Indians do not just take tea as a drink. It is part of our daily life. We drink it in the mornings when we get out of bed, during the visits of guests, and during breaks between work. India is the second largest producer of tea in the world with us being the largest consumers. Indeed, 80% of the Indian households consume tea daily.

A new trend has started in the recent past. The youths enjoy spending time in cafes. They desire a sweet and clean place to sit, chat with friends and have a good cup of tea or coffee with snacks. The market of Indian cafes is expanding rapidly and is likely to become over 15,000 crores by 2028. This indicates that individuals are willing to pay money to have good experiences.

A Tea Day Franchise is an excellent opportunity to a person who wishes to open a small business. It unites the Indian affection towards tea and the contemporary necessity of cafes. It does not require a big investment and the brand is already popular and well received. This manual informs you all you should know in opening a Tea Day franchise by the year 2025.

Overview of Tea Day as a Brand

The Tea Day Franchise started with a simple and clear mission of becoming the best in India in the category of Chai-Fe. A Chai-Fe is a combination of a chai store and a cafe. The founders saw a gap. On the one hand, there were small local tea stalls (tapris) which sell inexpensive tea, but often have no comfortable chairs or snacks. 

On the other end, there were big and expensive coffee chains that were not dealing with the traditional Indian tea and were too expensive to afford. Tea Day decided to create a brand that is just in the middle. They desired to have a place that is friendly like a contemporary coffee shop yet one that has the essence of an Indian chai stall. They specialize in the provision of tasty and fresh tea using good ingredients. They are aimed at making each cup special be it a plain ginger tea or an iced fancy tea.

Popularity of the Tea and Café Culture

Tea in India is not new. It is a custom passed as a generation. There are many different methods of tea-making in every part of the country, spicy masala chai in the north, strong filter-coffee-style tea in the south. 

1. A Huge percentage of the Indian population is youthful. 

Students and young professionals, as well as other youths, desire a third place. A third place is a place outside of home (first place) and work/college (second place) where they can relax, gossip and work. This ideal third place is provided in cafes such as Tea Day Franchise. They have free Wi-Fi, comfortable seats, and a comfortable environment which makes them suitable in doing homework, dates and others.

2. There is an increase in the incomes of people. 

An increasing number of individuals are having additional money to use on minor luxuries such as dining out. Going to a cafe does not cost a lot anymore; it is a habitual luxury. Human beings would gladly spend a small price more to enjoy a good experience, clean environment and quality more than a roadside stall.

3. Social media is significant. 

Individuals share food and place pictures of the food they consume and places they visit. A coffee shop that has attractive interiors and well-presented cuisine attracts several consumers who would like to take a photo and share it. The modern and clean design of Tea Day fits this trend perfectly.  

Why a Tea Day Franchise is a Good Small Business Opportunity

It is difficult to start a business on its own. It requires a brand, a menu, suppliers and a means of drawing customers. This is made so easy in a franchise. In the case of a Tea Day franchise, especially, there are numerous benefits to the new owner.

• An Established Business Model: Tea Day has already discovered what works. They possess a good menu, clear store layout and smooth running system. When you purchase a franchise, you are just going by what has already worked with numerous stores.
• Good Brand Recognitions: The name of Tea Day Franchise is already trusted. By the time you open your shop, people will be aware of the brand and will be willing to taste it. You do not have to take years to develop a reputation. The brand is what will get the people to your door.
• Low Startup Costs: The amount of money required to start a Tea Day store is less compared to starting a large restaurant or a large international coffee chain. It is ideal when starting a business with the little funding available. The chance of incurring a new business is also reduced.
• Elevated Demand of the Product: Tea is a required product in India. It is not a fleeting trend. People will never stop drinking tea hence you will never stop having customers. A cup of tea costs 15 rupees and even in times when money is tight; most individuals will continue to purchase it.
• Complete Support and Training: Tea Day will provide complete support. They educate you and your employees on how to prepare all the dishes on the menu. They assist in marketing, supply management and the billing software. This assistance is quite useful, in case you have never owned a business.
• Expanding Market: The market of the cafes in India is not declining. More people are going to cafés. When you open a Tea Day franchise you are entering a market that has a great future and has lots of space to develop.

