Share This Article
Chai Sutta Bar has become a huge hit in India with its unique concept of serving tea in eco-friendly kulhads. If you’re considering joining this rapidly growing brand, you’ll need to spend between ₹16 to ₹25 lakhs.
The cost to join is usually ₹6 to ₹8 lakhs, with a royalty fee of 4%. Now, let’s dive deeper into why Chai Sutta Bar stands out and what you need to know about becoming part of this iconic brand.
Wondering about the Chai Sutta Bar Franchise Cost? Learn how this low-investment opportunity can turn into a profitable tea café business with high returns.
The Journey of Chai Sutta Bar
Chai Sutta Bar’s journey from a small café in Indore to over 550+ outlets across India and internationally speaks volumes about the brand’s strong presence and consistent growth.
Since its inception in 2016, Chai Sutta Bar has become a household name for serving chai in eco-friendly kulhads.
Founded by Anubhav Dubey and Anand Nayak, and later joined by Rahul Patidar, the brand has rapidly grown in popularity.
Here’s a brief timeline:
- 2016: The first three outlets were launched in Indore.
- 2017-2018: Expansion across major cities of Madhya Pradesh.
- 2019: Increased visibility and popularity, especially among youth.
- 2020: Even through the pandemic, the brand expanded to 85+ outlets and ventured into international markets.
- 2022: Created a path to become the most-loved tea chain.
- 2024: Today, Chai Sutta Bar operates in over 320+ cities and three countries.
At present, Chai Sutta Bar has evolved into a brand that resonates with the youth through our vision and mission. They have established their presence in over 320+ cities in India, as well as in Dubai and Oman, with our 550+ outlets.
Why You Should Choose Chai Sutta Bar Franchise
Investing in a Chai Sutta Bar franchise is a smart move, offering both profitability and a sense of purpose. Here’s why Chai Sutta Bar stands out as a great franchise option:
- Low Investment, High Returns: With an investment ranging between ₹16 lakhs to ₹25 lakhs, franchisees can expect strong returns, thanks to the brand’s widespread popularity and loyal customer base.
- Eco-Friendly Business Model: The brand’s commitment to the environment is evident through its iconic kulhad chai served in eco-friendly clay cups. This initiative appeals to environmentally conscious customers and supports rural artisans.
- No-Smoking Environment: Unlike many cafés, Chai Sutta Bar promotes a healthy, positive atmosphere. Customers can enjoy their chai without the association of smoking, making it a wholesome, family-friendly experience.
Unique Selling Points (USPs) of Chai Sutta Bar
- Orphan Employment Initiative: The brand is dedicated to giving back to society by employing orphans, and offering them livelihood opportunities. Franchise owners are part of a socially responsible business that makes a difference.
- Great Ambience: Chai Sutta Bar combines the charm of traditional chai with a modern, café-like setting. The relaxed yet vibrant atmosphere attracts students, professionals, and families alike, making it a go-to spot for people from all walks of life.
- Affordable Menu: With its pocket-friendly pricing, the franchise ensures its chai is accessible to everyone—from students to working professionals. This affordability contributes to consistent customer traffic and profitability.
- Kulhad Chai: The brand’s unique selling point is its eco-friendly kulhad chai, offering customers a blend of tradition and sustainability. This distinctive feature sets it apart from other tea chains.
- Global Expansion: Chai Sutta Bar is on a mission to expand both across India and internationally, giving franchisees the chance to be part of a rapidly growing brand with global recognition.
By choosing Chai Sutta Bar, you’re not just investing in a profitable franchise—you’re joining a brand with strong cultural values, social responsibility, and a loyal customer base, ensuring success and satisfaction in your entrepreneurial journey.
Understanding the Chai Sutta Bar Franchise Cost
Here’s a breakdown of the typical costs associated with starting a Chai Sutta Bar franchise:
- Franchise Fee: ₹6 lakhs to ₹8 lakhs, applicable across any Indian location.
- Total Investment: ₹16 lakhs to ₹18 lakhs, covering all essential costs such as setup, stock, and marketing.
- Royalty Fee: 4% of monthly sales, payable to the franchisor.
It’s important to note that while these are the typical costs, actual investment can vary depending on the specific location, size of the outlet, and other factors.
Chai Sutta Bar Outlets and Expansion Plans
Current Outlets
- 550+ outlets across 320+ cities in India and expanding internationally.
- The brand has become a favorite across diverse regions, from metropolitan cities to tier-2 and tier-3 towns.
- The brand has marked its presence in cities across India, and internationally in Dubai and Oman.
Types of Outlets:
- Kiosk: Small outlets designed for high-footfall areas such as shopping malls and transportation hubs.
- Medium: Standard-sized stores with a sit-in area for customers to enjoy their chai.
- Mega: Large outlets that offer a more expansive seating area, catering to larger crowds.
Chai Sutta Bar Franchise Models
FOFO (Franchise Owned Franchise Operated)
- In this model, the franchisee owns and operates the outlet, while the company grants the rights to use the Chai Sutta Bar brand for a non-refundable Franchise Fee. The agreement is made for a specific period, during which the franchisee is responsible for managing the outlet under the company’s guidelines.
