Chai Your Luck: Can You Start a Chaayos Franchise?

Are you looking to become a part of one of India’s most loved personalized tea brands and embark on an exciting entrepreneurial journey? Wondering if you can own a Chaayos Franchise in your city and bring the joy of chai to local community? Let’s burst all the myths on Chaayos available over the Internet.

Yes, you correctly read it. We will cover an in-depth article on Chaayos Franchise with its complete journey, future plan, success stories, and answer some of the most asked questions about it.

• Company: Chaayos
• Founded: 2012
• HQ: New Delhi
• Founder: Nitin
• No. of outlets: Over 200
• Industry: Cafe
• Model: Company-owned & operated
• Franchising: NO
• Future plan: to open over 1000 outlet in next 2-3 yrs

Overview of Chaayos Franchise

Started in November 2012 by an inspiring “Teapreneur” Nitin, whose love for having personalized tea had brought him back to India, Chaayos is one of India’s leading, well-established, self-owned & operated, and rapidly growing tea chains, offering a variety of Masala Tea, Tea powder, Chai Masala, Desi Chai, Snacks, and much more.

Chaayos are claimed to be India’s first personalized chai concept(Over 80,000 different ways) to make “Meri wali chai” with 100% fresh ingredients. It certainly helped the unit to expand over 200 plus profitable & successful outlets in 10 years.

Chaayos has strong presence in Delhi, Mumbai, Bengaluru, and a few cloud kitchen concept in Chennai, Pune. They have also set an ambitious plan to open over 400 outlet next year and more than 1000 cafes all over India in next 2-3 years.

Interestingly, Entire Chaayos outlets are company-owned & operated. Isn’t it more surprising?

We assure you that, after reading this complete article, you would be in a position to choose the BEST AVAILABLE CAFE FRANCHISE, and certainly help you take an informed decision on the Chaayos chain.

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Chaayos – The Journey

Their humble beginning started with a launching single outlet in DLF City in 2012 after researching deeply on indian cafe industry and consumer demand to serve a delectable & personalized freshly brewed chai to be one of the renowned self managed cafe chains with more than 200 plus outlets across India is undoubtedly inspiring.

Key facts about Chaayos

Does Chaayos Franchise in India?

No, like DMart stores, Chaayos chain also doesn’t offer any franchising programs for its interested aspirants or entrepreneurs. Its entire outlets right from Cafe to cloud kitchens are self owned & operated across the country. During our research, we found that several websites are falsely claiming costs for Chaayos, which is completely wrong.

We also had discussion over the call with the Chaayos representative, and they have accepted that “WE DON’T HAVE ANY KIND OF FRANCHISING PROCESS IN PLACE”.

See also: Should you own Cafe Coffee Day Franchise? Alternatives, Cost, & Profit – Cafe Coffee Day

How Much Does Chaayos Franchise Cost?

Currently, it will be difficult to comment on its franchise cost, as Chaayos doesn’t run any franchising program. However, based on several other renowned cafe franchise in India, Chaayos franchise cost will be around ₹20 lakhs to ₹30 lakhs. These costs may vary depending on the location, city, or model chosen.

At present, some of their premium outlets are available at prime spots with a floor area of over 700 sq feet to 2000 sq feet, and total investment from company would have gone around ₹ 50 lakhs to ₹70 lakhs.

Additional cost for Chaayos

Typically, to run and maintain a Chaayos outlet, one must adhere to their standards and will be liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.

The estimated ongoing royalty fee for the Chaayos franchise could be approx. 5%, which would be paid by the Franchisee to the Company calculated on total turnover.

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[Important] Is Chaayos Franchise Profitable?

Well, it could be really difficult to comment on its franchise’s profitability until Chaayos really opens door for them. Additionally, the profitability of any cafe or business depends on several outer factors such as locations, customers footfall, market demand, and many more.

Highlights:

Moreover, during our intense research, we also found that although Chaayos stores are being self-owned & operated, but still their financial are not great. According to Inc42, The chain has posted a great figure in revenue(₹134.9 Cr in FY22) as compared to previous year(₹54.7 Crores in FY21), that’s a 2.4X jump in revenue. However, their margin has hit another low by loss of ₹71.2 Crores.

Primary reason for loss occurred:

1. Rise in raw material cost.
2. Advertising and promotional expenses – ₹19.5 Crore
3. More number of company owned operation resulted in higher rent expenses

However, we do consider that profits & losses are part of a business, and it does fluctuate over a period. At FranchiseGoal, we would strongly recommend to visit 5-6 Chaayos outlet and take an informed decision.

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What will be the support offered by Chaayos?

• Site analysis and its future growth potential
• Pre-opening and Franchisee associate trainings
• Vendor Development, Supply Chain Management, Marketing
• Periodical Customer Experience (CX) audits
• Supply raw materials & packaging materials support
• New menu development, design and procurement

What would we require to become an approved Chaayos outlet holder?

Some of their major Chaayos franchise requirements are listed below;

• First and most important – One should have the required funding to own a Chaayos outlet, that is one should be ready to invest anywhere between Rs. 25 lacs to 50 lacs.
• Interested applicants should have a passion to work in the Cafe industry –  and should possess the necessary leadership and financial skills with a few years of experience in this industry.
• Applicants should own/rent an outlet area for a minimum of 500 to 1000 sq feet, preferably on the high street, city center, and near schools or universities.
• Interested applicants are advised to dedicate themselves to the Chaayos business and follow the company standards and maintain their legacy.
• Interested applicants must undergo and complete the necessary training program offered by the franchise.
• Prospects are advised to do the proper marketing and site research, which will help them to understand the market potential and would certainly boost your morale.

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How to Get Chaayos Franchise?

Sadly, you can’t own a Chaayos outlet at present. However, their ambitious plan may force them to incorporate franchising opportunities and open the door for the interested Teapreneur. But, at present, we will advice to check out some interesting cafe franchise available in the Indian market.

To get more insight, you can always connect with Us or Chaayos official toll free number.

Final Takeaway

Started in 2012 with an ambitious plan to serve personalized Tea, Chaayos is one of India’s steadily growing, self-operated & owned, and renowned cafe franchises, offering a range of Personalized Tea such as Masala Chai, Tea power, snacks, and Much more. Currently, the chain boasts over 200 plus outlets across India, and over 1000 outlets planned for further expansion of its outlets in next 2-3 years may create tremendous opportunities for Interested applicants to join in the ever-growing industry.

However, considering the Chaayos robust presence, affordable pricing, moderate startup cost, high profit margin, best-in-class marketing strategies & campaign, and growing customer base adds an extra advantage for the new franchisee unit holder.

The Bottom Line – If you are still searching for Chaayos franchise cost in India at other website, and if at all they are claiming to offer it for you, then BEWARE, YOU MAY FALL IN TRAP. We had a discussion with the Chain representatives, and it is pretty much clear now that “Chaayos doesn’t offer franchise, all of their outlets are self-owned & operated“.

So, what are you waiting for? Go and check out other franchising opportunities available at Only FranchiseGoal India.

Good Luck!! Happy Franchising!!

Want to explore more? Then check out below franchising opportunities.

Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Healthcare, and Apparel Franchise

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