At Chai Sutta Bar (CSB), people enjoy tasting traditional chai in a lively, modern café setting that feels fresh and exciting. Known for serving tea in natural kulhads, CSB not only offers a unique tea experience but also creates a space where people come together to meet, chat, and celebrate their culture. The vibrant brand has quickly caught the attention of young Indians, becoming a popular name in India’s thriving café culture.
For entrepreneurs, Chai Sutta Bar presents promising franchise opportunities across India. Before taking the plunge, it’s important to understand the Chai Sutta Bar Franchise Cost in India, how the franchise model operates, and where the potential for growth lies.
This guide walks you through the brand’s success story, what sets it apart, financial details, investment requirements, and profit potential — helping you decide if joining this flourishing franchise is the right move for you.
With India’s tea market booming and expected to reach $59.23 billion in 2025, growing from $55.67 billion in 2024 at a compound annual growth rate (CAGR) of 6.4%; demand for quality tea experiences is soaring. As more people visit cafés rather than just brewing tea at home, investing in a Chai Sutta Bar franchise offers an attractive, affordable entry point into this expanding market — all while leveraging a well-known, trusted brand.
About Chai Sutta Bar
Chai Sutta Bar (CSB) is a rapidly growing tea café chain founded in 2016 by two young entrepreneurs, Anubhav Dubey and Anand Nayak, with the mission to serve India’s beloved beverage, chai, in an eco-friendly and culturally resonant manner. Chai Sutta Bar brings together the traditions of Indian chai and the refreshment of today’s cafés. With the mission to update the way modern cities think about and drink tea, the brand has achieved its goal by combining authentic tastes, low costs, and a hip atmosphere appreciated by today’s youth.
Chai Sutta Bar mainly pays homage to India’s long history of tea by offering many types of handcrafted tea in kulhads (clay cups), helping to keep the environment safe. On top of chai, the menu includes several snacks and beverages that please different palates.
The youthful decor, relaxed setting, and commitment to community have earned the brand many repeat customers in the millennial and Gen-Z generations. It is expanding so fast in metros, tier-,2 and tier-3 cities, which proves it is a strong franchise and popular across India.
As of 2025, the brand boasts over 600 outlets across more than 370 cities in India and has expanded internationally to locations in the UAE and Nepal. Plans are underway to establish a presence in Canada, the USA, and the UK, aiming to introduce the ‘Taste the Kulhad Chai’ experience to a global audience.
USP of Chai Sutta Bar
The focus of the brand is to offer real Indian chai, paired with unique and modern recipes, top-quality ingredients, and stylish layout.
- Premium Quality Ingredients: Each Chai Sutta Bar product is made with carefully selected premium tea leaves and spices imported from the famous estates of India.
- Innovative Menu: Consistently, the brand creates chai blends with fresh and popular flavors such as chocolate chai, rose chai, and paan chai, to match what customers want.
- Instagram-Worthy Ambiance: Pearls are arranged with colorful atmospheres meant to lure young customers and get them to take pictures for Instagram, increasing the brand’s visibility to more people.
- Affordable Pricing: Chai Sutta Bar remains affordable for all, as high-value chai doesn’t have to be expensive.
- Strong Brand Recognition: Because of its expanding nationwide presence, loyal customers, and well-known name, the Chai Sutta Bar is seen as an appealing franchise option in India by many entrepreneurs.
Why Invest in Chai Sutta Bar?
Customers’ changing tastes and rising incomes are driving the rapid growth seen in the Indian tea café market. Buying into this franchise allows business people to tap into a constantly expanding market segment. The Chai Sutta Bar Franchise Cost in India is structured to offer the best benefits and steady, healthy profits to franchisees.
Investment Advantages:
- Proven Business Model: The business model for Chai Sutta Bar has been successfully tested in over 600 outlets across more than 370 cities in India. Being a franchisee means adopting a tried-and-true system that reduces risk and boosts operational efficiency.
