Are you a tea lover with a tea business in mind? Look no further! The Tea Time Franchise could be the perfect combination of business opportunity and taste you’ve been searching for. This Tea Time franchise guide provides all the essential information, including the Tea Time Franchise Cost, profit analysis, and application details. Whether you’re curious about costs or ready to apply, we have solutions for you. So, let’s get started! And while you’re at it, brew your favorite cup of chai!
The Tea Industry in India has seen a huge value addition in the recent past, transforming from traditional chai stalls into an organized chain of chai cafés. The Indian tea market is a lucrative opportunity for an entrepreneur, with a market size of more than ₹20,000 crores, exhibiting a CAGR of 15%. Tea Time has, therefore, successfully carved out a position in this budding industry, attracting India’s age-old tea culture while fully renovating the idea for today’s buyers.
The average Indian consumes approximately 836 cups of tea annually, making it the most consumed beverage in India. This immense cultural significance goes hand in hand with ever-rising disposable incomes and an increased café culture, thus providing branded tea franchises like Tea Time the perfect climate to prosper. The strategic placement of the brand across 19 states is a real testament to the model’s success in regional markets, ranging from metropolitan cities to tier-2 and tier-3 towns.
Let’s explore about the brand, its franchise models and application process in depth!
The Tea Time Story
Now, while we turn our attention to the details of the current and potential franchises that Tea Time offers, we would love to share with you the success story behind the marvelous brand. Founded in 2016 by visionary entrepreneur Uday Srinivas Tangella, Tea Time began with a simple yet powerful mission: to make premium high-quality tea available at a reasonable price to as many people as possible.
The company was just a single store in Rajamundry which has now become India’s biggest tea chain serving millions of tea drinkers across the country. The company has also seen a remarkable outlet expansion to approximately 3800 tea-selling outlets in 19 states in India and Nepal alone in just seven years of operation.
So to make sure Tea Time is successful, it needs Authenticity and quality as a commitment. They offer various types of teas; black, green, oolong, and white tea, milk shakes, flavored milk, and coolers. What makes them stand out is the commitment to employing zero artificial flavors, while every cup represents real desi tea which Indians are familiar with.
Why should you Consider a Tea Time Franchise?
Nevertheless, you may be interested in understanding the reasons why you should become a member of Tea Time after reading the story of this success. Here are some compelling reasons:
- Brand Recognition: Tea Time was providing its services in more than 3800 outlets in India. You will be dealing with a brand that is very popular and therefore customers are already existing.
- Proven Business Model: Tea Time has been growing fast and that speaks volumes about their effective business strategy. You will be on the receiving end of their effective strategies as a franchisee.
- Low Investment, High Returns: The franchise can be established with a relatively small amount of capital but the returns are very high which makes the franchise a very attractive venture for potential business people.
- Comprehensive Support: Tea Time gives its franchisees all the directions starting from choosing a place for location up to the constant backing during operation.
- Product Diversity: Focus product – Tea Tea Time serves tea but also provides snacks and other beverages to enable you to appeal to a large market.
Also Read: Wow Momo Franchise Cost
Understanding the Tea Time Franchise Models
1. Unit Franchise
A Unit Franchise is Tea Time’s entry-level franchise model, ideal for first-time entrepreneurs or those looking to start with a single outlet. It requires a lower capital investment and provides an excellent opportunity to gain hands-on experience.
Key Features:
- Designed for individual outlet ownership and management.
- Suitable for entrepreneurs testing a business concept on a smaller scale.
- Outlet operates in a 1-2 km radius in urban areas to avoid market overlap.
- Franchisees are involved in:
- Daily operations
- Promotions and local marketing
- Sales and customer service management
Support Provided:
- Brand usage rights
- Standardized operating procedures
- Training and marketing assistance
Financial Terms:
- One-time franchise fee
- Ongoing royalties capped at ₹9,000 per month
Benefits:
- Full operational control
- Direct community engagement
- Ability to customize offerings based on local market needs
- Gain operational expertise while maintaining brand standards
2. Master Franchise
The Master Franchise model is a premium-level opportunity intended for experienced entrepreneurs with a broader vision and significant capital investment. It allows the franchisee to control and expand the brand in larger territories such as entire cities, districts, or even states.
