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How to Start a Tea Time Franchise – Cost, Fee, and Profit

Are you interested in owning a low-investment and highly profitable franchise? Yes, we are talking about a Tea Time Franchise and how this chain has evolved as one of the prominent players in this industry.

You may have heard of and seen several Tea & Cafe chains, such as the Mr. TeaMBA Chai WalaChai Sutta BarSamocha, and Chai Garam Cafe, that has quickly spread throughout the local and worldwide market.

In this guide, we’ll go in-depth on the Tea Time chain, covering its cost requirements, fees, profits, and step-by-step instructions for obtaining it, as well as responding to some frequently asked questions regarding the company.

Tea Time Franchise Opportunities
  • Franchise Fee: Rs. 4.5lacs + GST
  • Space requirements: Min. 100-150 sq. ft.
  • Royalty Fee: 3%
  • Profit Margin: 40-80%
  • Total Initial Investment: Rs. 7-8 lacs

Overview of Tea Time Franchise

Tea Time Franchise review

Established in 2016 by Uday Srinivas Tangella, Tea Time is one of the leading and rapidly growing Tea chains, which primarily serves varieties of flavored tea, coolers, shakes, and other beverages. Started with an aspiration to serve quality products by making it more accessible and affordable to common people, enabled the franchise to become one of the prominent player in the Tea and Cafe Industry.

Tea Time has a robust franchise network of more than 3000 retail outlets across several cities, which makes it a most organized and established brand. The rapid expansion of this franchise is party driven due to increasing demand of flavored tea, rising disposable income, and affordable prices.

Please continue reading if you are passionate about Tea and Cafe & this little snippet about the Tea Time chain excites you.

We will offer comprehensive and well-researched information regarding the Tea Time chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.

The Journey of Tea Time

The journey from setting up an single outlet in Rajahmundry to build a chain of more than three thousand outlets across multiple indian cities is really inspiring.

Tea Time Franchise Journey

Tea Time Franchise Menu

The chain caters varieties of delicious menu to its consumers, which helps them build a strong chain and loyal customer base. Some of their lip-smacking menu includes;

  • Varieties of Tea
  • Coolers
  • Flavored milk
  • Milkshakes
  • Snacks
  • and Tea flask

Why to Start a Tea Time Franchise?

To begin with, why limit yourself to Tea Time when there are other options available? Well, don’t worry! For you, we would attempt to make it simpler. Although there may be many factors supporting the ownership of this franchise, I would advise you to carefully read the bullet points below.

  • Tea Time offers an efficient in-house supply chain, enabling the franchise owner to have full control over the product quality and pricing.
  • Tea Time conducts proper research and development to understand customer needs and innovate new products accordingly, enabling the franchisee unit holder to operate in a highly competitive segment.
  • The chain follows the certain procedure and standards that helps the unit holders to offer best-in-class service to its consumers.
  • The franchise provides a world class quality control systems that enables them to attain consistent result every time.
  • New franchisee prospects can also gain a few extra profit margins by investing in tea time, which offers a higher margin for a low investment.
  • The chains also provides an end-to-end support to setup and operate an outlet. Some of their prominent support includes Site analysis, market analysis, Interior decor, branding and advertisement.

We believe the above mentioned points would help in you taking an informed decision. Now the next point is – What is the cost to own a Tea Time franchise?

How much does a Tea Time Franchise Cost?

To start a Tea Time franchise, one would at least require an initial investment of Rs. 4.5 lacs and a minimum space of 100-150 sq. ft. Furthermore, Before choosing a location for a Tea time outlet, one must do the market research and understand the market potential and its growth prospects.

Ideally, Tea Time outlets should be located near colleges, universities, or busy streets in your city.

Tea Time Franchise Fee

The chain does charge a unit franchise fee of Rs. 4.5 lacs, which includes franchise fee, marketing fee, and equipment cost to open a Tea Time outlet. The initial investment cost may vary depending on the chosen model(Unit or Master Franchise) and initial stocking capacity.

What is a Tea Time Franchise Royalty Fee?