- Growing Market Demand: India’s tea market is booming and is expected to reach around $24.65 billion by 2025. With a deep-rooted love for chai and the rising café culture, demand for branded tea outlets like Chai Sutta Bar is continuously increasing, offering tea lovers an authentic yet modern experience.
- Low Competition Risk: Positioned uniquely between upscale cafés and street tea stalls, Chai Sutta Bar enjoys a distinctive identity. Its affordable pricing and consistent quality give it a strong edge over competitors.
- Affordable Investment and Quick ROI: With an initial franchise investment ranging between ₹16 to ₹18 lakh, the entry cost is relatively affordable compared to other food and beverage franchises. Thanks to high customer traffic and efficient operations, franchisees can expect a quick return on investment—typically about 108% ROI within 14 to 18 months—making the business both profitable and cash flow positive in a short time.
- Comprehensive Support: Chai Sutta Bar provides end-to-end support, from selecting the ideal location and designing the outlet interior to branding, marketing strategies, and team training, ensuring franchisees are well-equipped to succeed.
- Scalability Options: Franchise owners have the opportunity to expand rapidly by opening multiple outlets in their regions. With ongoing plans to grow internationally—already present in the UAE and Nepal and targeting markets like Canada, the USA, and the UK—being part of this expanding chain adds further credibility and long-term growth potential.
Understanding the Chai Sutta Bar Franchise Model
The model gives partners everything they need to run a business, helping to reduce the usual issues that come with starting from scratch. Chai Sutta Bar Franchise Cost in India gets all the help they need, from opening the store to running it in the future. Thanks to this turnkey method, any entrepreneur starting their first franchise will be provided with the proper guidance and tools necessary.
Franchise Structure Components:
- Territory Rights: Each person who operates a Chai Sutta Bar franchise is assigned a particular area, so the same brand will not compete with them locally.
- Brand License: Those joining the brand license can instantly trust Chai Sutta Bar by using its established brand logos, signages, and promotional items.
- Operational Manual: All franchise owners are given a detailed guide of daily practices, describing how to manage staff, apply standards for cleanliness, keep inventory on tim,e and pay attention to customer needs.
- Training Program: During training sessions, franchise owners and their teams are trained on preparing items, selling to customers, dealing with clients, and managing stores the same way.
- Supply Chain Support: As a franchisee, you can expect a strong and high-quality supply chain. The items we use are bought only from reliable vendors to guarantee consistent results.
- Marketing Assistance: The brand takes care of both national and local marketing for its franchisees, boosting their visibility, attracting more people, and raising customer engagement from the start.
- Technology Integration: Every Chai Sutta Bar franchise offers POS systems, manages inventory software, and accepts digital money, making operations organized and pleasant for customers.
Chai Sutta Bar Franchise Cost in India
Being aware of all the financial requirements lets you decide if this business is right for you. The Chai Sutta Bar Franchise Cost in India is dependent on where the location is, the size of the bar, and the state of the market. This level of detail ensures users understand all financial factors and are better able to form a good investment plan.
Investment Components:
- Initial Franchise Fee: A fee of at least ₹3 and up to ₹5 lakhs is required to use the Chai Sutta Bar name, access the company’s trademarks, follow an effective model, and work in an exclusive location.
- Setup and Infrastructure: Approximately ₹8 to ₹12 lakhs are required for setting up the space, buying furniture, equipmen,t and for initial installation of the brand and stock.
- Security Deposit: An amount of ₹2 to ₹3 lakhs that can be refunded to you as financial assurance for the business agreement between franchisor and franchisee.
- Working Capital: Your business should set aside around ₹3 to ₹5 lakhs to manage salary, utility, inventory, and other daily running costs in the first 3 to 6 months.
- Total Investment Range: The Chai Sutta Bar Franchise Cost in India usually somewhere between ₹16 and ₹25 lakhs, changing based on location, size, and personal touch.
- Ongoing Royalty: The franchisor receives 5% to 8% of your monthly revenue for support, help, and system management.
- Marketing Fee: A skilled team contributes 2% to 3% of gross monthly earnings towards marketing at the national and local levels, to help the brand stay visible to customers and engage with them.
