Guide to Chai Sutta Bar Franchise: Cost, Profit & How to Apply

India’s tea culture has been a significant part of each Indian’s daily life, with “chai” being more than just a beverage—it is a social ritual that brings people together. 

As tea consumption is on the rise, café franchises have grown in popularity by providing a modern twist to the age-old tradition. 

One franchise that has successfully capitalized on this is the Chai Sutta Bar franchise, which offers tea lovers an authentic tea experience.

Chai Sutta Bar Franchise stands out by blending the country’s love for eco-friendly practices with a student-friendly price point. 

Its popularity also makes it a prime opportunity for entrepreneurs who are looking to tap into the growing market of tea.

In this blog post, we will cover everything you need to know about the Chai Sutta bar franchise, including its costs, benefits, and requirements for becoming a franchisee.

The Success Story Of Chai Suttar Bar Franchise

The rise of Chai Sutta bar franchise in just a few years is nothing short of a remarkable journey itself. From its modest origins, the brand has grown exponentially by expanding to over 190 cities across India. 

What started from just a single outlet has transformed into a nationwide phenomenon and has also become one of the famous names among tea lovers. The rapid growth of Chai Sutta Bar franchise is not limited to India itself! 

Chai Sutta Bar Franchise has also made a remarkable journey in the international market as well by showcasing its universal appeal and strong business model.

The success of this brand has also been attributed to its ability to tap into the cultural significance of chai while adapting towards modern business practices. 

While offering chai with a touch of tradition, the brand has created a loyal following! Its outlets are often seen bustling with students, office-goers, and tea enthusiasts who enjoy the relaxed vibe of the café. 

The brand has skillfully blended the social aspect of tea drinking with the growing demand for quick, affordable, and quality beverages, making it a go-to spot in urban and semi-urban areas. 

This widespread appeal has allowed Chai Sutta Bar to expand quickly and establish a strong presence in the highly competitive café market.

History and Founding Of Chai Sutta Bar Franchise

In the year 2016, the Chai Sutta Bar franchise was founded by Anubhav Dubey. His vision was to make chai (tea) accessible to everyone while fostering a space where people come gather, and socialize while enjoying meaningful conversations too. 

The concept of the chai sutta bar also emerged from the idea of blending modernity with traditions by offering high-quality chai at reasonable rates which resonates with the Indian palate. 

Since day one, Anubhav’s mission was clear, aimed to create affordable and eco-friendly tea which only catered to the growing demand for tea but also addressed environmental concerns.

From humble beginnings, the unique selling point of the chai sutta bar was to serve tea with traditional kulhads, which became a symbol of traditional authenticity that reminded people of their cultural roots. 

These kulhads are an eco-friendly option yet help in enhancing the chai-drinking experience too with the combination of quality, affordability and environmental consciousness which has been the key driving factor of chai sutta bar’s rapid success.

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Unique Selling Proposition (USP)

The unique selling proposition of the chai sutta bar simply revolves around two key elements which is eco-friendly and affordable practice. 

Unlike modern café, which charge premium prices for tea, Chai Sutta Bar has kept its menu affordable yet accessible for wider audiences too without burning the hole in their pocket.

A defining feature of Chai Sutta Bar is the use of kulhads—traditional Indian clay cups—to serve tea. 

The use of these clay cups not only preserves the nostalgic charm of chai in its most traditional form but also promotes an eco-friendly alternative to plastic and paper cups. 

In a time when environmental consciousness is growing among consumers, Chai Sutta Bar stands out by combining tradition with sustainability. 

This approach has helped the brand build a loyal customer base that values both the authentic chai experience and the brand’s commitment to reducing plastic waste.

Chai Sutta Bar Franchise Model

The franchise model of Chai Sutta Bar plays a significant role in its widespread success. The brand offers a well-established and proven business system that minimizes the risk for new franchisees. 

Entrepreneurs are provided with comprehensive operational support, training, and marketing assistance, ensuring they can effectively manage their outlets from the start. 

The franchisor’s guidance in everything from setting up the store to supply chain management allows new business owners to focus on delivering quality customer experiences.

Additionally, the relatively low entry cost to start a Chai Sutta Bar franchise makes it an attractive opportunity for a wide range of investors. 

The brand’s focus on affordability extends to its franchise system, making it accessible to aspiring entrepreneurs from diverse backgrounds. 

