Do you Love Tea and looking for exciting opportunities in this Industry? How about starting your own outlets by taking a license from a renowned brand – Tea House Franchise.
In this guide, we’ll dive deep in to Tea House franchise with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Franchise Fee: Rs. 3.25lacs
- Space requirements: Min. 100-150 sq. ft.
- Other expenses: Rs. 50000
- Royalty Fee: Nil
- Profit Margin: 40-80%
- Agreement period : 5 Yrs
- Total Initial Investment: Rs. 5 lacs
Table of Contents
Overview of Tea House Franchise
As Indians, we need no introduction to Tea. Aside from coffee, it is also considered one of the most widely consumed hot beverages worldwide. Everyone loves Tea, and serving different varieties could make it more interesting.
Founded in October 2017 by Komati Nagendra Prasad Gowd & Kondiparthi vema nagendra prasad, Tea House is one of the popular and rapidly growing Tea chains that primarily serves varieties of Tea, coolers, shakes, and other fast food items. With a bold vision is to reach to all tea lovers and make them taste the best variants of tea globally, the chains has spread into number of outlets across southern India.
The franchise is also renowned for serving varieties of delicious and flavored tea and their initial serving would cost you just Rs. @10. Starting a Tea franchise requires a little investment which garners an impressive profit margin. The chain does provide an extended support to operate an outlet hassle-freely.
Please continue reading if you are passionate about Tea franchises & this little snippet about the Tea House chain excites you.
We will offer comprehensive and well-researched information regarding the Tea House, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
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Tea House – The Journey
The journey started in late 2017, with a mission to serve affordable and varieties of flavored Tea, coolers, shakes, and other snacks to franchising more than 50 Tea outlets across several Indian cities is really inspiring. Tea house groups has established itself as a renowned brand, giving it a nationwide presence and a robust loyal customer base.
Key facts of Tea House franchise
| Sr No. | Type | Private |
| 1 | Trade Name | Tea House |
| 2 | Industry | Tea and Cafe |
| 3 | Founded | Oct 2017 |
| 4 | Founders | Komati Nagendra Prasad Gowd Kondiparthi vema nagendra prasad |
| 5 | Headquarters | D.No : 86-4-8/1, Tilak Road, Beside Lakshmi Dept Store, Rajahmundry, East Godavari, Andhra Pradesh – 533103, India |
| 6 | Number of locations | Over 50 franchised locations |
| 7 | Area served | Most of the cities in Southern India |
| 8 | Model | FOFO |
| 9 | Flavor offering | Over 25 flavors and varieties of other items |
| 10 | Retails Turnover | Not disclosed |
| 11 | Website | https://teahousegroup.com/ |
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Tea House Menu
Tea house franchise offers a broad range of menus that provides a delicious and delectable taste to its consumers. Some of their products are mentioned below;
Why to Start a Tea House Franchise?
If you are thinking of starting a Tea House franchised outlet, you might have multiple thoughts and several chains options running through your head. But don’t worry! We are here to clear your doubt and assist you to make an informed decision.
Now the question arises, why should someone prefer to open a Tea House franchise outlet over any other chains such as Tea Time, Mr. Tea, Chai Sutta Bar, MBA Chai Wala, Samocha, Chai Garam Cafe or any other food franchise? Well, then, let us simplify it for you. There could be multiple reasons to start a Tea house outlet, but we have highlighted a few prominent features supporting the ownership of this franchise.
- Wide range of serving:
- Tea House offers a wide range of affordable menus to its consumers and some of their offering includes Green Tea, Dum Tea, and other snacks.
- Safety measures and precautions:
- Tea house offers an efficient safety measures and precautions, enabling the franchise owner to have full control over the product quality and pricing.
- Low investment and higher return:
- Tea house may offer a better return for your investment. One can certainly expect a gross profit margin of 40-80%.
- Authentic Taste:
- Its robust supply chain ensures that all of its food items have an authentic taste without compromising quality.
- Quality Control systems:
- Tea House franchise provides a world class quality control systems that enables them to attain consistent result every time.
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How much does a Tea House Franchise Cost?
To start a Tea House franchise, one would at least require an initial investment of Rs. 5 lacs and a minimum space of 100-150 sq. ft with a minimum store frontage of 8-10 ft. Furthermore, Before choosing a location for a Tea House outlet, one must do the extensive market research and understand the market potential and its growth prospects for chosen area/city.
Tea House Franchise Fee
The chain does charge a franchisee deposit fee of Rs. 3.25 lacs for an agreement period of 5 years, which includes marketing fee and the cost of all equipment such as 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 an initial stock.
