Are you looking for an affordable Tea & Cafe franchise? Starting A Chai Garam Cafe franchise will be the best option and would end your research on Cafe franchises.
The article will assist you in comprehending the Chai Garam Cafe Franchise model with its Cost requirements, Fee, Profit margin, and complete guidelines to set up this franchise in your city.
Space Required: 100-2500 sq. ft.
Franchise fee: Rs. 3.5 lakh + GST
Setup Cost: Rs. 2-6 lakh
Interior & Other cost: Rs. 2-5 lakh
Royalty Fee: 4% of Net sales
Total Initial Investment: Rs. 10 -25 lakh
Understanding a Tea and Cafe chain growth prospects:
Tea doesn’t need any introduction in India as it is one of the most consumed hot beverages in India, with more than 80% of local tea consumers. The rapid expansion in the Tea & Cafe industry is driven by the rise in the variety of flavored Tea, disposable Income, and eating out habits.
The ultimate target of the Tea and Cafe franchise is the youth, which also helps them in building a loyal customer base. As per a recent study, the average time spent at a Tea and Cafe franchise by youth is approximately 10-30mins.
According to a Statista analysis, India’s average tea consumption increased from 932 million kilograms in 2015 to 1.1 billion kilograms in 2021. In addition to Chai Sutta Bar, MBA Chai Wala, and others, several Tea and Cafe franchises are contributing to this enormous growth.
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Chai Garam Cafe Snippet:
Chai Garam Cafe franchise is one of the rapidly growing Tea chains in Asia, predominately In India, and known for offering over 20 flavors of freshly brewed handmade teas and other beverages(will discuss more in the later part of the article). They have a wide presence of more than 150 outlets across different cities in India, Via. Kiosk and retail outlets.
With an experience of over 12 years, the franchise has enabled itself as a renowned Tea chain for offering Hot beverages and other menus suitable to the Indian palate.
Please continue reading if you are an avid consumer of Tea and other beverages and this little snippet about the Chai Garam Cafe Franchise and India’s Tea and Cafe Industry growth prospects excites you.
We’ll be providing you with comprehensive and well-researched information regarding Chai Garam cafe franchise, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
Table of Contents
Overview of Chai Garam Cafe Franchise
Founded in 2008 by Bhrigu Dutt, Chai Garam Cafe is one of the fastest-growing tea chains in India, known for offering over 20 varieties of Tea, 30+ variants of Milkshakes, Coolers, and Iced Teas. This franchise is known to offer freshly brewed teas without using any vending machines or tea bags. It is one of the kind of Pocket cafe chain.
They have a strong presence with over 150 outlets across different cities. This franchise has gained a sizable Tea market share abroad thanks to a global presence throughout Asia.
Chai Garam Cafe franchise caters to multiple products under its umbrella suitable for the Indian palate,
- Varieties of Tea
- Milk Shakes
- Coolers
- Iced Tea
- Pastas
- Sandwiches
- Omelets
- Parathas
- Samosas
With an added advantage of serving tea and quality snacks since 2008, has enabled the franchise to capture a substantial market position in this segment. Chai Garam Cafe franchise has managed to serve over 5 million cups of tea and via. its ~200 cafe, shops and kitchens.
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Why Consider Owning a Chai Garam Cafe franchise?
Considering the future growth potential of the Tea and Cafe Industry, Starting a Chai Garam Cafe franchise will be especially beneficial to its franchisee unitholder.
Now, let’s start with the reason to own this Cafe franchise,
- Experienced and Proven business: As mentioned above, the franchise has been in this industry since 2008, that has certainly helped them to understand the market potential and improvise on their menu offering.
- Number Matters and Global presence: The Chain has been able to cater more than 5 million cups of tea and setup over 200 cafe, shops and kitchens. They also have a strong presence of more than 150 outlets across India.
- Flexible Franchise model: Chai Garam franchise offers a flexible franchise concept to its franchisee, and one can take up this franchise outlet based on their financial limitations. We will discuss about the model and the cost in later part of the article.
