchise Cost

Opening a Wow! Momo franchise in India has multiple cost factors. Here’s the detailed list:

1. Franchise Fee

Amount: ₹25,000 plus GST

Purpose: You pay this fee once to obtain the license to use the Wow! Momo brand name.

2. Setup and Infrastructure Expenses

Estimated Range: ₹5 to ₹10 lakhs

Includes:

Interior Decoration: Standardizing the outlet’s looks as per brand guidelines.

Furniture and Fixtures: Chairs, counters, and other essential fittings.

Kitchen Equipment: Steamers, fryers, storage, and other important appliances.

Signage: Company-specific signs and display.

3. Initial Inventory

Estimated Cost: ₹2 to ₹4 lakhs

Purpose: Inventory of ingredients and supplies for initial three months of operation.

4. Working Capital

Approximate Amount: ₹5 lakhs

Includes:

Staff Salaries: Chefs’, servers’, and other staff members’ salaries.

Rent: Monthly rental for the outlet area.

Utilities: Electricity, water, and other basic services.

Miscellaneous Expenses: Unexpected expenses that can be incurred during early operations.

5. Royalty Fee

Rate: 5% of monthly gross sales

Purpose: Recurring fee for continued usage of the brand and support services.

6. Marketing Contribution

Rate: 2-3% of monthly sales

Purpose: To finance national and local marketing campaigns, promotions, and new product launches.

7. Security Deposit

Amount: ₹3 to ₹5 lakhs (refundable)

Purpose: To secure your franchise rights and maintain compliance with brand standards.

Total Estimated Investment

Range: ₹20 to ₹35 lakhs

Is WOW! Momo Franchise Profitable in India?

Investing in a WOW! Momo franchise can be a profitable venture, considering the brand’s strong hold in the Indian Quick Service Restaurant (QSR) segment. Profitability, however, is dependent on location, operational efficiency, marketing, and demand. Let’s dissect the major areas of profitability:

1. Revenue Potential

Average Daily Sales: ₹25,000 – ₹60,000 (location-dependent)

Monthly Revenue: ₹7.5 lakh – ₹18 lakh

Annual Revenue: ₹90 lakh – ₹2.2 crore

Factors Influencing Revenue:

• Outlet location (malls, high-traffic areas, or independent stores)
• Online food delivery orders (Zomato, Swiggy, etc.)
• Seasonal demand and festival promotions
• Brand loyalty and customer retention

2. Operating Expenses

To calculate profitability, subtract the operating expenses from revenue. The key expenses are:

Cost of Goods Sold (COGS)

• Raw Materials: 35% – 40% of total sales
• Includes ingredients, packaging, and kitchen supplies.

Rent & Utilities

• Rent: ₹50,000 – ₹2 lakh per month (location-based)
• Electricity & Water: ₹20,000 – ₹50,000 per month

Salaries of Staff

• Number of Employees: 5-10 per outlet
• Salary Range: ₹10,000 – ₹25,000 per employee
• Total Staff Cost: ₹1.5 lakh – ₹3 lakh per month

Royalty & Marketing Fees

• Royalty Fee: 5% of gross monthly sales
• Marketing Contribution: 2-3% of gross monthly sales

Miscellaneous Expenses

• Maintenance, Equipment Upkeep, & Insurance: ₹20,000 – ₹50,000 per month

3. Profit Calculation

Assuming an outlet makes an average monthly revenue of ₹12 lakh. Here’s how monthly profits would break down:

So, with a monthly revenue of ₹12 lakh, the estimated profit before tax is ₹2.36 lakh per month or ₹28.32 lakh a year.

4. Break-Even Period

Given the initial investment of ₹20-35 lakh, all but a few franchisees can break even within 1.5 to 3 years if they are operating efficiently and are having good sales.

WOW! Momo Franchise – Is It Worth the Investment?

Opening a WOW! Momo franchise has a number of benefits, but there are challenges too. Here’s an in-depth analysis of the pros and cons to help you decide.

Pros of WOW! Momo Franchise:

1. Brand Recognition

WOW! Momo is India’s no. 1 momo chain with strong consumer base and massive market demand. Its extensive reach in more than two cities guarantees consistent traffic and firm brand recall.

