Tea is not just a drink in India — it is a culture, a tradition, and a way of life. The numbers say it all — India consumes over 8,37,000 tonnes of tea annually, making it the second-largest tea-consuming country worldwide. According to the Tea Board of India, around 88% of Indian families consume tea daily, making it the nation’s most beloved beverage.
This love for tea has spurred the rapid growth of tea cafes and chains across urban and semi-urban India. Modern consumers with increasing disposable incomes are now seeking cozy tea cafes that offer affordable yet innovative varieties of tea, coupled with quick service and a vibrant ambience.
Among the prominent players riding this wave is Chai Sutta Bar — a brand synonymous with affordable, delicious, and “desi” chai served in the iconic kulhad (clay cup). This blog explores how you can become a part of this booming industry by owning a Chai Sutta Bar Franchise.
The Inspiring Beginning of Chai Sutta Bar
Founded in 2016 in Indore by two young entrepreneurs, Anubhav Dubey and Anand Nayak, Chai Sutta Bar’s origin story is as relatable as it is inspiring.
The duo, despite parental pressures to pursue traditional academic paths like CA, MBA, or UPSC, chose a different route — entrepreneurship fueled by passion and street-smart tactics. They roamed the streets on their bikes, exploring the local tea culture and identifying a gap in the market for affordable, quick-serve tea outlets catering primarily to youth.
Starting with a modest investment of around ₹30 Lakhs, they strategically opened their first outlet near a girls’ hostel to attract footfall, cleverly using social proof by encouraging friends to frequent the store to build buzz. This grassroots approach helped Chai Sutta Bar evolve from a single outlet to a nationwide chain in just seven years.
Today, the brand boasts over 550 outlets in 320+ cities across India, with international presence in Dubai and Oman, making it one of the fastest-growing tea cafe chains in the country.
Chai Sutta Bar Outlet Formats: Kiosks, Medium, and Mega
Chai Sutta Bar offers franchisees flexibility with three outlet formats designed for different budgets and locations:
- Kiosk Format: Compact, cost-effective setups ideal for high footfall areas such as malls, railway stations, and bus terminals.
- Medium Format: Slightly larger outlets with seating arrangements, perfect for urban markets and college campuses.
- Mega Format: Full-fledged cafe experience with a wider menu, dedicated space, and seating to create a community hub.
These options allow investors to choose based on their capital, target market, and desired scale of operations.
Chai Sutta Bar Business Models Explained
FOFO: Franchise Owned Franchise Operated
The most popular model where the franchisee invests in and operates the outlet independently, leveraging Chai Sutta Bar’s brand, supply chain, and support.
COCO: Company Owned Company Operated
Here, Chai Sutta Bar owns and operates the outlet directly. This model is rare for franchise investors but important for brand control and market expansion.
What Makes Chai Sutta Bar Stand Out? The Menu & Unique Selling Propositions
Anubhav Dubey, co-founder, attributes their success largely to affordable pricing and authentic serving style. Unlike premium tea brands charging ₹100+ per cup, Chai Sutta Bar offers tea starting as low as ₹10 per cup served in traditional kulhads — earthen cups that add an earthy aroma and authenticity.
Their kulhads come from an extensive network of 500 potter families, with a daily consumption of 3 lakh kulhads, ensuring community support and sustainability.
Expanding Menu
From simple chai, they now offer a wide variety of flavors:
- Masala Chai
- Adrak (Ginger) Chai
- Kesar (Saffron) Chai
- Chocolate Chai
- Tulsi Chai
- Elaichi (Cardamom) Chai
Complementing the beverages, they serve snacks such as sandwiches, noodles, burgers, and pasta — increasing average order values and profit margins.
Brand Image
Despite the “Bar” in its name, the outlets strictly prohibit smoking, focusing on a clean, youth-friendly, and health-conscious environment.
Why Invest in a Chai Sutta Bar Franchise? Top Reasons to Consider
- ✅ Minimal Capital Investment with High Returns: With investments as low as ₹16-18 Lakhs and ROI averaging 108%, this franchise offers attractive profitability.