The combination of a proven business model, strong brand recognition, and a supportive franchisor helps new franchisees hit the ground running, contributing to the overall growth and success of the Chai Sutta Bar network.

Why Choose Chai Sutta Bar Franchise?

Below are some of the reasons to choose Chai Sutta Bar as your next business venture!

Brand Recognition

Chai Sutta Bar is now a well-recognized brand, especially among younger demographics like college students and working professionals. 

Its eco-friendly approach and kulhad chai give it an edge over other chai café chains, allowing franchisees to benefit from a strong brand reputation.

Mass Appeal

Unlike some niche cafés that cater to only a specific segment of the population, Chai Sutta Bar has broad demographic appeal. 

Whether it’s a quick chai break for students between classes, an affordable meeting spot for professionals, or a casual hangout for friends, the café caters to a wide audience.

Affordable Menu

One of the key factors behind Chai Sutta Bar’s success is its affordable menu. Tea and snacks are priced to ensure high footfall, attracting regular customers and keeping the café bustling. 

This pricing strategy enables franchisees to draw a larger customer base, ensuring steady revenue flow.

Proven Business Model

As a franchisee, you’ll be tapping into a well-established business model. 

Chai Sutta Bar has demonstrated strong market performance with a repeat customer base and a scalable business framework. 

This proven model reduces the risks typically associated with starting a new business.

Training and Support

Chai Sutta Bar provides extensive training and support to all franchisees. 

From helping with the initial setup to ongoing operational support, marketing, and management training, the franchise ensures that every outlet operates efficiently, maintaining brand consistency across all locations.

Chai Sutta Bar Franchise Cost and Investment Requirements

The franchise fees, setup costs, ongoing costs and ROI are given below.

1. Initial Franchise Fee

To become a Chai Sutta Bar franchisee, the initial franchise fee typically ranges from ₹6–8 lakhs, depending on the location and size of the outlet. 

This fee covers the right to use the Chai Sutta Bar brand, initial training, and marketing support.

2. Setup Costs

In addition to the franchise fee, you’ll need to account for setup costs, which include:

• Store interiors: Chai Sutta Bar outlets are known for their rustic and casual vibe, with comfortable seating and vibrant décor.
• Kitchen equipment: Tea-making equipment, kulhads, and supplies for snacks.
• Raw materials: Chai ingredients, kulhads, and other consumables.
• Licenses and permits: Food licenses, GST registration, and other legal permits.

The total initial investment, including setup costs, typically ranges from ₹16–20 lakhs.

3. Ongoing Costs

Franchisees are also responsible for paying monthly or annual royalty fees, which are usually a percentage of the revenue. This covers ongoing support from the franchisor, including marketing and operational assistance.

4. Return on Investment (ROI)

Most franchisees report a break-even period within 18–24 months, with profit margins between 20%–30%, depending on location and footfall. The affordable pricing and high demand for tea make it a lucrative venture with a strong ROI.

Location and Store Setup Of Chai Sutta Bar Franchise

Below are things to consider while choosing a chai sutta bar location and designing a perfect store.

Ideal Locations

The success of a Chai Sutta Bar outlet largely depends on location. Ideal areas include high footfall zones like:

• Near colleges and universities
• IT hubs and business parks
• Metro stations and public transport hubs
• Shopping complexes and busy streets

Store Space

Chai Sutta Bar outlets typically require a space of 200-500 sq ft, depending on the desired seating capacity and location. 

A smaller space works well in high-traffic areas, while a larger setup can create a relaxed hangout spot.

Store Design

The design of a Chai Sutta Bar outlet is centred around creating a cosy and inviting atmosphere. 

The kulhad chai adds to the charm, and vibrant wall art often complements the rustic furniture, offering customers a comfortable space to relax and socialize.

Licenses and Permits

Franchisees need to acquire various licenses, including:

• Food license
• GST registration
• Fire safety permits
• Health and hygiene certification

Logistics

Efficient management of raw materials and waste is crucial to maintaining Chai Sutta Bar’s eco-friendly image. 

The franchise provides guidelines on sourcing and waste disposal to ensure operations run smoothly. 

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Application Process: How To Apply For Chai Sutta Bar Franchise

Step-by-Step Process:

1. Inquiry and Research: Submit a franchise inquiry via Chai Sutta Bar’s official website.
2. Initial Discussion: Schedule a meeting to discuss the franchise terms, costs, and expectations.
3. Business Plan Submission: The potential franchisee presents a business plan and their proposed location.
4. Site Inspection and Approval: The Chai Sutta Bar team reviews the location to ensure it meets their criteria.
5. Agreement Signing: Upon approval, the franchise agreement is signed.
6. Setup and Training: The franchisee undergoes initial training, and the store setup begins.
7. Launch: The outlet opens with marketing support from the franchisor, ensuring a grand launch.

