Chai has an Indian love story and it is turning into a golden business prospect to people who aspire to become entrepreneurs. Gradually gaining a reputation as one of the most promising and sustainable business models in 2025, Tea Franchise in India have become one of the most profitable and lucrative models of conducting business due to millions of cups consumed every day throughout the country.
The tea franchise industry is a low-investment, high-paying venture regardless of whether you are a first time entrepreneur or an expert investor and is based on the deep-rooted culinary traditions and business culture of India towards chai.
Since ancient roadside tea stalls have developed into the tea cafe franchise business of chain shops, and as new tea lodging businesses tend to draw in the young generation to test the game, the tea franchise industry is rapidly surging.
India’s Rapidly Growing Tea Franchise Market
The tea retail business in India is experiencing unprecedented growth, with the market expected to cross ₹24,000 crore by 2027. Recent data strengthens this outlook—IMARC Group valued the India tea market at US$ 11.5 billion in 2024, with a projected CAGR of 3.10% between 2025 and 2033. As per 2025 market insights, the combined tea market revenue (at-home + out-of-home) stands at US$ 24.10 billion, where at-home tea spending contributes US$ 18.89 billion, and out-of-home consumption adds another US$ 5.20 billion. This growth is boosted by urbanization, rising incomes, health-conscious customers, and the shift from unorganized roadside tea stalls to branded chai cafés.
India, being the second-largest tea-consuming and producing country, continues to dominate the industry despite challenges. In 2024, tea production dropped by ~7.8%, bringing output to 1,284.78 million kg due to adverse climate conditions in Assam. Even with this dip, India exported 254.67 million kg of tea valued at ₹7,111.43 crore, ranking as the third-largest tea exporter globally, with Russia, Iran, and UAE being primary buyers.
With 88% of Indian households consuming tea daily, the demand for hygienic, high-quality, and experience-driven tea outlets is rapidly growing. The simplicity of operations, low staffing needs, low-cost raw materials, and strong consumer loyalty make tea cafés a lucrative venture. This is why many investors are choosing a Tea Franchise in India, achieving stable revenue and short payback periods ranging from 6 to 18 months across most franchise models.
Why Start a Tea Franchise in India?
- Evergreen Demand: Tea is the most consumed drink in India after water and this will guarantee a steady flow of customers.
- Low Investment: The investments of most tea franchises are between 5-25 lakh, and thus accessible.
- Fast payback: The payback period is normally 5-18 months based on location and brand.
- Tested Business Model: Franchises provide the tested systems of business operations operating with decreased entrepreneurial risk.
- Complete Support: Training, supply chain, marketing, and operational guidance provided by franchisors.
- High Profit Margins: They have profit margins 30-70% as per location and efficiency of operations.
- Flexible Models: Its kiosk (100 sq ft) options up to lounges (1500+ sq ft) are available.
- Expanding Market: Cafes Organized tea cafe market is increasing by 15-20% CAGR/year.
- Brand Recognition: Customers can trust and be loyal to established franchises.
- Scalability: Can be extended easily with additional outlets once it has reached a point of success.
