Tea Time Franchise is a popular tea brand in India that has become a go-to destination for tea lovers who appreciate authentic, quality tea at affordable prices. The brand is well-known for providing a cozy and comfortable atmosphere where friends and colleagues can meet up to enjoy a hot cup of tea while discussing their thoughts and ideas.
Since its inception in 2016, Tea Time Pvt Ltd has served over three crore customers across India, providing a range of tea blends made from pure Assam tea leaves to cater to the different tastes and preferences of tea enthusiasts.
Tea Time Franchise was founded by Uday Srinivas Tangella, who risked a substantial amount of ₹12 lakhs from his own pocket as an initial investment to start the business. The first outlet was established in Rajamundry, a small town in Andhra Pradesh. Since then, Tea Time Pvt Ltd has expanded its operations to incorporate a presence in more than 3500 outlets throughout India, showcasing its rapid growth and success in just four years.
The brand’s focus on providing high-quality tea blends, along with its commitment to creating a welcoming and comfortable atmosphere for customers, has helped it establish a loyal customer base and a reputation for being a reliable and affordable tea brand in India. With its continued expansion, Tea Time Franchise is sure to become a household name in the Indian tea industry.
Benefits of starting Tea Time Franchise in India
- Demand: Tea Time is a tea-based food and beverage retail brand that has been thriving in India due to its ability to cater to the varied tastes of consumers. With a range of tea blends and side snacks on offer, Tea Time has managed to serve every niche of the consumer market, providing a consistent demand for its products.
- favorable consumer market: In India, the love for tea is just as fierce as it is for cricket, making it a traditional routine consumption for most households. As a result, Tea Time has benefited greatly from the consistent demand for tea in the Indian consumer market.
- Easy Setup: Tea Time’s business model as a food and beverage retail shop also comes with several advantages. It requires less investment and can be run with minimal staff and operational and management work, making it a more accessible business opportunity for entrepreneurs.
- Low Investment: Tea Time has already established itself as a reputed brand in the F&B retail industry, with over 3500 stores across India. This strong brand presence, coupled with low capital requirements of as little as ₹5 lakhs, has made it an attractive investment opportunity for many.
- Business Support: Furthermore, Tea Time offers assistance in terms of outlet establishment, training, operational management, marketing, and more. This support makes it easier for entrepreneurs to start and run their own Tea Time franchise.
Overall, Tea Time’s ability to cater to the consistent demand for tea in the Indian market, coupled with its minimal requirements, strong brand presence, and support for franchisees, has contributed to its success and popularity in the F&B retail industry.
Tea Time Franchise Menu in India
Tea Time Franchise Cost in India
The Tea Time franchise offers an attractive investment opportunity for entrepreneurs, with an initial investment of only 6 lakh Rupees. The minimum size of the shop should be 100 square feet, although an ideal space of 150 square feet or more is recommended.
The franchise fee for Tea Time is 4,25,000 Rupees, which includes not only the franchise fee but also the marketing fee, as well as the cost of all equipment needed to set up the franchise. This equipment includes a hot snacks case, refrigerator, deep freezer, induction stove, high-pressure gas stove, fruit mixer, tea utensils, tea powder, branded glasses, name boards, display menu, lollipop board, decoration items, photo frames, and initial stock.
The outlet itself should have tile flooring, a kitchen partition, a water connection, and an outlet counter. However, franchisees are only responsible for arranging these items, as the Tea Time brand will take care of the rest. Overall, Tea Time provides an affordable and comprehensive franchise package for entrepreneurs looking to enter the F&B retail industry.
Below is the detailed breakdown of the Tea time franchise cost in India.
| Expenses | Amount (in Rupees) |
|---|---|
| Franchise Fees (including Machinery) | 4,25,000 |
| GST on Franchise Fees | 76,500 |
| Basic civil and plumbing work | 30,000 |
| Initial Raw Material | 40,000 |
| Other Expenses | 30,000 |
| Total Investment | 6,01,500 |
Tea Time Franchise Term & Conditions
- The franchise agreement for Tea Time Franchise is valid for a period of 5 years, after which you can renew the agreement by paying 10% of the franchise fee. All the equipment provided by Tea Time is branded and comes with a warranty, ensuring quality and reliability for the franchisee.
- For the training of employees, there are two options available. The first option is to send the staff to any of Tea Time’s selected shops in their nearest location or to the lab in Hyderabad. While the training at these locations is completely free, the cost of the staff’s travel, food, and accommodation will have to be borne by the franchisee. The second option is to have one of Tea Time’s chefs visit the shop for training for 3-4 days, which will cost a training fee of Rs. 10,000/-. In addition, the franchisee will have to bear the expenses of travel, food, and accommodation of the trainer.
- A monthly royalty of Rs. 2,000/- is to be paid by the franchisee, with no additional hidden charges or percentages on sales or profit made by the franchise. However, no royalty will be charged in the first year of operation.
- While the POS system is not mandatory, it is provided as an optional choice for franchise owners. In such a case, an additional amount of Rs. 25,000/- will be added to the franchise fee.
