Tea isn’t just a beverage in India—it’s an emotion, a tradition, and a part of daily life. With over 1.1 billion cups consumed daily, India is the second-largest tea producer in the world and among the top consumers. Whether it’s the morning masala chai, a mid-day office break, or late-night tapri hangouts, chai is omnipresent.
But what’s new is how this deep-rooted tradition is evolving into a modern, organized retail business opportunity through tea franchises. In 2025, starting a tea franchise in India is one of the most profitable and scalable food business options.
Let’s explore why the tea franchise model is booming—and the top 10 tea franchises that can help you cash in on this trend.
Why Start a Tea Franchise in 2025?
1. Cultural Affinity
Chai is an irreplaceable part of Indian life. Whether it’s a street-side stall or a high-end tea lounge, there’s a customer segment for every format.
2. High-Profit Margins
Tea has one of the lowest input costs and among the highest markup margins in the F&B space. A cup of tea costs around ₹3–₹7 to make and sells for ₹20–₹200+ depending on location and format.
3. Low Startup Investment
Many tea franchise models start at just ₹5–8 lakhs, with quick breakeven timelines and minimal operating costs.
4. Wide Customer Base
Everyone drinks tea: students, professionals, housewives, travelers, and elders. It’s a mass-market product with limitless demand.
5. Flexible Format Options
Franchises are available in kiosk, QSR, and café formats, allowing investors to start with what suits their budget and location.
Top 10 Tea Franchises in India – 2025 Edition
These franchises are ranked based on brand strength, scalability, profitability, and franchise support.
1. Tea Time – India’s Largest Tea Franchise Network
- Investment: ₹5–8 Lakhs
- Outlets: 3000+
- USP: Affordable pricing, wide flavor range, high ROI
- Best Locations: Small towns, tier-2/3 cities, near colleges
Tea Time has become a pioneer in making tea entrepreneurship accessible across India. Known for its affordable model and simple setup, it offers masala chai, green teas, and snacks.
Pros:
- Lowest investment entry point
- Strong brand recall
- Kiosk-based, quick setup
Ideal For: First-time entrepreneurs and small investors
2. Chai Sutta Bar – Redefining Kulhad Chai
- Investment: ₹15–20 Lakhs
- Outlets: 500+
- USP: Desi vibes with modern café design
- Best Locations: Colleges, urban areas, malls
Chai Sutta Bar combines the rustic appeal of kulhad chai with trendy branding. It’s become a Gen Z favorite for its ambiance and pocket-friendly menu.
Pros:
- Strong millennial following
- Social media-friendly brand image
- Simple, replicable interiors
Ideal For: Entrepreneurs targeting youth, urban and student zones
3. Chaayos – Premium Tea Lounge Experience
- Investment: ₹30–40 Lakhs
- Outlets: 200+
- USP: Customizable chai, modern interiors
- Best Locations: Malls, airports, metro cities
Chaayos stands apart with its tech-enabled ordering, customizable chai blends, and lounge-like seating. It caters to a more urban, professional crowd.
Pros:
- Premium pricing and high margins
- Tech-enabled loyalty programs
- Expanding across metros and airports
Ideal For: Investors looking for a scalable, high-end café model
4. Yewale Amruttulya – Maharashtra’s Kadak Chai King
- Investment: ₹10–12 Lakhs
- Outlets: 300+
- USP: Single-flavor strong tea, regional loyalty
- Best Locations: Maharashtra, tier-2/3 towns
Yewale Tea has won hearts with its kadak chai recipe. With uniform pricing and minimal menu clutter, it operates on a standardized process with high daily footfall.
Pros:
- Fast-moving format
- Local trust and flavor consistency
- Simple operations
Ideal For: Local entrepreneurs, regional F&B investors
5. Chai Garam – Kiosk + Café Flexibility
- Investment: ₹10–15 Lakhs
- Outlets: 100+
- USP: Customizable formats for any real estate
- Best Locations: Transit hubs, colleges, office areas
Chai Garam provides a flexible franchising model that can fit into malls, offices, college campuses, and street corners with kiosk or café setups.
Pros:
- Great support with training and marketing
- Option for low-rent kiosk format
- Popular snacks included
Ideal For: Franchisees looking to scale fast with multiple units
6. Tea Post – Desi Snacks + Tea Combo Model
- Investment: ₹12–20 Lakhs
- Outlets: 200+
- USP: Indian snacks with every cup of tea
- Best Locations: Urban areas, Gujarat, Rajasthan, MP
Tea Post serves affordable chai paired with dhokla, khaman, and vada pav. It’s positioned as a desi hangout spot with consistent growth in western India.
Pros:
- Combos increase average ticket size
- Fast-casual model with dine-in
- Solid regional loyalty
Ideal For: Entrepreneurs wanting a full-menu tea café with dine-in
7. VarieTea – Premium Global Teas
- Investment: ₹15–25 Lakhs
- Outlets: 50+
- USP: International teas in luxe ambiance
- Best Locations: Upscale neighborhoods, urban lounges
VarieTea brings imported flavors like hibiscus, oolong, and white teas into a plush café setting, designed for high-spending tea lovers.
