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Chai Sutta Bar Franchise Cost,Profit in 2025

Founded in 2016, Chai Sutta Bar quickly grew from a small café in Indore to a nationwide sensation, with hundreds of outlets across India and even expanding to international markets. The brand’s distinctive concept of serving delicious chai in traditional clay cups, paired with a cozy, youthful atmosphere, resonated deeply with young adults craving a space to relax, socialize, and enjoy their favorite beverage in a new way.

But what truly makes Chai Sutta Bar franchise stand out isn’t just its tea — it’s the opportunity to be a part of something bigger. With its rapid expansion, Chai Sutta Bar has become a promising franchise opportunity for aspiring entrepreneurs. If you’ve ever dreamed of owning your own business, this might be the perfect venture for you.

In this blog, we’ll guide you through everything you need to know about the Chai Sutta Bar franchise. From the initial investment and potential profits to the support and training provided, we’ll help you decide if this is the right business opportunity for you. So, let’s dive into the world of Chai Sutta Bar and explore how you can be a part of this chai revolution.

What Is Chai Sutta Bar?

Chai Sutta Bar is more than just a place to grab a cup of tea; it’s an experience. Imagine this: a casual, vibrant setting where you can sip on the most flavorful chai, served in traditional clay cups (kulhads) while catching up with friends, working on a project, or simply enjoying the moment. That’s the essence of Chai Sutta Bar.

Founded in 2016 in Indore, India, by a group of young entrepreneurs, Chai Sutta Bar has transformed the simple chai-drinking experience into something trendy, refreshing, and uniquely inviting. The brand quickly became a hit, especially among college students and young professionals, offering an affordable yet fun space to hang out and unwind.

Chai Sutta Bar Franchise Cost Breakdown

Starting a Chai Sutta Bar franchise is an exciting opportunity, but like any business, it requires careful planning and investment. Here’s a breakdown of the costs involved in opening your very own Chai Sutta Bar and what you can expect from the investment process.

1. Initial Investment

The total investment required to open a Chai Sutta Bar franchise typically ranges between ₹16 to ₹18 lakh. This amount includes everything you’ll need to get your café up and running, from setting up the outlet to stocking the essential supplies.

2. Franchise Fee

To become a part of the Chai Sutta Bar family, you’ll need to pay a franchise fee, which usually falls between ₹6 to ₹8 lakh. This fee grants you the rights to use the Chai Sutta Bar brand name, its business model, and access to all the support and training that the brand offers to its franchisees.

3. Outlet Setup

Setting up the outlet is one of the biggest parts of your initial investment. Here’s what it covers.

Interior & Furniture: Creating the inviting, vibrant ambiance that Chai Sutta Bar is known for will cost around ₹5 lakh. This covers everything from tables and chairs to the décor that gives the café its unique charm.
Machinery & Equipment: From tea-making equipment to refrigeration units and cash registers, you’ll need to invest around ₹3 lakh to get all the necessary tools in place for smooth operations.

4. Space Requirement

The size of the space you’ll need depends on the type of outlet you want to open. On average, a Chai Sutta Bar outlet requires between 300 to 400 square feet of space. You can choose from different formats like kiosks or larger stores, depending on your location and budget. The cost of renting or purchasing a space will be separate from the franchise investment, so it’s important to factor this into your overall budget.

5. Royalty Fee

One of the ongoing costs to keep in mind is the royalty fee, which is typically around 4% of your monthly sales. This fee goes toward maintaining the brand’s quality standards, marketing support, and continued innovation, so you’re always up to date with new products and promotions.

Profit Potential & ROI

One of the key factors that make Chai Sutta Bar a highly attractive franchise opportunity is its profit potential and return on investment (ROI). If you’re considering becoming a franchisee, it’s important to understand how quickly you can expect to see returns on your investment and what kind of profits you can generate. Let’s break it down:

1. Revenue Estimates

Chai Sutta Bar has built a strong brand reputation over the years, and with its rapidly growing popularity, the revenue potential for franchisees is quite promising. While earnings can vary depending on location, foot traffic, and local demand, a Chai Sutta Bar outlet can generate significant monthly sales.

2. Profit Margins

The beauty of a Chai Sutta Bar franchise lies in its high-profit margins. Since the primary product is chai (tea), which is very cost-effective to prepare, the margins on drinks are typically high. Here’s a quick breakdown of the profit margins on some of the popular items on the menu.

Flavored Chai: 60–65% profit margin
Milkshakes & Cold Coffees: 55–65% profit margi
Snacks (like sandwiches, samosas, etc.): 40–60% profit margin

3. Return on Investment (ROI)

The ROI is a crucial aspect for any franchisee looking to evaluate the financial viability of their investment. Chai Sutta Bar offers a very attractive ROI of around 108%, which is quite high compared to many other franchise opportunities.