Tea Day Franchise Cost and Investment.

The first thing to know before any business is the costs involved. The investment is divided by Tea Day. The company is able to share all expenses and the amount is affordable as per food and drink companies. Here are the 2025 numbers.

Initial Franchise Cost

It is a single payment to utilize the Tea Day name, logo and business model.

• Franchise Fee: It stands at approximately ₹325,000 + GST. It allows you to operate a Tea Day store, initial training and partial marketing assistance at start-up.
• Installation Cost: Furniture, Equipment and Interiors. This funding establishes the brick and mortar store. Tea Day provides instructions in order to have all outlets appear similar. The cost depends on the size of the store and city.
• Interior: Flooring, Paint, Lighting, Counters and the design supplied by Tea Day. Use approved vendors. Cost typically ₹1,50,000 to ₹3,00,000.
• Kitchen Equipment: Tea, Coffee and snack machinery and equipment: brewers, fridge, freezer, microwave, blenders etc. ₹2,00,000- 4,00,000.
• Furniture: Customer tables, chairs and sofas. Depends on seating capacity. Usually ₹50,000 to ₹1,00,000.
• Other Costs: Sign board, billing system (software and computer) and initial stock of raw materials. Adds another ₹50,000 to ₹75,000.

Total Initial Investment

The initial total outlay to open a Tea Day franchise is typically between 6, 00,000 and 12,00,000. This will involve the franchise fee and all set up costs. This is determined by the specific value of kiosk or cafe mode and the state of the rented property. The Tea Time franchise investment follows a similar range, depending on factors such as location, outlet size, and city-level demand.

Ongoing Expenses

These are the expenses that you will be paying on a monthly basis to ensure your store is operational.

• Raw Materials: this is the cash that you use to purchase tea leaves, milk, sugar, coffee beans, snacks, and packaging. Approximately, it will be 30-35 percent of monthly sales.  
• Staff Salary: This will require 2-4 employees to get the store going. The salary expenses may vary between 25,000 to 50,000 per month depending on your city and the number of the staff.  
• Rent: it is a significant variable cost. A good location may cost ₹15000 to ₹60000 or above a month in rent.  
• Royalty Fee: Tea Day will be levied a royalty fee, a percentage of your net sales per month. This is typically around 4% to 5%. It is a subscription platform to brand support, marketing, and updates on the menu.  
• Utilities: this covers your monthly electricity and water bills which may range between ₹8000 to ₹15000 rupees.

Low Investment Options  

Tea Day will mostly sell a cafe model. They do not have an official model that is priced under 1 lakh or under 2 lakh (since this would not even allow the basic equipment), but their model is viewed as one of the cheaper ones in the cafe franchise area. The initial investment of about 6 lakhs is much less than most other established food and beverage franchises, which may cost more than 15-20 lakhs. This reduced entry barrier is a great advantage to an entrepreneur.

Return on Investment (ROI) Expectations  

Return on Investment or ROI is nothing more than the time it will take you to recover the money that you have initially invested. The projected ROI period is very good in the case of a Tea Day franchise.  

• The majority of the franchisees can recover all their initial investment in 18-24 months.  
• This is a short turnaround time of a business. Naturally, this will be based on your location, store management and monthly sales. A shop in a very busy area may even give a payback within a time span of 12-15 months.

Profit Margin & Earnings  

The best part now is how much money you can actually make. Profitability of the Tea Day franchise is among the most appealing factors. The company has a high-volume, low-price business model, which translates to the fact that you make money selling a great deal of things, despite the fact that each thing is cheaply priced.  

1. Average Profit Margin  

Profit margin is the percentage of revenue which is actual profit. Raw material cost is one of the most important in the food and beverage industry. Tea Day boasts of a good gross profit margin.  

