Chai Sutta Bar (CSB) is not just a tea café chain—it’s a revolution in India’s tea culture. With the traditional touch of kulhads and a warm, inviting ambiance, CSB is redefining the tea game. It’s more than just a cup of chai; it’s an experience that brings people together.
For those looking to invest in a thriving business, CSB offers an exciting opportunity. But before jumping in, it’s important to understand the Chai Sutta Bar franchise cost, business model, and growth potential.
This guide walks you through everything you need to know—from CSB’s journey and unique selling proposition (USP) to its revenue trends, investment details, profit potential, and how you can become a Chai Sutta Bar franchise partner.
The tea industry is booming, and by 2025, it’s set to generate $24.65 billion in revenue—with $19.33 billion from at-home sales (supermarkets, convenience stores) and $5.32 billion from cafés, restaurants, and bars. At-home tea consumption is expected to grow at a 7.05% annual rate (CAGR 2025-2029), showing a strong and ever-growing demand.
With its affordable pricing and rising popularity, Chai Sutta Bar franchise is a highly profitable business idea for those wanting to be part of India’s thriving tea industry. If you’re looking for a low-cost business opportunity, investing in a Chai Sutta Bar franchise could be the perfect choice.
About Chai Sutta Bar
After its inception as a small Indore café Chai Sutta Bar has established over 550 locations throughout India as well as international sites. The brand’s success throughout multiple years is reflected by its strong and notable expansion. The popular tea establishment Chai Sutta Bar introduced traditional clay kulhads to serve tea after its 2016 establishment and such a distinctive serving method gained extensive public favor.
The tea-serving concept sets the brand apart from other places which attracts numerous tea fans. The founders who established the brand were Anubhav Dubey as well as Anand Nayak until Rahul Patidar joined them at a later point in their journey. Through consistent effort and dedication, Chai Sutta Bar became recognized as a prominent establishment in the café sector.
Key Milestones of Chai Sutta Bar
- 2016: First outlet launched in Indore.
- 2018: Expanded across major cities in Madhya Pradesh.
- 2019: Gained national recognition, increasing demand among youth.
- 2020: Despite the pandemic, expanded to 85+ outlets.
- 2024: Over 550+ outlets across 320+ cities in India and 3 international locations.
USP
- Social Impact: Franchise owners who operate Sutta Bar become part of a business that supports orphans through employment pathways.
- Inviting Ambience: Students together with professionals and families enjoy the perfect combination of traditional chai with a modern café atmosphere.
- Budget-Friendly Pricing: The affordable prices of chai lead students families and professionals to visit which generates steady profits through continuous customer visits.
- Eco-Friendly Kulhad Chai: The usage of clay cups for tea service creates both environmentally sustainable management practices and traditional charm that distinguishes the business from rivals.
- Rapid Expansion: The business extends its operations throughout India alongside global expansion where franchise opportunities give partners access to a worldwide famous brand name.
Revenue Growth:
- 2019: ₹50 Crores
- 2020: ₹85 Crores
- 2022: ₹150 Crores
- 2024: ₹220+ Crores (projected)
- 2025: Expected ₹350 Crores
The exponential growth of the Chai Sutta Bar franchise cost proves the potential profitability of investing in this franchise.
Why Invest in Chai Sutta Bar?
Chai Sutta Bar (CSB) took Indian culture’s popular beverage chai and developed it into a successful business enterprise. The contemporary establishment of CSB along with its powerful branding allows it to offer compelling opportunities for franchise expansion to business investors. A CSB franchise investment proves to be a strategic move for these reasons:
Growing Tea Industry in India
Indian people consume substantial quantities of tea and the market shows consistent expansion each year. The Indian tea industry has achieved a current value of ₹15,000 Crores while analysts predict a ₹21,500 Crore market by 2027 through a projected 6.5% Annual Growth Rate (CAGR). The market demand for tea-based businesses shows continuous growth which indicates this sector represents an appealing business opportunity. The existing market position of CSB enables franchise owners to leverage market growth in the tea sector to secure a prominent spot within this expanding industry.
Profitable Business Model
The profitability of a Chai Sutta Bar franchise represents one of its main attractive features for potential owners. Potential investors can start their tea business for an initial capital of between ₹16-₹25 Lakhs which corresponds to an affordable startup cost. Each cup produced by franchisees leads to earnings between 40% and 50% which results in profitable income. The return on investment (ROI) timelines run from 12 to 18 months as a general rule. Franchisees benefit from the quick recovery of invested capital because it enables them to start producing significant profits through an abbreviated period. A business model that attains profit goals due to low-cost entry points and short ROI duration provides exceptional returns on investment.
Rapid Expansion & Brand Value
Chai Sutta Bar began with its first café in Indore before establishing more than 320 outlets in both Indian and international markets. The company has set the goal of establishing more than 800 outlets across India before 2026 while simultaneously expanding internationally. High-speed growth demonstrates that the brand stands as a strong and trusted entity. The constant recognition of the Chai Sutta Bar brand leads investors to obtain instant market access alongside devoted consumer networks. Investors who choose to partner with CSB gain access to an organization that currently operates successfully and demonstrates plans to expand even more.
