Many individuals who are looking to start a tea business are curious about the franchise cost of Chai Sutta Bar.
Chai Sutta Bar Franchise, established in 2016, is a growing tea business in India that aims to merge the health benefits of Kulhad with the country’s beloved drink, “Chai.” Based in the business hub of Madhya Pradesh, Chai Sutta Bar is known for its unique qualities and exceptional customer service.
For those looking for a low-cost investment opportunity, owning a CSB(Chai Sutta Bar) franchise can serve as a secondary source of income.
The franchise is easy to run, making it accessible to anyone with a modest investment. Additionally, the Chai Sutta Bar franchise cost is reasonable. At all of its franchise locations, Chai Sutta Bar offers the same delicious chai in an atmosphere that elevates the taste to a new level. It’s important to understand why the chai business is so popular in India before investing in a franchise.
Tea is a staple in India and is considered the ideal beverage for various occasions. If you walk down any street in India, you’re sure to come across tea vendors selling a warm cup of Masala Chai. With 837,000 tonnes of tea consumed each year, it’s no surprise that tea is the most loved drink in India.
According to a survey conducted by the Tea Board of India, nearly 88% of Indian families reported drinking tea, with 64% of the total population in India consuming tea regularly. This has made tea businesses an attractive option for entrepreneurs and investors looking to start a franchise business in India.
These statistics demonstrate the strong demand for tea in India and make the tea business a viable franchise opportunity. With tea being such a widely consumed beverage in India and the tea cafe industry showing no signs of slowing down, starting a tea franchise like Chai Sutta Bar can be a profitable venture for anyone looking to enter the business world.
Chai Sutta Bar Franchise Benefits in India
- Low upfront investment with potential for high returns: Chai Sutta Bar franchise is an attractive business opportunity for those who want to start a business with low investment and high returns. The franchise cost of Chai Sutta Bar Café is between 6 to 8 lakh rupees for any Indian location, with a total investment of around 16-18 lakh rupees needed. This relatively low investment requirement makes it an accessible option for aspiring entrepreneurs who don’t want to put too much money into their first business venture.
- Full support for operations and marketing from the brand: Chai Sutta Bar is a well-established brand in the Indian market with a strong reputation for providing quality tea and snacks. As a franchisee of Chai Sutta Bar, you can benefit from their brand recognition and reputation to attract customers to your outlet.
- Comprehensive supply chain system: Chai Sutta Bar provides a robust supply chain ecosystem to ensure that all franchise locations have access to high-quality materials and ingredients required to run a successful business. The company has established partnerships with top vendors and suppliers to ensure that all franchisees receive the necessary support and resources to succeed.
- Strong brand reputation: Chai Sutta Bar is a well-known brand in the Indian food and beverage industry. It has a strong reputation for providing quality products and exceptional customer service. Over the years, Chai Sutta Bar franchise has developed a loyal customer base, and the brand has become synonymous with delicious and affordable chai and snacks.
- High profitability with low overhead costs, growth opportunities, high return on investment, cost-effective infrastructure, and flexible investment options for a wider reach. Chai Sutta Bar is a rapidly growing franchise with many opportunities for growth and expansion. As the demand for their unique concept continues to increase, there are many flexible investment options available for potential franchisees.
- Chai Sutta Bar franchise partners are experiencing substantial profits and outstanding growth annually. Starting a franchise with the brand is effortless and the cost is very reasonable. With the recent lockdown, opening a Chai Sutta Bar franchise is an excellent opportunity. Given the widespread popularity of tea, there is a high potential for profitability with the company.
Overall, Chai Sutta Bar provides a strong foundation for franchise growth with flexible investment options and opportunities for multiple location ownership. With the company’s strong brand reputation and growing demand for their products, investing in a Chai Sutta Bar franchise can be a smart and profitable business opportunity.
Chai Sutta Bar Franchise Models
FOFO (Franchise Owned Franchise Operated)
The FOFO model, or Franchise Owned Franchise Operated, is a business arrangement where a company grants the use of its brand name to a franchise operator for a set period of time. This agreement is established by paying a non-refundable fee, referred to as the “Franchise Fee,” to the company. The franchise operator then becomes responsible for operating the business using the company’s established brand name.
The COCO (Company-Owned Company Operated)
The COCO (Company-Owned Company-Operated) establishment is a business model where the company directly operates and manages all aspects of the business, from opening to running the store. It is not associated with any franchise locations and is solely owned and operated by the company.
Chai Sutta Bar Franchise Cost in India
The Chai Sutta Bar Café franchise fee for any location in India is set at ₹6 lahks, and an investment of nearly ₹19 to ₹21 lakhs is required. This franchise opportunity boasts a return on investment (ROI) of 2%. For quick reference, a table with a detailed breakdown of costs is provided below:
| Expenses | Amount in Rupees |
|---|---|
| Franchise Fee (6 Lakhs) + 18% GST | 7,08,000 |
| Furniture and Interiors | 5,00,000 |
| Equipments and Machinery | 3,00,000 |
| Marketing and Branding | 2,00,000 |
| Advance Raw Material | 2,00,000 |
| Other Expenditure | 35,000 |
| Total Cost | 19,43,000 |
Important Guidelines of Chai Sutta Bar Franchise
- The franchise fee for Chai Sutta Bar Café is 6 Lakh Rupees, valid for 5 years, and renewable for 3 Lakh Rupees for the next 5 years.
