Chai Sutta Bar is a popular chain of tea and coffee outlets in India that was founded in 2016. The brand has become a household name among the younger generation of Indians due to its trendy and vibrant atmosphere, affordable pricing, and delicious beverages. As of 2023, Chai Sutta Bar has over 100 outlets across India and is looking to expand further by offering franchise opportunities. In this blog, we will be discussing the Chai Sutta Bar franchise cost, profit, and benefits in India.
Chai Sutta Bar Franchise Overview
Chai Sutta Bar, one of the most popular tea-based café chains in India, was established in 2016 with a mission to provide a cozy, casual and friendly atmosphere to its customers while offering them an extensive menu of teas and food items at affordable prices. The first café was launched in Indore, Madhya Pradesh and since then, the brand has expanded across various regions in India, with over 100+ outlets in just five years. The company is planning to launch over 300 stores in India in the next two years, making it one of the most lucrative franchises to invest in. The chai sutta bar franchise in India has become one of the fastest-growing franchise models in the food and beverage industry. This success is large because the franchise cost of Chai Sutta Bar is affordable, with a high-profit margin, which makes it a profitable and viable business opportunity for aspiring entrepreneurs. In the following sections, we will explore the franchise cost of Chai Sutta Bar in detail, along with the profits and benefits that this franchise offers to its investors.
Who is the owner of Chai Sutta bar?
- Mr. Anand Nayak (DIRECTOR & Co-Founder)
- Mr. Anubhav Dubey (DIRECTOR & Co-Founder)
- Mr. Rahul Gothi (Managing Director)
Chai Sutta Bar Franchise Cost
For any Indian location, the Chai Sutta Bar Café franchise fee is ₹6 lakh with a required investment of ₹16 lakhs. The Chai sutta bar franchise cost has a return on investment (ROI) of 2%. The breakup in a quick reference table is given below:
|Commercial space||300 to 400 sq. ft minimum|
|Equipment and machinery||₹ 3 lakh|
|Furniture and décor of interiors||₹ 5 lakh|
|Raw materials initial investment||₹ 2 lakh|
|Franchise Fee||₹ 6 lakh|
|Total investment||₹ 16 lakh|
|Payback period||14 to 18 months|
|Royalty fee||2% of turnover|
|Term of agreement||5 years|
|Contact details||Tel no: 91-6262300031Email: [email protected] or [email protected]|
|Address for communication||406, Janjeerwala Square, Silver Arc Plaza, New Palasia, Indore, Madhya Pradesh -452001, India.|
Chai Sutta Bar Franchise Menu & Top Selling Items Pricing/Profit
- Chocolate Tea
- Ginger Tea
- Eliachi Tea
- Rose Tea
- Masala Tea
- Pan Tea
Apart from tea, Chai Sutta Bar has a variety of coffee, milkshakes, snadwiches, etc. Chai Sutta Bar is known for its most go-to beverage, which is its varied varieties of ‘Chai.’
To become a Chai Sutta Bar franchisee, you need to meet the following requirements:
1. Financial Capacity – The franchisee should have a minimum net worth of Rs. 25 lakhs and liquid capital of Rs. 10 lakhs.
2. Experience – Prior experience in the food and beverage industry is preferred, but not mandatory.
3. Location – The franchisee should have a commercial space of at least 300 sq. ft. in a high footfall area.
4. Passion – The franchisee should have a passion for the food and beverage industry and a willingness to learn.
Training and Support
Chai Sutta Bar provides extensive training and support to franchise partners to ensure that they are equipped to run their business successfully. The company offers a 30-day training program that covers all aspects of the business, including product knowledge, store operations, customer service, inventory management, and marketing. In addition to this, the franchisee will receive ongoing support from the Chai Sutta Bar team in areas such as supply chain management, staff training, and marketing.
Marketing and Advertising
Chai Sutta Bar has a strong brand presence in India, and the company invests heavily in marketing and advertising to ensure that the brand remains top of mind among consumers. As a franchise partner, you will benefit from the company’s marketing efforts, which include social media advertising, influencer partnerships, and in-store promotions. The company also provides franchise partners with marketing collateral such as posters, flyers, and digital assets.
The profit potential for a Chai Sutta Bar franchise varies depending on the location, footfall, and operating expenses. However, the company claims that franchise partners can expect a return on investment within 18 to 24 months. According to industry estimates, a Chai Sutta Bar outlet can generate a monthly revenue of Rs. 4 lakhs to Rs. 8 lakhs, with a profit margin of 25% to 30%. However, these figures are subject to change based on the location and other factors.
Chai Sutta Bar Franchise Application Process
If you are interested in owning a Chai Sutta Bar franchise in India, here is a step-by-step guide to the application process:
Step 1: Initial Inquiry
The first step in the franchise application process is to express your interest by contacting Chai Sutta Bar through their website or by phone. You can provide your basic details and ask for more information about the franchise opportunity. A representative from the company will get in touch with you to answer your queries and provide you with a franchise brochure.
Step 2: Submitting the Application
After you have received the franchise brochure and reviewed it, you can submit your franchise application. The application form is available on the company’s website, and you need to fill in your personal and business details. You also need to submit a detailed business plan outlining your financial projections and marketing strategies.
