The new youth-focused fashion brand “Burnt Toast” has been introduced by Trent Limited, the retail juggernaut of the Tata Group that owns Westside, Zudio, and Star. The first store, a 2,500-square-foot establishment intended to serve as a cultural centre for Gen Z and young millennials, opened its doors in Bengaluru earlier this month.
Exploring Gujarat’s Market
Trent’s latest fashion retail venture was a logical starting point because of the city’s reputation as a trend-forward, youth-driven market. Trent has now expanded Burnt Toast to Surat, setting up shop in Unity Corner, City Light, Gujarat, its first location in the state. As a hub for textiles and fashion, Surat expands the brand’s geographic reach beyond major cities and provides access to a youthful, fashion-forward customer base.
Financial Dynamics of Trent
Trent’s expansion is financially sound; its consolidated revenue for the first quarter of FY26 was INR 4,883 crore, with a profit before tax of INR 565 crore and an 11% EBIT margin. Without going overboard, this powerful performance offers the firepower to support novel ideas like Burnt Toast.
Given that Zudio’s explosive development has already redefined inexpensive fashion, Burnt Toast is Trent’s attempt to enter a niche, youth-focused market. The company’s early boutiques in Bengaluru and Surat indicate that it is experimenting with a variety of areas, including tier-II fashion hubs and urban metro cultures.
Quick Shots
•First store (2,500 sq. ft) opened in Bengaluru,
designed as a cultural hub for Gen Z & young millennials.
•Trent expanded to Surat, Gujarat at Unity Corner,
City Light — brand’s first store in the state.
•Surat chosen for its strong textile & fashion
ecosystem and young customer base.
•Financials Q1 FY26: Revenue at INR 4,883 crore,
Profit Before Tax INR 565 crore, EBIT margin 11%.
•Strong financial performance gives firepower for
new ventures like Burnt Toast.
•Zudio’s success in affordable fashion shows Trent’s
capability to scale new concepts.
Zudio is one of India’s fastest-growing fashion retailers, offering affordable clothing and accessories. With the backing of the Tata Group and operated by Trent Limited, which manages Westside and Star Bazaar, it has established a strong presence in the market. The growth has been quick, and not by accident. By 2024, Zudio had expanded to 350 stores across India, from big city malls to smaller-town high streets.
Each new outlet seems to drive foot traffic almost immediately, which says a lot about how well the brand connects with people. For someone looking at it from an investment angle, it’s hard to miss the signs: steady demand, a broad customer base, and the security of being backed by the Tata name. In retail, that’s a combination you don’t come across every day.
Zudio operates on a FOCO (Franchise Owned, Company Operated) model, which is designed to make the investor’s role simple and low-stress. As a franchise partner, your main responsibility is to fund the setup, which covers the franchise fee, security deposit, store interiors, and initial stock. Once the doors open, the real work shifts to Zudio.
The company takes full charge of daily operations, from hiring and training staff to managing inventory, handling sales, and keeping the store in top shape. In short, you invest, and Zudio runs the business, allowing you to enjoy the returns without getting caught up in day-to-day management.
Zudio follows a clear set of criteria for selecting franchise partners, making sure the business is in capable hands from the start. The brand is actively seeking well-prepared investors who can meet both the space and location needs, while also committing to its proven operational standards. Here’s an overview of what’s required:
Requirement
Details
Property Type
Commercial
Space Required
6,000 – 8,000 sq. ft
Location
High-traffic areas or popular shopping hubs
Franchise Agreement
Standard 7-year term, renewable
Exclusive Territorial Rights
Yes
Support from Zudio
Expert guidance, operational manuals, and IT systems
Zudio Franchise Investment Breakdown
Zudio Franchise Investment Breakdown
Starting a Zudio outlet comes with clear, well-defined costs that cover everything from branding rights to the store launch. Here’s what to expect:
Franchise Fee: You’ll need to set aside around INR 15 lakhs for the franchise fee. This secures your right to operate under the Zudio brand, allows you to access its proven business model, and includes guidance during the setup and launch phase.
Store Setup & Inventory: Creating a Zudio store that matches the brand’s look and feel typically costs between INR 25–35 lakhs. This includes interiors, fixtures, lighting, display units, and signage. Furthermore, you’ll need to purchase an opening stock of products worth about INR 10–12 lakhs.
