Tea Post is a tea and coffee chain franchise that offers various food items such as Sandwiches, Burgers, Fries, Gujarati Snacks, Poha, Maska Bun, Buiscits, and Indian fast food like samosas and chat.
The Tea Post franchise’s key success factor is its digital marketing support, which complements its conventional marketing support. This is particularly important in today’s digital age.
About Tea Post
The founder of Tea Post, a businessman from Rajkot, had a passion for tea and decided to establish tea cafes to sell tea. Tea Post has rapidly expanded its business with more than 160 outlets located across Gujarat, Rajasthan, Maharashtra & Madhya Pradesh, making it one of the fastest-growing food startups in the region.
The main objective was to provide quality tea and snacks at affordable prices, catering to the needs of students, office goers, senior citizens, and families who are craving tea outside their homes. The company aims to offer hygienic tea and food in a friendly and budget-friendly environment, becoming a part of everyone’s daily routine. Tea Post is committed to providing a welcoming atmosphere where people can enjoy quality tea and snacks with their loved ones.
Tea Post Franchise Cost in India
Tea Post Provides 2 kinds of franchise Models
- Basic Franchise Model
- Premium Franchise Model
Tea Post Basic Franchise Model cost around Rupees 18 lakhs which requires a minimum area of 100 square feet.
Tea Post Premium Franchise Model cost around Rupees 35-40 lakhs which requires a minimum area of 1000 square feet.
| Particulars | Cost for Basic Franchise Model | Cost for Premium Franchise Model |
|---|---|---|
| Franchise Fees (2.5 lakhs) +18% GST (45000) | 2,95,000 | 2,95,000 |
| Security Deposit (Refundable) | 1,00,000 | 1,00,000 |
| Interior, Machinery, and Equipment Cost | 12,50,000 | 35,00,000 |
| Marketing | 30,000 | 50,000 |
| Advance Raw Material | 1,00,000 | 1,00,000 |
| Other Expenditure | 30,000 | 50,000 |
| Total Investment | 18,05,000 | 40,95,000 |
Tea Post Franchise Profit Margin
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Gross Monthly Sales | 5,00,000 | 2,80,000 | 1,80,000 |
| Raw material @50% | -2,50,000 | -1,40,000 | -90,000 |
| Shop Rent | -60,000 | -30,000 | -25,000 |
| Electricity and Water Bills | -14,000 | -8000 | -5000 |
| Employee Salary | -50,000 | -30,000 | -15,000 |
| Royalty | -25,000 | -14,000 | -9000 |
| Swiggy, Zomato commission | -12,000 | -10,000 | -6000 |
| Other Expenses | -15,000 | -10,000 | -10,000 |
| Net Profit | 74,000 (14.8% of sales) | 38,000 (13.57% of sales) | 20,000 (11.11% of sales) |
The above calculation shows that the average net profit of the Tea Post franchise considering all 3 scenarios(14.8%, 13.57%, 11.11%) is 13.16% of total monthly sales. Which is an average profit margin in the Indian Tea and snacks industry.
Factors of Tea Post Franchise
- The Tea Post franchise has established a strong brand presence in Western India, specifically in Gujarat, Madhya Pradesh, Rajasthan, and Maharashtra.
- To maximize footfall and visibility, it is recommended to open a franchise in bustling market areas, high streets, highways, commercial hubs, bus depots, railway stations, and institutes.
- One of the key advantages of the franchise is its affordability, with all products priced under 100 Rupees, making it pocket-friendly for customers.
- The franchise prioritizes maintaining high-quality standards while offering competitive prices, ensuring customer satisfaction.
- The management of the Tea Post franchise is known for its excellence. However, it is essential for franchise owners to maintain a positive and courteous demeanor toward customers and consistently deliver food of exceptional quality.
Tea Post Franchise Review
The Tea Post franchise requires a significant initial investment while offering relatively low returns on investment. The profit margin for outlets where every item costs under 100 rupees is only 13%.
Despite having a high daily footfall of customers, the resulting profit is minimal. It would be beneficial to consider reducing the royalty fee and interior costs.
Currently, Tea Post prioritizes customer satisfaction, which is commendable. However, the high initial investment is a drawback as it may take several years to recoup the initial investment.
The outlets themselves are impressive, offering excellent quality tea and food with attractive interior designs, all at affordable prices. I personally visited the Skit and IIM Ahmedabad outlets and found the tea to be of good quality.
However, it’s worth noting that other tea franchises like Chai Sutta Bar and Tea Time provide greater value and profitability to franchise owners, along with exceptional marketing programs.
Given the highly competitive nature of the tea franchise industry, it would be advisable to consult Tea Post’s customer service to explore options for reducing the investment required.