- ✅ Strong Supply Chain Ecosystem: Complete logistical support ensures quality raw materials and timely deliveries.
- ✅ Proven Brand Recognition: 550+ outlets and rapid expansion demonstrate brand trust.
- ✅ Comprehensive Marketing & Operational Assistance: Franchisees receive ongoing support in promotions, staff training, and operations.
- ✅ Low Overheads: Small spaces, affordable rents, and lean staffing make for efficient operations.
- ✅ Flexible Outlet Formats: From kiosks to mega cafes, investors can choose a model suited to their budget and location.
- ✅ Experienced Management Team: A group of skilled professionals in operations, technology, and marketing drive franchisee success.
- ✅ Engaging Customer Experience: Kulhad chai and local flavor appeal to the masses and create loyal customers.
- ✅ Growing Industry: The tea cafe market is on a rapid growth trajectory in India, making this a timely investment.
Chai Sutta Bar Franchise Cost & Investment Breakdown
| Item | Estimated Cost (INR) |
|---|---|
| Franchise Fee | 6,00,000 – 8,00,000 |
| Outlet Interiors | 5,00,000 |
| Machinery & Equipment | 3,00,000 |
| Initial Raw Materials | 2,00,000 |
| Total Estimated Cost | 16,00,000 – 18,00,000 |
| Royalty Fee | 4% of monthly revenue |
| Space Requirement | 300 – 400 sq. ft. |
| Payback Period | 14 – 18 months |
| Franchise Agreement | 5 years |
Location & Rent
Ideal locations include near educational institutes, bus stops, railway stations, and high streets. Commercial rental costs generally range between ₹20,000 to ₹30,000 depending on city and locality.
Understanding the Return on Investment (ROI)
Chai Sutta Bar promises an ROI of around 108% on average, meaning your initial investment can be recovered in just over a year. This is driven by:
- Affordable, high-frequency products
- Efficient supply chain reducing cost of goods sold
- Strong brand pull and repeat customers
- Low employee count and operating costs
With the right location and operational excellence, franchisees can achieve stable monthly profits within the first 12-18 months.
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Step-by-Step Process to Apply for a Chai Sutta Bar Franchise
Step 1: Visit the Official Website
Go to www.chaisuttabarindia.com and locate the franchise application form.
Step 2: Fill the Franchise Form
Submit your details including name, contact info, city, budget, and any queries.
Step 3: Confirmation & Initial Screening
After form submission, a confirmation will appear and the team will evaluate your profile.
Step 4: Location Evaluation
You will be asked to submit photographs and details of your proposed location. The Chai Sutta Bar team will conduct a detailed survey to assess viability.
Step 5: Approval & Meeting
If approved, you will meet with the area manager to discuss terms and business strategies.
Step 6: Agreement & Payment
Sign the franchise agreement and pay the applicable franchise fee.
Step 7: Outlet Setup & Training
Receive guidance on interior design, staffing, machinery procurement, and brand compliance.
Step 8: Staff Training & Soft Launch
Trained professionals will assist with operations and customer service.
Step 9: Grand Opening
Open your outlet to the public and start serving authentic kulhad chai!
Eligibility Criteria for Owning a Chai Sutta Bar Franchise
- Adequate space meeting brand requirements (300 – 400 sq. ft.)
- Ability to employ 2-4 staff members
- Willingness to undergo thorough training and follow SOPs
- Basic business management understanding and tea preparation knowledge
- Positive customer interaction skills and professionalism
- Commitment to uphold brand values and quality
Essential Documents Required
- Trade License
- FSSAI Food Safety License
- GST Registration & GSTIN Number
- Shop/Commercial Space Agreement
- Signage License
- Registration papers (sole proprietorship, partnership, or company)
- Location photographs and proposed outlet layout
Beyond Chai: Explore Hot Dog Harbour & Sugoi Ramen Franchise Opportunities
While Chai Sutta Bar dominates the tea café space with its authentic kulhad chai and affordable pricing, India’s foodservice landscape offers exciting franchise prospects in other fast-growing segments — hot dogs and ramen.
