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How to Start a Chai Sutta Bar franchise – Capital required, Profit, and ROI

Are you looking for a Tea & Cafe franchise? Would you like to be a part of renowned chain and earn good profit margin? Did you stumble upon this page while searching for a Cafe franchise – Chai Sutta Bar?

Then, there is Good News for YOU! and certainly, after reading this complete article you would be in a position to choose the BEST AVAILABLE TEA franchise and start your entrepreneurial journey in this industry.

We will cover an in-depth article on starting an Chai Sutta Bar franchise in your city with its capital required, cost, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.

  • Brand: Chai Sutta Bar
  • Founded: 2016
  • HQ: Indore
  • No. of Outlet: Over 450
  • Locations: Worldwide
  • Franchise Fee: INR 6Lacs + GST
  • Interior & Furniture: INR 4-5Lacs
  • Initial Raw Material: INR 2Lacs
  • Machinery & Equipment: INR 3Lacs
  • Total Investment: INR 17-18Lacs
  • ROI: 16-18 Months
  • Royalty Fee: 2% + GST

In most Indian households, tea is a popular hot beverage that is typically served in the morning. With an early launch and rapid growth in offering varieties of flavored tea and other fast food items, Chai Sutta Bar has gained a sizable share of the Indian Market.

Cuddle the Kulhad

– Chai Sutta Bar

Overview of Chai Sutta Bar Franchise

CSB Kulhad Consumption

Chai Sutta bar Or CSB is a rapidly growing Tea and Café chain in India, known for serving Tea in Ceramic Cups or Kulhads and world-class service. The franchise is ruling the market with its core vision to bring Indian Cultural values from its Roots and blend them with a world-class ambiance to serve people with aromatic experiences and cheerful.

The brand, which is India’s fastest-growing Tea Chain, has opened more than 300 shops in India in just six years since its founding. The Chain is renowned for its USP, which is to serve traditional chai without “Sutta” in a setting akin to a bar. At their retail locations, smoking is entirely prohibited.

Their Tea offering starts at just INR 15 to numerous varieties of Tea, Hot & cold Coffee, Shakes, burgers, Pizza, and a range of items under its umbrella. There has been a fascinating journey from selling 4000-5000 kulhads tea per day with three outlets in 2016 to selling 4,00,000 kulhads tea per day with over 300 outlets in 2022.

According to a Statista study, India’s tea consumption has dramatically expanded from 932 million kilograms in 2015 to 1.1 billion kilos in 2021, a CAGR of almost 4%.

With further plans to add more than 2000 plus outlets in next 5 years, would create opportunities for interested applicants to join this rapidly growing franchise in your city.

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The chain was founded in 2016 by Anubhav Dubey and Anand Nayak, with director Rahul Patidar joining them later. They have a presence with 450 plus Chai Sutta Bar outlets in 195 plus cities in four or more countries across the globe.

The brand offers varieties of flavored tea with a few delicious fast food items under its umbrella,

Chai Sutta bar menu
  • Tea (Served in Kulhad)
  • Hot and Cold Coffees
  • Burgers
  • Sandwiches
  • Pizzas
  • Maggie
  • Pasta
  • Healthy Feast
  • and Many More.

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Why Choose a Chai Sutta bar Franchise?

Why Choose Chai Sutta Bar Franchise

Owning this franchise creates numerous opportunities for the unitholder rather than generating only passive income. Below are a few key benefits,

  1. “Unique Concept”:
    • The franchise operates with a unique concept of “Taste the Kulhad” in a bar-like setting with a complete prohibition on smoking, which attracts the youth and gives them a healthier version to enjoy life.
  2. “Brand Value”: 
    • A strong brand presence of more than 250 outlets across four countries might have an advantage over its competitors.
  3. Being a well-known brand that is featured by many Indian media outlets will help to draw in more customers and investors, which will lead to amazing earnings.
  4. “Strong presence on Social Media”: 
    • The franchise has a good presence on Social Media platforms with over 8,00,000 searches per month.
  5. “Target Audience”: 
    • The Chain has its laser focus on its target audience (Youths), who spends more than 6,00,000 minutes at their outlets, which allows them to evaluate the current demands and trends.

The Chai Sutta Bar Team is also planning to expand its outlets, and interested applicants can apply for the franchise in other foreign countries like USA, Dubai, UK, and Qatar.

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How much does a Chai Sutta Bar Franchise Cost?

Chai Sutta Bar Franchise - Cost & Profit

The brand follows guidelines and parameters for outselling its outlets. Interested applicants should do market research and brand analysis for the location(where it will operate). The market analysis will assist you in comprehending the market potential and the future growth prospects of the outlets.