4. Break-Even Point

The break-even point for a Chai Sutta Bar franchise is generally achieved in 12 to 18 months, depending on factors such as location, the scale of operations, and local market demand. Once you break even, it’s all about growing your customer base and building on your initial success.

Franchise Support & Training

One of the biggest advantages of becoming a Chai Sutta Bar franchisee is the level of support and training you’ll receive from the brand. Chai Sutta Bar isn’t just handing you a franchise and leaving you to figure things out on your own they’re with you every step of the way to ensure your success.

1. Comprehensive Onboarding Process

Once you decide to open a Chai Sutta Bar franchise, the brand will guide you through the entire setup process. From choosing the right location to getting your space ready, you’ll receive hands-on assistance to ensure your outlet meets the brand’s standards.

Site Selection: Chai Sutta Bar helps you find the best location for your franchise based on factors like foot traffic, local demand, and competition. They provide valuable insights to help you choose a place with high potential for success.
Legal & Licensing Support: Setting up a new business involves legal paperwork and approvals. Chai Sutta Bar takes care of all the necessary licenses and legalities, so you don’t have to navigate the process alone.

2. Extensive Staff Training

Running a Chai Sutta Bar outlet is about more than just serving tea — it’s about delivering an exceptional experience to every customer. To help you achieve this, the brand offers a thorough training program for you and your staff. This training is usually conducted at their headquarters and lasts around 15 to 20 days, covering everything from operations to customer service.

Operational Training: You and your team will learn the ins and outs of running a Chai Sutta Bar, from tea preparation to managing day-to-day tasks like inventory and cash flow.
Customer Service Training: Chai Sutta Bar places a strong emphasis on creating a friendly, welcoming atmosphere. The training program will teach you how to engage with customers, handle complaints, and make sure every guest leaves with a smile.
Product Knowledge: You’ll also get in-depth knowledge of the menu, including how to prepare each item to meet the brand’s quality standards. This ensures that your customers will always receive a consistent and enjoyable experience.

3. Ongoing Support

Even after your franchise is up and running, Chai Sutta Bar continues to provide ongoing support to help you thrive. The brand believes in building long-term relationships with its franchisees, offering continuous assistance in several key areas:

Marketing Assistance: Chai Sutta Bar has a strong national presence and a well-established brand. They offer marketing support that includes national campaigns, regional promotions, and materials to help you advertise locally. Whether it’s on social media or through traditional advertising, you’ll have access to resources to boost your visibility.
Menu Updates: The brand regularly updates its menu with new products and seasonal items to keep customers coming back for more. As a franchisee, you’ll be the first to know about these updates and can introduce new items to your customers.

4. Continuous Brand Evolution

Chai Sutta Bar is constantly evolving to stay ahead of the competition. As a franchisee, you’ll be part of a dynamic, growing brand that regularly introduces new ideas and innovations. Whether it’s upgrading the café’s design, adding new technology, or launching new promotional campaigns, you’ll be part of an ever-evolving brand that adapts to market trends.

Ideal Locations for a Chai Sutta Bar Outlet

When it comes to choosing the perfect location for your Chai Sutta Bar franchise, location is everything. The right spot can make or break your business, and with the brand’s appeal to the younger crowd and tea lovers, picking the ideal location is crucial for drawing in customers and maximizing profits. Let’s explore some of the best spots where a Chai Sutta Bar outlet can thrive:

1. College Campuses and University Areas

Chai Sutta Bar has become a go-to place for students to hang out, unwind, or take a break between classes. College campuses and university areas are prime locations for a Chai Sutta Bar outlet. The youthful vibe and the desire for affordable, delicious chai make these areas a natural fit for the brand.

2. Commercial & Office Districts

Another ideal location for your Chai Sutta Bar is in or near commercial and office districts. Professionals and office-goers are always on the lookout for a quick, refreshing drink and a place to unwind during lunch breaks or after a hectic workday.

3. High Foot-Traffic Marketplaces

Being situated in a high-traffic area, such as a popular market or shopping district, can significantly boost visibility and customer flow. Chai Sutta Bar’s vibrant and inviting atmosphere is designed to attract passersby, making busy markets and commercial streets an excellent choice.

4. Residential Neighborhoods

While commercial areas and student hubs are great for high foot traffic, opening a Chai Sutta Bar in a busy residential area can also prove to be a lucrative choice. People living nearby will view it as their local hangout spot for a casual meet-up, especially if the outlet is located near popular parks, community centers, or busy streets.