Key Features:
- Grants rights to:
- Open multiple outlets
- Sub-franchise within an assigned region
- Operates as a mini-franchisor within a specified territory
- Recruits, trains, and supports unit franchisees
- Oversees quality control across multiple outlets
Revenue Streams:
- Income from personally owned outlets
- Fees from sub-franchisees
- Share of royalties from unit franchisees in the territory
Advantages:
- More control over regional operations
- Achieve economies of scale in procurement and logistics
- Build a strong regional brand presence
Ideal For:
- Entrepreneurs with business management experience
- Individuals or firms with access to capital
- Operational teams capable of handling multi-outlet expansion
Tea Time Franchise Cost in India
1. Unit Franchise Cost
The Unit Franchise is open to people who want to enter the field and are assumed to have moderate expectations of return on investment. Here’s a detailed breakdown of affiliated costs:
Initial Investment:
The investment required for a Unit Franchise varies from ₹5-7 lakhs based on location, size of the store, and local market conditions. These include:
- Franchise Fee: ₹2-2.5 lakhs (one-time, non-returnable payment for brand usage rights)
- Setup Costs: ₹1.5-2.5 lakhs (renovation of the store, branding, equipment installation)
- Equipment Package: ₹1-1.5 lakhs (tea brewing equipment, refrigeration, furniture)
- Initial Inventory: ₹50,000-1 lakh (tea leaves, milk, ingredients, packaging)
- Miscellaneous Expenses: ₹50,000-1 lakh (licenses, permits, insurance, security deposit)
Ongoing Costs:
- Royalty Fee: 3% of monthly gross sales (capped at ₹9,000)
- Marketing Contribution: 1% of monthly sales (for nationwide marketing campaigns)
- Rent: Generally ₹20,000-40,000 per month (location-wise)
- Utilities: ₹5,000-10,000 per month
- Staff Salaries: ₹25,000-40,000 per month (for 2-3 employees)
- Inventory Replenishment: ₹1-1.5 lakhs per month
The Unit Franchise agreement is generally for a 5-year period with renewal possibilities, thus constituting a medium-term arrangement by which franchisees can establish their business and recover investments before contemplating expansion.
2. Master Franchise Cost
Master Franchise is a major business proposition involving large investment but rewarding with proportionally greater returns:
Initial Investment:
₹25-50 lakhs based on size of territory and development commitment.
- Master Franchise Fee: ₹15-25 lakhs (exclusive territorial rights)
- Development Fee: ₹5-10 lakhs (development committed to territory)
- Model Store Setup: ₹5-7 lakhs (establishment of flagship store)
- Training Center Setup: ₹2-5 lakhs (establishment of training unit franchisees)
- Marketing & Brand Building: ₹3-5 lakhs (regional promotional expenses for launch)
Recurring Costs
- Royalty Share: 1.5% of gross sales from territory-wide units (half of 3% charged from unit franchisees)
- Regional Marketing: ₹1-2 lakhs per month
- Administrative Overhead: ₹3-5 lakhs per month (regional office, management team)
- Operational Support: ₹2-3 lakhs per month (field support staff, quality control)
Development Commitments: Master franchisees are usually obligated to open a minimum number of outlets (5-10) within a time period (2-3 years), directly or indirectly through sub-franchising. The contract typically lasts 10 years with options for renewal, offering long-term stability and growth opportunities.
The Profit Potential: Can a Tea Time Franchise Be Profitable?
Profitability metrics at Tea Time locations show strong performance across different locations where returns fluctuate between good and exceptional based on operational execution quality and location standards. Based on real-world performance data:
Unit Franchises generate average monthly revenues between ₹3-6 lakhs, which results in net profit margins of 20-25% following all expenses and royalty payments. An 8-12 month return on investment is achievable for the average Tea Time unit that generates monthly profits between ₹60,000 and ₹1.5 lakhs.
In addition to total revenues between ₹25-50 lakhs per month within their territory, Master Franchisees earn 15-20% of these funds as profit. Master Franchisees benefit from multiple streams of revenue, which include new unit franchise fees (₹1-1.25 lakhs per unit) combined with ongoing royalty shares from the entire unit portfolio.
A Bangalore Unit Franchise reached profitability in only four months, while a Hyderabad Master Franchisee established 15 profitable locations within two years. The business model operates effectively because it maintains low operational costs through high-margin products and recurring customer relationships.
Factors Influencing Profitability
- Location Selection: Stores located in high-traffic areas achieve 30-50% better sales than regular locations. Tea Time outlets achieving better sales stand in locations around colleges and commercial complexes and transport hubs instead of residential areas. Properties which occupy double corners generate 25% additional sales revenue from being situated in high traffic areas.
- Operational Efficiency: A well-optimized operation system leads to profit margin growth between 5% and 8% points. The combination of improved inventory controls along with staff training results in a waste rate less than 5% and helps reach order processing times under 90 seconds and achieve maximum capacity during busy periods.