COCO (Company Owned Company Operated)
- In the COCO model, the company owns and operates the outlet. The company is responsible for all aspects, from setting up the store to daily operations. These outlets are not related to the franchise model and are completely managed by Chai Sutta Bar.
Also Read: Amul Franchise Cost in India Complete Breakdown
How to Apply for a Chai Sutta Bar Franchise
To apply for a Chai Sutta Bar franchise, follow these steps:
- Visit the Official Website: Go to the Chai Sutta Bar’s official website.
- Fill Out the Franchise Form: Navigate to the franchise section, where you’ll find the application form.
- Complete the Form: Provide all the required details, including personal information, location, and contact information.
- Submit the Application: After submitting the form, you’ll receive a confirmation message. If shortlisted, the franchise team will contact you.
Chai Sutta Bar Franchise Application Procedure:
- Submit Photos and Details: You will need to provide photographs and details about your proposed retail location.
- Location Survey: The Chai Sutta Bar team will survey the location to assess its profitability and suitability.
- Meeting with the Area Manager: After a meeting with the area manager, they will decide whether to approve your location.
- Approval and Agreement: If approved, you and the company will sign an agreement.
- Business Setup: The area manager will assist in setting up the business and drafting the contract.
- Interior Design: The café’s interior can either be designed by the Chai Sutta Bar team or according to your preferences.
- Training and Support: The company will provide training and sales support.
The entire process takes around 45 to 60 days to open your Chai Sutta Bar franchise.
Menu: What You’ll Serve
Chai Sutta Bar’s menu is designed to cater to a wide range of customers, with a focus on its signature kulhad chai. Here’s a glimpse of what’s typically offered:
- Kulhad Chai (various flavors): Masala chai, ginger tea, and chocolate chai served in eco-friendly clay cups.
- Quick Bites: Sandwiches, burgers, and Maggi.
- Cold Beverages: Iced teas, mojitos, and shakes.
- Snacks: Samosas, vada pav, and fries.
This affordable yet varied menu attracts customers from all age groups, making the brand popular among students, working professionals, and families alike.
Return on Investment (ROI) for Chai Sutta Bar Franchise
When evaluating the Chai Sutta Bar franchise, the Return on Investment (ROI) is a crucial metric.
| Metric | Amount (Rs.) | |
|---|---|---|
| Total Investment | ₹17,00,000 | |
| Monthly Net Profit | ₹1,79,500 | |
| Estimated ROI | 108% |
Key Takeaways
- With an ROI of 108%, franchisees can expect to recoup their investment in less than a year.
- This strong ROI reflects the growing demand for tea cafes in India, making Chai Sutta Bar an attractive business opportunity.
In summary, investing in a Chai Sutta Bar franchise offers a lucrative chance to enter the tea market with significant profit potential.
Comprehensive Franchise Support for Success
As a Chai Sutta Bar franchisee, you’ll receive support every step of the way:
- Location Assistance: Help with selecting a prime location that ensures high footfall.
- Staff Training: Ongoing training for staff to maintain high service standards.
- Marketing Support: Continuous support in branding and promotions to ensure visibility and success.
- Operational Guidance: Expert advice on managing day-to-day operations, inventory, and customer service.
Curious about the investment needed to join the Haldirams franchise? Discover all the details here!
Why Chai Sutta Bar Franchise is Worth Considering
Owning a Chai Sutta Bar franchise is a rewarding opportunity for anyone looking to venture into the food and beverage industry, with a clear understanding of the Chai Sutta Bar Franchise Cost.
With a low investment requirement, excellent brand support, and a high-profit margin, it’s a business that promises great returns. Plus, you’ll be part of a brand that promotes sustainability, community, and the rich chai culture of India.
If you’re ready to invest in a franchise that brings both financial rewards and cultural fulfillment, Chai Sutta Bar could be the perfect fit for you!
FAQs about Chai Sutta Bar Franchise
1. What is the total investment required to open a Chai Sutta Bar franchise?
The total investment typically ranges from ₹16 lakhs to ₹25 lakhs, depending on various factors such as location and outlet size. This amount includes the franchise fee, store setup, equipment, and initial stock.
2. What is the franchise fee for Chai Sutta Bar?
The franchise fee usually ranges from ₹6 lakhs to ₹8 lakhs, which is part of the total investment required to start the franchise.
3. What kind of support does Chai Sutta Bar provide to franchisees?
Chai Sutta Bar offers comprehensive support, including training, marketing assistance, and operational guidance, to ensure franchisees have the resources they need for success.
4. What is the expected return on investment (ROI) for franchisees?
Franchisees can expect a strong ROI due to the brand’s popularity and the high demand for affordable, quality chai. While ROI can vary based on location and sales, many franchisees report positive financial returns.
5. What is the menu like at Chai Sutta Bar?
Chai Sutta Bar offers a diverse menu featuring various chai options served in kulhads, along with a range of affordable snacks and beverages that cater to different tastes.
6. Is there a specific target market for Chai Sutta Bar?
Chai Sutta Bar primarily targets young adults, students, and professionals who enjoy affordable, quality chai in a vibrant and friendly environment. The café is designed to appeal to a wide audience