5. Tourist Hotspots

Tourist destinations and places with a high influx of visitors are also excellent spots for a Chai Sutta Bar outlet. People who are new to the area often seek local flavors and experiences, and Chai Sutta Bar can offer just that a genuine taste of Indian chai served in a fun, friendly setting.

How to Apply for a Chai Sutta Bar Franchise

If you’ve decided that opening a Chai Sutta Bar franchise is the right business move for you, the next step is to understand how to get started with the application process. The good news is that the process is straightforward, and the team at Chai Sutta Bar is there to support you every step of the way. Here’s a simple guide on how to apply for a Chai Sutta Bar franchise:

1. Research & Evaluate the Opportunity

Before diving into the application, it’s important to do some research and evaluate whether the Chai Sutta Bar franchise aligns with your goals, interests, and financial capacity. This includes understanding.

Franchise fees and initial investment costs.
The support and training provided by the brand.
The location requirements and suitability of your area.
Your interest in the food and beverage industry and how it fits with your skills and expertise.

2. Visit the Official Website

The official Chai Sutta Bar website is the best place to start your application process. You’ll find detailed information about the franchise model, the investment breakdown, and the locations where they’re looking to expand.

Franchise Information Page: The website usually has a dedicated section for potential franchisees with all the details you need to understand the business and the franchise model.
Contact Details: There will be a contact form, email address, or phone number where you can reach out to the Chai Sutta Bar team for personalized inquiries.

3. Fill Out the Franchise Application Form

Once you’ve gathered all the information you need, the next step is to fill out the Franchise Application Form. This form can typically be found on the franchise section of the website.

Your personal details (name, contact information, background).
Business experience (if any) and your reason for wanting to join the Chai Sutta Bar family.
Financial details to ensure that you can make the necessary investment.

4. Initial Discussion & Evaluation

Once your application is submitted, the next step involves an initial discussion with the Chai Sutta Bar franchise team. This is a chance for them to learn more about you and your goals, as well as to answer any questions you might have.

What happens in the discussion: The team will go over the franchise process with you, including the investment requirements, the expected return on investment (ROI), and the support you will receive. They’ll also discuss potential locations and assess whether your chosen location aligns with the brand’s expansion strategy.
Evaluation: The Chai Sutta Bar team will evaluate your financial capacity and ensure you meet the necessary criteria to run a successful outlet. They’ll also assess whether you have the passion and commitment to manage the franchise.

5. Site Selection & Agreement

If both you and the Chai Sutta Bar team are satisfied with the discussion, the next step is to move forward with the site selection process. This involves finding a suitable location for your outlet.

Support with Site Selection: The brand provides guidance on choosing the best location based on factors like foot traffic, accessibility, and proximity to competitors.
Sign the Agreement: Once a location is finalized, you’ll sign the franchise agreement, which outlines the terms of your partnership with Chai Sutta Bar. This agreement will cover things like franchise fees, royalty percentages, and the duration of the franchise contract.

Success Stories & Testimonials

One of the most powerful ways to understand the potential of a Chai Sutta Bar franchise is to hear from those who have already experienced success with the brand. From first-time entrepreneurs to seasoned business owners, Chai Sutta Bar has empowered countless franchisees to build thriving businesses.

1. A Young Entrepreneur’s Dream Come True

Ankit Sharma, a young entrepreneur from Delhi, always had a passion for chai and an ambition to run his own business. However, he wasn’t sure how to take the first step. After exploring several business options, he decided to apply for a Chai Sutta Bar franchise.

2. A Family Business that Flourished

For Ramesh and Sunita Gupta, a couple based in Jaipur, the Chai Sutta Bar franchise was more than just a business — it was a chance to build a legacy for their family. With previous experience in the hospitality industry, they knew that running a café could be profitable, but they needed a well-established brand to give them a strong foundation.

The Beginning: The Gupta family was attracted to Chai Sutta Bar’s focus on quality chai, quick service, and affordability, which they believed would resonate with their community. After applying and receiving training, they opened their first outlet in a popular residential neighborhood.

3. From Corporate Professional to Café Owner

Rajeev Kumar had spent over 15 years in the corporate world, working long hours in a high-pressure job. One day, he decided it was time to make a change and pursue his dream of owning a café. He was particularly drawn to Chai Sutta Bar because it combined his love for chai with the opportunity to build a profitable business.

4. A Group of Friends Who Turned Their Passion into a Business

What started as a casual conversation between friends soon turned into a successful Chai Sutta Bar franchise. Arjun, Karan, and Vijay had always talked about starting a business together, and after discovering Chai Sutta Bar, they decided to team up and open an outlet in their hometown of Ahmedabad.

