Business Ideas to start Chai Business in India. What will be the cost of Franchise and Full setup, is this your question then great I will help you out with this post in detail.
So like Chai Sutta Bar or say MBA Chai Wala, today's startups are on the mark to enhance the talent of being an Entrepreneur and to prove themselves and therefore individuals are taking their chance in establishing self-dependent Businesses.
So first of all let us know;
How to Start a Chai Business?
If you'll ask someone or any elders How to Start a Chai Business? They will simply answer that choose a good location, and get utensils, LPG, Stoves, etc. But wait! here I will tell you step by step with a simple process. So let's see the steps:
Select the Best Location
If you are thinking to start a Tea Business than you must invest your time in researching the best location. Do you know "I have seen such Tea stalls that have been set up in the uncrowded area in my village, and it's sometimes only that people stop in that location?"
So consider setting up in the locations, for example: near Higher Secondary School, near College, near University, near Railway Station, near Bus Stand, also can be considered near Government Office, near Hospitals, near-daily markets, near malls, etc.
I hope with these ideas and examples you'll be able to find the best location for your tea business. So let's move on to the next.
You must analyze the expense
When we look at the potential of earning then the question that may arise for every entrepreneur is, What will be the expense? And you must know the systematic way to handle and to analyze the expense. And for that, you have to make a list of details such as;
- Location Rent
- Utensils
- Raw materials
- LPG
- Stove
- Tea Cups
So prepare a list of detail and mark their potential value. And you will find the expenses listed in your paper so now add each value then you will find the total which is your Next Budget to Start a Chai Business.
However, you can ignore some of the requirements during the start of your business and include the necessary items only this can minimize the start-up budget.
Which is the Best Option, Build a cart or Rent a shop for Chai Business
Actually, this depends on the owner or Entrepreneur, that How much budget he/she can afford for the investment. According to the same, you can select the Cart or Rent a Shop. Make sure to follow the local rules too, even if it is Cart(thela in Hindi) or Renting a Shop.
Do let you also know that setting up your Chai Business on a cart will be affordable for low-budget entrepreneurs, rather than investing hugely in Renting a Shop, however, it will cost a handsome price including all paper works and rent agreement processes, etc.
You must also know that each location has its own local rules, to start and run your business smoothly, you need to comply rules of the local authority. Major institutions like Municipal Corporations, Municipality, and Gram Panchayat, from where you need to obtain the required documents.
However, I have seen that most of the street tea stall has now been formally licensed, and still they are operating their stall with a good number of customers. But listen to my suggestion if you would like to establish a self-made brand then you must take these necessary documents.
Know the Earning Potential
When we talk about the Earning Potential this can take a week or up to two. Because having set up your Tea stall in a new location or where there is an existing shop. So for an estimated time, I'll tell to wait for one month approx. to know the earning potential in the location you have started (do consider the location I've suggested above, because it has been seen the tea stall in this location has a good sell.)
Now you need to analyze the expense and earnings and then take out the profits. To find it, you can keep a record of daily earnings, add them, and now subtract the expense you made during the setup of your tea business. The remaining will be your profits. I hope this earning will be greater next month.
Buy Cylinders, Stoves, and Utensils for Chai Business
So as you have seen all four steps toward establishing your new Chai Business. Now you must know about the important requirements which have a key role in the success of your chai business. Yes, that sound well, I am talking about Cylinder, Stoves and Utensils to Prepare the Tea for the customers. Giving a short idea an a list to guide you:
- Gas cylinders and gas stoves.
- Container with lid to hold milk.
- A tea kettle to carry you there in case of high orders.
- Saucepan for making tea.
- Three to four dozen steel spoons.
- A steel jug for filtering tea.
- Steel cans for storing tea leaves, sugar and tea masala.
- A steel sieve for filtering tea.
- Trays made of iron wires in which glass glasses can be placed and tea can be given there.
- A large container of plastic for water stock.
- Small glass of glass for storing tea.
- Tong to keep sugar cubes etc. in tea.
- Flasks and dustbins may also be required.
