MBA Chai Wala Franchise Cost: Investment, Opportunities, and Benefits

Amongst this sea of tea stalls and cafes, the MBA Chai Wala franchise has been a trendsetter modern take on traditional chai. It is all because of Prafull Billore’s transformation from a humble street tea stall owner to a national phenomenon.

The Indian tea market has always been one of the vibrant and culturally significant sectors, catering to the daily needs of millions. The unmatchable combination of affordability, quality, and entrepreneurial spirit makes the brand of great interest for somebody with a will to be an investor in a good business model.

Here is a detailed guide that will break down everything from the investment required and the great support for why the MBA Chai Wala franchise might just become the ticket to your profitable venture in 2024.

Overview of MBA Chai Wala

• MBA Chai Wala was founded in 2017 as a one-man company in Ahmedabad.
• The brand was started by Prafull Billore, who gave up his MBA dream to pursue a passion for tea.
• Prafull’s entrepreneurial journey has inspired many people across India.
• Over time, MBA Chai Wala has grown to over 200 stores across India.
• The brand brings the nostalgic feel of roadside tea stalls into a modern, youth-friendly café environment.
• MBA Chai Wala emphasizes affordability, quality, and innovation as the core of its business.
• It presents a promising franchise opportunity for young entrepreneurs in the F&B industry.

Product/Brand Range of MBA Chai Wala

The diverse spectrum of MBA Chai Wala’s list of products is truly a treat. Here’s what they offer. 

Chai Varieties:

• Classic Masala Chai
• Ginger Chai
• Lemongrass Chai
• Herbal Chai
• Cold Chai

Snacks and Accompaniments:

• Samosas
• Aloo Tikki
• Bread Pakora
• Veg Puffs
• Assorted Biscuits

Coffee Options:

• Regular Coffee
• Cold Coffee
• Flavored Coffee

Beverages:

• Fresh Lemonade
• Iced Tea
• Milkshakes

Desserts:

• Brownies
• Cupcakes
• Muffins

Unique Selling Points (USPs) of MBA Chai Wala:

• Fusion of traditional roadside tea with modern café experience.
• Focus on affordability without compromising quality.
• Regular introduction of innovative flavours and seasonal offerings.
• Eco-friendly packaging and emphasis on sustainability.

Merchandise of MBA Chai Wala:

• Branded mugs and tumblers
• Apparel featuring the MBA Chai Wala logo
• Tea blends available for retail sale

Also read: Can you Run a Franchise Part-Time?

Why Invest in MBA Chai Wala Franchise?

However, before discussing details, it is important to know why the franchise of MBA Chai Wala is a good investment prospect. A few factors are involved in its acceptance:

1. Brand Identity Established

MBA Chai Wala has become synonymous with quality, affordable tea, and a unique café experience. Apart from its trendy name, the inspirational story of its founder has considerably contributed to its popularity, making it a constant destination for chai lovers across the country.

This gives a strong brand recognition that naturally converts to a readymade customer base for the franchisees, thus saving much time and effort to build brand awareness and attract customers.

2. Diverese Beverage menu

The Beverage of Preference for India India is the world’s second-largest consumer of tea, with chai being the favourite beverage of millions. This massive demand for tea cafes has been growing because of the shifting demands, growth of the middle class, and increased demand for organized food services.

Setting up a brand like MBA Chai Wala specializing in tea therefore means tapping into a highly emerging market that keeps growing yearly.

3. Successful Business Model

MBA Chai Wala has a business model that is easy and effective yet delivers quality tea at the right price. Providing standardised menus, easy-to-execute operations, and structuring the franchise support system to fit both the experienced entrepreneur and the novice in the F&B industry,

4. Support System for Franchising

Extensive Support from the Franchisor – One of the major advantages of owning an MBA Chai Wala franchise is that the franchisor provides intensive support to the franchise.

Right from picking up the location to staff training, marketing, and operation, everything you need to operate a successful outlet is provided by the franchisor.