- Product Mix Optimization: The core tea business makes up 70% of Azad’s revenue but successful multi-seller outlets that combine premium tea selection with food items achieve 10-15% increased revenue from higher margin products. Operations that introduce menu variations seasonally generate sales increases of 20% throughout promotional periods.
- Local Marketing Execution: When franchisees spend between 5-7% of their revenue on local marketing activities they achieve between 25-30% better results in customer acquisition. The combination of digital marketing tactics aimed at localized audiences together with community engagement and customer loyalty systems drives consistent repeat visitation at the rate of three to four times per week.
- Cost Control: The management of costs throughout raw materials (28-32% of revenue) and labor (15-18% of revenue) directly controls profit levels. Systematic monitoring combined with efficiency improvements helps franchisees keep their operating costs lower than the 70% of revenue threshold.
- Customer Experience: Restaurants which receive steady scores of 4.5 or higher through customer feedback maintain 40% greater retention of their customers. Customers return to establishments that provide personalized attention and excellent cleanliness together with great ambiance and spend an average of ₹1,200-1,500 monthly.
The Tea Time Menu: A Diverse Palette of Flavors
One of the keys to Tea Time’s success is its diverse menu. As a franchisee, you’ll be offering:
1. Tea Varieties:
- Masala chai
- Premium milkshakes
- Flavored milk
- Coolers
2. Snacks:
- Khari biscuits
- Vada pav
- Misal pav
- Bonda
- Khatta dhokla
3. Other Items:
- Bubble tea
- Smoothies
- Crepes
- Coffee
Prices start from as low as Rs. 10 for tea and Rs. 99 for premium milkshakes, making it accessible to a wide range of customers.
Eligibility Criteria for Tea Time Franchise
Before you apply, make sure you meet these eligibility criteria:
- Age: Must be at least 21 years old
- Education: PUC or any other equivalent qualification.
- Experience: Any previous working experience within the food and beverages line or in business management is desirable.
- Financial Stability: Must be in a position to afford to buy the equipment in the first place
- Entrepreneurial Skills: Sound customer relations and business-like skills
- Commitment: Perseverance of loyalty to the franchise’s success and development
Space and Location Requirements
To open a Tea Time franchise, you’ll need:
- Space: A minimum of 150 to 200 square feet
- Location: High-footfall areas such as:
- Near bus stations, railroad stations, or metro stations
- Commercial centers and shopping malls
- School/college campuses
- Areas near hospitals
- Markets with significant customer traffic
Remember, the right location can significantly impact your franchise’s success!
How to Apply for a Tea Time Franchise?
If you are preparing to venture off on your entrepreneurial path with Tea Time? Following these steps will help you to apply for a franchise:
1. Visit the Official Website
Visit Tea Time’s official website first at https://teatimegroup.com/. In this section, you will find all the necessary details of the brand, the franchising model, and the lucrative opportunities.
2. Navigate to the Franchise Section.
On the homepage, the “Franchise” button is usually located at the top. If you click on this, it will lead you to the franchise application area where you can start the process.
3. Fill Out the Application Form
Include accurate and thorough personnel and locations. This means your contact information, preferred outlet location, investment capabilities, and any prior business experience. Be sure that all information is completed accurately and correctly.
4. Submit the Form
Check every field before submitting. Accuracy is important, as incomplete or incorrect information can lengthen or hurt your application’s consideration.
5. Wait for a Response
Upon submission, your application will be reviewed by the Tea Time team. They have certain franchise partners that they look for, and all the outlets have to meet their brand standards and values.
6. Engage in Further Discussions
The team will reach out to you if your application matches Tea Time’s selection criteria. Inviting successful applicants for a more detailed discussion where the franchise model, investment breakdown, support system, and expectations are explained clearly.
Required Documents: Preparing Your Paperwork
To complete your application, you’ll need to prepare the following documents:
- Identity Proof (Aadhar card or PAN card)
- Address Proof (Aadhar card, passport, or utility bill)
- Financial Documents (bank statements)
- Business Plan
- Franchise Application and Agreement Forms
- Non-Disclosure Agreement (NDA)
- Shop Agreement License
- GST/Trade License
- FSSAI License
Support from Tea Time
When you purchase a Tea Time franchise, you get more than just a brand name. You’re acquiring a supportive partner in your business venture along with the Tea Time Franchise cost. Here’s what you can expect:
- Location Selection: Help you select the best place for your outlet.
- Start-Up Kit: Full set including all necessary tools and instructions.
