How to Start an MBA CHAI WALA Franchise – Cost, Profit Margin, and ROI?
Are you an avid chai consumer and looking for a Franchise opportunities? The MBA CHAI WALA franchise provides all the flavors needed to run a profitable tea business, and it will certainly conclude your research for the BEST AVAILABLE CAFE franchise.
This article will help you understand the MBA CHAI WALA model, including its profit margin, the costs involved, and the detailed instructions for opening this franchise in your city.
In Asian countries, chai or tea is the hot beverage that is most frequently consumed and has ingrained itself into daily life. India is the world’s second-largest producer of tea, with locals consuming 80% of it, according to the Tea Board. Tea is sometimes said to as a beverage for “any moment of the day.”
Businesses like MBA CHAI WALA, which offers a variety of tea flavors and better hygiene than roadside kiosks, will continue to expand rapidly on a larger scale due to high demand and better prospects.
- Brand: MBA CHAI WALA
- Founded: 2017
- No. of Outlet: 100+
- Franchise Fee: INR 7 Lacs
- Value services & Kitchen Setup: INR 4.05Lac
- Royalty/ Commission Fee: 6%
- Total Investment: INR 16-19 Lacs
- ROI: 16-18 Months
- Space Required: Min.150 sq. feet
- Training: Yes
If you’re looking for information about How to Start an MBA CHAI WALA Franchise and this small nugget of knowledge excites you, please keep reading.
Table of Contents
Overview of MBA CHAI WALA Franchise
In Mid of 2017, Mr. Prafull Billore, a Madhya Pradesh native and B.Com graduate, established his roadside tea stand in Ahmedabad and turned it into an INR 3 crore rupee-earning company.
MBA, also known as Mr. Billore A’bad Chai Wala, is the second most well-known Chai Wala and is renowned for his commitment and passion in assisting regional chai kiosks in the nation to expand their operations. One of the tea chains with the quickest rate of growth is MBA CHAI WALA, which is renowned for offering a large selection of tea, hot and cold coffee, sandwiches, musk a bun, and fries, among other things.
With a country-wide presence in 43 outlets in cities like Ahmedabad, Lucknow, Mumbai, Kolkata, Indore, Varanasi, etc., the brand has planned to set up additional 67 outlets by the end of 2022.
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Why Choose an MBA CHAI WALA Franchise?
Owning a Franchise like MBA CHAI WALA franchise offers numerous benefits to its franchise owners.
- Being one of the fastest-growing and hygienic Tea chain franchises may offer an extra edge over the competition.
- The founder of MBA CHAI Wala, Mr. Prafull, has a sizable following and considerable social influence, both of which may draw a lot of clients to the business.
- A rapid expansion of outlets across Indian cities will enable franchise owners to own an outlet close to home.
- MBA CHAI Wala chain offers complete support for research and development of location to its outlet holder.
- It offers an in-depth training program for its unitholders to assist in comprehending the day-to-day operation.
- A low-investment, high-consumption, and affordable menu items would help retain old consumers and generate outstanding revenue.
- As mentioned above, the MBA CHAI Wala has a strong foundation, a supportive and responsive team, and better prospects that will enable unitholder to stay progressive in the competitive market.
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How Much Does an MBA CHAI WALA Franchise Cost?
Before owning a Franchise, A Unit Holder must do the market research and future growth prospects of the concerned franchise. It would assist them in comprehending the financial aspects of the business.
In addition to the franchise fee, owning this franchise would involve several costs like infrastructure development, kitchen setup, raw and packaging materials, marketing, employee costs, and other charges that may play a significant role in running a business.
Below are the latest Cost structure shared by the company with me for area with 150 Sq. ft,
|2||Infrastructure Consultancy Fee||100000|
|3||Infra Development Cost*|
|5||Kitchen Small Ware||50000|
|10||Wooqer – Operation Software||20000|
|11||Monthly Audits & Quality Checks||23000|
|13||Pest Control (Quarterly Execution)||10000|
|14||Online Marketing Support||50000|
|*** Total Project Cost — INR 16,00,000 or INR 18,88,000(GST Included) ***|
In addition to above specified fee, Franchise may impose a few more fees or terms.
Franchisee owner is liable to pay a monthly royalty fee of 6%( Six Percentage) on total sales.
Cost Of Franchise
Before Signing the Letter of Intent, Interested Applicant must deposit advance fee of INR 100000 out of applicable franchise fee of INR 700000 plus GST.
Franchise fee is Non-refundable.
