By Saksham Arora Chai Sutta Bar was founded in 2016 in Indore, Madhya Pradesh, with the simple idea of serving affordable tea in a modern desi style. Within a few years, the brand expanded rapidly across India and abroad, especially among youth and college-going customers. With its low entry cost, high footfall potential, and strong brand recall, Chai Sutta Bar has become one of India’s most popular low-investment café franchise options. This article explains the Chai Sutta Bar franchise cost in India, investment structure, profit potential, and eligibility in a clear and practical format.
About the Chai Sutta Bar Brand
Chai Sutta Bar is known for its kulhad chai concept, budget-friendly menu, and strong youth connect. The brand serves tea, coffee, cold beverages, and light snacks in a casual hangout format. Its biggest strength lies in low product pricing, high daily repeat customers, and small-space operations. Today, Chai Sutta Bar has hundreds of outlets across India and several international locations.
Is Chai Sutta Bar a Franchise or Company-Owned Model?
Chai Sutta Bar operates on a pure franchise-based expansion model. Individual entrepreneurs can directly take a single outlet franchise after meeting investment and location requirements. The brand also supports multi-unit franchise partners in several cities.
Total Chai Sutta Bar Franchise Cost in India
The total investment required to open a Chai Sutta Bar outlet in India usually ranges between ₹5 lakh to ₹10 lakh depending on city, store size, and interior standards. Small kiosks in tier-2 and tier-3 cities may start closer to ₹5–6 lakh, while premium café-style outlets in metro cities may reach ₹9–10 lakh.
Chai Sutta Bar Franchise Cost Breakdown
A typical outlet setup includes a one-time franchise fee of ₹3 to ₹4 lakh, interior setup and branding of ₹1.5 to ₹3 lakh, equipment such as tea machines, refrigerators, and counters costing ₹80,000 to ₹1.5 lakh, initial raw material and stock of ₹40,000 to ₹80,000, licenses and local approvals of ₹20,000 to ₹40,000, and working capital reserve of ₹50,000 to ₹1 lakh. Together, these expenses usually keep the total setup within the ₹5–10 lakh range.
Space & Location Requirement
Chai Sutta Bar outlets work well in compact spaces. The minimum required area is usually 100 to 300 square feet. Best-performing locations include college areas, coaching hubs, office clusters, busy markets, railway stations, bus stands, and residential-commercial mixed zones. High youth footfall and easy takeaway access are key success factors.
Chai Sutta Bar Franchise Profit Margin & ROI
Chai Sutta Bar operates on high-volume, low-ticket sales. A well-performing outlet can generate monthly revenue between ₹3 lakh to ₹7 lakh depending on location. Net profit margins generally remain between 25% to 40% due to low raw material cost. Under stable performance, most franchise owners recover their investment within 10 to 18 months.
Chai Sutta Bar Franchise Royalty & Ongoing Charges
Chai Sutta Bar usually charges a royalty of around 3% to 5% of monthly sales. In addition, a small monthly marketing contribution may also apply for brand promotions. Raw materials are either supplied by the brand or sourced through approved vendors as per standard recipes.
Support Provided by Chai Sutta Bar
The brand provides complete setup support including outlet design layout, staff training, recipe standardization, vendor sourcing, branding and signage, and pre-launch marketing guidance. It also offers operational manuals and ongoing business support to help franchise owners run the outlet smoothly.
Who Should Invest in a Chai Sutta Bar Franchise?
A Chai Sutta Bar franchise is ideal for first-time entrepreneurs, students turned business owners, small investors, and people looking for a low-budget food business. It is especially suitable for those who want a daily cash-flow business with active involvement. No prior café or restaurant experience is mandatory.
Risks & Challenges to Consider
Despite the low investment, the business faces challenges such as dependence on youth crowd, seasonal drop in hot beverage sales during summer, staff churn, local competition from roadside tea sellers, and strict quality maintenance to protect brand image. Location mistakes can directly affect daily sales.
How to Apply for a Chai Sutta Bar Franchise in India
Interested applicants can apply through the official Chai Sutta Bar website by submitting the franchise inquiry form along with personal and financial details. After initial screening, the brand conducts a discussion on location, investment plan, and operational capability before issuing the franchise agreement and training schedule.
Conclusion
The Chai Sutta Bar franchise in India is one of the most affordable branded café business opportunities, with an investment starting from around ₹5 lakh and going up to ₹10 lakh. Strong brand recognition among youth, low operating cost, fast setup, and attractive profit margins make it a popular choice for small entrepreneurs. However, success heavily depends on choosing the right location, maintaining consistent quality, and staying actively involved in daily operations. For anyone looking to enter the food and beverage sector with limited capital, Chai Sutta Bar remains a practical and promising franchise option.