Chai Sutta Bar Franchise In India 2024: Cost And Requirements

author Ankita Content Writer

For Indians, Chai is not just a beverage. It’s an emotion. 

Want to begin a chai business and get a Chai Sutta Bar Franchise? Well, it’s very simple. Anyone can open a franchise shop with a small initial investment, as CSB franchises are easy to set up.

In this article, I will tell you about the Chai Sutta Bar Franchise, its models, how to apply for it, its application procedure, Cost & ROI, documents required and more. 

Chai Sutta Bar has 150+ outlets in approx 70+ cities. It is worth noting that Chai Sutta Bar does not allow smoking on its premises, even though its name includes the word "sutta" (cigarette).

Additionally, if you want to know about the Haldiram Franchise, I would recommend you to read our article on the same. 

Chai Sutta Bar Franchise

About Chai Sutta Bar Franchise

Two enthusiastic young entrepreneurs, Anubhav Dubey and Anand Nayak, founded the quickly expanding tea chain Chai Sutta Bar in 2016. With a 30 L initial capital investment, the two started an Indore-based chain of tea shops. With an emphasis on the well-being of both the brand and its customers, Chai Sutta Bar has unveiled a new concept called "Taste The Kulhad Chai" in an environment similar to a bar where smoking is strictly forbidden. 

They used a range of strategies to draw customers. For example, they opened their first location outside a hostel for girls because they reasoned that a male crowd would be more appealing than one full of attractive girls. To give the impression that their outlet was doing well, the two also encouraged their friends to visit and hang out there. Despite the fact that tea shops can be found all over the world, Chai Sutta Bar is still expanding rapidly. This is large because CSBs serve tea in "kulhads," antique clay cups that provide delightful flavour and aroma, which enhances the experience of drinking tea.

How To Apply For A Chai Sutta Bar Franchise? 

 To apply for a franchise at Chai Sutta Bar, follow these steps:

  • If you are considering becoming a franchise owner, visit the official Chai Sutta Bar website.

  • Once you reach this page, a franchise form will be available.

  • You can then finish the franchise application for Chai Sutta Bar.

  • Fill out the form as requested, providing all the required information.

  • Once you have submitted all the information, you will receive a thank-you message.

  • The Franchise team will contact you and let you know through this message if you have been shortlisted.

Chai Sutta Bar Franchise Application Procedure

  • You will be expected to give the Chai Sutta Bar staff the images and details they need about the store location.

  • The Chai Sutta Bar staff will conduct a comprehensive site inspection and present you with recommendations regarding the location's viability.

  • The team will grant you approval, and then you'll meet with the area manager.

  • If the approval is granted, both the company and you will be on board.

  • The area manager will now provide step-by-step assistance and support as you set up the business and establish contacts.

  • You or the Chai Sutta Bar crew will design the interior, depending on your desire. 

  • The team will provide you with training and an experienced salesman to work with.

  • Your very own Chai Sutta Bar franchise store will be prepared for opening in about 45 to 60 days on average. 

Chai Sutta Bar Franchise Cost And ROI

Here, I have prepared an estimate of the cost of a Chai Sutta Bar Franchise. However, the investment totally depends upon the location, model type, and more. While the franchise cost for a Chai Sutta Bar is estimated at INR 6 to INR 8 L for any Indian location, a Chai Sutta Bar franchise will require an investment of between INR 16 and INR 18 Lakh. A Chai Sutta Bar franchise must be between 300 and 2,000 square feet, preferably next to a bus or train station, a busy shopping centre, or a college. Rather than owning your property, you can rent a commercial space in most cities for reasonable rents of INR 20,000 to INR 30,000. A Chai Sutta Bar franchise has a royalty fee of 4%. With an average ROI of 108%, the Chai Sutta Bar franchise has set a higher standard.

Below is an estimated break-up of all the necessary investments for a Chai Sutta Bar franchise.