Ongoing Operational Costs
Now that we’ve examined the initial investment requirements for a apply Chai Sutta Bar franchise, let’s delve into the ongoing operational costs you’ll need to consider. These expenses are crucial for maintaining your franchise’s success and profitability in the long run.
A. Marketing and Advertising Expenses
Marketing and advertising are essential components of running a successful apply Chai Sutta Bar franchise. These expenses help attract new customers and retain existing ones, ultimately contributing to your outlet’s growth and profitability.
Types of Marketing Expenses:
- Local advertising campaigns
- Social media marketing
- Promotional events and offers
- Signage and in-store branding
- Digital marketing initiatives
| Marketing Channel | Estimated Monthly Cost (INR) |
|---|---|
| Digital Marketing | 10,000 – 20,000 |
| Social media | 5,000 – 15,000 |
| Promotions | 8,000 – 15,000 |
| Signage | 2,000 – 5,000 |
| Digital marketing | 7,000 – 12,000 |
It’s important to note that these costs can vary depending on your location and the scale of your marketing efforts. On average, you should budget approximately 5-10% of your monthly revenue for marketing and advertising expenses.
B. Staff Salaries and Training
Your staff is the backbone of your Chai Sutta Bar franchise. Ensuring you have well-trained and motivated employees is crucial for delivering the high-quality service that customers expect from the brand.
Typical Staff Positions:
- Store Manager
- Chai Masters
- Servers
- Cashiers
- Cleaning staff
| Position | Estimated Monthly Salary (INR) |
|---|---|
| Store Manager | 25,000 – 35,000 |
| Chai Master | 15,000 – 20,000 |
| Server | 10,000 – 15,000 |
| Cashier | 12,000 – 18,000 |
| Cleaning Staff | 8,000 – 12,000 |
The number of staff members you’ll need depends on your outlet’s size and operating hours. On average, a Chai Sutta Bar franchise may require 6-10 employees to run smoothly.
Training costs should also be factored in. While initial training is often provided by the franchisor, ongoing training and skill development are essential. Budget approximately 2-3% of your monthly revenue for staff training and development programs.
C. Inventory and Supplies
Maintaining an adequate inventory of high-quality ingredients and supplies is crucial for the success of your Chai Sutta Bar franchise. This ensures that you can consistently deliver the authentic taste and experience that customers expect.
Key Inventory Items:
- Tea leaves and spices
- Milk and dairy products
- Sugar and sweeteners
- Disposable cups and packaging
- Snacks and food items
- Cleaning supplies
| Category | Estimated Monthly Cost (INR) |
|---|---|
| Tea and spices | 30,000 – 50,000 |
| Dairy products | 40,000 – 60,000 |
| Sweeteners | 10,000 – 15,000 |
| Packaging | 20,000 – 30,000 |
| Snacks and food | 25,000 – 40,000 |
| Cleaning supplies | 5,000 – 8,000 |
Summary of Investment
| Cost Type | Estimated Range (INR) |
| Initial Investment | ₹16,00,000 – ₹25,00,000 |
| Monthly Operational Expenses | ₹1,50,000 – ₹2,50,000 (approx) |
Total Estimated Initial Investment: ₹16,00,000 – ₹25,00,000; Depending on location, outlet size, and customization.
Contact Details
Do you wish to start your business by discovering the Chai Sutta Bar Franchise Cost in India? The team supporting our franchises can offer you all the details you need, check your project’s potential and assist you in handling the application process.
Franchise Inquiry Contacts:
- Corporate Office: 1st Floor, Redsquare, PU3 Commercial Scheme no 54, Opposite C21 Mall, Indore, MP- 452001
- Phone: 62623 00031
- Email: business@chaisuttabarindia.com
- Website: www.chaisuttabarindia.com/franchise
Profit & ROI Potential for Chai Sutta Bar Franchise
The Franchise Cost of Chai Sutta Bar in India is planned for attractiveness and efficiency in returns on investment. From studying the results of currently operating units, franchise partners can anticipate growing revenue and solid profit margins. Since the company prices its solutions low, customers stick with them and run efficiently, which achieves profits and a promising ROI.