- The machinery includes all the necessary equipment and utensils required for the café’s operation.
- The company provides raw materials from a third-party source, including all tea flavors, kulhad, coffee powder, chocolate powder, water bottles, and packaging material.
- While perishable goods such as milk, cheese, bread, bun, butter, and vegetables are not provided by the company.
- As a ritual, Chai Sutta Bar Café offers free tea and coffee during the opening ceremony.
- The first 15 days of training will be provided in Indore for four employees.
- The Franchisor offers complete support to its franchisees.
Chai Sutta Bar Franchise Profit margin in India
Chai Sutta Bar franchises offer a high ROI, averaging 108%, and can be found all over the nation. If you’re looking to start a business without worrying about building a consumer base, Chai Sutta Bar is a great option. The widespread love for beverages, especially chai, means that there’s a large potential market for your franchise. Considering the potential return, the franchise cost of Chai Sutta Bar is definitely worth it.
Below is the detailed calculation for the profit margin of the chai sutta bar franchise. Where we have considered the 3 different sales scenarios.
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Monthly Gross Sales | 5,00,000 | 3,00,000 | 2,00,000 |
| Raw Material (approx 50% of sales) | -2,50,000 | -1,50,000 | -1,00,000 |
| Royalty (2%) | -10,000 | -6,000 | -4,000 |
| Shop Rent | -45,000 | -35,000 | -25,000 |
| Employee Salaries | -55,000 | -45,000 | -40,000 |
| Aggregator Commission | -10,000 | -8,000 | -6,000 |
| Electricity and Water Bills | -18,000 | -15,000 | -12,000 |
| Other Expenses | -12,000 | -10,000 | -8,000 |
| Net Profit | 1,00,000 (20% of sales) | 31,000 (10.33% of sales) | 5,000 (2.5% of sales) |
The Chai Sutta Bar Franchise has an average profit of 11%, taking into account all three sales scenarios.
It’s important to note that in the initial stages, fixed costs such as rent and employee salaries were higher than sales, which led to lower profits. As sales increase, however, so will net profit.
Must Read: MBA Chai Wala Franchise Cost.
How to apply for Chai Sutta Bar Franchise in India?
To open a Chai Sutta Bar franchise, the process includes the following steps:
- Provide photographs and information about your retail location to the management.
- The management will survey your location and consult with you to determine if it will be profitable.
- Following a meeting with the area manager, the management will decide whether to approve your
location. - If the location is approved, you and the corporation will come to an agreement.
- The area manager will assist you in setting up your business and creating the contract.
- The interior of the cafe can be designed by the CSB team or by your own preference.
- You will receive training and a salesperson will work with you.
On average, it takes 45 to 60 days to open your Chai Sutta Bar franchise outlet.
By following these steps, you can successfully open your Chai Sutta Bar franchise within 45 to 60
days.
Contact Details of Chai Sutta Bar Franchise
You can visit the official website of Chai Sutta Bar at https://www.chaisuttabarindia.com/franchise/ or contact them at +91 62623 00031 or [email protected].
Conclusion
Chai Sutta Bar has an inspiring story of going from humble beginnings to great success through hard work and entrepreneurship. The franchise opportunity is an exciting and generous one, offering attractive profits. Follow the necessary steps and requirements to start your own Chai Sutta Bar franchise and embark on the path to entrepreneurship.
The profit seems a little low than MBA Chai Wala Franchise, but if you consider the quality and footsteps of customers, Chai Sutta Bar has more numbers.
FAQs
Who is the founder and owner of Chai Sutta Bar?
A young entrepreneur born in 1996, Anubhav Dubey is the Founder and Owner of the Chai Sutta Bar Franchise.
How to get a Chai Sutta Bar Franchise?
To open a Chai Sutta Bar franchise, the process includes few steps to follow. But in initial stage, you can visit the official website of Chai Sutta Bar at https://www.chaisuttabarindia.com/franchise/ or contact them at +91 62623 00031 or [email protected].
How many outlets of Chai Sutta Bar are there?
Chai Sutta Bar is available in more than 200+ cities in India as well as in cities of gulf countries like Dubai and Oman with over 450+ outlets worldwide.
How much Chai Sutta Bar Franchise Cost?
The Chai Sutta Bar Café franchise fee for any location in India is set at ₹6 lahks, and an investment of nearly ₹19 to ₹21 lakhs is required.
How much is Chai Sutta Bar Franchise Profit Margin in India?
According to the rough calculation, the Chai Sutta Bar Franchise has an average profit of 11% on monthly sales. Which is approximate and may vary depending on the situation and location of the outlet.