- Menu Preparation: Assistance in the development of an ideal menu depending on the locality.
- Operational Support: Continual support at an operational level.
- Management Training: The training provided in the early stages for you and your employees.
- Research and Development Updates: Heavily endorsed for its ability to offer customers frequent updates to help maintain the current offerings’ interest.
Monthly Earnings Estimate for a Tea Time Franchise
- Daily Sales: Being a Tea Time franchise owner, you may have sales of about ₹5,000 to ₹10,000 on a daily basis. This average footfall is 100–200 customers per day, which may vary from one location or customer engagement.
- Monthly Revenue: Your estimated monthly revenue for consistent daily sales would be around ₹150,000 to ₹300,000. A solid customer base and solid marketing strategies are what these figures rely on to maintain and increase monthly earnings.
- Profit Per Month: After paying off the rents, salaries of the employees + utility bills, and raw materials, you can expect to make around ₹50,000 to ₹120,000 per month. Location, operational efficiency, and local competition will impact profit margins, though overall Tea Time is a very good investment.
The Tea Time franchise is an existing and steady as well as scalable source of income. It can be a profitable undertaking for those aspiring to grow in the food and beverage sector with minimal overhead and a loyal customer base.
Key Factors for Success as a Tea Time Franchise Owner
- Select a High-Footfall Location: The location is important and choosing wisely is important. High footfall in busy markets, near colleges, office complexes, and residential areas can bring daily sales in good numbers. Walk-in customers will be attracted effortlessly to a convenient and visible spot.
- Maintain Product Quality: A big player for customer loyalty is consistency. Make sure that each cup of tea or snack tastes freshly brewed and keeps to the freshest and cleanest standards. Repeat visits and strong word of mouth are encouraged by high-quality products.
- Offer Quick Service: Customers nowadays seek speedy service. Understand that delivery times have a negative impact on quality, so focus on minimizing delivery and preparation times without sacrificing quality. This makes quick service an excellent way to improve customer satisfaction and get more customers each day.
- Engage in Local Marketing: Take advantage of social media sites and promote your outlet locally. Referral programs, loyalty discounts, and partnering with local events can drive foot traffic and brand visibility.
- Control Costs Efficiently: Profitability requires effective cost management. The rent, the labor, and the raw material expenses must be kept under strict watch. Maintaining excellent product and service quality, the smart cost control also secures better margins.
Pros and Cons: Weighing Your Options
Like any business opportunity, a Tea Time franchise comes with its own set of advantages and challenges. Let’s take a balanced look:
| Pros | Cons |
|---|---|
| Strong brand recognition | Dependency on brand reputation |
| Proven business model | Market competition from coffee shops and other beverage outlets |
| Comprehensive training and support | |
| Diverse product range | |
| High-profit margin | |
| Quick ROI | |
| Low royalty fees |
Conclusion
There are many reasons why starting a Tea Time franchise can be a thrilling and potentially lucrative experience. With a reasonable Tea Time Franchise cost, well-built brand recall, low initial capital outlay, and high potential gross profit margin, it’s ideal for young, aspiring entrepreneurs with a passion for tea and hospitality.
However, same any other business decision, it is crucial to keep in mind your objectives, your financial status, and the market situation of your area. It is therefore important to spend some time researching, inquiring and if possible engaging in a test purchase from any existing Tea Time outlets.
Be assured that no franchise business thrives without endeavor, commitment, and passion on the part of the franchisee for the product as well as for the consumer. If you possess such qualities and have a passion for tea then the Tea Time franchise is the perfect blend of success for you.
FAQs
1. How much does it cost to open a Tea Time franchise?
The initial investment for a Tea Time franchise is approximately 5 lakhs. This includes the franchise fee, setup costs, initial inventory, and other expenses.
2. What is the average monthly profit for a Tea Time franchise?
On average, Tea Time franchisees can earn between 80,000 to 1 lakh per month. With an ideal location and effective management, this could potentially reach up to 2 lakhs per month.
3. How long does it take to recover the initial investment?
Typically, franchisees can expect to recover their initial investment within 6 to 12 months, depending on factors such as location and management efficiency.
4. What kind of support does Tea Time provide to franchisees?
Tea Time offers comprehensive support including location selection, a start-up kit, menu preparation assistance, operational support, management training, and ongoing research and development.
5. Is prior experience in the food and beverage industry necessary to open a Tea Time franchise?
While prior experience in the food and beverage industry or business management is beneficial, it’s not strictly necessary. Tea Time provides training and support to help new franchisees succeed. However, a strong entrepreneurial spirit and dedication to customer service are essential.