Pros & Cons of Owning a Chai Sutta Bar Franchise

Like any business venture, owning a Chai Sutta Bar franchise comes with its own set of advantages and challenges. Before taking the leap, it’s important to weigh the pros and cons so you can make an informed decision.

1. Strong Brand Recognition

One of the biggest advantages of owning a Chai Sutta Bar franchise is the brand’s strong recognition and popularity, especially among younger generations. The brand has already established itself as a go-to destination for chai lovers, which means you don’t have to start from scratch when it comes to attracting customers.

2. Proven Business Model

Chai Sutta Bar offers a proven business model that’s been successful across multiple locations. With standardized operations, quality control, and a strong support system, franchisees have a higher chance of success compared to starting a business from the ground up.

3. Comprehensive Training and Support

As a Chai Sutta Bar franchisee, you’ll receive comprehensive training and ongoing support to ensure you’re equipped to run the business effectively.

Training: You and your team will be trained in everything from tea preparation to managing finances, ensuring that your outlet runs smoothly and up to the brand’s standards.
Ongoing assistance: Even after you’re up and running, Chai Sutta Bar offers continuous support in areas like marketing, operational advice, and vendor relations.

4. Low-Cost Investment and High Demand

Chai Sutta Bar is known for its affordable pricing and value-for-money products, which makes it accessible to a wide range of customers. The demand for tea is also growing across India and beyond, making this a lucrative opportunity.

Affordable menu: Offering an affordable menu attracts budget-conscious customers, from students to working professionals.

5. Growing Popularity and Expansion

Chai Sutta Bar is rapidly growing, and the brand’s expansion strategy ensures that you’re getting in on a business that’s on the rise. As more outlets open across the country, the brand’s popularity continues to increase, meaning more opportunities for you to tap into new customer bases.

Brand growth: As the brand expands into new cities and markets, franchisees have the opportunity to grow with the brand and expand their own operations.

Conclusion

Owning a Chai Sutta Bar franchise offers an exciting and rewarding opportunity for entrepreneurs looking to tap into the ever-growing demand for chai and café culture. With its strong brand recognition, a proven business model, and comprehensive support system, Chai Sutta Bar provides a solid foundation for success. Whether you’re a first-time business owner or someone with prior experience, the franchise offers a unique chance to be part of a brand that’s loved by millions.

While there are challenges like the initial investment, ongoing fees, and the competitive nature of the food and beverage industry the benefits of owning a Chai Sutta Bar franchise can far outweigh these hurdles. The brand’s low-cost entry, loyal customer base, and potential for high-profit margins make it a compelling choice for those passionate about chai and café culture.

Ultimately, if you’re someone who is excited by the idea of serving great chai, creating a welcoming space for people to gather, and benefiting from a well-established and growing brand, Chai Sutta Bar could be your pathway to entrepreneurial success. With the right mindset, commitment, and support, the possibilities are endless.

1. What is the initial investment required to open a Chai Sutta Bar franchise?

The initial investment to open a Chai Sutta Bar franchise includes the franchise fee, setup costs for the outlet (like interior design, equipment, and inventory), and the rental cost for the location. The total investment can vary based on location, but it generally ranges from ₹15 to ₹25 lakhs. The brand provides a detailed breakdown during the application process to help you understand all associated costs.

2. What kind of support does Chai Sutta Bar provide to franchisees?

Chai Sutta Bar offers comprehensive support to its franchisees, including:

Training: Both you and your staff will undergo detailed training covering everything from operations to customer service.
Marketing Assistance: The brand provides promotional materials and marketing campaigns to help attract customers to your outlet.

3. Do I need prior experience in the food and beverage industry to open a Chai Sutta Bar franchise?

No prior experience in the food and beverage industry is necessary to open a Chai Sutta Bar franchise. The brand provides detailed training and support to guide you through the process. However, an interest in customer service, managing a team, and a passion for chai culture will help you succeed.

4. What is the royalty fee structure for a Chai Sutta Bar franchise?

Chai Sutta Bar franchisees are required to pay a royalty fee, which is typically a percentage of the monthly sales. This fee helps cover the cost of ongoing support, marketing, and brand development. The exact royalty percentage is discussed during the franchise application process and may vary depending on the terms of your agreement.

5. How long does it take to break even and start making a profit from a Chai Sutta Bar franchise?

The time it takes to break even and start making a profit can vary depending on factors such as location, local demand, and your ability to effectively manage the outlet. On average, most franchisees start seeing profits within 12 to 18 months of opening, as long as they follow the brand’s operational guidelines and engage with the local community. The Chai Sutta Bar team will assist you in achieving profitability through training and support.