Nevertheless, there are other cost what franchisee unit holder has to take care are : tile flooring, kitchen partition, tea counter, Interior or furnishing cost, painting, rent, and employee salary to setup an Tea house outlet.
Other Cost breakup – Tea House
Typically, to run and maintain a Tea house chain, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments. However, you would be surprised by knowing that the Tea House brand doesn’t charge any royalty or commission for sale.
| Particulars | Cost |
| Franchise Fee Or Brand Deposit | Rs. 3.25 lacs |
| Interior furnishing cost | Rs. 50000 |
| Furniture and other cost | Rs. 10000 |
| Initial Working Capital | Rs. 50,000 |
| Shop advance agreement | Rs. 50000-1 lacs |
| Initial Investment Cost | Approx. 5 lacs |
Ideally, A Tea house franchise cost in India will be approx. 5 lacs.
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What is a Tea House Franchise Royalty Fee?
The Tea house franchise doesn’t charge any royalty fee or commission on sales from its franchisee owner. It would certainly allow the unit holder to earn few extra profit margin on its investment.
Tea House Franchise Profit Margin
In general, the tea industry is quite profitable, and one can certainly make a handsome profit from any kind of outlet. You should always remember that these outlets might look small or cozy, but they sell 1000-5000 teas per day at a minimum price of Rs 10, making it average revenue of Rs. 10000-50000 per day.
Since Tea House stores require fewer employees to operate, owners can expect a gross profit margin of 40-80% and a net profit margin of 25-30%.
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Documents required to own a Tea House outlet
- Aadhar/ Pan Card Photocopy
- Outlet Pinned location
- GST/ Trade License for firm
- Advance deposit
- Other government license, if necessary
- Outlet agreement license
- Applicant’s Photograph
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How to Open a Tea House franchise?
Getting a Tea House franchise business requires a low investment and in return offers an impressive profit with high EBITDA. Nevertheless, Tea house offer several benefits, and interested candidates can take up franchise outlet locally.
To get a Tea house franchised outlet, please visit their official website and fill in the required details in franchise form.
Fill in the Name, Email ID, Phone number, and other requested details.
Once you submit the necessary details, the Tea House sales team will review your application and contact you based on their location feasibility.
Official details of Tea House
- Tea House franchise contact Number : 9701007333, 9705918222, +91 7661966222
- Email ID: info@teahousegroup.com
- HQ Address:
- D.No : 86-4-8/1, Tilak Road, Beside Lakshmi Dept Store,
Rajahmundry, East Godavari, Andhra Pradesh – 533103, India
- D.No : 86-4-8/1, Tilak Road, Beside Lakshmi Dept Store,
Conclusion
Tea House is one of India’s popular and rapidly growing Tea chains, that primarily serves varieties of affordable delicious flavored Tea, coolers, lassi, shakes, coffee, smoothies, and much more. It has a robust franchise network of more than 50 retail units and more units planned for future expansion.
Interested applicants can open a Tea House outlets with a franchise fee deposit of Rs. 3.25 lacs, and total initial investment of Rs. 5 lacs. Furthermore, the franchisee may expect a healthy gross profit margin of 40-80% and a net profit margin of 25-35%.
The bottom line is that if you are interested in the Tea and Cafe Industry, then setting up a Tea house outlet can be profitable and may offer you a healthy margin and future growth.
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FAQ
How much does the Tea House Franchise cost in India?
Ans: Opening a Tea House outlet would certainly require a total initial investment of Rs. 5 lacs. Furthermore, below is the cost break up for the same;
Franchise Fee: Rs. 3.25lacs
Space requirements: Min. 100-150 sq. ft.
Other expenses: Rs. 50000
Royalty Fee: Nil
Profit Margin: 40-80%
Agreement period : 5 Yrs
Total Initial Investment: Rs. 5 lacsIs Tea House Franchise Profitable?
Ans: Definitely! yes. Considering the Tea house presence in southern India, varieties of offerings, and affordable prices would benefit its franchisee unit holders to run this business seamlessly.
Furthermore, Tea house chain may offers an impressive profit margin of 40-80% at an initial investment of Rs.5 lacs.
How much does a Tea house franchise owner make?
Ans: Generally, a Tea house outlets churns an average sales of 5000-30000 per day and if you consider the starting price i.e. Rs 10 then you can assume making a revenue of Rs. 50000 to Rs. 3 lacs per month, rest you can do your calculation.
*the profitability may vary from location to location.
Does Tea House charges any fee for training?
Ans: No, the chain doesn’t charge any fee for training. However, the unit holders are expected to bear the travel and food expenses for the master chef.