Chai Sutta Bar offers multiple models for its outlets such as Kiosk, Medium, and Large.

As per latest discussion, franchise has temporarily suspended Kiosk concept and focusing more on Medium and large. For large concept, the initial fee would be same, only there would be increase in Interior decoration cost.

Steps for Outselling of Franchise

  • One has to deposit a token amount of INR 1,00,000 +GST(Part of the Franchise Fee) for any further processing, including research and development of the location.
  • The franchise offers 15-20 days of training for staff at their company outlets.
  • Other Agreements like Franchise, Nagar Nigam, License, FSSAI, GST, and PPL are also made accordingly.
  • The Franchise assists in the decoration of the outlets and the creation of a pleasant ambiance after which the outlets are inaugurated according to company standards.

Below are a few basic cost involved in owning this franchise,

EssentialsInvestment
Minimum Space Required300 -500 Sq. Ft.
Machinery & EquipmentRs. 3 Lacs
Interior & FurnitureRs. 4-5 Lacs
Initial Raw MaterialsRs. 2 Lacs
Franchise FeeRs. 6 Lacs + GST
Opening Day ExpensesRs. 50-60 Thousands
Total InvestmentRs. 17-18 Lacs
ROI16-18 Months
Royalty2% +GST
Tab: Cost breakup

*Please find the detailed Investment proposal shared by the franchise.

** A Token Money of approximately 1,18,000/- will be required to buy Chai Sutta Bar Franchise which is non-refundable.

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Requirements of Chai Sutta Bar franchise

Before taking up franchise ownership, there are a few requisites to which one should adhere to meet the company standards. Below are a few things one should consider before owning any franchise,

  • As the name suggests, the franchise is entirely dedicated to tea and attracts youths, so to run this franchise for the long-term, make sure to choose the shop location(Better self-owned) wisely. Best location examples: Near any educational institute, Shopping malls, Airports, or Busy streets.
  • Running a Franchise involves costs other than the franchise fee, so keep few extra cash or money ready to operate for a few months.
  • Interested applicants must be Tea enthusiasts and possess a passion for and be actively involved in the daily activities of this franchise.

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Chai Sutta Bar franchise Profit Margin

The profitability of any franchise depends on numerous factors such as Site location(Includes Locality/Population density), Product & service offering, and minimum cost required to run this business on any single day. Generally, Tea and café are booming in India, and one can anticipate a profit margin of 30-40%.

Is Chai Sutta Bar Franchise Profitable?

Is Chai Sutta Bar Franchise Profitable

Absolutely Yes!

Considering the brand presence in India & abroad, affordable & variety of food items, low startup cost with high ROI, premium & authentic flavor, huge fan base, extensive marketing strategy, training and support, one may anticipate an earning of Rs. 50,000 or more.

However, these numbers may vary depending on the chosen location and outlet’s geographical locations.


How to get Chai Sutta Bar Franchise?

Application process for this franchise is quite easy, interested applicant should visit franchise section of official website.

Fill up the required details like Name, Contact Number, Email address, Interested area, and address in “Get a Franchise” form. After form submission, somebody from Sales team would contact you for further process.

Please do note to keep you personal documents ready for agreements and final process,

  • Aadhar Card
  • Pan Card
  • Address Proof
  • Shop(If rented then Rent agreement)
  • Passport sized photos
  • Bank Passbook
  • Cheque book

One can opt for directly calling sales team on their phone number for franchise.

Conclusion

Friends, I sincerely believe that my guide on “Starting a Chai Sutta Bar Franchise” 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

  1. How much does it cost to franchise a Chai Sutta Bar?

    Ans: Generally, franchising a chai sutta bar would price nearly INR 17-18 lacs. Please read the above heading about cost structure. Below are a few details,

    Franchise Fee: INR 6 Lac + GST
    Initial Raw Materials: INR 2 lacs
    Interior Cost: INR 4-5 Lacs
    Royalty Fee: 2% + GST
    ROI: 16-18 Months

  2. How much does a Chai Sutta Bar franchise owners make?

    Ans: On an average, based on the best location and the customer’s footfall, one can anticipate a profit margin of 30-40%.

    *In order to gain more profit and customer, one has to be actively involved in the daily business process. In fact, any franchise doesn’t guarantee the profitability of the outlet in your area.

  3. How long does it take to complete Chai Sutta Bar franchising application process?

    Ans: The entire application process may take up to 40-45 days from the booking date to launch date.

  4. What is the official website and contact number of Chai Sutta bar Franchise?

    Official website: https://www.chaisuttabarindia.com/
    Contact Number: +91- 6262300031

FranchiseGoal India
FranchiseGoal Indiahttps://in.franchisegoal.com
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