Chai Sutta Bar Franchise Cost: Profit & ROI Breakdown

Chai Sutta Bar Franchise Cost

The tea business of India has undergone an unprecedented metamorphosis in the last ten years as the traditional chai culture has turned into the contemporary cafe culture. There are so many franchises of tea business that have come up, but Chai Sutta Bar (CSB) is serving to be a path breaker and it has also managed to close the existing gap between the teas main high bred culture and the latest style of cafes. Knowing the franchise cost of Chai Sutta Bar is important to any investor interested in tapping into the lucrative tea market in India that is estimated to rise to 350 crores by 2025.

The Chai sutta Bar franchise fee has really drawn much attention among would be entrepreneurs who need lucrative business ventures involving comparatively low investment. In this thorough guide you will have access to all the information about the Chai Sutta Bar franchise process, starting alongside the costs of the initial investment to the level of profits, and you will be able to make a relevant evaluation of whether or not it is appropriate to invest in this rather prosperous segment of the business market.

There are more than 550 outlets in India as well as other parts of the world, which shows the effectiveness of the business model of Chai Sutta Bar. Their own tea selling style where its products are served in traditional clay kulhads with not so high prices and friendly environment have made many loyal customers thus resulting in regular revenue churn by franchise members. This article offers great details of every dollar of the Chai Sutta Bar franchise cost structure to any investor who needs to know how much he or she may spend on total investments.

About Chai Sutta Bar

Chai Sutta Bar Franchise
Chai Sutta Bar Franchise

Started in 2016, by Anubhav Dubey and Anand Nayak and joined later by Rahul Patidar, Chai Sutta Bar is Indian chai cafe chain that started off as a small shop in Indore. It has since over the years become one of the top brands in India in tea franchises which is also headquartered in Madhya Pradesh. The founders came up with a differentiating idea of serving pure and authentic Indian chai in the traditional clay kulhads, which soon was the brands key product and a unique selling point, serving various age groups. The company initially established a single store and by 2018, it has already spread out in Madhya Pradesh. National recognition followed in 2019, especially among younger consumers. The brand has been expanding even in the time of 2020 pandemic with more than 85 outlets. It had opened over 550 stores in 320 cities of India and three international stores by the year 2024.

The financial development of Chai Sutta Bar has been proportional to its growth as the revenue has grown to 220 crores by 2024 compared to 50 crores in 2019. The brand projects earnings of ₹350 crores by 2025. Given that it has won a strong customer base by selling more than 300,000 kulhads daily with repeat component of 80 percent, it is a lucrative franchise business because of the blend of traditional tastes and jumping through modern requirements.

Why Choose Chai Sutta Bar Franchise?

Chai Sutta Bar (CSB) has updated the taste of India most preferred drink into a successful business. On having a good brand image and new way of doing it, CSB provides good franchise opportunities to the new entrepreneurs. A CSB franchise stands out for the following reasons:

Rising Demand in India’s Tea Market

The Indian tea industry is doing well, and it is worth 15,000 Crores currently, and it is projected to grow to 21,500 Crores by 2027 with a rise of 6.5 percent annually. This growth can be utilized by the franchisees of CSB and they can utilize the ever-growing demand of tea.

Affordable and Profitable Investment

CSB requires a modest investment of ₹16–₹25 Lakhs. The franchisees will enjoy quick and lasting revenue as 40-50 percent profit margins and the ROI is up to 12-18 months.

Rapid Expansion & Recognized Brand

CSB has grown to more than 320 cafes in India and internationally since it established its first outlet in Indore. With the plan of 800+ stores by 2026, it provides immediate recognition and customer loyalty to the franchisee.

Eco-Friendly & High Customer Retention

By serving chai in biodegradable kulhads, CSB promotes sustainability. As the daily sales of kulhads are 300,000, repeat sales by 80 percent will help the franchisees to maintain stable sales.

Comprehensive Support System

CSB provides training, operative support, and financial assistance, which is why it is suitable both to new and known business owners.

Chai Sutta Bar Franchise Cost in India

Chai Sutta Bar Franchise Cost
Chai Sutta Bar Franchise

The approximate total amount of investment required in case of starting a Chai Sutta Bar in 2025 is between 16 to 25 Lakhs depending on the city, size of the outlet and the requirement linked with the set up. Here’s a breakdown of the expenses:

ExpenseCost (₹)
Franchise Fee6 – 8 Lakhs
Setup & Interiors5 – 7 Lakhs
Equipment & Stock3 – 5 Lakhs
Licensing & Permits1 – 2 Lakhs
Marketing & Branding1 – 3 Lakhs
Total Investment₹16 – ₹25 Lakhs
  • Franchise Fee (₹6–8 Lakhs): This non-refundable fee provides access to CSB’s business model, trademark, operational blueprint, and start-up support.
  • Setup & Interiors (₹5–7 Lakhs): Covers outlet design, furniture, lighting, and branding elements to create the signature Chai Sutta Bar ambiance.
  • Equipment & Initial Stock (₹3–5 Lakhs): Includes kitchen equipment, kulhads, raw ingredients (tea, milk, etc.), and operational stock.
  • Licensing & Permits (₹1–2 Lakhs): This covers FSSAI registration, GST registration, shop establishment licenses, and other mandatory legal documents.
  • Marketing & Branding (₹1–3 Lakhs): Covers launch promotions, digital marketing, influencer outreach, and in-store branding.

