Chai Sutta Bar Franchise: Cost, Profit Margin, and How to Apply

Are you interested in starting your own tea and café business in India? Well, here’s some good news for you! Chai Sutta Bar, one of the most successful tea enterprises in India, has a great opportunity to open your own ‘Tea Café’ by joining their franchise program.

In this article, we’ll walk you through the important details you need to know: how much it cost to get a Chai Sutta Bar franchise, how much money you can make, and the steps to apply for it. Let’s get started!

Chai Business in India

Tea is super famous in India. To put it in perspective, more than 80% of all the tea made here gets sipped by Indians. That makes India the world’s top tea-loving country. People in India really love their tea, and they enjoy it many times a day, all year round. This is great news if you’re thinking of starting your own tea business because there’s a huge group of tea fans waiting to enjoy your tea. Chai Sutta Bar noticed this chance, and now they’ve got more than 48 cafes all over India, proving that this idea can be super successful.

About Chai Sutta Bar

Chai Sutta Bar is a cafe chain in India that’s growing really fast. They’re all about serving top-notch tea and drinks. They started in 2016 in Indore, Madhya Pradesh, and now they’ve got more than 48 cafes all over India. Chai Sutta Bar wants to keep the Indian tradition alive by serving clean and tasty drinks in clay cups called “Kulhad,” and they make sure it’s easy on your wallet too. Because they do things a bit different and care about quality, lots of tea lovers are loving Chai Sutta Bar.

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Why Choose Chai Sutta Bar Franchise?

Investing in a Chai Sutta Bar franchise is a clever choice for several reasons. Let’s break down the key advantages:

1. Lower Investment, More Profits: Compared to other food franchises, Chai Sutta Bar franchise requires less money upfront, but it still brings in more profits.
2. Brand Support: When you become a franchisee, the brand has your back. They’ll help you with everything from how to run the business to marketing it. They also handle the supply chain, so you don’t have to worry about getting what you need.
3. Efficient Supply Chain: Chai Sutta Bar has a really good system for getting everything they need. That means they can run smoothly and give you the support you need.
4. Trustworthy: Chai Sutta Bar is a famous and respected name in the tea world. When you’re part of their team, people trust you more.
5. More Money: Because the costs are low and they have different ways to invest, Chai Sutta Bar franchises can make you more money and give you a better return on your investment.

Chai Sutta Bar Franchise Cost

When you want to open a Chai Sutta Bar franchise, you’ve got two choices: FOFO (Franchise Owned Franchise Operated) and COCO (Company Owned and Company Operated).

• FOFO Model: In this model, you basically rent the Chai Sutta Bar brand name. You pay a fee that you can’t get back, and you also pay a franchise fee.
• COCO Model: In this case, the company itself owns and runs the cafe.

Now, let’s talk about the cost. To start a Chai Sutta Bar franchise, you’ll need around Rs. 16-18 lakhs. This covers a bunch of stuff:

• Space: You’ll need a space that’s at least 300 to 400 square feet.
• Equipment and Machines: This will cost about Rs. 3 lakhs.
• Furniture and Making the Place Look Nice: Budget around Rs. 5 lakhs for this.
• Getting the Stuff You Need to Make Tea: About Rs. 2 lakhs for this.
• Franchise Fee: The fee you pay for using the Chai Sutta Bar name is about Rs. 6 lakhs.

Remember, these are average numbers, and the actual cost can change depending on how big the place is and where it’s located.

Chai Sutta Bar Franchise Profit Margin

The Chai Sutta Bar franchise business can bring in some nice profits. On average, you can expect to keep around 35% to 40% of what you earn as profit after covering the costs of things like ingredients, running the place, and paying the franchise fees. This high-profit margin, along with the fact that more and more people love chai, makes running a Chai Sutta Bar franchise a money-making opportunity.

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Applying for Chai Sutta Bar Franchise

Starting your own Chai Sutta Bar franchise is a straightforward process. Here’s how you can apply:

1. Visit the Chai Sutta Bar website: Go to their official website and look for the franchise section.
2. Fill out the application form: You’ll need to provide your name, phone number, email, and where you’d like to open your Chai Sutta Bar.
3. Review and submit: Double-check all the info you’ve given, then hit the submit button.
4. Wait for a response: Once they get your application, the Chai Sutta Bar team will take a look and get in touch with you to discuss things further.
5. Approval and paperwork: If they like what they see, you’ll move on to the paperwork and formalities to finalize your franchise agreement.

Remember, it’s important to meet their financial requirements and the other things they’re looking for to improve your chances of becoming a franchisee. Chai Sutta Bar wants folks who are excited about their business and can keep up their high standards.

Chai Sutta Bar Franchise Requirements

To open your own Chai Sutta Bar franchise, there are some things you need to make sure you have in place. Here’s what you’ll need:

1. Place to Set Up Shop: You should have a space that’s at least 300-400 square feet for your café.
2. Business Registration: You’ll need to officially register your business, either as a sole proprietorship or a partnership.
3. Get the Right Licenses: Make sure you have all the necessary licenses, like the FSSAI (food safety) license and a trade license.
4. Paperwork: You’ll have to finish all the paperwork for the shop agreement and other official documents.
5. Equipment and Furniture: Get all the things you need to run your café, like furniture, machines, and equipment.
6. Royalty Fee: You’ll need to pay a royalty fee, which is about 2% of your sales, as you’re a franchisee.
7. GST Registration: Register your business for GST and get your GSTIN number.

Remember, these requirements might change a bit depending on the type of franchise you choose and where you’re setting up shop. It’s a good idea to talk with the Chai Sutta Bar team and maybe get advice from professionals to make sure you’re following all the rules and regulations.

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Starting a Chai Sutta Bar franchise can be a great way to make money and find satisfaction in your work. Chai Sutta Bar is a top-notch player in the tea and café world, known for its unique ideas and great products. They’ve got a lot of fans, and people are loving tea more and more.

When you become a franchisee, you get to use their good name, and they help you run things smoothly. You’ll have their support for everything from operations to marketing.

So, if you’re a big tea enthusiast and want to be part of a successful franchise family, think about applying for a Chai Sutta Bar franchise today! It could be your ticket to a profitable and fulfilling business.

FAQs for Chai Sutta Bar Franchise