Tea Franchise Cost in India (2026 Updated Guide)
| Franchise Type | Investment Range | Space Required | Expected Monthly Profit | ROI Period |
| Budget Kiosk | ₹5-8 Lakhs | 100-150 sq ft | ₹40,000-80,000 | 5-10 months |
| Standard Outlet | ₹10-16 Lakhs | 200-400 sq ft | ₹60,000-1,20,000 | 10-15 months |
| Premium Cafe | ₹18-25 Lakhs | 400-800 sq ft | ₹1,00,000-2,00,000 | 12-18 months |
| Lounge Model | ₹30-50 Lakhs | 1000-2000 sq ft | ₹2,00,000-4,00,000 | 15-24 months |
Tea Franchise in India – Comparison Table (2026 Updated)
| Franchise Name | Investment Cost | Royalty Fee | Profit Margin (Approx.) | Outlet Size Required | No. of Outlets |
|---|---|---|---|---|---|
| Tea Time | ₹5–7 Lakhs | 3% (capped at ₹9,000) | 20–25% net | 100–150 sq ft | 4000+ |
| Chai Sutta Bar | ₹16–25 Lakhs | 4% | 35–40% net | 200–400 sq ft | 550+ |
| MBA Chai Wala | ₹10–20 Lakhs (Kiosk ₹15–16L / Dine-In ₹24–25L) | 6% | 40–50% | 150–500 sq ft | 100+ |
| Chai Garam | ₹8–12 Lakhs | 2–3% | 35–45% | 80–150 sq ft | 200+ |
| Yewale Amruttulya | ₹6–10 Lakhs | Minimal/None | 40–50% | 150–250 sq ft | 200+ |
| Chai Point | ₹20–30 Lakhs | 5–7% | 25–35% | 300–600 sq ft | 200+ |
| Chaayos | ₹25–40 Lakhs | 5–8% | 20–30% | 400–800 sq ft | 100+ |
| We Chai | ₹7–12 Lakhs | 2–3% | 38–48% | 100–150 sq ft | Growing |
| KULHAD CHAI | ₹9–15 Lakhs | 3–4% | 35–45% | 150–250 sq ft | 100+ |
| Tea Factory | ₹18–28 Lakhs | 4–6% | 28–38% | 300–600 sq ft | 50+ |
| Tealogy | ₹15–22 Lakhs | 4–5% | 30–40% | 200–400 sq ft | 100+ |
| Delhi Chay Cafe | ₹8–13 Lakhs | 2–4% | 40–50% | 150–300 sq ft | 50+ |
| Tea House | ₹12–20 Lakhs | 3–5% | 32–42% | 300–600 sq ft | 100+ |
Top 13 Best Tea Franchise in India (2026 Updated List)
1. Tea Time
Tea Time Franchise is the biggest Indian chain of tea franchises offering more than 4000 outlets in the country. It was established in 2016 by Uday Srinivas Tangella and it brought an idea of affordable tea culture by bringing quality chai at a starting price of ₹15. The brand focuses on various forms of tea such as Assam chai, ginger tea, dum tea, green tea, and coolers as well as milkshakes and snacks, and it becomes a one-stop quick service beverage drink.
- Investment Cost: ₹5-7 Lakhs
- Royalty Fee: 3% of monthly gross sales (capped at ₹9,000)
- Profit Margin: 40-80% gross profit margin; 20-25% net profit
- Apply Link: https://teatimegroup.com/unit-franchise/
2. Chai Sutta Bar
Chai Sutta Bar (CSB) has changed the tea culture in India by serving chai in biodegradable kulhad, and this indeed makes it appear as an authentic and modern café style. Since 2016, when Anubhav Dubey and Anand Nayak started the CSB, it has expanded to over 550 units operating in 370 cities with international branches in the UAE and Nepal. The brand, popularly known as Chai Sutta Bar, is also very popular among young people as they have a special atmosphere and offer a variety of foods.
- Investment Cost: ₹16-25 Lakhs
- Royalty Fee: 4% of monthly revenue
- Profit Margin: 35-40% net profit; ROI 108% within 14-18 months
- Apply Link: https://www.chaisuttabarindia.com/
3. MBA Chai Wala
MBA Chai Wala is a successful entrepreneurial journey narrative begun by Prafull Billore in 2017 with only 8000 investment. In India, the brand has 100+ stores and has become the symbol of the affordable tea of high quality and some new flavors, making it one of the most inspiring stories in the Tea Franchise in India segment. MBA Chai Wala is aimed at the students, young professionals, and tea lovers with its unique branding and a wide variety of drinks or beverages: different types of chai, coffee, and snacks.
