By Saksham Arora Chai Garam was founded in 2016 with the idea of turning everyday chai into a modern, hygienic and affordable café experience. The brand focuses on serving freshly brewed tea, flavoured chai and light snacks in high-footfall locations. With tea being one of the most consumed beverages in India, Chai Garam quickly gained popularity among students, office workers and daily commuters. This article explains the franchise model, investment cost, space requirements, profit margins and how a Chai Garam franchise works in India.
About the Chai Garam Brand
Chai Garam specialises in classic Indian tea and flavoured variants like ginger chai, masala chai, elaichi chai and lemon tea. Many outlets also serve coffee, cold beverages and quick snacks such as bun-maska, Maggi, sandwiches and cookies. The brand’s focus is on affordability, fast service and consistent taste, making it a daily-visit concept rather than an occasional café.
Is Chai Garam a Franchise Model in India?
Yes. Chai Garam operates through a franchise model and is open to individual entrepreneurs, including first-time business owners.
Available outlet formats include:
- Kiosk / Takeaway Outlet
- Standard Tea Café
- High-Street or Mall Outlet
Franchise partners operate the outlet under Chai Garam branding, recipes and standard operating procedures.
Total Chai Garam Franchise Investment Cost in India
Investment depends on outlet size and location.
Typical investment ranges include:
- Kiosk / Small Outlet: ₹5 lakh – ₹7 lakh
- Standard Tea Café: ₹7 lakh – ₹12 lakh
- Large High-Street Outlet: ₹12 lakh – ₹18 lakh
Most franchise partners start with a ₹7 lakh – ₹12 lakh investment for a standard outlet.
Chai Garam Franchise Cost Breakdown
A realistic cost structure includes:
- Franchise Fee: ₹1.5 lakh – ₹3 lakh (one-time)
- Store Interiors & Fit-Out: ₹2 lakh – ₹4 lakh
- Tea Brewing & Kitchen Equipment: ₹1 lakh – ₹2.5 lakh
- Furniture & Counter 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 city and location
The setup is designed to be simple and cost-effective, keeping entry barriers low.
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 locations include college areas, office zones, metro stations, markets, hospitals, coaching hubs and residential-commercial neighbourhoods.
Profit Margin & ROI for Chai Garam Franchise
Tea businesses enjoy strong margins due to low raw material cost.
- Net Profit Margin: 20% – 35%
- Monthly Revenue Potential: ₹1.5 lakh – ₹5 lakh+
- Break-Even Period: 6 – 10 months
- ROI Timeline: 12 – 18 months
High repeat customers and daily consumption drive steady cash flow.
Royalty & Ongoing Charges
Franchise partners usually pay:
- Royalty Fee: 3% – 6% of monthly sales
- Rent and utilities
- Staff salaries
- Raw material purchases
- Local marketing expenses
There is no heavy marketing levy, keeping operating costs manageable.
Support Provided by Chai Garam
Franchise partners receive:
- Location guidance
- Store layout and setup support
- Recipe and operations training
- Vendor and supply assistance
- POS system setup
- Launch and marketing guidance
This makes Chai Garam suitable for new entrepreneurs.
Who Should Invest in a Chai Garam Franchise?
- Entrepreneurs with ₹5 lakh – ₹18 lakh capital
- First-time business owners
- Investors targeting high-footfall daily-consumption locations
- People looking for quick break-even food businesses
The model works best when the owner is actively involved.
Risks & Challenges
- Competition from local tea stalls
- Dependence on footfall
- Maintaining taste consistency
- Staff management during peak hours
Still, chai remains one of India’s most reliable and recession-resistant businesses.
How to Apply for Chai Garam Franchise
- Prepare basic personal and financial details
- Shortlist a suitable location
- Submit franchise application
- Location feasibility review
- Agreement signing
- Store setup and equipment installation
- Staff training
- Outlet launch
The setup process is usually fast compared to large QSR brands.
Conclusion
Chai Garam is a low-investment, high-repeat franchise opportunity in India’s fast-growing tea café segment. With investment starting from ₹5 lakh and going up to ₹18 lakh, it offers simple operations, strong margins and quick returns. For entrepreneurs looking for a practical, everyday-demand business, a Chai Garam franchise can be a solid choice.