So these are some of the things which are most required items to start your chai business. However there will be much more need for your business, you just need to make sure what will be the size of your business. And despite this, there are also requirements for raw materials which are; sugar, tea, milk, and different flavored tea masala. Besides this, you also add the popular varieties of snacks such as biscuits, buns, Snacks, Cakes, Samosha, Pakoda, etc in your chai stall.
So my dear friends once your shop or say Chai Business is discussed among people then there is no turning back and you will be unstoppable in succeding your business.
If you want us to cover a Tea Business-related case study of any local stall, then please comment down below with details, and will try to reach out to them and know them the whole case to let you know more about the tea business to grow.
The details about How to start a Tea Business have Been Discussed above. Now it is time to know about the popularly known Tea Brand Chai Sutta Bar, some of you have asked us to get information about What will be the cost of a Franchise and full set up Chai Sutta Bar
How to Start Chai Sutta Bar? What will be the cost of the Franchise?
So before moving to the point, let us know and understand their model. Let's see their details:
What is Chai Sutta Bar?
Chai Sutta Bar came into existence in 2016 from there this brand is not looking back. And Chai Sutta Bar is also known to be New India's Fastest Growing Cafe Network chain with almost 400 plus outlets in 190 plus cities with uncounted Kulhads.
According to information available on the internet, Anubhav Dubey and Anand Nayak first established their Chai Sutta Bar (Chai Shop) in Indore in the state of Madhya Pradesh. And now this business has grown so large that, this company has at least 28 plus Franchise offices.
| Particulars | Investment |
|---|---|
| Workspace | 300 to 400 sq. ft minimum |
| Equipment and machinery | ₹ 3 lakh |
| Furniture and décor of interiors | ₹ 5 lakh |
| Raw material's initial investment | ₹ 2 lakh |
| Franchise Fee | ₹ 6 lakh |
| Total investment | ₹ 16 lakh |
| ROI | 108% |
| Payback period | 14 to 18 months |
| Royalty fee | 2% of turnover |
| Term of agreement | 5 years |
*The cost of the Franchise of Chai Sutta Bar
Who can Start Chai Sutta Bar?
Anyone who is passionate about Food Industry with a heavy amount to invest can start Chai Sutta Bar Franchise. No matter if you are not passionate about the market, once you enroll for Franchise, they will provide training and support further.
How to select the Best Location for Chai Sutta Bar Franchise?
In this article itself I have mentioned above, so please SCROLL DOWN and check the best location examples for Chai Business, the same is apply here.
Facts About Chai Sutta Bar Franchise
| Things to | Know |
|---|---|
| ROI | 108% |
| Payback Period | 14 to 18 Months |
| Royalty Fee | 2% of Turnover |
| Term of Agreement | 5 Years |
| Official Website | https://chaisuttabarindia.com |
| Contact Details | 91-6262300031 |
| chaisuttabar@gmail.com, Business@chaisuttabarindia.com |
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Documents Required to start Chai Sutta Bar
| Documents | Requires |
|---|---|
| Business Registration - Sole Proprietorship/LLP/Private Limited | Yes |
| FSSAI Licence | Yes |
| Trade Licence | Yes |
| Shop and Establishment Registration | Yes |
| GST Registration | Yes |
| NOC from the Local Fire Department | Yes |
| Certificate of Environmental Clearance | Yes |
| Signage License from the Municipality | Yes |
*These documents are required to open Chai Sutta Bar
Other Information Related to Chai Sutta Bar
| Things to | Know |
|---|---|
| Food Cost | 32 to 35% |
| Working Capital | 1.5 to 2 lakhs |
| Profit Margin | 35 to 40% |
| Important Raw Materials | Will be provided by the brand |
| Marketing & Sales | Increasing Strategy Support |
| Online delivery | Partners tie-up |
| Manpower Requirement | 3 to 4 Staff |
FAQ's
Q. I want to start a business for Gabbar Chai what will be the cost of a franchise and full setup
Ans: All franchises are the same if you can invest Rs. 16 lakh then you can get Chai Sutta Bar's Franchise. However, if you can't invest then you should start a tea stall, no paper works, no formality, just sell and earn, you can upgrade it later