2. Low Investment

In comparison to other Quick Service Restaurant (QSR) chains, the investment to start a WOW! Momo franchise is relatively low. The franchise fee is a mere ₹25,000 plus GST, and the overall investment is ₹20-35 lakh, making it an affordable business venture.

3. Established Business Model

WOW! Momo has a standardized and simple-to-implement model. The franchise owners get full operational support, which makes it simpler to operate and expand the business. Break-even for most outlets is within 1.5 to 3 years.

4. Diversified Revenue Streams

The franchise earns from dine-in, takeaway, and online orders. The strong associations of the brand with platforms such as Zomato and Swiggy increase sales possibilities and maximize revenues.

5. Constant Support from WOW! Momo

Franchisees get full support with staff training, operational instructions, and marketing advice. National as well as regional advertisement campaigns facilitate increased customers as well as increased brand recognition.

Cons of WOW! Momo Franchise:

1. Intense Competition

The fast-food market in India is competitive in nature, where big brands like McDonald’s, KFC, and Dominos are present alongside several local vendors selling momos. Success in a large way depends on gaining a high-facilitated location.

2. Moderate Margins

Although WOW! Momo enjoys a reasonable profit margin of 15-25%, it is less than that of some other QSR models. High operational costs, such as rent, employee salaries, and raw material prices, can affect profitability.

3. Royalties & Marketing Fees

Franchisees have to pay a 5% royalty charge on monthly sales and 2-3% towards marketing. These recurring charges lower the net profit margins.

4. Dependence on Food Delivery Platforms

A major chunk of sales is achieved through online food ordering. Platforms such as Swiggy and Zomato, though, have high commission rates, and this can decimate margins as well as make the business highly dependent on third-party services.

6. Saturation Risk of the Market

WOW! Momo restaurants in certain cities are packed heavily, resulting in intra-restaurant competition. On top of this, the shifting eating habits of the customer necessitate constant innovation so that the chain remains competitive.

Eligibility Criteria for Franchisees

• Age Requirement: The candidate should be aged at least 21 years to ensure that he/she can handle a franchise with responsibility and maturity.
• Educational Qualification: The applicant must have at least completed class 10 for basic literacy and numeracy skills required in business operations.
• Financial Capability: The applicant should have sufficient funds to afford an investment of 8-20 lakh in setting up and operating the franchise.
• Experience in the industry: Not necessary because having experience in the food or retail industry will help with smoother business management.
• Training Commitment: Willing to undergo a two-month training program to meet Wow! standards in operations and customer service.
• Selection of Locations: Ability to secure an important location with 250-300 square feet in crowded places for the best business potential.

Required Documents

• Identity Proof: Non-expired government-issued identity, like a passport or driver’s license, or an Aadhar card to help verify the applicant’s identity. 
• Address Proof: Recent utility bills or a rental agreement to prove the applicant’s current residence. 
• Financial Statements:  Proof of income and possession of money in the form of bank statements and income tax returns to demonstrate financial credibility to support the investment. 
• No Objection Certificate (NOC): If the property is on rent, an NOC from the landlord authorizing commercial usage is required. 
• Photographs: Recent passport-sized photographs for record purposes and official identification.  
• Business Licenses: Licenses such as GST registration and FSSAI license are legally required for complying with food safety regulations.

How to Apply for WOW! Momo Franchise in India?

Opening a Wow! Momo franchise in India can prove to be a lucrative business venture, considering the brand’s popularity and demand for the same. Here is a step-by-step process on how to apply for a Wow! Momo franchise and embark:

Step 1: Research & Understand the Franchise Model

Wow! Momo has a company-owned business model primarily, but has of late introduced opportunities for franchise business expansion. Apply after studying the investment, returns, and operations required.

Step 2: Verify the Investment Requirements

An estimated investment range for a Wow! Momo franchise is generally between ₹15 lakh to ₹30 lakh based on location, size of outlet, and operation costs. They are inclusive of:

• Franchise fee
• Interior setup & equipment
• Raw materials & supply chain
• Marketing & branding

Step 3: Select a Strategic Location

An excellent location is important for the success of the franchise. Malls, shopping complexes, food courts, and busy streets with high footfalls are the best places for a Wow! Momo outlet.