Step 3: Background Check and Verification
Once your application is received, the Chai Sutta Bar franchise team will conduct a background check to verify your credentials. They may ask for references and conduct a credit check to ensure that you have the necessary financial resources to invest in the franchise.
Step 4: Meeting with the Franchise Team
After the initial verification, you will be invited to meet with the Chai Sutta Bar franchise team. This meeting can take place in person or online, depending on your location. During the meeting, you will have an opportunity to discuss your business plan and ask any questions you may have about the franchise opportunity.
Step 5: Signing the Franchise Agreement
If the franchise team approves your application, you will be sent a franchise agreement to review and sign. The franchise agreement will outline the terms and conditions of the franchise partnership, including the franchise fee, royalty fees, and other important details. You should review the agreement carefully and seek legal advice if necessary before signing.
Step 6: Site Selection and Setup
Once the franchise agreement is signed, you will work with the Chai Sutta Bar franchise team to select a location for your outlet. The team will help you evaluate potential locations based on factors such as footfall, demographics, and competition. Once a location is finalized, you will need to set up your outlet according to the company’s specifications and standards.
Step 7: Training and Launch
Before your outlet opens, you will need to complete a 30-day training program at one of Chai Sutta Bar’s training centers. The training covers all aspects of the business, including supply chain management, menu preparation, customer service, and marketing. Once the training is completed, you will be ready to launch your outlet and start serving customers.
Benefits of Owning a Chai Sutta Bar Franchise
- Strong Brand Presence – Chai Sutta Bar has a strong brand presence in India and is well-known among the younger generation of Indians. Owning a franchise of an established brand like Chai Sutta Bar can help attract customers and increase footfall to your outlet.
- Training and Support – Chai Sutta Bar provides extensive training and ongoing support to franchise partners. This includes a 30-day training program that covers all aspects of the business, as well as ongoing support in areas such as supply chain management, staff training, and marketing. This support can be beneficial for franchise partners who are new to the food and beverage industry.
- Marketing and Advertising – Chai Sutta Bar invests heavily in marketing and advertising to ensure that the brand remains top of mind among consumers. As a franchise partner, you will benefit from the company’s marketing efforts, which include social media advertising, influencer partnerships, and in-store promotions.
- Low Startup Costs – Compared to other food and beverage franchises, Chai Sutta Bar has relatively low startup costs. The initial investment required to start a franchise ranges from Rs. 10 lakhs to Rs. 25 lakhs, which includes the franchise fee and the cost of setting up the store.
- High Profit Potential – A Chai Sutta Bar franchise has the potential to generate high profits, with a profit margin of 25% to 30%. According to industry estimates, a Chai Sutta Bar outlet can generate a monthly revenue of Rs. 4 lakhs to Rs. 8 lakhs.
Challenges of Owning a Chai Sutta Bar Franchise
- Competition –
The food and beverage industry in India is highly competitive, with many established brands and new entrants. Franchise partners of Chai Sutta Bar may face competition from other tea and coffee outlets in the area.
- High Operating Costs –
The operating costs for a Chai Sutta Bar franchise can be high, including rent, salaries, and utilities. Franchise partners need to carefully manage their expenses to ensure profitability.
- Seasonal Fluctuations –
The demand for tea and coffee may fluctuate depending on the season. For example, during the summer months, demand for cold beverages may be higher than hot beverages. Franchise partners need to be aware of these fluctuations and adjust their menu and marketing strategies accordingly.
Overall, owning a Chai Sutta Bar franchise in India can be a lucrative business opportunity for those who are passionate about the food and beverage industry. With a strong brand presence, extensive training and support, and high profit potential, Chai Sutta Bar offers a turnkey solution for those looking to start their own business. However, franchise partners need to be aware of the challenges, including competition, high operating costs, and seasonal fluctuations. By carefully managing their expenses and adjusting their strategies as needed, franchise partners can succeed and build a profitable business with Chai Sutta Bar.
FAQs on Chai Sutta Bar Franchise
What is the cost of opening a Chai Sutta Bar franchise in India?
The initial investment for a Chai Sutta Bar franchise in India is estimated to be between Rs. 20 lakhs to Rs. 30 lakhs, depending on the location and size of the outlet.
What are the ongoing expenses associated with a Chai Sutta Bar franchise?
As a Chai Sutta Bar franchisee, you will be required to pay a monthly royalty fee of 7% on your gross sales. You will also be responsible for your inventory, staffing, rent, and other operational costs.
How much profit can I expect to earn as a Chai Sutta Bar franchisee?
The profit potential of a Chai Sutta Bar franchise in India depends on several factors, including the location, customer demand, and operational efficiency. However, the company claims that franchisees can expect a return on investment within 18-24 months.
What are the benefits of owning a Chai Sutta Bar franchise in India?
As a Chai Sutta Bar franchisee, you will have access to the company’s established brand name, proven business model, marketing support, and training programs. You will also benefit from the growing demand for specialty tea and snack outlets in India.
Is prior experience in the food and beverage industry necessary to own a Chai Sutta Bar franchise?
While prior experience in the food and beverage industry is preferred, it is not mandatory to own a Chai Sutta Bar franchise. The company provides a comprehensive training program that covers all aspects of the business, including menu preparation, supply chain management, and customer service.