- End-to-End Support: The Chain offers complete support in setting up this franchise from scratch including real estate selection, design fabrication and setup, Logistics & Supply chain, Interior artwork, Collateral design marketing, HR & IT Support, Training, and Onsite Sales Support.
- Award and Recognition: Being the owner of a recognized brand can add value to your portfolio, and this franchise offers the same as Chai Garam Cafe has been awarded Best Franchisor of the Year in the Café category.
- Affordability and Varieties in menu: Chai Garam Cafe provides a variety of products under its menu at affordable prices, making them accessible to all classes and helping them develop a loyal customer base and an excellent profit.
The above-mentioned list should give you enough insight into Chai Garam Cafe’s Indian market positioning and value.
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How Much does a Chai Garam Cafe franchise Cost?
Setting up a Cafe franchise can be easier with the franchise support team. The franchise offers complete support from setup to Inauguration. However, the owner has to keep some cash ready for expenses other than the franchise’s initial cost.
All outlets are made at their cutting-edge factory using foreign machines and European modular technology. The Chain offers flexible outlet concept such as Indoor/ Outdoor Kiosk, Mobile Carts, Retails Outlets, Shop-in-Shop, and Micro ATM kiosk.
Below is the cost involved in starting a Chai Garam cafe outlets,
Kiosk Model
The franchise offers Indoor/Outdoor Kiosk concept which will be suitable to be placed in Mall and outdoor kiosk at busy street and near to Universities/College.
| Essentials | Cash required and other details |
|---|---|
| Space Required | 100-300 sq. ft. |
| Franchise Fee | Rs. 3.5 lakh + GST |
| Build up and Civil Job Cost | Rs. 2 lakh |
| Interior Cost( Branding and other expenses) | Rs. 2 lakh |
| Raw Material & Other expenses | Approx. 87,000 |
| Royalty Fee | 4% of Net sales |
| Return on Investment | 18-24 Months |
| Total Initial Investment | Rs. 10 lakh |
Retail Outlet Model
This is one of the model offering full seating style outlet or a typical restaurant. It requires little more money than the previous one.
| Essentials | Cash required and other details |
|---|---|
| Space Required | 300 -1500 sq. ft. |
| Franchise Fee | Rs. 3.5 lakh + GST |
| Build up and Civil Job Cost | Rs. 5 lakh |
| Interior Cost( Branding and other expenses) | Rs. 5 lakh |
| Raw Material & Other expenses | Approx. 87,000 |
| Royalty Fee | 4% of Net sales |
| Return on Investment | 18-24 Months |
| Total Initial Investment | Rs. 20 lakh |
The above expenses include the basic cost required to setup an outlet in your city. However, the overall costing may change depending on chosen model concept and the city.
According to the franchise report, One would at least need to have an initial investment of Rs. 10 lakhs to 25 lakhs.
Chai Garam Cafe franchise Profit Margin
The profitability of any franchise outlet is dependent on the site location. For better business profitability, one is advised to chose a location such as, Educational Institutes(In/Out of Campus), Busy street, Hypermarket, Malls and other area having higher footfall.
An average cost for two people tea at chai cafe franchise will be around 300, so we are considering an average gross sales of 3.5 lakh/month.
To run a chai garam cafe franchise, one would at least require minimal man power and related expenses are mentioned below.
| Essentials | Related Expenses Cost |
|---|---|
| Gross Sales | Rs. 3.5 lakhs |
| Raw Material(@40%) | (Rs. 1.4 lakhs) |
| Gross Profit | Rs. 2.1 lakhs |
| Staff Salary | (Rs. 50,000 ( Minimum 5 staff)) |
| Rent | (Rs. 50,000) |
| Electricity and Water Bill | (Rs. 10,000) |
| Marketing and other Expenses | (Rs. 25,000) |
| Royalty Fee @4% +GST | (Rs. 16,520 ) |
| Net Profit | Rs. 58,480 |
Based on above data, one can anticipate a gross profit margin of 55-60% and Net profit of 15-17%(Depending on the location).
Chai Garam Cafe franchise Return on Investment
The Chai Garam cafe chain provides its unitholders with minimal cost investment setup, and one can enjoy a substantial return within a few years of the business’s debut. But according to the facts presented above, one can recover their investment in 18 to 24 months.