5. Low Investment, High Returns

Unlike many other franchises in the F&B industry, MBA Chai Wala has the lowest amount of initial investment; therefore, it is accessible to a larger number of investors.

On the other hand, profit margins range between 40-50% which is a very high ROI usually within 12-18 months of the operation of the franchise.

MBA Chai Wala Franchise Models

MBA Chai Wala franchise models should come in handy for different investors who have varying requirements and budgets. Each model is made according to the type of business setting that an investor wants to have, whether it is a quick setup or an expanded café experience.

1. Kiosk Model

The kiosk model is suited for high-traffic locations like shopping malls, business districts, colleges, and tourist destinations. It can be fitted into a cramped space and is ideal for fast food, where the menu is not too long but well-received.

• Investment: ₹10–12 lakhs
• Area: 200–300 sq. ft.
• Employees: 2-3
• Time to Break-even: 12–15 months
• Profit percentages: 40–50%

With low overheads and less time for setting up, a kiosk model would well be suited to most entrepreneurs looking for low-cost entry into the F&B space. It is also a compact size that is easy to manage while still delivering high-quality teas to many people.

2. Café Model

This model offers far more extensive customer experience compared to the previous one with much more space and a more elaborate menu. These are found in prime locations and serve families, college students, and working professionals who wish to have their chai in a comfortable, sit-down environment.

• Investment: ₹13-15 Lakhs
• Area: 500-700 sq. ft.
• Staff: 5-6 people
• Break Even: 15-18 months
• Margin for Profit: 40-50%

The cafe model carries a higher revenue potential due to a higher seating capacity as well as a more elaborate menu. It is ideally suited for places where many people would desire to have a calm, social environment to enjoy their tea.

Investment and Cost Breakdown of MBA Chai Wala

The total investment for an MBA Chai Wala franchise cost can vary based on the model and location, but here’s a detailed breakdown of the expected costs:

• Franchise Fee: ₹2-3 lakhs (Brand licensing for once )
• Setup Costs: ₹ 6–8 lakhs Interior designing and furniture and fixtures and equipment
• Equipment: ₹1-2 lakhs (Tea-making machines, utensils, cups etc)
• Initial Inventory: ₹1 lakh (Tea leaves, milk, sugar, cups, packaging)
• Marketing: ₹50,000–₹1 lakh (Launch campaigns, social media promotions etc.)
• Staff Salaries: ₹ 1–1.5 lakhs per month (Location-based and staff size)
• Rent and Utilities: ₹ 50,000–₹ 1 lakh per month (Location-based)

Revenue and Profit Potential of MBA Chai Wala

The MBA Chai Wala franchise profit margin is based on the volume potential of an MBA Chai Wala franchise, location, footfalls and efficiency of working. However, the brand is popular and has a good customer base does favours achieving these high sales volumes.

• Average Daily Sales ₹ 10,000 – ₹ 25,000 (As it varies based on location and model)
• Monthly Income ₹ 3–6 lakhs  (Estimated on basis of daily sales)
• Profit Margins: 40–50%
• Break-even Point: As a general guideline, usually within 12-18 months.

In MBA Chai Wala, franchisees expect to earn back the initial investment within 1-1.5 years of uninterrupted, steady returns. Sales are much easier to generate when a brand like MBA Chai Wala is present, with the cost of goods sold kept low, maintaining a healthier margin.

Key Factors Influencing the Success of MBA Chai Wala Franchise

While the brand and business model is strong, the success of your MBA Chai Wala franchise benefits depends on several factors. Here are some critical elements to consider:

1. Selection of Location

The success of your franchise location depends on where it is located. Places with heavy traffic like malls, business districts, and near educational institutions usually yield better since customers are consistent and, subsequently, obtain a steady flow.

2. Operational Efficiency

Franchise management within the right skin is essential for staying profitable. From inventory to employee training and customer service, MBA Chai Wala provides everything. Training and operational support for franchisees will help simplify operations.