Rent & Leasing: Location is everything in retail, and securing a high-footfall spot may require an advance rent or security deposit of INR 10–15 lakhs.
Marketing & Promotions: Zudio recommends spending around INR 2–3 lakhs on local advertising, launch events, and promotional campaigns.
Total Investment: In total, setting up and running a Zudio outlet will require an investment of INR 60–80 lakhs. This covers all major costs to get your store open, stocked, and ready for customers.
Licenses & Documents Needed for a Zudio Franchise
Before you can open your doors as a Zudio franchise owner, there are a few essential licenses and documents you’ll need to have in place. These ensure your store is legally compliant and ready to operate from day one.
Mandatory Licenses
Shops & Establishment License: A must for all retail outlets, issued by the local municipal authority.
Trademark Agreement: Grants you the legal right to use Zudio’s brand name and logo.
Required Documents
Business Proof: Certificate of Incorporation and PAN card if operating as a registered company.
Identity Proof: Any valid ID such as a PAN card, Aadhaar card, or passport.
Financial Documents: Recent bank statements to confirm you have the financial capacity to run the outlet.
Lease Agreement: Needed if you’re renting the store premises.
Zudio Franchise Infrastructure Requirements
Opening a Zudio store requires you to follow strict infrastructure guidelines to ensure every outlet delivers the same premium shopping experience. Here’s what you’ll need:
Parameter
Requirement
Storage Space
Adequate for smooth inventory management
Interior Design
As per Zudio’s official brand guidelines
Staff
Trained, well-groomed, and customer-focused
Location is a key factor. Zudio franchises bloom in high-footfall markets like:
Popular shopping centers with steady daily visitors
Prime commercial areas are buzzing with activity
Urban centers where fashion-conscious shoppers are found
Zudio Product Categories
Zudio Product Categories
Beauty: Affordable makeup and skincare essentials, from lipsticks and eyeliners to foundations and moisturizers, designed for everyday glam.
Women’s Apparel: Trendy tops, chic dresses, stylish ethnic wear, and comfortable loungewear for every mood and occasion.
Men’s Apparel: Casual tees, smart shirts, jeans, trousers, and ethnic wear, blending comfort with contemporary style.
Ethnic Wear: Kurtas, kurtis, churidars, and sarees that mix traditional elegance with a modern touch for festive and cultural events.
Loungewear: Cozy nightwear, soft pajamas, and relaxed fits that keep you comfortable whether you’re at home or stepping out casually.
Footwear: From casual shoes and sandals to formal footwear and slippers, designed to offer both comfort and style.
Where is Zudio Expanding?
Zudio has been rapidly growing its presence across India, targeting both metropolitan hubs and emerging markets. The brand’s expansion strategy covers all major regions of the country:
How Much Can You Earn from a Zudio Franchise in India?
Every investor wants to know the returns. This section covers estimated monthly sales, average margins, and realistic timelines to break even when running a Zudio franchise in India.
Thanks to its strong brand appeal and affordable fashion positioning, Zudio has become one of the most lucrative fashion retail franchises in India. On average, franchise owners can expect:
Profit Margin: Around 10% to 20% per month.
Monthly Sales Potential: Approximately INR 70 lakh to INR 1 crore, depending on the store’s performance.
ROI Timeline: Most franchisees recover their investment within 3 to 5 years.
What Does Zudio Offer Its Franchisees?
Zudio ensures its franchise partners are well-prepared from day one by providing comprehensive training, operational support, and store set-up assistance. Here’s what you can expect as a franchisee:
Orientation Sessions: An introduction to Zudio’s brand story, values, and market positioning.
Employee Training Programs: Structured modules to ensure staff maintain Zudio’s high standards of customer service.
Store Operations Guidance: Training on daily store management, inventory control, and customer engagement strategies.
Hands-On Experience: On-site, practical learning under the supervision of an experienced Zudio store manager.
Store Set-Up Support: Assistance with layout planning, visual merchandising, and initial inventory stocking for a smooth launch.
Technology Integration: Implementation of advanced retail tools to enhance both customer experience and operational efficiency.