• The gross profit margin on drinks such as tea and coffee is very high, usually 60 to 70% on average. It is like when you sell a cup of tea at 20 rupees you only need 6-8 rupees to buy the ingredients.  
• The margin is also slightly smaller when it comes to food products such as sandwiches and samosas, which is about 40% to 50%.  
• By adding it all up the net profit margin of a Tea Day outlet overall after covering all the costs of rent, salaries, and royalty is a normal range of between 15 to 25% of your total monthly sales.

2. Monthly and Daily Revenue Projections.  

To know the possible earnings, we will develop a simple example.  

• Average Bill Size: we will assume that the average customer would spend approximately 60 on a single visit (a tea and a snack).  
• Customers: it is not difficult to attract 100-150 customers each day to a decent outlet in a good location. This figure may be even greater on weekends.  

3. Calculating Monthly Profit  

Out of your monthly revenue of 2,25,000, we shall deduct the current costs:  

•  Raw Material Cost (35%): ₹78,750  
•  Staff Salary: ₹35,000  
•  Rent: ₹25,000  
•  Royalty (5%): ₹11,250  
•  Utilities & Other Costs: ₹12,000  
•  Total Monthly Expenses: ₹1,62,000  

Now, let’s find the profit:  

• Monthly Profit = Total Sales-Total Expenses.  
• Monthly Profit = ₹2,25,000 – ₹1,62,000 = ₹63,000  

4. Elements that Influence Profitability

You do not have a sure-footed profit. It is dependent on a number of factors:  

• Location: here the most important factor is the location. A store located in a busy major street, close to an office building, a college or a neighborhood that has a lot of families will always be more profitable than one that is located in a back street.  
• Footfall: this is the amount of people that get into your store. Footfall may be boosted by good visibility and local marketing.  
• Customer Service: satisfied customers revisit. The warm employees, speedy service and clean store will make your customers regulars.  
• Operational Efficiency: you have to operate your store in a good way. This is waste control, proper management of your inventory and even having productive staff. The less wastage, the more is the profit earned.  
• Upselling: your personnel can also be trained on how to upsell to increase profits. As an illustration, when a customer orders a tea, the employees can inquire, Would you like a samosa with that? Such a minor tip can work to grow the average size of a bill.

Tea Day Menu & Pricing

A menu is the center of any cafe. The Tea Day menu will be such that a large number of Indian customers will enjoy it. It combines the ancient favorites and new cafe products, all of which cost extremely low prices.

Overview of the Menu

The menu is divided into several basic groups:

1. The Stars of the Show (The Chai Collection).

This is the primary section of their menu. They offer numerous hot teas that are freshly brewed to the taste of anyone.

• Classic Chai – A simple, warm cup of which people are fond.
• Masala Chai- A delicious tea with Indian spices such as cardamom, cloves and ginger. One of their best‑sellers.
• Ginger Chai and Elaichi (Cardamom) Chai- In case you are willing to have only one dominant flavor.
• Herbal Teas –Green Tea and Lemon Tea are available to people who are health conscious.

2. Iced Teas and Coolers

These are on hot summer days or customers who prefer cold drinks.

•  Lemon Iced Tea -A cool classic.
•  Fruity and popular, Peach Iced Tea.
•  Mojitos and Coolers – Non-alcoholic, fresh and in a variety of flavors.

3. Coffee & More

Tea Day understands that not all people consume tea and therefore there is an option of coffee.

•  Classic Coffee – Hot or cold Coffee.
•  Milkshakes- Thick creamy milkshakes in well-known flavors such as chocolate, strawberry and vanilla.
•  Hot Chocolate- This is a hot drink that children particularly enjoy.

4. Fast Bites and Snacks (The Ideal Partners).

A cup of chai cannot go without a delicious snack. There are a lot of snacks that go with the tea.