Pros:
- High margins
- Upscale clientele
- Instagrammable aesthetics
Ideal For: Premium location investors and tea sommeliers
Read Also :- Pizza Franchise Cost and Opportunities in India
10 Best Coffee And Cafe Franchise Opportunities In India
8. Tea House – Regional Chai Café
- Investment: ₹8–14 Lakhs
- USP: Simple menu + budget meals
- Best Locations: Local markets, residential zones
Tea House is a cozy chai café offering traditional blends and small Indian meals. The format is designed for low-footprint stores with high repeat customers.
Pros:
- Quick breakeven
- Local customer loyalty
- Budget-friendly menu
Ideal For: Tier-2/3 entrepreneurs
9. Chai Lije – Modern Roadside Chai Model
- Investment: ₹7–12 Lakhs
- USP: Roadside café aesthetics
- Best Locations: Semi-urban towns, near hostels
Chai Lije turns traditional tea stalls into well-lit, semi-open cafés with simple branding and minimal setup costs.
Pros:
- Street-friendly layout
- Low rent and opex
- Youth-driven audience
Ideal For: Founders looking for informal, high-footfall locations
10. Tealogy – Wellness-Focused Tea Franchise
- Investment: ₹12–18 Lakhs
- Outlets: 50+
- USP: Herbal, detox, immunity-boosting teas
- Best Locations: Gyms, wellness centers, yoga studios
Tealogy serves green tea, chamomile, and ayurvedic brews to the health-conscious audience. It’s a perfect wellness crossover brand.
Pros:
- Growing niche of health-focused buyers
- Upsell with health snacks
- Low-calorie, guilt-free offerings
Ideal For: Health entrepreneurs and gym-based setups
Bonus Picks: QSR Brands with a Chai-Compatible Menu
Hot Dog Harbour
- Investment: ₹8–15 Lakhs
- USP: Gourmet hot dogs in freshly baked buns
- Add-on: Tea, milkshakes & fries included
Hot Dog Harbour pairs perfectly with a chai café model. Serve kulhad chai with peri peri fries or a spicy Seoul hotdog. With low investment and fast breakeven, this is a youth-centric QSR that blends well with tea setups.
Sugoi Ramen
- Investment: ₹10–18 Lakhs
- USP: Authentic Japanese ramen with Asian bakes & gyoza
- Crossover: Serve green teas, iced matcha, and herbal infusions
Sugoi Ramen is ideal for investors wanting to offer Asian comfort food and trendy teas in a cozy, premium environment. Perfect for fusion cafés and shared food court spaces.
Tea Franchise Comparison Table
| Franchise | Investment (₹) | Format | USP | ROI Timeframe |
|---|---|---|---|---|
| Tea Time | 5–8 Lakhs | Kiosk | Low cost, mass appeal | 6–9 months |
| Chai Sutta Bar | 15–20 Lakhs | Café | Kulhad chai, youth brand | 9–12 months |
| Chaayos | 30–40 Lakhs | Lounge Café | Custom tea, tech-driven | 18+ months |
| Yewale Tea | 10–12 Lakhs | Standalone | Kadak chai, local love | 6–9 months |
| Chai Garam | 10–15 Lakhs | Kiosk/Café | Flexi formats | 8–10 months |
| Tea Post | 12–20 Lakhs | Fast Casual | Tea + snacks combo | 12 months |
| VarieTea | 15–25 Lakhs | Premium Café | Global teas | 12–15 months |
| Tea House | 8–14 Lakhs | Small Café | Local meals + chai | 9 months |
| Chai Lije | 7–12 Lakhs | Roadside Café | Street model, budget-friendly | 6–9 months |
| Tealogy | 12–18 Lakhs | Wellness Café | Herbal & detox teas | 10–12 months |
Read Also :- Top 5 Ice Creams Brand in India
Top 10 Profitable Healthy Food Franchises in India – Best Investment Opportunities
Final Thoughts: Should You Start a Tea Franchise in 2025?
If you’re serious about starting a business that combines cultural familiarity, low investment, and high returns, a tea franchise in India is your perfect brew.
Whether you go for a kulhad café like Chai Sutta Bar, a premium lounge like Chaayos, or a regional powerhouse like Yewale Tea—there’s a tea brand for every budget and vision.
👉 Want help choosing the right franchise?
Visit GrowKitchen.in to get:
- Personalized franchise recommendations
- Assistance with ROI & site analysis
- Help with FSSAI, branding, and aggregator onboarding
Frequently Asked Questions (FAQs)
Q1. Is a tea franchise profitable in India?
Yes, due to low raw material costs and high demand, tea franchises have high profit margins.
Q2. Which tea franchise has the lowest investment?
Tea Time, starting at ₹5–8 lakhs.
Q3. Can I run a tea franchise with no experience?
Absolutely. Most tea brands provide training, SOPs, and backend support.
Q4. Are there any tea + food combos in franchises?
Yes, brands like Tea Post and Hot Dog Harbour offer tea + snacks combos to increase average order value.
Q5. Which tea franchise is best for metro cities?
Chaayos, VarieTea, and Sugoi Ramen work best in premium urban markets.