Key Highlights

  • Franchise Cost: INR 6-8 Lakhs

  • Outlet Interior: INR 5 Lakhs

  • Minimum Investment: INR 18-18 Lakhs

  • Minimum Space Requirement: 300 – 400 sq. ft

  • Royalty Fee:  4%

  • Machinery Equipment: INR 3 Lakhs

  • ROI: 108%

  • Payback Period: 14 to 18 Months

  • Franchise Agreement Period: 5 years

Documents Require To Own A Chai Sutta Bar Franchise 

The following is a list of the documents or certifications needed to become a franchise owner of Chai Sutta Bar:

  • FSSAI License

  • Trade License

  • Signage License 

  • Business Registration (required for sole proprietorship or partnership)

  • GSTIN number and registration

  • Shop agreement

  • Registration papers

  • Necessary photographs

Models Of Chai Sutta Bar Franchise 

  • FOFO (Franchise Owned Franchise Operated): Under this model, the Company leases the Brand Name to the Franchise operator for a predetermined period of time in exchange for a non-refundable amount known as the franchise Fee.

  • COCO (Company-Owned Company Operated): This could be considered an additional business location entirely owned and run by the company. The business handles everything, including opening and closing the store. It has nothing to do with a franchise location.

Eligibility Criteria For Opening Chai Sutta Bar Franchise

With active customers, Chai Sutta Bar is a reputable brand. It has grown remarkably in a short period of time and has shown to be a successful business. Therefore, Chai Sutta Bar needs potential owners to meet a few requirements, such as:

  • Area: Their primary need is sufficient space to open a business. The Chai Sutta Bar team has specified certain space and area requirements that franchisees must meet.

  • Training: The Chai Sutta Bar team provides extensive training to employees in order for them to run their successful franchise model.

  • Skill: Although a degree is not required to purchase a Chai Sutta Bar franchise, you should know the principles of running a business and brewing tea. You should be able to communicate well with customers and abide by any guidelines set forth by the company.

  • Staff: You are not allowed to work alone in the outlet. You need an employee to help you manage the business. The company mandates that you staff your store with two to four employees who will assist customers and greet them politely.

  • Furnishings: A range of furniture, such as a counter desk, billing desk, table and chairs, and a printing machine, is needed.

What Makes The Chai Sutta Bar Franchise Appealing?

Here are several things mentioned that make the Chai Sutta Bar Franchise appealing. Check them out in detail below. 

  • Lower Capital Expenses, Higher Profits.

  • Complete assistance for marketing and brand operations.

  • A comprehensive ecosystem for the supply chain that assists suppliers, sales, technology, logistics, and staff.

  • Brand Credibility.

  • Increased Profitability (Different investment models for a better geographic reach, lower overhead, growth assurance, higher ROI, and affordable infrastructure).

Why Chai Business Is So Popular In India?

Tea is considered the ideal beverage in India for various occasions. Walking down any local Indian road will almost certainly feature chaiwallahs warming up a steaming hot Masala Chai for their customers. 

  • In India, tea is the most consumed beverage, with 837,000 tonnes consumed yearly.

  • Since more urban consumers with higher disposable incomes have started to buy branded cups of hot beverages, the tea cafe industry has drawn the interest of investors.

  • A Tea Board of India survey found that nearly 88% of Indian families drank tea, and approximately 64% of Indians drank tea daily. 

Final Words

I hope that after going through this article on Chai Sutta Bar Franchise, no further discussion is required on this subject. The company's success is evident in the quick expansion of Chai Sutta Bar in India. In just seven years, Chai Sutta Bar has emerged as the hippest place for young people to hang out. India's tea café business is booming, so now is the ideal moment to join it and partner with the right company. So grab a Chai Sutta Bar franchise and start your profitable entrepreneurial journey immediately!

Questions You May Have

Q. What is the franchise cost of Chai Sutta Bar?

A. With a 16–18 lakh rupee investment required, the Chai Sutta Bar Cafe franchise costs 6–8 lakh rupees for any location in India. 

Q. Are chai sutta bars profitable?

A. With an average ROI of 108%, the Chai Sutta Bar franchise has set a higher standard. 

Q. Who is the CEO of Chai Sutta Bar?

A. Despite not being able to pass entrance exams for prominent universities such as IIT, IIM, and UPSC, Anubhav Dubey and his co-founder Anand Nayak went on to establish one of India's most fashionable cafe chains, Chai Sutta Bar.

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