The Franchise offers a renewable Franchise agreement for period of 5 Years. To renew Franchise agreement after the said period, one has to pay 50% of the cost of the prevailing franchise fee.
Research and Development of Location Expenses
After signing the letter of Intent and before signing the franchise agreement, Research team visits the location and franchise owner need to pay for lodging and travel expenses for them.
The franchise owner, Interior decorator, and company will sign a trio agreement. The estimated cost in the above plan is for a tentative area of 150 sq. ft. Increase in the area would further increase the cost of the project.
The training of the appointed employees( Master Chef and Store Manager) would be conducted by Franchise for 10 days at specified location.
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MBA CHAI WALA franchise profit margin
As a Franchise, it operates at a low-cost setup and is known for offering affordable hygienic Hot Beverages and snacks. Considering fixed costs such as Rent, electricity, and employee expense in the initial few months, one might anticipate a Net profit margin of 10-15% and 30-40% for the long term.
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MBA CHAI WALA Franchise Requirements
Setting up a Franchise requires an immense focus, positive mindset, and passion for a business. One must conduct a market and brand study, adhere to guidelines, and uphold the standards set forth by the brand.
- Interested applicants should be ready to invest at least ₹15 lacs to ₹ 20 lacs as an initial investment with a floor area of minimum 150 sq. ft.
- Owners are required to abide by the terms of the franchise agreement and actively participate in the daily business operations.
- Interested Applicants must have a track record of sound financial management and be financially ready to assume the risk of launching a business.
- Owning a Successful franchise will not guarantee success until you possess the passion for and desire to work in the QSR industry.
- The hiring of Support Staff and a Store manager will be done locally by franchise owners.
- Business ownership requires strong leadership qualities, enthusiasm, optimism, passion, and people-oriented characteristics.
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How to apply for MBA CHAI WALA franchise
On their official website, interested applicants can apply for the Franchise. Select “Get a Franchise” from the menu bar in the top right corner of the main website. After arriving at the new website, press the “I Want A Franchise” button.
On the pop-up form, please provide your name, address (including state and city), phone number, budget, and e-mail address. After the form submission, Somebody from the franchise sales department will reach out to you via call or email within 24 hours. That’s where your journey starts, Good Luck!
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How much does it cost to Start a MBA CHAI WALA Franchise?
Ans: Starting a franchise may involved various other costs other than the franchise fee such as Kitchen Setup, Infra Cost, Raw material cost, and employee expenses, etc. Nevertheless, the total cost to setup an MBA Chai Wala outlet will cost approximately ₹16 -20 lacs.
Mentioned below are few key cost to own a franchise,
Franchise Fee: INR 7 Lakh
Royalty Fee: 6% of total revenue
Value services: INR 1.3 Lakh
Kitchen Setup: INR 2.75 Lakh
Total Initial Investment: INR 16-19 Lakh
How much profit does a MBA CHAI WALA Franchise owners make?
Ans: As this franchise operates at a low-cost model and known for offering some delicious flavor Hot beverages and Snacks. Depending on selected location, One might anticipate a profit margin of 10-15% for initial few months and 30-45% for longer period.
How long does it take to complete MBA CHAI WALA Franchise process?
Ans: A complete franchise process include franchise agreement, research and development of site, interior décor(Included kitchen setup), Master chef training, and Grand opening. This entire process takes about 30-50 Days.
How much does it cost to franchise MBA CHAI WALA?
Ans: As per latest data shared by franchise, One would at least require a capital of INR 16Lakhs to INR 19Lakhs, including its franchise fee.
How to apply for MBA CHAI WALA Franchise?
Ans: Below are the steps one should follow for getting a franchise,
1. Go to Official website – franchising
2. Click on I WANT A FRANCHISE
3. Fill out the required details such as Name, Address, City, Phone number, Email ID, Occupation, Age, Budget then click on Submit.
4. You would either be contacted via- Mail or Phone.
5. Be in touch with Sales representative till completion of process.
Is MBA CHAI WALA Franchise Profitable?
Ans: Definitely Yes, Being one the fastest-growing Tea Chain and offering tremendous service with an outstanding profit margin of about 40%. One can easily access franchise profitability.
How many franchises are there in MBA Chai WALA?
Ans: With a country-wide presence in 43 outlets in cities like Ahmedabad, Lucknow, Mumbai, Kolkata, Indore, Varanasi, etc., the brand has planned to set up additional 67 outlets by the end of 2022. That totally makes a 110 Outlets in India.