India’s most popular beverage is chai, and chai establishments can be found all over the country. In particular in first- and second-tier cities of India, the MBA chai wala represents a new transformation in the retail tea drinking industry. MBA Chai Wala Franchise is the most trending brand to choose from in the years 2022 and 2023 if you want to reach the huge Indian market of tea lovers. This article will teach you how to start an MBA chai wala franchise in your local area with its Cost, profit margin, requirement, and contact information included.

What Is MBA Chai Wala? How it was started?

One of India’s most popular tea-drinking franchises is MBA Chai Wala, particularly available in first & second-tier cities of India, and expanding to tier 3 cities. MBA stands for Mr. Billore Ahmedabad. They currently have more than 100 locations throughout the nation. They intend to create bases throughout India as they continue to expand.

Mr Prafull Billore is the Founder of the MBA Chai Wala company. On July 25, 2017, he opened his tea business in Ahmedabad city of Gujarat. With just INR 8,000 when he first opened his small corner shop, his net worth was INR 3 crore as of October 2021. Prafull was born in the state of Madhya Pradesh on January 14, 1996. He made the decision to enrol in an MBA programme at IIM Ahmedabad after receiving his degree. He fell short of getting the number needed to get a seat in IIM, though. After some difficulty, he invested only INR 8000 to start a tea shop called MBA Chai Wala. It’s all history now.

How to Start MBA Chai Wala Franchise?

If you want to make an investment in the food and beverage sector in India, choosing an MBA chai Wala franchise can be a wise decision. The most popular product in India is tea, which is always in high demand. Even though this brand is still just four years old, they are familiar with the tastes of young people, students, and tea enthusiasts. The goal of MBA Chai Wala is to sell more than just tea; additional culinary items will also be included. Here, we’ll go over a variety of franchise-related topics as well as some prerequisites for obtaining this expanding business.

Experience Needed to Open an MBA Chai Wala Franchise

Such prior experience is not necessary to operate a tea shop. Despite your lack of experience in this field, MBA Chai Wala is a possibility. Of course, having experience with food and cafe franchises is advantageous while managing the firm. The MBA Chai Wala franchise offers direction and coaching to its employees.

Location of the MBA Chai Wala Outlet

It’s not difficult to find a location for the MBA Chai Wala store. A good location for a tea-selling business is a residential or commercial area, a shopping mall, a bazaar, a highway, or any street with heavy traffic. MBA Chai Wala is still at the height of its popularity and will undoubtedly draw customers to your establishment for a cup of tea.

MBA Chai Wala Franchise Cost

MBA Chai Wala is providing 2 types of franchise models to their franchise partners.

  1. Kiosk (Small Stall)
  2. Dining Cafe

MBA Chai Wala Kiosk (a small stall) Franchise Cost

The MBA Chai Wala franchise’s kiosk model (small stall), which has a 150 sq.ft area, costs nearly 16 lakh rupees. The breakdown of the sum is provided below.

ParticularsCost break downTotal Cost
MBA Chai Wala Franchise Fee4,00,000 rupees4 lakh rupees
Interior & Furniture expenses
1. Furniture, Flooring, Ceiling, Counter Display
2. Electrical Equipments & Lightning work
3. External Signage board, Internal LED
4. LED TV & Music System

2,00,000 rupees
50,000 rupees
50,000 rupees
60,000 rupees
3.6 lakh rupees
Machinery & Kitchen Equipments
1. Pos System, Printer, Cash Drawer
2. Inventory Management System
3. Kitchen Equipment and Utensils
4. Kitchen Partition, Cabinet+Storage
5. Disposable Plates, Packaging Material
6. Staff Uniform

75,000 rupees
12,000 rupees
2,52,000 rupees
76,000 rupees
60,000 rupees
5,000 rupees
4.8 lakh rupees
Raw Material60,000 rupees60 thousand rupees
GST2,34,000 rupees2.34 lakh rupees
Total Investment for Kiosk (small stall)15.34 lakh rupees

MBA Chai Wala Dining Cafe Franchise Cost

The investment of a 400-square-foot MBA Chai Wala Dining Cafe Franchise is approximately 25 lakh rupees. The breakdown of the sum is provided below.