Chai Garam Cafe franchise License period
The Cafe chain offers a renewable franchise license for a period of 7 years. Interested applicants can renew their license after paying a minimal fee.
Chai Garam Cafe franchise Support
The Chain offers complete support right from location search to Inauguration of the outlet.
Below is the key supports offered by the franchise,
- Real estate selection
- Design fabrication and setup
- Logistics & Supply chain
- Interior artwork
- Collateral design marketing
- HR & IT Support
- Training
- Onsite Sales Support
How to Own a Chai Garam Cafe Franchise?
Once you are ready with the Chai Garam Cafe franchise’s financial and site requirements and prepared to take up this franchise, you need to visit the official website franchise form. The highlighted link will navigate you to the Chai Garam Cafe official page, Scroll to the bottom to find the contact us form.
You should fill up the required details like Name, Email ID, Phone Number, Location, and your message.
After form submission, somebody from the cafe’s sales team will reach out to you for further processing.
You can also check with other official details like, Email address: chaigaram@epconsultancy.com, Phone number: +91 11 26174164, and official address( Incase it’s near to your city): A 223, Somdatt Chambers 1, Bhikaji Cama PLace, New Delhi 110066.
Good Luck!! Happy Franchising!!
Conclusion
Founded in 2008 by Bhrigu Dutt, Chai Garam cafe chain is one of the rapidly growing Cafe chains in India, Thanks to its varieties in menu, vast industry experience, and scalability. In addition to over 150 outlets, they offer a variety of products under its menus offering over 20 varieties of freshly brewed handmade Teas, 30+ variants of Milkshakes, Coolers, and Iced Tea.
The Chain has a strong presence across Asia, predominately in India, with the varieties in the offering, low investment risk, and Loyal customer base that has garnered the attention of several food franchise enthusiasts.
One would have to spend at least 10 lakhs (For kiosk)- 20 lakhs (For Retails Concept) to open an outlet, and they can easily make 55-60% gross profit margins and Net Profit Margin of 15-17%. If you are passionate about the Tea & Cafe industry, are optimistic about it, and are capable of adding value to the business, then you should consider starting this franchise.
That’s it from my side. Friends, I sincerely believe that my guide on “Start a Chai Garam Cafe Franchise – Cost, Fee, & Profit” was helpful and educational, but if you’d need more details, you can check out the franchise’s official website. If you like this piece, kindly let me know by leaving a comment and spreading the word to as many of your friends as you can; Your comments offer us more inspiration to keep producing high-quality material for you. Many thanks.
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FAQ
What is the Cost required for Starting a Chai Garam Cafe franchise?
Ans: Owning a renowned Chai Garam outlet would at least require 10-25 lakhs. Below are a few more details about the cost required for kiosk concept,
Space Required: 100-300 sq. ft.
Franchise fee: Rs. 3.5 lakh + GST
Setup Cost: Rs. 2 lakh
Interior & Other cost: Rs. 2 lakh
Royalty Fee: 4% of Net sales
Total Initial Investment: Rs. 10 lakhIs Chai Garam Cafe franchise profitable?
Ans: Yes, absolutely! As a low-risk investment opportunity with global recognition, the Chai Garam Cafe offers an outstanding profit margin for its unit holders at a relatively low cost.
As per the franchise report, the franchise offers a return on investment in 18-24 months.
Gross Profit margin: 55-60%
Net Profit Margin: 15-20%
Return on Investment: 18-24 monthsWhat are the official details of Chai Garam cafe franchise?
Ans: Below is the official details,
Email address: chaigaram@epconsultancy.com
Phone number: +91 11 26174164
Official address: A 223, Somdatt Chambers 1, Bhikaji Cama PLace, New Delhi 110066.What is the Royalty Fee and ROI of Chai Garam Cafe franchise?
Ans: The Chain requires a royalty fee of 4% of Net sales and a return on investment in 18 months to 24 months.
The Outlet ROI will depend on the chosen model, city, and the over all market condition.