Tea Time Franchise Raw Material Cost
Below is the list of raw material items that are provided by the tea time to the franchise owners. The price below mentioned may vary due to the listing time gap.
| S.No | Items | Quantity | Amount (including GST) |
|---|---|---|---|
| 1 | Badam Powder | 500 gms | 250 Rupees |
| 2 | Kullad Masala | 200 gms | 450 Rupees |
| 3 | Tea Masala | 200 gms | 240 Rupees |
| 4 | 49 ml Glass | 1 pc. | 3.75 Rupees |
| 5 | 99 ml Glass | 1 pc. | 4.75 Rupees |
| 6 | Green Tea | 125 gms | 175 Rupees |
| 7 | Tea Powder | 1 Kg | 396 Rupees |
| 8 | Kashmiri Tea Powder | 1 Kg | 680 Rupees |
| 9 | Take Away Flask | 1 pc. | 24 Rupees |
| 10 | Kulhad Chai Cup | 1 pc. | 3 Rupees |
| 11 | Matka Lassi Cup | 1 pc. | 5 Rupees |
| 12 | Tea Cup | 1 pc. | 1 Rupee |
| 13 | Osmania Biscuit | 400 gms | 120 Rupees |
| 14 | Fruit Biscuits | 400 gms | 168 Rupees |
Any other raw materials required in the store, and not listed in the above table will have to be purchased from the local market by the store owner. That will not be provided by the company.
How to order Tea Time Franchise Raw Material?
- The franchise warehouse offers multiple channels for store owners to place raw material orders, including Whatsapp, phone calls, messages, and emails. Contact information will be provided for these options.
- Upon receiving an order, a proforma invoice will be generated and sent to the franchise. Payment must be made to the bank account details provided in the invoice, and an acknowledgment of payment receipt should be sent back to the warehouse.
- Once payment is confirmed, the warehouse will dispatch the materials and provide tracking information. The franchise is responsible for tracking the shipment and collecting it from the transporter at the local level.
Tea Time Franchise Profit Margin in India
Starting a Tea Time franchise can yield high returns, as the company only charges a flat amount of 2000 rupees as a royalty on profit in addition to the initial investment.
We will analyze the profit of the Tea Time Franchise in India, considering 3 sales scenarios of the stores to get better figures for the profit margin.
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Monthly Sales | 4,00,000 | 2,00,000 | 1,20,000 |
| Raw Material (approx 45% of sales) | -1,80,000 | -90,000 | -54,000 |
| Royalty | -2000 | -2000 | -2000 |
| Shop Rent | -28,000 | -20,000 | -20,000 |
| Employee Salaries | -25,000 | -15,000 | -12,000 |
| Electricity and Water Bills | -20,000 | -15,000 | -12,000 |
| Other Expenses | -10,000 | -8,000 | -5,000 |
| Net Profit | 1,35,000 (33.75% of sales) | 50,000 (25% of sales) | 15,000 (12.5% of sales) |
The above calculation shows that the average net profit of the Tea Time franchise considering all 3 scenarios(33.75%, 25%, 12.5%) is 23.75% of total monthly sales. Which is a good profit margin in the Tea and snacks industry.
Location is a crucial factor in determining the success of a Tea and snacks business as it directly impacts sales and customer attraction.
Tea Time Franchise Review
In our opinion, Tea Time Franchise is an excellent investment opportunity that is both profitable and affordable. There are no hidden costs, and the initial investment is very reasonable. What’s more, the royalty fee is fixed at 2,000 Rupees, regardless of how much the sales are. The franchise retention price is also attractive at only 10%, which makes it a great long-term investment.
One of the best things about this franchise is that you don’t need a lot of space to set it up. A small sitting area next to your shop will suffice, and you can even add a few items to your menu if you wish. However, it’s important to note that adding any other flavors of tea is not allowed by the franchise.
Tea Time is also highly focused on marketing and takes advantage of every opportunity to advertise themselves on various platforms, such as cricket matches, comedy shows, concerts, etc. As a result, the brand has garnered rave reviews from customers, who appreciate the variety of tea and milkshakes offered. If you want, you can also add some food items to your menu.
One of the best things about tea is that it is a necessity, which means that you will gain regular customers easily. The key is to focus on making great tea and providing excellent customer service to ensure customer retention.
Finally, it’s important to consider the location when setting up a franchise. Since Tea Time is a small outlet, it’s easy to afford a small shop in a busy market with high footfall. Ideally, you should try to open the outlet near schools, colleges, corporate offices, shops, and other high-traffic areas to maximize your chances of success.
Must read: Chai Sutta Bar Franchise.
FAQ
How much does the Tea Time Franchise cost in India?
The Tea Time franchise requires an initial investment of only 6 lakh Rupees. Where the Franchise fee is 4,25,000 Rupees, which includes not only the franchise fee but also the marketing fee, as well as the cost of all equipment needed to set up the franchise.
How much space is required to start Tea Time Franchise?
The minimum size of the shop should be 100 square feet, although an ideal space of 150 square feet or more is recommended.
Who is the tea time franchise owner?
Uday Srinivas Tangella is the founder and owner of the Tea Time pvt. ltd.