ParticularsTotal Cost
MBA Chai Wala Franchise Fee5 lakh rupees
Interior & Furniture expenses
1. Furniture, Flooring, Ceiling, Counter Display
2. Electrical Equipments & Lightning work
3. External Signage board, Internal LED
4. LED TV & Music System
8.5 lakh rupees
Machinery & Kitchen Equipments
1. Pos System, Printer, Cash Drawer
2. Inventory Management System
3. Kitchen Equipment and Utensils
4. Kitchen Partition, Cabinet+Storage
5. Disposable Plates, Packaging Material
6. Staff Uniform
6.9 lakh rupees
Raw Material60 thousand rupees
GST3.78 lakh rupees
Total Investment for Dining Cafe24.78 lakh rupees

MBA Chai Wala franchise cost payment method

The franchise can be purchased in instalments. The following payment schedule is provided for the instalments.

  1. Installment 1: 1 lakh rupees (1,00,000) + GST
  2. Installment 2: 10 lakh rupees (10,00,000) + GST
  3. Installment 3: Remaining Amount + GST
MBA Chai Wala Franchise Payment terms

Important Agreement Terms of MBA Chai Wala

  1. 4,00,000–5,00,000 Indian Rupees Licensing fees are applicable for five years. It will be renewed over the next five years at a cost of 2,00,000–2,50,000.
  2. A 4% royalty fee will be applied on sales.
  3. The time it takes to open an outlet is typically 45 to 60 days.
  4. The outlet space must have 100 sq. ft. carpet area.
  5. If the space is larger than the models mentioned above, the price per square foot will increase by 2,000 rupees.
  6. The minimum requirement of employees at MBA Chai Wala is 1 to 3 employees. You can hire more if it is required.
  7. Staff training will be offered without charge.

MBA Chai Wala Menu of random Store in 2023

Additionally, they provide more than 20 different kinds of chai, snacks, and juices. Additionally, they will soon add options for Nasta (breakfast) to their menu.

MBA CHAI WALA MENU
MBA Chai Wala Menu 2023

Benefits of establishing an MBA Chai Wala outlet

  1. Great Brand Recognition: The greatest benefit of owning an MBA CHAIWALA franchise is brand recognition. The brand is expanding quickly in the Indian sector of food and beverages and has already established its name and reputation exposure. by offering its clients high-quality tea, coffee, and snacks for reasonable prices.
  2. Operations Insight: The franchise’s operations are hassle-free. Additionally, it has simple operational processes and operations. The franchisee will be provided with documentation. Additionally, you will receive all the help you need to set up the store and run your business.
  3. Cost Optimization: The company has implemented low-cost business operations and is moulded as per the market requirements.

MBA Chai Wala Franchise Profit calculation

When sales of an outlet are above 5,00,000 Rupees per month and all expenditures have been deducted, the profit margin, on average, will be 40%. Let’s use an example to better appreciate the MBA Chai Wala Franchise’s profit margin during its early years. Initial sales are estimated to be 2,00,000 rupees.

Income / ExpensesBest Case Sales
(in Rupees)
Average Case Sales
(in Rupees)
Worst Case Sales
(in Rupees)
Approx sales of a month5,00,0003,00,0002,00,000
Rent of a space/store-45,000-35,000– 20,000
Salary of employees-55,000-45,000– 40,000
Gas, electricity, and water bills-18,000-15,000– 12,000
Raw Material cost – 45% on Sales-2,25,000-1,35,000– 90,000
Royalty of 4% on the sales-20,000-12,000– 8,000
Other expenses-15,000-12,000– 10,000
Net Profit Earned1,22,000 (24.4% of sales)46,000 (15.33% of sales)20,000 (10% of sales)

The average profit of MBA Chai Wala Franchise is 16.57%, considering all 3 scenarios of the sales.