Step 4: Apply for the Franchise

To apply, you must:

• Go to the official Wow! Momo website or reach out to their franchise team through email.
• Provide an application along with your business information, investment potential, and preferred location.
• Wait for approval and negotiations with the company representatives.

Step 5: Sign the Agreement & Setup Your Outlet

After approval, you will have to sign a franchise agreement that details operational terms, brand guidelines, and revenue-sharing arrangements. Wow! Momo offers:

• Training & operational support
• Supply chain support
• Marketing & promotional strategies

Step 6: Launch & Grow Your Business

Once you establish the outlet, you can begin operations and capitalise on Wow! Momo’s good brand name to draw customers in. Prioritising customer service, online delivery alliances, and offers will make your business expand at a quicker pace.

Support Provided by Wow Momo for Franchisees

One of the key reasons for Wow Momo’s franchise popularity is the level of support offered to franchisees. This includes:

• Location Assistance: The Wow Momo team helps franchisees select high-traffic locations.
• Comprehensive Training: Cooking, customer service and operations training programs are provided to guarantee quality service in all the locations.
• Marketing Support: The brand provides both national and local advertising support, boosting visibility.
• Operational Assistance: Wow Momo offers continued operational guidance, assisting franchisees with inventory management and customer engagement.

Profit Margin and Expected Returns of Wow Momo Franchise

• Profit Margin: Wow Momo franchises typically report a profit margin of 40% to 50%, which is high for the fast-food industry and helps attract many new franchisees.
• Monthly Profit: A monthly profit of INR 1 lakh to INR 2 lakh can be made at a well run Wow Momo outlet. Earnings vary based on place and customer traffic and operation efficiency.
• Return on Investment (ROI): Franchisees can expect a return on investment within 8 to 10 months, making Wow Momo a potentially profitable option for those interested in the fast-food industry. The reasons for this quick breakeven period mainly due to strong brand recognition and high customer demand for Wow Momo products.

Risks and Considerations

While Wow Momo offers strong brand recognition and a popular product, there are certain risks to consider:

• Market Saturation: Competition also is stiff because there are many fast food chains. The choice of location is critical to avoid direct competition.

• Operating Costs: Profitability can be adversely affected by high rentals and staffing costs in urban areas.

• Changing Consumer Preferences: More importantly, franchisees have to deal with changing consumer tastes, which will cause them to adapt to the norm in the food business over time.

Minimizing these risks entails conducting your sales in thorough market research and picking a strategic location.

Conclusion

Wrapping it all up, a WOW! Momo franchise can be an excellent business venture if you want to enter India’s burgeoning QSR sector. With an investment of approximately ₹20-35 lakh, you have the support of a well-known brand, several avenues to earn (dine-in, takeaway, and online delivery), and good operational support.

But like any business, success isn’t guaranteed—it all comes down to picking the right location, managing costs smartly, and standing out from the competition. Profit margins typically range between 15-25%, so careful planning is key to making the most of your investment. If you’re passionate about food and ready to put in the effort, a WOW! Momo franchise could be your ticket to a rewarding and profitable venture.

FAQs About Wow Momo Franchise

What is the total investment required to open a Wow Momo franchise?

The total initial investment for a Wow Momo franchise is from INR 1 lakh to INR 8 lakhs which includes franchise fee, setup cost, kitchen equipment and initial input.

How much does Wow Momo charge for a franchise?

The fee for franchising under Wow Momo brand is INR 25,000 plus GST which is a one-time fee given to get the license to use the brand name Wow Momo in business operations.

What range of profits should a Wow Momo outlet expect?

The franchises of Wow Momo have been reporting profit margins in the region of 40% to 50%. This is quite high by fast food business standards as well.

What is the time frame in which the investment can be recovered?

Depending on the franchisee’s ability to drive customers dependent on location and footfall the franchisees can achieve a return on investment in around 8 to 10 months.

What are the different types of Wow Momo franchise outlets?

Based on the customer bases and location requirements, Wow Momo has multiple formats of outlets, including kiosks, food court counters, high street shops, and full-scale restaurants.

How does Wow Momo support its franchisees?

Wow Momo provides complete support which consists of assistance in site selection, staff training, marketing support, and general operational and posting guidance on inventory and customers.