Chai Sutta Bar has quickly become one of India’s top players in the latest tea café trend. It was once a modest operation in Indore in 2016, but today it has become a mass movement, luring tea lovers with its neat idea and warm ambiance. Such rapid success has understandably raised a few eyebrows amongst potential businessmen, so the Chai Sutta Bar franchise price is a rising question. 

India’s passion for chai is no secret; its pick-me-up of choice, with a whopping 837,000 tonnes consumed every year. Tea remains the second most widely consumed drink on Earth, after water, and India is the world’s second-largest producer of tea. Over the last three years, the tea café market has expanded at an astronomical rate, piquing the interest of high-profile investors, as city-based consumers, with their growing disposable incomes, turn towards branded hot drinks. 

A survey conducted by the Tea Board of India revealed that nearly 88% of Indian households, or around 64% of the country’s population, consume tea daily. These statistics are so definitive that they strongly reflect the vast scope of the tea industry, and knowing the Chai Sutta Bar franchise cost is a crucial starting point for most who wish to break into the profitable market.

About Chai Sutta Bar

Chai Sutta Bar was founded by visionaries Anubhav Dubey and Anand Nayak in 2016 in Indore, with Rahul Patidar joining them later. Their ₹30 lakhs of seed capital are setting the stage for a revolutionary chain of tea cafes. While the parents of the majority had wished for their children to be either a CA or an MBA, Anubhav and Anand had another idea. After several attempts at competitive examinations, they observed a universal desire for chai throughout India. 

With their novel idea of serving tea in old-fashioned clay kulhads, they outsmarted their competition and achieved immense popularity among the masses. This novel method of serving, coupled with low costs, has led to Chai Sutta Bar growing exponentially, with over 550 outlets in more than 320 cities across India, and a growing international presence as well. This is a testament to years of hard work and dedication, which have transformed Chai Sutta Bar into a top brand in the café segment.

Why Choose the Chai Sutta Bar Franchise?

Investing in the Chai Sutta Bar franchise is an appealing option for a number of reasons. The company has shown phenomenal growth, becoming a ₹100 crore business entity in six years without outside investment. Organic growth like that means the company has a strong business model as well as good quality demand in the market. These are the reasons why investing in a franchise of Chai Sutta Bar is a wise choice:

• Sustained Brand Recognition: With over 550 stores across more than 320 cities, Chai Sutta Bar is a household name in India, renowned for its delicious kulhad chai. The brand recognition that exists makes it a sought-after property for franchisees, which comes with instant market recognition and customer loyalty.
• High Return on Investment (ROI): The brand has a high average return on investment of 108%, which reflects high profitability. The low overheads and high demand for their products allow franchisees to realize high margins.
• Low Cost of Investment: In contrast to the majority of other popular food franchises, the investment cost of the Chai Sutta Bar franchise is relatively low, thus presenting an opportunity for more entrepreneurs.
• Victorious Success Model: The rapid growth to a ₹100 crore company, despite its capital, demonstrates the viability of its business model and market demand.
• Green Solution: Serving chai in traditional clay kulhads not only gives a nostalgic touch but also supports green-friendliness that appeals to the environmentally conscious consumer.
• End-to-End Support: Franchisees receive comprehensive operational and promotional support, a well-organized supply chain network, and brand training to facilitate seamless setup and ongoing operation.
• Consistent Consumer Demand: Serving more than 300,000 kulhads of tea daily and achieving an 80% repeat customer rate ensures consistent high demand and continuous revenue streams.

Chai Sutta Bar Franchise Cost in India (2025 Updated)

Knowing the cost of the Chai Sutta Bar franchise is essential for potential investors. The investment is ₹16 to ₹25 lakhs and covers various expenses required for the setup and operation of a good Chai Sutta Bar store.

Following is the expense breakdown of the Chai Sutta Bar franchise:

Expense	Cost (₹)
Franchise Fee	6-8 Lakhs
Setup & Interiors	5-7 Lakhs
Equipment & Stock	3-5 Lakhs
Licensing & Permits	1-2 Lakhs
Marketing & Branding	1-3 Lakhs
Total Investment	₹16-₹25 Lakhs

Detailed Breakdown:

• Franchise Fee (₹6-8 Lakhs): A one-time, non-returnable payment that makes the franchisee owner of the rights to use the Chai Sutta Bar brand name, business format, and trademark. Even some initial setup assistance is offered.
• Setup & Interiors (₹5-7 Lakhs): It involves designing and equipping the outlet with furniture, décor, lighting, and seating arrangements to provide the brand’s signature café environment.
• Equipment & Stock (₹3-5 Lakhs): This includes general kitchen equipment, tea-making equipment, kulhads, raw materials, and initial stock for operations.
• Licensing & Permits (₹1-2 Lakhs): All necessary legal compliances, including FSSAI licenses, GST registration, shop establishment licenses, and miscellaneous licenses.
• Marketing & Branding (₹1-3 Lakhs): Spending on promotional events, social media promotion, launch advertising, and branding materials to appeal to a local customer base.