•  Indian Favorites:– Hot Samosas, Puffs, and Vada Pav.
•  Sandwiches:- All kinds of vegetable sandwiches such as cheese and vegetables.
•  Fast foods:– Instant noodles (Maggi), fries and smileys.
•  Bakery Products:- Cookies, muffins and pastries.

How To Open a Tea Day Franchise.

In case you would like to open your own Tea Day outlet, it is quite easy. The company has a team that is available to show you every step.

Franchisee Eligibility Requirements.

Tea Day is looking to find partners that have a passion for the brand and are willing to work hard. It does not require years of business experience, although there are certain qualities that are important:

• Investment Capacity: You must have the amount of money (approximately 6-12 lakh) to invest in the franchise.
•  Dedication: You must desire to have an active participation in the running of the store. Store owned stores perform better.
• Finding a good commercial space to locate the outlet would be good: Depending on the model, the size required is normally 150 to 500 sq. ft. The place ought to be well visible and with a lot of people passing by.
• Basic Management Skills: Learn the fundamentals of managing employees, cash handling, and customer service.

Step-by-Step Application Process 

The following is a mere outline of how to be a franchisee of Tea Day.  

Step 1: Request: Make an initial interest. 

You may go to Tea Day official site and complete the franchise enquiry form. You will be required to give simple information such as your name, contact number, city and investment budget.  

Step 2: First Discussion: 

After you fill the form, you will be contacted by one of the representatives of the Tea Day franchise team. They will clarify the franchise concept, investment information and profitability. They will also respond to any question you may have.  

Step 3: Location Search and Approval: 

The second essential thing is to locate a good location of your store. You will need to look in your city at some prospective properties. After having a couple of options, you distribute the information to the Tea Day Franchise team. They will determine the locations and accept the one that promises the greatest success.  

Step 4: Make the Token Amount and Sign Agreement: 

Once the location is settled, you will be required to make a token amount so as to book the franchise. Then, you will be signing the official franchise agreement. It is a legal paper describing the terms and conditions of partnership. It is always a good idea.  

Step 5: Store Preparation: 

The fun part is now the exciting part! The Tea Day team will give you the entire architectural design of your outlet. The interior work will be required to be contracted to do the interior work according to the design. The firm will also assist you in acquiring all the required equipment and furnishings of their certified suppliers.  

Step 6: Staff Hiring and Training: 

As the store is being established, you would have to hire your staff. Tea Day Franchise will then train you and your team extensively. The training is on all aspects such as preparation of recipes, control of quality, and customer service as well as billing.  

Step 7: Marketing and Launch: 

The marketing team of the company will assist you on the pre-launch and launch marketing. This involves designing posters, pamphlets and social media advertising to create a buzz on your new store.  

Step 8: Grand Opening: 

When all is prepared you can open your shop and begin to receive customers!  

Documents and Approvals: 

To get through with the legal formalities, you will require a few primary documents:  

• Personal Documents: Address Proof and ID proof (Aadhaar Card, PAN Card).  
• Property Documents: You will have to provide the ownership papers in case you are the owner of the property. In case it is rented, you will require the rent agreement.  
• Business Licenses: A food business will require some local licenses, including an FSSAI license, a Shop and Establishment license and a GST registration. This process is normally taken through the Tea Day crew.  

Support from Tea Day  

This is among the largest benefits of taking a franchise. Tea Day offers the following end-to-end services to its partners:  

• Site Selection: They assist in the selection of location.  
• Store Design: They offer entire plans of the store and interiors.  
• Training: They provide elaborate training to the owner and the personnel.  
• Supply Chain: They possess a strong supply chain of delivering all the major raw materials such as their special tea blends. This will make the taste uniform in all the outlets.  
• Marketing: They are supportive to local marketing and also run national level branding campaigns that are beneficial to all franchisees.  
• Technology: They deal with the billing software and other technology assistance.  
• Continued Operational Services: Although your store is open, you will still have a field manager who will visit you frequently to assist you in solving any problem and enhancing your business.  