The tea time franchise royalty fee is about 3% of gross sales, which we believe is minimum in this industry. The maximum limit for royalty fee is around Rs. 9000. It means for a sale of 2 lacs, one need to pay a royalty fee of Rs. 6000.

Tea Time Franchise cost

Tea Time Franchise Profit Margin

Considering the low investment cost and reasonable menu pricing, one may expect a gross profit margin of 70-80% and a net profit margin of 35-40%. The profitability of an outlet will depend on several factors, so one should perform a thorough analysis of the market before opening one.

Are you concerned about ROI? So, the average payback period for this chain is between 5-8 months.

Profit analysis for Unit franchise:

Types of ExpensesCost and its description
Average monthly salesRs. 3 lacs
Gross Profit Margin70-75%
RentRs. 8000
Staff Salary(for two staff)Rs. 16000
Electricity BillRs. 4000
Travel + Misc. ExpensesRs. 10000
Net ProfitEstimated: More than 1 lacs per month

What does it require to Own a Tea Time Franchise?

Below are the requirements for Tea Time;

  • First and most important – One should have the required funding to own a Tea Time outlet, that is one should be ready to invest Rs. 5 lacs.
  • Interested applicant should have passion to work in the Tea and Cafe industry and should possess the leadership and financial skills.
  • Interested applicants are advised to dedicate themselves to the Tea Time 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.

What are the Support offered By Tea Time?

  • Site selection and analysis
  • Equipment procurement
  • Interior and exterior layout designing
  • Operational, Management, and On-the-Job training
  • Brand promotion and advertising – Including Offline and Online channel
  • Complete operation manual to run the chain efficiently
  • Current IT systems being used (POS / Inventory Management Module, CCTV Monitoring, etc.)
  • End to End Management Support

Documents required to own a Tea Time outlet

  • Original personal documents- Aadhar/ Pan Card
  • Shop Pinned location
  • GST/ Trade License
  • PD Cheque
  • Other government license
  • Shop agreement license

How to get a Tea Time Franchise?

To become a Tea Time outlet owner requires a minimal investment that offers an impressive gross profit margin. Nevertheless, Tea Time chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

To get a Tea Time outlet, Please follow below steps to get this franchise;

  • Visit the Tea Time official website.
  • Based on your interest, navigate to unit/ master franchise page.
  • Fill in the details like Name, Email, Mobile, Country, City, and State.

“OR”

Once you submit the form, the franchise team will contact you for further processing. The entire franchising process for Tea Time may last for 30-45 days.

Official Details of Tea Time

Conclusion

Tea Time is one of India’s popular and rapidly growing Tea and Cafe chains, that primarily serves delicious foods like varieties of flavored tea, coolers, shakes, and other beverages. It has a robust franchise network of more than 3000 retail units and more units planned for future expansion.

Interested applicants can open a Tea Time outlet with a franchise fee of Rs. 4.5 lacs + GST, which includes franchise fee, marketing fee, and equipment cost. Furthermore, the franchisee may expect a healthy gross profit margin of 70-80% and a net profit margin of 40-45%.

The bottom line is that if you are interested in the Tea Industry, setting up a Tea Time outlet can be profitable and may offer you a healthy margin and future growth.

Read more:

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

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FAQ

  1. How much does the Tea Time Franchise cost?

    Ans: Opening a Tea Time outlet would certainly require a total initial investment of Rs. 4.5 lacs. Furthermore, below is the cost break up for the Tea Time outlets.

    Franchise Fee: Rs. 4.5lacs + GST
    Space requirements: Min. 100-150 sq. ft.
    Royalty Fee: 3%
    Profit Margin: 40-80%
    Total Initial Investment: Rs. 7-8 lacs

  2. Is Tea Time Franchise Profitable?

    Ans: Definitely! yes. Considering the Tea Time’s brand presence, varieties in menu, and affordable prices would benefit its franchisee unit holders to run this business seamlessly.

    Furthermore, Mr Tea franchise offers an impressive profit margin of 40-80% at an initial investment of Rs. 4.5 lacs.

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