Other Operating Expenses

• Royalty Fee: Chai Sutta Bar charges franchisees a 4% royalty fee based on monthly sales. This will include perpetual brand support, operational support, and marketing support.
• Employee Salaries: The monthly salary range, based on staff numbers and designation, ranges from ₹30,000 to ₹60,000 per month.
• Rent: The rent too is quite diversified depending on the location, from ₹50,000 to ₹1,50,000, with the larger ones being pricier.

Space & Location Requirements

Another significant factor in calculating the cost of the Chai Sutta Bar franchise is the space and location. Although the size may vary, a minimum of 300-400 square feet of commercial space is typically required to open a Chai Sutta Bar franchise. The company focuses on identifying strategic locations to capitalize on maximum customer flow and visibility. Optimal locations are:

• Busy markets.
• Near educational institutions (colleges, universities).
• Near corporate offices or business centers.
• Densely populated residential clusters.
• Shopping complexes or malls.

The brand team assists franchisees in selecting a viable location, using surveys to assess its profitability and operational feasibility.

Profit Margin & Return on Investment

The profitability of Chai Sutta Bar is a significant draw to investors, making the price of the Chai Sutta Bar franchise very appealing. The profit margin will be between 35% to 40% for the owners of the franchise. This is due to the fact that the business cost is very low and the drink of chai is highly popular among Indians.

Below is an estimated monthly breakdown of profit:

Metrics	Low Estimate (₹)	High Estimate (₹)
Monthly Revenue	₹4,50,000	₹7,50,000
Cost of Goods Sold	₹1,80,000	₹3,00,000
Rent, Salaries & Misc	₹1,20,000	₹2,00,000
Net Profit	₹1,50,000	₹2,50,000

The Return on Investment (ROI) of a Chai Sutta Bar franchise is very high, averaging 108% annually. Except for the top-performing units, all others can expect to recover their investment within 12 to 18 months. Such a quick return on capital makes the Chai Sutta Bar franchise investment a favourable one for individuals seeking both rapid profitability and sustained long-term growth.

Menu Highlights at Chai Sutta Bar

Apart from the enticing Chai Sutta Bar franchise cost, the brand’s variety and unique menu are key factors in its success. Though the emphasis is on chai, Chai Sutta Bar also has a menu of options that cater to different tastes and preferences of the market, all offered in their handmade kulhads. A few of the options that feature on the menu are:

• Range of Chai Flavours: Right from the classic Masala Chai to some of the more unusual ones, the menu offers a range of chai flavours that will appeal to every palate.
• Coffee and Other Drinks: In addition to tea, the menu also features traditional coffee drinks and other cold beverages.
• Bites and Snacks: In addition to beverages, Chai Sutta Bar often features snacks and bite-sized food items, making it an ideal spot for a quick visit.
• Kulhad Presentation: The uniqueness remains unchanged, offering all drinks in eco-friendly and rustic clay kulhads to enhance the experience.

The quality and extensive popularity of the menu are reasons that go a long way in inducing repeat buy and loyalty.

Training & Support Provided by the Brand

Even after knowing the cost of the Chai Sutta Bar franchise, rigorous training and constant support are needed to be successful in a franchise. Chai Sutta Bar ensures extensive support to its franchisees during the process. The training and support given are:

• Location Selection Guidance: Chai Sutta Bar’s professional guidance supports franchisees in finding best locations with the highest foot traffic and business prospects.
• Staff Training: The organization gives exhaustive training to the staff of the franchisee who are trained in the areas of improved service delivery, operational excellence, and product preparation.
• Marketing Assistance: Proactive branding and promotional strategies are offered to franchisees, including social media advertising tips and local marketing campaigns, to increase visibility and attract customers.
• Operational Support: Daily expert advice is provided in all aspects of day-to-day management, inventory management, supply chain management, and customer service to ensure smooth business operations.
• Set up Initial Support: The area manager collaborates with the franchisee to establish the business and negotiate contractual details.
• Interior Design Choice: Franchisees are given the flexibility of either adhering to a standard Chai Sutta Bar interior design or altering their outlet as they see fit, while remaining within the brand’s look.
• Sales Support: Sales support is made permanently available to enable franchisees to maximize their revenue streams.

This strong support system also means that even individuals with minimal past business experience can be successful running a Chai Sutta Bar franchise.

How to Apply for Chai Sutta Bar Franchise

The Chai Sutta Bar franchise application is straightforward to complete. If you’ve reached here after verifying Chai Sutta Bar franchise cost, then this is how to apply:

1. Visit the Official Website: Visit the official website of Chai Sutta Bar.

2. Obtain the Franchise Form: Visit Page Enquire Franchise, “https://www.chaisuttabarindia.com/enquire-franchise/” link on the site.

3. Complete the Application: Complete the franchise application form online with all personal and financial information required.

4. Fill and Submit the Form: Fill in all the details on the application form correctly and submit it online.

5. Wait for Response: Upon successful submission, there would be a thank-you message. Franchise staff would contact the shortlisted candidates in order to interview and discuss further.

Chai Sutta Bar Franchise Application Procedure:

Submit Location Information: Post photographs and accurate information regarding your suggested retail area.