3. Promotion and Local Involvement

Local marketing can often make a lot of difference in the performance of your outlet, although national marketing support is provided by the brand. Social media, events, and promotions are quite effective ways to connect with the local community and bring them into your outlet.

4. Quality Control

And you need to maintain the quality of the tea and services for which MBA Chai Wala is popular. It is a fact that consistency at every step, from taste to presentation and experience brings them back again and again.

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Franchise Support and Training by MBA Chai Wala

To produce MBA Chai Wala franchise profit, the company provides intensive support for their franchisee. Here is the list of the same in detail.

1. Site Selection and Setup

The franchisor will assist you in the whole process of selecting a proper location with massive footfalls, appropriate competition, and all about local demography. You will also be guided on how to best design your cafe-from interior design to installing equipment.

2. Comprehensive Training

You and your staff will be adequately trained on a variety of subjects in running the franchise, including

• Tea preparation and brewing
• Customer service and order-taking
• Inventory, supply chain management
• Marketing and selling strategy

3. Marketing Support

MBA Chai Wala provides national marketing support with online campaigns and other media, social media too, and promotions. They also provide advisory support in local marketing endeavours to create walk-ins at your outlet.

4. Operational Support

Operational support is always granted to franchisees through continuous administration to help them manage their daily problems, optimize processes, and ensure quality and consistency in the respective outlets.

Documents Required for Franchise Application

Here are the documents required for an MBA Chai Wala franchisee:

• Proof of Identity (Aadhar Card, PAN Card)
• Proof of Address (Electricity Bill, Rent Agreement)
• Bank Statements for the last 6 months
• Lease/Rent Agreement for the outlet location
• No Objection Certificate from the landlord, if applicable.
• You have to fulfil some financial requirements for the handover and prove your capability to run the operations of a tea franchise.

How to apply for an MBA Chai Wala Franchise?

Step 1: Research & Preparation

MBA Chai Wala brand, Business Model, Investment (₹10-15 lakhs) and location Preferably with high footfall.

Step 2: Franchise Application Form

You will receive the franchise application form on the MBA Chai Wala website, providing the details of budget, location, and personal information.

Step 3: Preliminary Scrutiny

If you are selected, then the franchise team will call you up for an interview. Therefore, prepare a business plan in advance to be ready for discussion.

Step 4: Signature on the Franchise Agreement

Read the terms and conditions of the franchise; if required, take any attorney advice, and submit all the required documents that include your identity proof, address proof, and financial statements if any are applicable.

Step 5: Location Setup & Training

Work with MBA Chai Wala for the finalization of the location, setting up the outlet and hiring the required staff. Basic operations, customer care, and quality control shall be given to the trainees.

Step 6: Grand Opening & Marketing

Launch your franchise along with the marketing team of MBA Chai Wala to attract customers.

FAQs about MBA Chai Wala Franchise

1. What is the initial investment required to start an MBA Chai Wala franchise?

The initial investment typically ranges from ₹10 lakhs to ₹25 lakhs, depending on the location and size of the outlet.

2. Do I need prior experience in the food and beverage industry to apply for the franchise?

No prior experience is required. However, a passion for the F&B industry and good business acumen are beneficial.

3. What kind of support can franchisees expect from MBA Chai Wala?

Franchisees receive comprehensive support, including training programs, marketing assistance, operational guidance, and supply chain management.

Conclusion

MBA Chai Wala franchise is a great investment opportunity for entrepreneurs in India, for this booming tea industry will give excellent returns on investments. With low investment, high return, and extensive support through the franchise, MBA Chai Wala is here to offer you a proven business model.

Irrespective of the kiosk or cafe model that you choose, your brand reputation and customer loyalty have certainly smoothed your way to generating sales and profits after what is hopefully a relatively short introduction.

If you are passionate about tea and would love to be part of a growing business, then this is the perfect franchise to join in 2024.

With a very affordable investment, and comprehensive training that will give you all the support you need, you can guarantee a safe investment in one of the fastest-growing industries out there.