Revenue and Profitability Metrics:
- Average Monthly Revenue: On average, every Chai Sutta Bar store generates revenue of ₹2.5 to ₹4 lakhs monthly. Even the same business can earn differently depending on its address, the number of walk-ins in the area, and the success of its marketing, showcasing great opportunities for outsiders.
- Gross Profit Margin: The company achieves a strong gross profit margin, reaching between 65% and 75%, by paying for direct items such as quality products, packaging, and necessary stock. Because of this healthy margin, it’s clear that the business model and prices are doing well.
- Break-even Period: Expect to reach the point where you cover all of your costs around one and a half to two years after your franchise starts. Different locationsmanagementts and the ease of attracting loyal customers all affect how long it takes the outlet to run.
- Expected ROI: Once everything runs smoothly, the project will likely generate returns on the money invested of about 25% to 35%. This is what draws entrepreneurs who are interested in making regular profits to Chai Sutta Bar.
- Growth Potential: Growing revenue is expected for Jane’s franchise partners, with effective market and customer involvement strategies backing them up.
- Multiple Revenue Streams: The business model draws income from several sources, including eating in the restaurant, ordering food to go, partnering with delivery providers, and serving meals for events, ensuring its revenue is well-rounded and reliable.
| Metric | Range / Value |
| Avg. Monthly Revenue | ₹2.5 – ₹4 lakhs |
| Monthly Earnings | ₹2 – ₹5 lakhs |
| Gross Profit Margin | 65% – 75% |
| Break-even Period | 18 – 24 months |
| Expected ROI | 25% – 35% |
| Revenue Streams | Dine-in, takeaway, delivery, events |
Monthly Earnings of a Chai Sutta Bar Outlet
One of the most common questions potential franchisees ask is, “How much does one outlet of Chai Sutta Bar earn per month?” The answer can vary based on several factors, including location, foot traffic, and marketing efforts. However, on average, a Chai Sutta Bar outlet can earn between INR 2,00,000 to INR 5,00,000 monthly.
Factors Influencing Earnings:
- Location: High footfall areas tend to generate more sales.
- Menu Variety: Offering a diverse menu can attract a wider customer base.
- Marketing: Effective marketing strategies can significantly boost sales.
How to Apply for Chai Sutta Bar Franchise
Applying for a Chai Sutta Bar franchise is a straightforward process. Here are the steps you need to follow:
- Research: Understand the brand, its offerings, and the market demand in your area.
- Application Form: Fill out the franchise application form available on the official Chai Sutta Bar website.
- Interview: If your application is shortlisted, you will be called for an interview to discuss your business plan and vision.
- Agreement: Upon approval, you will sign a franchise agreement outlining the terms and conditions.
- Training: You will undergo training provided by Chai Sutta Bar to understand operations, customer service, and management.
- Launch: Once everything is set up, you can launch your outlet!
Legal and Regulatory Considerations
As we delve into the legal and regulatory aspects of operating a Chai Sutta Bar franchise in India, it’s crucial to understand that compliance is not just a formality but a cornerstone of running a successful and sustainable business. These considerations are essential for protecting your investment, ensuring customer safety, and maintaining the brand’s reputation.
A. Health and Safety Regulations
Health and safety regulations are paramount in the food and beverage industry, especially for a popular chain like Chai Sutta Bar. Adhering to these regulations is not only a legal requirement but also a moral obligation to your customers and staff.
Food Safety and Standards Authority of India (FSSAI) Compliance
The FSSAI is the apex food regulator in India, and compliance with its guidelines is mandatory for all food businesses, including Chai Sutta Bar franchises. Here are key areas to focus on:
1. FSSAI License: Obtaining and maintaining an FSSAI license is crucial. The type of license required depends on the scale of your operation.