Additional Operational Expenses

In addition to the initial investment, franchisees should be aware of recurring monthly expenses:

  • Royalty Fee: 4% of monthly sales revenue to be paid to CSB for ongoing support and brand usage.
  • Staff Salaries: Between ₹30,000 to ₹60,000, depending on the size of the team.
  • Rent: ₹50,000 to ₹1,50,000 per month, based on city and outlet location.

Space & Location Requirements

To set up a CSB outlet, consider the following:

Minimum Area Required: 200 to 400 sq. ft.

Preferred Locations:

  • College campuses
  • High footfall streets
  • Malls or market areas
  • Railway stations or metro hubs

Seating Capacity: 10 to 25 people (based on space)

Location is key. A store near educational institutions or in busy commercial zones typically performs better due to higher tea consumption by youth and working professionals.

Profit Margin & Return on Investment (ROI)

CSB franchises are known for delivering high profitability due to low product costs and high customer volume.

Monthly Profit Breakdown:

MetricsLow Estimate (₹)High Estimate (₹)
Monthly Revenue₹4,50,000₹7,50,000
Cost of Goods Sold₹1,80,000₹3,00,000
Rent, Salaries & Others₹1,20,000₹2,00,000
Net Profit₹1,50,000₹2,50,000
  • Net Profit Margin: 35% – 40%
  • Payback Period: 12–18 months
  • Annual ROI: Up to 120%

Most franchisees can expect to break even within the first year, thanks to low running costs and high tea demand in India.

Menu Highlights at Chai Sutta Bar

Chai Sutta Bar franchise cost offers a wide variety of budget-friendly tea and snack items that appeal to India’s large tea-loving population.

Top Menu Items:

  • Chocolate Chai
  • Masala Chai
  • Elaichi Chai
  • Adrak Chai
  • Lemon Chai
  • Cold Coffee & Iced Tea
  • Maggie & Sandwiches
  • Pasta, Pizza, and Samosas
  • Kulhad-based desserts

Key Investment Insights:

  • High ROI Potential: High brand recall, reasonable cost of establishment and the constantly expanding culture of tea in India make it a good investment.
  • Franchise Fee Range: 6-8 Lakhs, all Onboarding Services, Business Set up assistance.
  • Total Investment: Indian rupees: 16-25 Lacs, including branding, interiors, licences and opening inventory.
  • Royalty Fee: Fixed at 4% of monthly revenue.
  • Breakeven Timeline: As early as 12 months in good locations.

Training & Support Provided by the Brand

The very extensive training and support entity offered by Chai Sutta Bar franchise cost plays an imperative role in increasing the value of the franchise venture. This support system is useful in assuring franchisee success and brings long term value that compensates the Chai Sutta Bar franchise fee.

  • Initial Training Program: To develop comprehensive and wholesome training, Chai Sutta Bar offers intensive training on all the areas of the outlet operations like skills in coffee making, food safety, customer services, and product standards. Through this extensive training, the franchisees and members of staff are able to provide quality and service of brand expectations.
  • Operational Support: The brand also provides support in terms of regular visit by area managers and support staff to the operations. This involves support of day-to-day activities, stock, price and assurance to ensure that the franchisees remain profitable and uphold brand standards.
  • Marketing Assistance: Chai Sutta Bar through marketing will offer promotional tools such as leaflets and brochures, social media content, local marketing and brand campaign. The franchisees can create local brand awareness and customer attraction by using this marketing support without extensive added spending and marketing savvy.
  • Supply Chain Support: The brand has connections with vetting suppliers and advises on the inventory and demand of goods. It provides coherence in the quality of the raw materials and assists the franchisees in streamlining their supply chains in terms of cost and efficiency.
  • Technology Support: Chais Sutta Bar offers technological services such as point-of-sale, inventory management among other competencies which have simplified its operation. Franchisees are more effectively enabled to run their business through this technology facility, and there is useful data to run decision-making.
  • Quality Assurance: This is because regular auditing of quality and feedback leads to franchisee adherence to brand standards and helps target areas of weaknesses. The property of this quality assurance program is that it requires protection of the brand and it enables the franchisees to ensure that the consumers are getting consistent experiences that keep them coming back.