Conclusion
Owning a Zudio franchise can be a game-changing step for entrepreneurs eyeing the booming retail fashion market. Backed by the trust and reputation of the Tata Group, Zudio stands out for delivering affordable yet trendy fashion to a growing customer base. Moreover, the brand’s strong market demand and extensive franchise support make it an attractive venture.
That said, the initial investment and royalty fees require careful financial planning, especially in the early stages. Success will largely depend on picking the right location, implementing effective marketing, and maintaining a strong operational focus.
Zudio operates on a FOCO (Franchise Owned, Company Operated) model, where investors fund the setup while the company manages daily operations like staffing, sales, and inventory.
How much does it cost to open a Zudio franchise in India?
The total investment required for a Zudio franchise is around INR 60–80 lakhs, covering franchise fees, interiors, inventory, rent deposits, and promotions.
What are the profit margins in a Zudio franchise?
Zudio franchisees can expect profit margins of 10–20% per month, depending on the store’s sales and location.
What is the ROI timeline for a Zudio franchise?
Most franchise owners recover their investment within 3 to 5 years, thanks to high sales volumes and strong brand demand.
Zudio, a prominent player in India’s fashion industry, has achieved remarkable success through a combination of strategic business approaches. These include a value pricing strategy, swift inventory refresh cycles, targeted expansion into tier 2 cities, a distinctive focal model, and a private labeling strategy. These strategies collectively enable Zudio to provide trendy fashion offerings at competitive prices, effectively capturing the attention of value-conscious consumers across India.
Established in 2016 as a fast-fashion brand under the ownership of Tata Group, Zudio has rapidly expanded its footprint to encompass over 300 stores nationwide. The company offers a diverse array of affordably priced clothing, accessories, and footwear for men, women, and children, positioning itself as a cost-effective fashion solution.
Zudio’s success in the highly competitive Indian fashion market can be attributed to several key factors:
Zudio adopts a fast fashion model, producing trendy apparel in large quantities to capitalize on economies of scale. This strategic advantage allows the company to efficiently manufacture and distribute high-quality products at reduced production costs. Recognizing the demand for quality, trendy products at affordable prices among the young middle-class population (comprising 60% of India’s populace), Zudio strategically addresses this market gap.
Market Value of Textile and Apparel Across India From Financial Year 2006 to 2021, With Estimations Until 2026
In-house Design and Production
Leveraging cost-effective production methods and sourcing raw materials from economical suppliers, Zudio maintains competitive prices while delivering a blend of style, quality, and affordability. This positioning resonates with the price-conscious yet fashion-forward audience.
Effective Inventory Management
Zudio excels in inventory management by offering appealing, fashionable clothing and refreshing its inventory every two months. This focus ensures that Zudio’s stores remain visually appealing and inviting, providing the brand with a competitive edge.
Limited Traditional Marketing
Zudio adopts a unique marketing approach by minimizing investments in traditional marketing channels. Instead, the company relies on cost-effective strategies such as influencer marketing and word of mouth, effectively boosting profitability. Incorporating influencers and content marketing amplifies the brand message, recognizing the impact of social media on consumer behavior.
Direct-to-Customer Approach
Zudio embraces a direct-to-customer approach, eliminating intermediaries and distributors. The brand sells its products directly through retail stores and online channels, reducing additional costs. This decision has proven to be successful, as the brand has effectively attracted value-conscious customers nationwide.
High-Volume Sales Strategy
Prioritizing high-volume sales over high-margin sales, Zudio maintains a vast network of outlets throughout India. The company’s profitability hinges on a high turnover of products at reduced pricing, sustaining its position as an affordable fashion brand.
In contrast to regional retailers targeting lower middle-class families, Zudio differentiates itself by catering to the youth segment with a high fashion quotient at a low price point. According to analysts at Motilal Oswal Financial Services Ltd, this strategic positioning has set Zudio apart from competitors, allowing it to thrive even in the face of challenges such as weak consumption in smaller-tier cities.
Zudio’s ascent to a prominent position in India’s fashion sector underscores its inventive approaches and perceptive grasp of the market dynamics. The emphasis on value pricing, adept inventory management, operational efficiency, and the implementation of private labeling has not only enabled Zudio to contend with well-established brands but has also positioned it as a transformative influence within the industry. As Zudio undergoes further expansion and development, it remains intriguing to observe the potential impact of its strategies and success on the broader landscape of fashion retail.