2. Hygiene Standards: Implementing and maintaining strict hygiene protocols in food preparation and service areas.
3. Food Handler Training: Ensuring all staff members are trained in food safety practices.
4. Regular Audits: Conducting periodic internal audits and being prepared for FSSAI inspections.
B. Workplace Safety
Ensuring a safe working environment is not only a legal requirement but also contributes to employee satisfaction and productivity. Key aspects include:
- Fire safety measures and equipment
- Proper ventilation systems
- Regular maintenance of equipment
- Ergonomic design of workspaces
C. Licensing Requirements
Operating a Chai Sutta Bar franchise requires obtaining and maintaining various licenses and permits. These ensure that your business operates legally and meets all local and national regulations.
Trade Licence: Issued by the local municipal corporation, this license is fundamental for operating any business.
GST Registration: Mandatory for businesses with an annual turnover exceeding ₹20 lakhs.
Shop and Establishment License: Required for regulating working hours, payment of wages, and other employment conditions.
- Health Trade License: Specific to food businesses, issued by the local health department.
- Police Licence: Some cities require this for businesses operating late hours.
- Signage Licence: For displaying your Chai Sutta Bar signage.
- Music Licence: If you plan to play music in your outlet.
Steps to Obtain Licences:
- Research specific requirements for your location
- Prepare necessary documentation
- Submit applications to relevant authorities
- Follow up regularly on application status
- Renew licenses as per stipulated timelines
- It’s advisable to engage a legal expert familiar with local regulations to ensure smooth processing of all licensing requirements.
Is the Chai Sutta Bar Franchise Cost Within Reach in 2025?
As we look ahead to 2024, many aspiring entrepreneurs are evaluating whether the Chai Sutta Bar franchise cost is within reach. Given the growing popularity of tea franchise culture in India, investing in a Chai Sutta Bar franchise profit margin can be a wise decision. The initial investment is relatively low compared to other food franchises, and the potential for profit is substantial.
Key Considerations:
- Market Demand: The demand for tea and snacks continues to rise, especially among younger demographics.
- Brand Recognition: Chai Sutta Bar has established a strong brand presence, which can help in attracting customers.
- Support System: The franchise offers training and ongoing support, making it easier for new franchisees to succeed.
Conclusion
In summary, the chai sutta bar franchise cost in India is an attractive investment for those looking to enter the food and beverage industry. With a reasonable initial investment, strong profit potential, and a supportive franchise system, it’s a viable option for aspiring entrepreneurs. If you’re interested in starting your own Chai Sutta Bar outlet, now is the time to take action! For more information, visit the Chai Sutta Bar official website and start your journey today!
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FAQs on Chai Sutta Bar Franchise Cost
What is the total investment required to open a Chai Sutta Bar franchise?
The total investment for a Chai Sutta Bar franchise profit margin ranges from ₹16 lakh to ₹18 lakh, which includes franchise fees, setup costs, and initial inventory.
What is the franchise fee for Chai Sutta Bar?
The franchise fee for opening a Chai Sutta Bar outlet is approximately ₹6 lakh to ₹8 lakh, depending on the location and specific requirements.
Are there any ongoing royalty fees for franchisees?
Yes, franchisees are required to pay a royalty fee of 4% of their monthly turnover to the Chai Sutta Bar brand.
What are the space requirements for a Chai Sutta Bar outlet?
A minimum area of 300 to 2,000 square feet is required for a Chai Sutta Bar outlet, ideally located near high footfall areas such as bus or railway stations.
How long does it take to recover the initial investment?
Franchisees can expect a return on investment (ROI) of about 108%, with a payback period typically ranging from 14 to 18 months.
What kind of support does Chai Sutta Bar provide to franchisees?
Chai Sutta Bar offers comprehensive support including marketing assistance, operational guidance, and training for staff throughout the franchise agreement period.
Is prior experience in the food industry necessary to apply for a franchise?
While prior experience in the food and beverage industry is beneficial, it is not strictly mandatory. The franchise agreement includes training and support.
Can I open multiple outlets as a franchisee?
Yes, successful franchisees can apply to open multiple outlets based on their performance and adherence to brand guidelines.