- Investment Cost: ₹10-20 Lakhs (Kiosk: ₹15-16 Lakhs; Dine-In: ₹24-25 Lakhs)
- Royalty Fee: 6% of total revenue
- Profit Margin: 40-50% profit margin; ₹90,000 monthly earnings potential
- Apply Link: https://www.mbachaiwala.com/
4. Chai Garam
Chai Garam is an emerging fast expanding franchise of tea that specializes in the flavors of Indian chai with a touch of modern flavors. The brand focuses on quality ingredients and uniform taste and fast service, which makes it become popular in communities with heavy traffic. As a growing player in the Tea Franchise in India market, the startup Chai Garam has a painfully easy business model that beginners can easily venture into since its processes are simple and the supply chain has centralized operations such that the quality in all the outlets is maintained.
- Investment Cost: ₹8-12 Lakhs
- Royalty Fee: 2-3% of monthly sales
- Profit Margin: 35-45%
- Apply Link: https://www.chaigaramcafe.com/
5. Yewale Amruttulya
Yewale Amruttulya is a tea chain franchise based in Maharashtra and has a name that extends to Marathi based tea which is served in an authentic Marathi Banquet manner in glasses. The brand has a valiant customer base with more than 200 plus stores spread across Maharashtra, and being extended into other states. Yewale is a tea shop that deals with kadak cutting chai, bun maska, and also conventional snacks in a traditional tea shop format present in a structured manner.
- Investment Cost: ₹6-10 Lakhs
- Royalty Fee: Minimal or no royalty fee
- Profit Margin: 40-50%
- Apply Link: https://www.yewaleamruttulya.com/
6. Chai Point
Chai Point is a high-quality structured chain of tea cafés in India that has strong representation in business districts and major metro cities. The brand was started with the vision of delivering good tea and coffee to people in the working environment through both retail stores and corporate pantry services.
The franchise provides a high level of tea as well as mixes, snacks, and edition plans in office settings, and its scalable model aligns well with modern concepts like a Cloud Kitchen Franchise in India, which focus on convenience, efficiency, and wide delivery reach.
- Investment Cost: ₹20-30 Lakhs
- Royalty Fee: 5-7% of monthly revenue
- Profit Margin: 25-35%
- Apply Link: https://www.chaipoint.com/
7. Chaayos
Chaayos has been the first to base its business in India on the idea of made-to-order chai, allowing the client to customize his/her tea, choosing between 12 different types and 25 different additions. The company targets young individuals living in the city in major metros because they can go to 100+ Chaayos outlets to enjoy a high-quality tea experience.
As one of the most innovative brands in the Tea Franchise in India segment, the brand provides an amalgamation of classic Indian chai with the luxuries of a cafe with a long food menu, as well as their unique tea blends, which makes it a one-stop food and beverage shop.
- Investment Cost: ₹25-40 Lakhs
- Royalty Fee: 5-8% of monthly revenue
- Profit Margin: 20-30%
- Apply Link: https://www.chaayos.com/
8. We Chai
We Chai is a new tea company that emphasizes the traditional Indian chai recipes with local treatment. The brand focuses on authenticity whereby high-quality tea leaves and fresh ingredients are used to produce uniform quality.
We Chai uses a compact foot print strategy which fits well in small spaces in residential homes, markets and close to learning institutions and focuses on local communities at affordable cost.
- Investment Cost: ₹7-12 Lakhs
- Royalty Fee: 2-3% of monthly sales
- Profit Margin: 38-48%
- Apply Link: https://wechai.co.in/
9. KULHAD CHAI
KULHAD CHAI takes pride in the serving techniques of the traditional Indian cuisine and only offers tea in earthen kulhads to maintain sustainability and stay natural. It has become popular due to how eco-friendly the franchise is and the nostalgia of the franchise.
As a growing name in the Tea Franchise in India space, KULHAD CHAI has 100+ outlets and stands out by offering different tastes of tea, hot drinks, and snacks, which attracts a consumer who likes living within the traditional chai culture and enjoys hygienic and organized services in new environments.