How to Apply for Chai Sutta Bar Franchise

  • Online Application Submission: The former is to go to the official site of Chai Sutta Bar and deposit the franchise inquiry form. The applicants will be obliged to provide the background details, the investment capacity, location preference and the expertise in business. This initial application helps the brand assess candidate suitability.
  • Location Assessment: After the review of the application, the candidates will be requested to furnish the details about the location where they would like to start a business e.g.related to photography, traffic as well as demographics of the market. The Chai Sutta Bar team takes care of the feasibility and profitability of the place so that its assessment is properly carried out.
  • Financial Verification: The applicants ought to provide responses to their financial capacities of covering the franchisee cost requirements of Chai Sutta Bar. This will include the provision of bank statements, investment records, and other monetary statements that would ensure that they would be in a position to fund the franchise investment and operating the business.
  • Personal Interview: Short listed candidates are required to take personal interviews by the franchise personnel of the Chai Sutta Bar. These interviews identify the determination of the candidate and how equipped he is in business and competent with the brand values. The interviewing will help in achieving a level ground between the brand and potential franchisees.
  • Agreement Signing: Passing candidates are then requested to sign an agreement to be known as franchise relationship – the franchise agreement. The legal document outlines the rights and duties of both the parties which are the program of payments of the Chai Sutta Bar franchise cost and the sustenance needs.
  • Setup Support: After the finalization of signing the agreement, the brand helps in the complete set up procedure through its interior design ideas, procurement of equipments, hiring of staffs and also advertising the opening. Such support is needed to ensure that new outlets also work at the level of this brand and begin their activities successfully since the first day.

Requirements to Become a CSB Franchisee

Chai Sutta Bar has developed standard criterion to qualify individuals that can become franchisees to make sure that brands remain consistent, and the potential franchisees are likely to succeed just like Wow Momo Franchise. Being familiar with these demands, the candidate will be able to examine his suitability and evaluate his preparation to invest in Chai Sutta Bar franchise cost.

  • Financial Requirements: They have to show liquid assets of at least 16-25 lakhs to meet the franchise amount and the initial working capital in Chai Sutta Bar. Also, more funds to cover emergencies and expansion chances in the business should be made available to the candidates.
  • Business Experience: Although the experience working in food service is preferred, it is not required. The brand accepts applicants with different experience in business that show great abilities in management as well as serve the customers with excellence. It is also beneficial to have relevant experience in customer services, hospitality or retail industry.
  • Location Criteria: Franchisees will be compelled to acquire appropriate locations which match the brand requirements in terms of size, visibility, access and demographic character. The site should have the approval of the Chai Sutta Bar team and one can move on with the agreement of franchise.
  • Commitment to Brand Standards: The candidates also need to express their readiness to support all the requirements of the brand including work processes, products testing, and service standards. Such devotion creates uniformity in all the outlets of Chai Sutta Bar and safeguards the brand image.
  • Local Market Knowledge: Knowledge in local market conditions, customer preferences and competition is useful in franchise success. Those best adapted to creating outlets are usually candidates with a firm grasp on the local footing as well as knowledge of the market.
  • Management Capabilities: The franchise to be given to the franchisees has to ensure that they have good management and leadership skills needed to run a successful business. This comes in the areas of managing staff, financial skills, customer relations as well as problem solving skills that will lead to long term success.

Challenges to Consider Before Investing

Although the franchise opportunity presented by the Chai Sutta Bar franchise cost has huge potential, the potential investor(s) ought to take into serious consideration a number of challenges which might affect their potential investment. Being aware of these problems can assist in arriving at the correct decision regarding the franchise expense and returns of the Chai Sutta Bar.

  • Market Competition: India Tea/cafe market has a substantial competition among the local and national brands in this market challenging each other to occupy the market share. The new franchisees should be ready to adopt favorable marketing techniques and offer high quality customer services to put their outlet ahead of the competitors.
  • Location Dependency: Location quality or the amount of foot traffic is very important to the success of a Chai Sutta Bar franchise. The premium locations attract higher rents, which could hit the profitability and the cheaper locations might not attract enough customers and lead to low customer traffic to achieve revenues.
  • Operational Challenges: The daily activities such as the recruitment and training of staff, the management of inventory, quality control and customer relations involve a lot of attention and efforts. The franchisees should be willing to spend much of their time and effort into practical management.
  • Seasonal Fluctuations: The consumption of tea might be subject to seasonal variations especially in places where weather extremities can be observed. It is recommended to franchisees to expect fluctuations of revenue and arrive at ways of ensuring that there is steady flow of customers all through the year.
  • Supply Chain Dependencies: Depended on approval of suppliers and certain raw material can be exposed to weaknesses in case of supply chain interruption. The franchisees should create backup plans and ensure that there is proper inventory to avoid any hindrances in the operations.
  • Regulatory Compliance: A food service business has to follow many rules and are a licensed affair. Franchisees need to keep themselves updated with the new rules and regulations made and make sure there is a constant adherence to the policies to circumvent the punishment and delay in work.