Tea Day vs. Other Tea Franchises in India.  

The tea cafe market in India has been very competitive and there are a number of popular brands. We shall examine how Tea Day is doing against some of its key rivals such as Chai Sutta Bar and MBA Chai Wala.  

1.Tea Day  

• Concentration: A vintage, contemporary coffee shop. It is as though a small coffee shop but with the emphasis on tea.  
• Menu: A highly balanced menu with a great variety of teas, coffees, milkshakes and a solid selection of snacks such as sandwiches, samosas and maggi.  
• Brand Image: perceived as a family-friendly, affordable, and reliable brand. It attracts a very wide range of audience; students to families.  
• Investment: Within the range of low-mid income (about 6-12 lakh).  
• Unique Selling Proposition (USP): Quality tea and an extensive snack menu with a relaxing cafe ambiance at extremely low prices.  

2.Chai Sutta Bar (CSB)  

• Emphasis: Rural, young and energetic atmosphere. They are well known to serve tea in kulhad (a traditional clay cup).  
• Menu: The menu is concentrated on the kulhad tea and a variety of uncommon flavors. Their menu is also very wide regarding food.  
• Brand Image: It is a very young-oriented brand, which is commonly regarded as a cool hangout place. The name is a marketing gimmick to appeal to young crowds with the term Sutta.  
• Investment: Like Tea Day, in the mid-range (around 8-15 lakhs).  
• USP: The uniqueness of tea consumption in a kulhad and its close relations with the generation.

3.MBA Chai Wala

•  Focus: This brand is being constructed on the inspirational narrative of its founder, Prafull Billore. It is more of a motivation and entrepreneurship experience than a tea experience.  
• Menu: The menu is not complicated; it is focused on good quality tea and some simple snacks.  
• Brand Image: A high-end narrative brand. It has a habit of hosting events, lectures and networking in its outlets.  
• Investment: Generally more than Tea Day and CSB.  
• USP: Its strong brand story and its founder personality. It markets a feeling of inspiration.  

Key Differences:  

• Atmosphere: Tea Day has a cafe-like atmosphere, which is relaxed and clean. Chai Sutta Bar is rustic and livelier. MBA Chai wala is rather about a business and inspirational atmosphere.  
• Target Audience: All of them are appealing to the youth but the Tea Day is more family-friendly as well as has a wider reach. CSB is nearly the prerogative of the youth. MBA Chai Wala is appealing to potential entrepreneurs and professionals.  
• Menu Variety: Tea Day can be said to have a greater and more balanced variety of snacks that attract different tastes than the rest.  

Conclusion  

The mere cup of chai is in the middle of a huge business in India. It is the love of tea that is ingrained in our country and the emergence of the new-age cafe culture that has formed the ideal success formula.  

The Tea Day franchise is a good competitor in this expanding market. It provides a business model that is easy to comprehend and use. The cost of investment is also not very high and the dream of having a coffee shop can be achieved by many people. The brand offers very good support, such as training, supply chain, which eliminates most of the hassles of entering a new business.  

A Tea Day franchise is not just a business plan to any Indian who loves food and has a dream of becoming an entrepreneur. It is an opportunity to be a part of the changing tea history of India, delivering happiness in one cup at a time. It may be the ideal initial move towards business success.  

FAQs  

How much is the capital required to start a Tea Day franchise?  

The overall investment ranges between 6 lakhs and 12 lakhs. These will consist of the franchise fee, store set-up, equipment and opening inventory.  

What is the profit potential of a Tea Day franchise per month?  

A mediocre outlet will be able to earn between 50,000 and 90,000 net profits monthly, although this may vary based on the location and sales.  

Is any business experience required to obtain a franchise?  

No, you do not need previous experience. Tea Day offers all the training and assistance to make the business successful.  

How much space will a Tea Day outlet occupy?  

A commercial space of approximately 150 to 500 square feet will be required, in a place that has high visibility and where the customers walk past frequently.