- Investment Cost: ₹9-15 Lakhs
- Royalty Fee: 3-4% of monthly revenue
- Profit Margin: 35-45%
- Apply Link: https://kulhadchai.co.in/
10. Tea Factory
Tea Factory also brands itself as a high-quality tea lounge with a wide array of tea experiences globally. The franchise targets those that appreciate tea and want high-quality blends, varieties as well as the production methods.
Tea Factory establishments have modern designs, coziness and large menus with both international tea, fusion as well as expensive snacks and this targets the rich markets in metro cities and luxury localities.
- Investment Cost: ₹18-28 Lakhs
- Royalty Fee: 4-6% of monthly revenue
- Profit Margin: 28-38%
- Apply Link: https://teafactory.in/
11. Tealogy
Tealogy scientifically instills precision and standardization to the brewing process of tea providing quality control mechanisms. The franchise focuses on quality tea services and has various blends such as herbal tea, organic tea and specialty tea.
Tealogy also focuses on the health-conscious customer segment with emphasis on the tea connoisseurs who would prefer a nice, high-end cafe environment with learned staff knowledgeable in types of tea and the heat of tea brewing and associated methods making it quite common in high-end residential and commercial locations.
- Investment Cost: ₹15-22 Lakhs
- Royalty Fee: 4-5% of monthly revenue
- Profit Margin: 30-40%
- Apply Link: https://tealogy.in/
12. Delhi Chay Cafe
Delhi Chay Cafe embraces the spirit of the popular chai in the Delhi street in a structured format. The franchise deals with healthy Delhi -style kadak chai, bun maska, samosas, and pakoras. As its popularity increases in North India, Delhi Chay Cafe would target customers who would like experiencing traditional flavors at modern hygiene levels. The brand is nostalgic and affordable which makes it quite successful in the urban and semi-urban markets.
- Investment Cost: ₹8-13 Lakhs
- Royalty Fee: 2-4% of monthly sales
- Profit Margin: 40-50%
- Apply Link: https://www.delhichaicafe.com/
13. Tea House
The Tea House is a complete experience of a tea cafe with several menus of different types of tea, coffee, snacks, and light meals. The franchise is dedicated to the development of a community gathering place that has comfortable seats and a good environment. Tea House identifies itself as a local cafe which can be used during leisure meetings, study and family outings and as such it provides value-for-money tasting beverages and meals, which allows it to be targeted at various groups of customers.
- Investment Cost: ₹12-20 Lakhs
- Royalty Fee: 3-5% of monthly revenue
- Profit Margin: 32-42%
- Apply Link: https://teahousegroup.com/
Requirements to Start a Tea Franchise in India
- Financial Capacity: Sufficient capital to meet franchise fee, set up and 3-6 months working capital.
- Space Availability: 100-2000 sq ft (minimum) based on the franchise model (owned or rented)
- Location Suitability: Markets, close to colleges, IT parks, residential places, highways, etc.
- Minimal Infrastructure: Connection of electricity, water, drainage, proper ventilation.
- Basic formalities: GST registration, the FSSAI license, local municipal permit, trade license.
- Staff Requirement: 2-4 trained workers based on the outlet size and working hours.
- Business Mentality: Quality, customer service and brand standards commitment.
- Age Requirements: Most franchises are usually 21 years and above.
- Educational Experiences: No requirements although elementary business knowledge would help.
- Long-term Innovation:Franchise deals are also going to be 3-5 years with renewal possibilities.
How to Choose the Best Tea Franchise for Your Budget
- Evaluate Your Investment Potential: Divide total sum of complete capital and emergency capital.
- Research Multiple Brands:Compare at least 5-7 franchises and make decisions.
- Consider Royalty Structure: Hospitality and presence of low royalty results in increased retention of profits.
- Check Brand Reputation: Find franchises that have more than 50 working branches and positive reviews.
- Study ROI Timeline: The shorter the payback (6-12 months) the better the profitability.
- Take into account Location Suitability: Find a franchise with your location demographic possibilities.
- Review Support Systems: Supplies and Fayol training, Supply chain and marketing services play a great role.