• Location Evaluation: The team at Chai Sutta Bar will thoroughly evaluate your proposed location to determine both its profitability and feasibility.
• Meeting with Area Manager: After evaluating the location, a meeting will be held with the area manager to finalize the approval.
• Signature of Agreement & Approval: Once approved, you will get a valid franchise agreement signed between you and Chai Sutta Bar.
• Business Setup Assistance: You will receive support from the area manager to establish your business and complete the necessary agreements.
• Interior Design & Training: You’ll have the option to select either CSB’s standard interior design or your own, and you’ll receive comprehensive training and personalized sales support.
• Outlet Opening: The average time considered for an outlet to become operational after the application process is 45 to 60 days.

Requirements to Become a CSB Franchisee

Apart from the cost of Chai Sutta Bar franchise, there are specific requirements to be fulfilled in order to be a successful franchisee:

• Area/Space: 300-400 square feet commercial space must be rented. The area must be selected intelligently in a crowd.
• Financial Capability: You should be able to invest the required Chai Sutta Bar franchise fee, which is between ₹16-25 lakhs.
• Business Acumen: A degree is not compulsory, but a basic knowledge of business administration and customer handling is sufficient. Adaptability to the brand’s standards is a must.
• Staffing: You will need to hire 2-4 employees to help operate the outlet, ensuring effective customer service.
• Passion & Commitment: Long term success will be dependent upon passion for the business and commitment to maintaining Chai Sutta Bar’s quality and standards.

Challenges to Consider Before Investing

Although the Chai Sutta Bar franchise fee is as appealing as it is, it is wise to ponder challenges before investing:

• Competition: The Indian tea café industry is becoming increasingly intense. Although Chai Sutta Bar enjoys a widely recognized and reputable brand name, new entrants can emerge.
• Location Dependent: The success of the franchise to a great extent relies on the traffic and population of the selected location.
• No Compromise on Quality: Maintaining the same quality of chai and services across all locations is a challenge.
• Operations Management: Managing employees, stock, and ground-level operations requires commitment and good management skills.
• Volatility in the Market: Economic slowdowns or shifting consumer preferences may impact sales.
• Royalty Fee: The ongoing 4% royalty fee on a month’s revenues also needs to be factored into long-term profitability.

Comparison with Other Tea Franchises

Comparing the Chai Sutta Bar franchise fee to that of other top tea franchises in India is enlightening. While specific details will differ, Chai Sutta Bar will typically have a relatively lower initial investment than some larger, more well-established food and drink franchises.

• Chai Sutta Bar: Total Investment: ₹16-25 Lakhs. USP: Kulhad chai, quick expansion, high brand recall, high ROI.
• Tea Time Franchise: Typically requires an investment of the same or slightly higher amount, with a focus on extended snack offerings and a presence in both online and offline channels.
• Chai Point: Popular for bulk online orders and office delivery, generally requiring a higher investment due to a technologically integrated business and higher-scale operations.
• Local Tea Cafes: Although they need less initial capital, they will not be bearing any brand names, marketing assistance, and proven concepts.

The novel kulhad concept of Chai Sutta Bar, combined with its low investment and complete support system, makes it a highly resilient and appealing choice for the Indian tea franchise segment.

Final Thoughts

Investing in a Chai Sutta Bar franchise is a profitable opportunity for investors like these who are prepared to join India’s thriving tea market. The high-speed growth of the brand, kulhad idea, and loyal patrons render the business model extremely profitable. With its franchise cost of Chai Sutta Bar ranging from ₹16 to ₹25 lakhs, and its remarkable ROI of 108%, as well as a payback period of 12-18 months, it presents a financially sustainable opportunity. 

The high level of training and operating assistance offered by the brand also reduces risks, making it a sustainable option for both experienced and new entrepreneurs. With the Indian chai craze not seeming to lose steam, a Chai Sutta Bar franchise is a good and lucrative option for those who are eager to be in the tea business.

FAQs

1. What is the total amount of financing that has to be invested to open a Chai Sutta Bar franchise?

Generally, the total amount of finance required to open a Chai Sutta Bar franchise ranges from ₹16 to ₹25 lakhs. This covers the franchise fee, setup and interior, equipment and stock, license, permits, and initial marketing expenses.

2. What is the profit potential from operating a Chai Sutta Bar franchise?

Franchisees can achieve profit margins between 35% to 40%. Net monthly returns range from ₹1,50,000 to ₹2,50,000 based on location and quantity.

3. How long is the payback period of your investment in a Chai Sutta Bar franchise?

The typical Return on Investment (ROI) cycle for a Chai Sutta Bar franchise is relatively fast, typically 12 to 18 months.

4. Are there any royalty charges that the franchisees have to pay to Chai Sutta Bar?

Yes, franchisees must pay a 4% monthly sales royalty fee to Chai Sutta Bar for constant brand support, operational direction, and marketing support.

5. Where does one begin the process of obtaining a Chai Sutta Bar franchise?

Interested franchisees can initially visit the official Chai Sutta Bar website (chaisuttabarindia.com) and complete the online inquiry form. The CSB team will then consider it and guide them accordingly.