Comparison with Other Tea Franchises

Indian tea cafe market is on fire, and some big names are providing the franchise. This is the comparison of Chai Sutta Bar (CSB) with other well-known tea chains regarding the cost, brand worth, profitability and overall viability in the year 2025.

Franchise BrandTotal Investment (₹)Franchise Fee (₹)Royalty FeeMonthly Revenue EstimateBreak-even PeriodUSP
Chai Sutta Bar₹16–₹25 Lakhs₹6–8 Lakhs4%₹4.5–₹7.5 Lakhs12–18 monthsKulhad chai, youth branding, low-cost menu
Chaayos₹35–₹45 Lakhs₹10–12 Lakhs8%₹7–₹10 Lakhs18–24 monthsPremium tea experience, tech-enabled cafes
Tea Time₹5–₹9 Lakhs₹1.25 Lakhs₹3,000/month₹2–₹3 Lakhs10–14 monthsLow-cost model, tier-2 & tier-3 cities
MBA Chai Wala₹18–₹25 Lakhs₹5–7 Lakhs4%₹3–₹5 Lakhs15–20 monthsStory-driven brand, student crowd focus
Chai Thela₹15–₹20 Lakhs₹3–5 Lakhs6%₹3.5–₹5 Lakhs14–18 monthsModular kiosks, office/tech park targeting

Final Thoughts

Chai Sutta Bar franchise cost is a strong investment opportunity to any entrepreneur who would like to take a bite off the Indian tea market that is booming. The 16-25 lakhsChai Sutta Bar franchise will involve an opportunity to own a proven business model with good brand name, high profit margins and an extensive setup of comprehensive support systems. The fact that the brand offers a unique mixture of the traditional Indian chai culture and a modern cafe atmosphere built its sustainable competitive advantage, which further promotes the customer loyalty and revenue growth. The spectacular financial outlook, with revenue rising by 10 times as the amount of money the company made in 2019 was 50 crores compared to the estimate that the revenue will grow to 350 crores in 2025, indicates the acceptance of the brand in the market and the volume of its growth.

To the prospective investors, the franchise fee of Chai Sutta Bar is no more than an initial outlay into a business model that is capable of expansion and is already time and again established to be lucrative. It has a payback period of 12-18 months and profit margins of 35-40 percent, wherein it serves as a good incentive as compared to the conventional investment opportunities. Nevertheless, there are several elements of success in any franchise opportunity although it should be well planned, managed and understood the condition of the local market. Any future franchisee needs to undertake appropriate due diligence such as market research and financial planning and location analysis before making the decision of investing in the Chai Sutta Bar franchise fee.

FAQs

Q1: How much is the Chai Sutta Bar franchise cost in India?

The Chai Sutta Bar franchise fee is between 6-8 lakhs, the setup, interiors are between 5-7 lakhs, equipment, and stock cost between 3-5 lakhs, license and permits cost between 1-2 lakhs, and marketing 1-3 lakhs making the overall Chai Sutta Bar franchise cost to be between 16 to 25 lakhs. This is an inclusive investment which takes into consideration all the necessary requirements of setting and starting a successful Chai Sutta Bar outlet.

Q2: What is the recovery period of Chai Sutta Bar franchise?

Most of the Chai Sutta Bar franchisees manage to generate their initial investment in a period of 12 to 18 months of operation. The franchise shows a good turn around with profit margin of 35 or 40+ per cent of profit with 1,50,000-2,50,000 per month on investment. The real recovery time can also change depending on the place, management competence and local market situations.

Q3: What are the additional fees other than upfront Fee of Chai Sutta Bar franchise?

Yes, the monthly royalty fee that franchisees should pay to Chai Sutta Bar is 4 percent of the gross revenue. The fee is on an ongoing basis so that brand building, marketing, operational advice as well as provision of new products and services are available. Also, the franchisees foot the operational costs like rent, employee wages and bills.

Q4: What services does Chai Sutta Bar give that warrants the franchise fee?

Chai Sutta Bar offers a complete package of initial product training programs, continuation of product operation, marketing supports, supply chain development, technology support and quality assurance program. Such a large support network is used to ensure franchisee success and it offers value continuously which makes the investment worth the Chai Sutta Bar franchise cost.

Q 5: Will I be able to open more than one outlet of Chai Sutta Bar and how will it change the cost of the franchise?

Of course, the ones who prove to do well as franchisees will be able to open more than one. The franchise cost of the Chai Sutta Bar is high enough to require a large investment per outlet but franchisees that are already experienced could get even a better deal with more than one outlet. The brand also welcomes growth with its established partners and can further offer more assistance towards multi-unit construction to qualified franchisees.