- Confirm Success Stories: Speak to other franchisees to know the reality on the ground.
- Know More about Menu Diversity: The more the variety of products, the more the customers.
- Check Expansion plans: Brand expansion plans can provide greater long-run stability and reinforcement.
- Evaluate Competition: Evaluate the saturation of a local market prior to finalizing franchise decisions.
- Compare Profit Margins: The high investments are offset by high margins.
How to Apply for a Tea Franchise in India (Step-by-Step Guide)
Step 1: Research and Shortlist
- Check franchise websites and standings on investments.
- Compare various Tea Franchise in India with reference to budget as well as location.
Step 2: Submit Online Application
- Complete fill franchise enquiry form on official sites.
- Disclose: name, contacts, city, investment potential, locality opticness.
Step 3: Initial Screening
- Application reviewed by Franchise team.
- Shortlisted applicants are called in order to discuss the details.
Step 4: Presentation Meeting
- Present at a virtual or real presentation.
- Knowing business model, support systems, expectations.
Step 5: Location Evaluation
- Google Maps link Share location photographs.
- The franchise team does site inspection and feasibility study.
Step 6: Agreement Signing
- Check the terms of the franchise agreement.
- Sign contracts and make down-payments on franchises.
Step 7: Setup and Training
- Full outlet furnishings with interior design requirements of the brand.
- Complete training course (3 days on average)
Step 8: Equipment Installation
- Obtain branded machinery, equipment and starting inventory.
- Install POS systems and working tools.
Step 9: Staffd Opening
- Introduction by promotions and marketing.
- Open with continuous franchisor assistance.
Conclusion
Tea Franchise in India is also one of the most profitable and readily available businesses in 2025 and is an opportunity to bring together the Indian culture of chai with the modern-day organized retail structure approaches. These franchises are present with a profitable offering even at the lower level of investment as little as 5 lakhs and with a high rate of profit of up to 70 percent where the entrepreneurs enjoy the ride.
The need to chew gum is evergreen, which makes the tea franchise industry resilient, the complexity involved in the business is quite low and due to the extensive support of the franchisor, the entrepreneurial risks are minimal. Be it low cost Tea Time and Yewale Amruttulya or high cost Chaayos and Chai Point, it is all about good location choice, keeping the quality level and ensuring the superior service to the customers.
The swift growth of the industry, as the organized tea market is expected to grow by 15-20% a year, gives the new franchisee guaranteed opportunities. With the current trend of Tea Franchise in India changing with technology integration, delivery relationships, and new beverage product offerings, those entrepreneurs investing now would place themselves in a strong position to compete in this growing niche industry.
FAQs
What is the minimum investment of tea franchise in India?
The investment ranges between 3-7 lakhs as minimum investment of the budget kiosk models such as Tea Time and premium range requires 20-30 lakhs. The price is different depending on the location, franchise brand and the outlet size.
What is the duration of payback period of the initial investment in Tea Franchise in India?
Most tea franchises are also able to provide ROI 6-18 months based on location, foot traffic and efficiency of running the franchise. Budget franchises are usually even-breaking (5-10 months) as opposed to premium models (12-18 months).
Does it require any previous experience in the food and beverage industry to initiate a tea franchise?
No, previous experience is not obligatory. Although the number of Tea Franchise in India is quite vast, most of them offer extensive training sessions including operations, inventory, customer, and quality control, thus being appropriate among first-time entrepreneurs.
What are the recurring expenses once starting with a tea franchise?
Recurrent expenses are royalty payment (2-8 percent of revenue), rent, employee payment, procurement of raw materials, electricity payment, and contribution to marketing. Allow 30,000-80,000 of operational costs a month.
Is it possible to have many franchise outlets for tea?
Yes, most franchisors do want to expand once you have proved to be successful in demand running your first outlet within the 6-12 months. Multi-unit franchises tend to get a discount on franchise fees and special treatment and is one of the best growth strategies to the successful franchisee.