If you want to diversify your franchise portfolio or explore multiple brands under one roof, Hot Dog Harbour and Sugoi Ramen are two rising stars worth your attention.
Hot Dog Harbour Franchise: India’s Largest Hot Dog Chain
Hot Dog Harbour is India’s pioneering brand specializing exclusively in gourmet hot dogs. With a loyal fan base in Mumbai, Pune, and expanding into new markets, it caters especially to younger consumers who seek bold flavors and quick bites.
Why Hot Dog Harbour?
- Focused on hot dogs — a niche with growing demand
- Signature products like Captain’s Classic Dog and Spicy Seoul Hot Dog
- Operates cloud kitchens and takeaway outlets for low overhead
- High return on investment and rapid scaling potential
- Strong presence on delivery platforms such as Swiggy and Zomato
- Investment range suitable for first-time and seasoned investors
| Franchise Type | Investment Range | Avg. Monthly Revenue | ROI Timeline |
|---|---|---|---|
| Cloud Kitchen | ₹7–10 Lakhs | ₹1.5–2 Lakhs | 10–14 Months |
| Takeaway | ₹12–15 Lakhs | ₹2.5–3.5 Lakhs | 12–15 Months |
| Dine-In | ₹18–22 Lakhs | ₹3.5–5 Lakhs | 14–18 Months |
Hot Dog Harbour is ideal for entrepreneurs looking to capitalize on the rising popularity of fast, fusion street foods in metro and Tier 2 cities.
Sugoi Ramen Franchise: Authentic Japanese Ramen in India
Sugoi Ramen brings authentic Japanese ramen cuisine to Indian consumers, a category witnessing rapid growth as urban millennials and Gen Z explore international flavors. The brand blends traditional Japanese recipes with local preferences to create a unique dining experience.
Why Sugoi Ramen?
- Offers vegetarian, vegan, seafood ramen options
- Operates cloud kitchens, dine-ins, and kiosks with flexible formats
- Centralized broth preparation ensures quality and consistency
- Strong delivery presence with high repeat customer rates
- Investment levels balanced with strong monthly returns
- Growing footprint in Mumbai, Pune, and Hyderabad with pan-India plans
| Franchise Model | Investment Range | Avg. Monthly Sales | ROI Period |
|---|---|---|---|
| Cloud Kitchen | ₹10–12 Lakhs | ₹2–3 Lakhs | 10–14 Months |
| Dine-In | ₹18–25 Lakhs | ₹3.5–5 Lakhs | 14–18 Months |
| Express Kiosk | ₹8–10 Lakhs | ₹1.5–2.5 Lakhs | 9–12 Months |
Sugoi Ramen is perfect for franchisees who want to tap into the booming Asian cuisine segment with a premium yet accessible offering.
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Conclusion: Why Chai Sutta Bar Franchise is Your Best Bet in Tea Café Business
India’s passion for chai is timeless, and Chai Sutta Bar has captured this essence perfectly — affordable, authentic, and accessible. Its rapid expansion, strong franchise support, and minimal investment requirement make it an ideal choice for first-time and experienced entrepreneurs alike.
With a simple application process, proven ROI, and a growing customer base, the time to invest in a Chai Sutta Bar Franchise is now. Join the revolution, serve piping hot chai in kulhads, and brew success for yourself!
Frequently Asked Questions (FAQs)
Q1: How much does a Chai Sutta Bar franchise cost?
Typically between ₹16 to ₹18 Lakhs depending on location and format.
Q2: What is the franchise fee?
Between ₹6 to ₹8 Lakhs.
Q3: How long does it take to open the outlet after agreement?
Usually between 45 to 60 days.
Q4: What is the payback period?
Approximately 14 to 18 months.
Q5: Can I operate multiple outlets?
Yes, with approval and capacity, multiple outlets can be owned.