Don’t be astonished by the lesser profit because the fixed costs, like rent and employee salaries, were higher in the beginning than sales. The net profit will rise along with the Sales.

In this case, the sales in an outlet are at a lower level. These numbers will dominate the Sales in the early going. The profit will, however, rise sharply following effective local branding and promotion. Considering the annual MBA Chai Wala (single store) turnover of 36 lakhs, the net income of the store will be 5-6 lakhs rupees.

How to apply for MBA Chai Wala Franchise?

By visiting their website and submitting a contact form there, you can reach them immediately in the quickest method if you want to start an MBA Chaiwala outlet. You don’t need to travel anywhere to submit an application because everything is done online. Afterwards, after a short period of time (a few business days), they will get in touch with you on the mobile number you provided in the form of their website. If you have already made the necessary arrangements, prepare to open a store. They will assist you with the remaining steps, and congratulations, the job is over.

The process to open a new MBA chai wala outlet

MBA Chai Wala Process

Documents required to apply for the new store

  • Aadhar Card
  • Pan Card
  • 1 Passport Size Photo
  • Front Page of Bank Passbook
  • 3-4 Photos of the Store Location

MBA Chaiwala contact info

Official AddressKarishma Complex, Shop 2, Stadium Cross Rd, below Pintoo Garment, Navrangpura, Ahmedabad, Gujarat 380009.
Mobile number for inquiry+917222905222
Official E-mail address[email protected]
Websitembachaiwala.com

Must Read: Chai Sutta Bar Franchise Cost.

Final Review by Make My Business (MMB)

Finally, we discovered that Chai (tea) is India’s most popular drink and India consumes the most tea in the Asia-Pacific region and is the second-largest producer after China, accounting for approximately 30 percent of global production. Additionally, it is a market that is constantly in demand, and this indigenous brand MBA Chaiwala, one of India’s most recognisable and creative chai franchises, offers a respectable return on investment and has modest operating expenses. Particularly noteworthy is the MBA chaiwala team’s strong drive to expand the company quickly over the next five years. They are successful in attracting investors and business owners to their straightforward operation, and they work hard to seize the largest portions of the Indian market first.

Having a strong online presence has helped MBA Chai Wala become one of the most well-known brands in the tea market. There aren’t many MBA Chai Wala outlets in India, so right now is a great moment to get one of their outlets.

A suitable location will make the investment worthwhile. Students and corporate employees who come for a cup of tea and a good conversation after a long day are the target market. Therefore, location is crucial in luring customers to the store. To produce large sales, it should be located closest to them.

I estimate that it will take about 1.5 years to recoup the initial investment, which is reasonable. Zomato and Swiggy both let you make money. The primary goal should be to attract in businesses and youngsters or school students as they love tea refreshments, and they will buy food for delivery to their offices or colleges.

FAQ

Who is the Founder of MBA Chai Wala pvt. ltd.?

Mr. Praful Billore is the owner and founder of MBA Chai Wala

How much does MBA Chai Wala franchise cost in India?

There are 2 kinds of frachise outlets available. Kiosk (Small stall) and Dining cafe. For Kiosk it will cost approx 16 lakh rupees and for Dining cafe it will cost around 25 lakh rupees of initial investment.

What is the profit margin of MBA chai wala franchise?

The average profit margin of MBA chai wala outlet is around 10% to 25%.

How much time it takes to open a new MBA chai wala store?

Opening a new store generally takes around 45 to 60 days.

How many outlets of mba chai wala are there in India?

There are 100+ outlets of MBA Chaiwala in India in 2023.

What is mba chai wala net worth?

As of 2023, the estimated net worth of MBA Chai wala is more than 55 crores INR.