Training, Support, and Marketing Assistance

Initial Training

Franchisees are provided with comprehensive training on store operations, inventory management, customer service, and hygiene standards, ensuring they are well-prepared to run their outlet.

Ongoing Support

Chai Sutta Bar offers continuous operational support, including assistance with supply chain management, vendor partnerships, and troubleshooting.

Marketing Assistance

Franchisees benefit from national and local marketing efforts, which include:

• Branding Support: Leveraging Chai Sutta Bar’s established image.
• Promotional Campaigns: Regular campaigns, special offers, and seasonal promotions.
• Digital Presence: SEO, social media strategies, and influencer partnerships to drive footfall.

Technology and POS Systems

Chai Sutta Bar provides franchisees with modern tools for billing, inventory tracking, and customer relationship management (CRM), helping streamline operations.

Challenges and How to Overcome Them

Competition in the Tea Café Market

The tea café market is competitive, but Chai Sutta Bar’s strong brand and unique positioning help it stand out. Franchisees can further differentiate their outlet by focusing on customer engagement and consistent quality.

Location-Specific Challenges

Selecting the right location is critical to success. Conducting market research and analyzing local demand before choosing a location can help mitigate this risk.

Managing Inventory and Consistency

Consistency in product quality is key in the food business. Franchisees should use the franchise’s supply chain management tools to ensure regular stock replenishment and maintain high standards.

Maintaining Hygiene and Quality

Strict hygiene protocols are essential to maintaining customer trust. Regular audits and adherence to Chai Sutta Bar’s hygiene guidelines can help prevent any issues.

Bonus Tips: How to Make Your Chai Sutta Bar Franchise Stand Out

• Focus on customer service to create a memorable experience.
• Host local events or chai-themed nights to attract new customers.
• Offer seasonal promotions and introduce new chai flavours regularly.
• Design a cosy and vibrant seating area that encourages customers to stay longer.

Conclusion

Chai Sutta Bar Franchise offers a unique franchise opportunity that blends the charm of traditional tea with modern café culture. 

With a proven business model, strong brand recognition, and ongoing support, it’s a lucrative option for entrepreneurs. 

If you’re looking to join a growing brand with a loyal customer base, now is the time to explore the Chai Sutta Bar franchise. Ready to embark on your chai journey? 

Contact Chai Sutta Bar to learn more about becoming a franchise partner.

Frequently Asked Questions on Chai Sutta Bar Franchise

1. What is the initial investment required to start a Chai Sutta Bar franchise?

The initial investment of Chai Sutta Bar typically ranges between 15-20 lakhs which includes the franchise fees as well which is 6-8 lakhs. The other fees include the setup costs like kitchen equipment, interior design, branding, raw materials and working capital.

2. What is included in the chai sutta bar franchise fee?

The franchise fees typically include the right to use the Chai Sutta bar brand. The fees of initial training by the Chai Sutta bar team with franchisee and staff and ongoing marketing and operational support as well.

3. What is the average return on investment (ROI) and break-even period for a Chai Sutta Bar franchise?

The average ROI can range from 20-30%, with most franchisees achieving a break-even point within 18-24 months, depending on location and footfall.

4. What are the space requirements to open a Chai Sutta Bar outlet?

A typical Chai Sutta Bar outlet requires between 200-500 sq ft of space. The exact size depends on the seating capacity and location.

5. Where should I ideally set up my Chai Sutta Bar Franchise?

Ideal locations for a Chai Sutta Bar include high-footfall areas such as near colleges, IT hubs, shopping complexes, metro stations, and busy streets. 

Locations with a large student and professional demographic are ideal.

6. Does Chai Sutta Bar Franchise offer training and operational support?

Yes, Chai Sutta Bar provides comprehensive initial training that covers store operations, customer service, hygiene standards, and inventory management. 

Franchisees also receive ongoing operational support, including supply chain management and marketing assistance.

7. What licenses and permits are required to operate a Chai Sutta Bar outlet?

Franchisees need to obtain several licenses, including:

• Food license from the FSSAI
• GST registration
• Fire safety permits
• Health and hygiene certification