By Saksham Arora Chai Kaapi was founded in 2014 in Bengaluru with a unique idea: bring India’s everyday chai and filter coffee into a modern, hygienic café format. The brand blends South Indian filter coffee culture with pan-India tea habits, making it popular among office-goers, students and daily commuters. With its compact stores and affordable pricing, many entrepreneurs look at Chai Kaapi as a low to mid-investment beverage franchise. This article explains the franchise model, investment cost, space requirements, profitability and how Chai Kaapi franchises work in India.
About the Chai Kaapi Brand
Chai Kaapi specialises in South Indian filter coffee, masala chai, ginger chai, lemon tea, cold coffee and seasonal beverages. The menu is intentionally simple and fast-moving, focused on high repeat consumption. Some outlets also offer light snacks like buns, cookies and savouries. The brand’s strength lies in consistency, speed of service and everyday affordability rather than café-style seating.
Is Chai Kaapi a Franchise Model in India?
Yes. Chai Kaapi operates on a franchise model and allows individual entrepreneurs to open branded outlets.
Common outlet formats include:
- Kiosk / Express Outlet
- Standard Takeaway Café
- High-Street Compact Store
Most Chai Kaapi outlets focus on takeaway and quick service rather than long seating time.
Total Chai Kaapi Franchise Investment Cost in India
Investment depends on city, outlet format and store size.
Typical investment ranges include:
- Kiosk / Express Outlet: ₹6 lakh – ₹9 lakh
- Standard Outlet: ₹9 lakh – ₹14 lakh
- Large High-Street Outlet: ₹14 lakh – ₹20 lakh
Most franchise partners start with ₹9 lakh – ₹14 lakh for a standard Chai Kaapi outlet.
Chai Kaapi Franchise Cost Breakdown
A realistic cost structure includes:
- Franchise Fee: ₹2 lakh – ₹4 lakh (one-time)
- Store Interiors & Fit-Out: ₹2 lakh – ₹4 lakh
- Coffee & Tea Brewing Equipment: ₹1.5 lakh – ₹3 lakh
- Counter & Minimal Seating Setup: ₹50,000 – ₹1.5 lakh
- Initial Raw Material & Inventory: ₹50,000 – ₹1 lakh
- POS & Billing System: ₹25,000 – ₹50,000
- Signage & Branding: ₹40,000 – ₹80,000
- Staff Training: ₹20,000 – ₹50,000
- Working Capital: ₹1 lakh – ₹3 lakh
- Rental Deposit: varies by location
The model keeps setup costs controlled by limiting menu size and seating.
Space & Location Requirement
Typical space needs include:
- Kiosk: 80 – 120 sq ft
- Standard Outlet: 150 – 300 sq ft
- Large Outlet: 300 – 500 sq ft
Best-performing locations include IT parks, office clusters, metro stations, hospitals, college areas, high streets and busy residential-commercial zones.
Profit Margin & ROI for Chai Kaapi Franchise
Beverage-focused outlets benefit from low raw material cost.
- Net Profit Margin: 20% – 35%
- Monthly Revenue Potential: ₹2 lakh – ₹6 lakh+ depending on footfall
- Break-Even Period: 6 – 12 months
- ROI Timeline: 12 – 24 months
Filter coffee and chai have high repeat demand, which stabilises daily sales.
Royalty & Ongoing Charges
Franchise partners usually pay:
- Royalty Fee: 4% – 6% of monthly sales
- Rent and utilities
- Staff salaries
- Raw material purchases
- Local promotions
There is no heavy national advertising levy, keeping expenses manageable.
Support Provided by Chai Kaapi
Franchise partners receive:
- Location selection guidance
- Store layout and branding support
- Beverage preparation training
- Vendor and supply assistance
- POS and operations setup
- Launch and marketing guidance
This makes the brand suitable for first-time food entrepreneurs.
Who Should Invest in a Chai Kaapi Franchise?
- Entrepreneurs with ₹6 lakh – ₹20 lakh capital
● First-time business owners
● Investors targeting daily-consumption beverage segments
● People looking for quick break-even opportunities
Hands-on involvement improves performance and margins.
Risks & Challenges
- Competition from local tea and coffee stalls
● Dependence on footfall
● Staff management during peak hours
● Maintaining taste consistency
Even so, tea and filter coffee remain everyday habits for millions of Indians.
How to Apply for Chai Kaapi Franchise
- Prepare personal and financial details
- Shortlist a high-footfall location
- Submit franchise application
- Location feasibility and approval
- Agreement signing
- Store setup and equipment installation
- Staff training
- Outlet launch
The setup timeline is generally quick due to the compact format.
Conclusion
Chai Kaapi is a practical, low-risk franchise opportunity in India’s growing tea and coffee café segment. With investment starting from ₹6 lakh and going up to ₹20 lakh, it offers simple operations, strong margins and fast break-even. For entrepreneurs seeking a reliable daily-demand beverage business, a Chai Kaapi franchise is a solid option.