High Consumer Demand
Customers find appeal in the brand’s approach that distributes chai through reusable kulhads made from environmentally friendly materials. The company delivers more than 300,000 kulhads of tea throughout each daily operation. The repeat customer rate reaches 80% of the total customer base. The franchise owners benefit from steady earnings because the business maintains excessive customer loyalty. Franchise owners will enjoy a sustainable business operation because of powerful consumer demand coupled with an expanding customer base which brings guaranteed daily sales.
Franchisee-Friendly Model
The franchise model provided by Chai Sutta Bar delivers the most supportive approach among its market competition. CSB presents new investors with a financing option that keeps initial costs low. The franchise model of CSB includes comprehensive training and operational support to maintain efficient business activities. The brand offers comprehensive operational support at each stage to its franchisees together with low franchise costs which makes the business suitable for established and approaching entrepreneurs. Total franchise success depends on the comprehensive network of support provided by the organization to achieve growth for its partners.
Understanding the Chai Sutta Bar Franchise Model
Chai Sutta Bar implements the Franchise Owned Franchise Operated (FOFO) business structure because franchisees both own their outlets and maintain operations under the brand guidelines set by CSB.
FOFO (Franchise Owned, Franchise Operated)
A franchisee becomes the owner and operator of the outlet under this model yet they require a non-refundable brand license fee from Chai Sutta Bar. The franchise agreement comprises a specific duration when the holder operates the outlet according to established corporate guidelines.
COCO (Company Owned, Company Operated)
Chai Sutta Bar maintains full control as the owner-operator of the COCO outlet. The company manages the complete process for store establishment and day-to-day operational activities. The brand independently controls all operations at outlets that exist outside the franchise network.
Chai Sutta Bar Franchise Cost in India
chai sutta bar franchise cost– Detailed Breakdown
Investing in a Chai Sutta Bar franchise requires a total investment of ₹16-₹25 Lakhs, which covers various operational and setup costs. This investment ensures a well-established, high-quality chai outlet with the brand’s unique kulhad tea concept, attracting a wide customer base. Below is a detailed cost breakdown:
Cost Breakdown
- Franchise Fee (₹6-8 Lakhs): This initial non-returnable payment permits franchisees to utilize the Chai Sutta Bar brand identity together with its business operations model and trademark. Additionally the business receives preliminary start-up support beyond the setup services.
- Setup & Interiors (₹5-7 Lakhs): The setup funds include all expenses related to outlet interior design and furnishing together with necessary furniture items and decorative elements as well as lighting systems and seating elements to deliver the branded café experience.
- Equipment & Stock (₹3-5 Lakhs): Operational expenses relating to kitchen equipment, tea-making supplies and kulhads, raw materials, and initial operational stock belong to this category.
- Licensing & Permits (₹1-2 Lakhs): All mandatory business licenses together with FSSAI licenses GST registration shop establishment licenses and other required permits comprise this cost segment.
- Marketing & Branding (₹1-3 Lakhs): This section includes promotional activities while also providing social media advertising together with branding materials for launch marketing purposes to build local customer presence.
Additional Operational Expenses
- Royalty Fee: The franchisees must give Chai Sutta Bar ongoing brand support along with operational guidance and marketing assistance through their monthly revenue royalties which amount to 4%.
- Employee Salaries: The wages for staff members at Chai Sutta Bar outlets vary between ₹30,000 and ₹60,000 according to employee counts and responsibilities within the establishment.
- Rent: The cost of monthly rent depends on the location because it fluctuates between ₹50,000 to ₹1,50,000 but premium districts demand higher rentals.
Profitability & ROI: The Potential for Success
A Chai Sutta Bar franchise offers investors substantial profits that reach a projected 35% to 40%. The business demonstrates high profitability because it maintains affordable operational costs while offering cheap prices to customers who strongly prefer chai in India. The majority of franchise owners will achieve financial success by investing their money into the business within 18 months. There exists a promising business opportunity in owning a single Chai Sutta Bar outlet since such establishments can achieve expected monthly earnings of ₹90,000.
Profit Breakdown (Monthly Estimates)
A franchise typically delivers an ROI of 108% which solidifies its position as an extremely lucrative business choice. Approach the franchise investment with a cost between 6 to 8 lakhs and notice total costs reaching 16 to 18 lakhs.
Key Investment Insights:
- High ROI Potential: The return on investment at Chai Sutta Bar remains high because of the increasing chai demand in India combined with the brand’s strong market recognition.
- Franchise Cost: One must invest ₹6 to ₹8 lakhs for a Chai Sutta Bar franchise because this amount covers the franchise fee.
- Royalty Fee: Each month franchise owners need to pay 4% of their sales revenue to Chai Sutta Bar as a royalty fee.
- Investment Breakdown: The complete investment consists of franchise fees along with interior arrangements equipment pieces machinery and raw material supplies necessary for opening a business successfully.
Franchise Application Process
- Submit Location Details: You need to present pictures and crucial information regarding your desired retail site to the evaluation team.
- Location Assessment: The team at Chai Sutta Bar will conduct surveys to determine both the profitability potential and operational feasibility of the chosen location.
- Meeting with the Area Manager: After the area manager reviews the selected location they will make the final decision of acceptance.
- Approval & Agreement Signing: After approval both franchise users and Chai Sutta Bar will sign an official document establishing their franchise agreement.
- Business Setup Assistance: After business start-up the area manager will finalise all contractual elements.
- Interior Design: The franchise provides you with two options for interior design – a standardized format from Chai Sutta Bar or proprietary adjustments to the venue.
- Training & Support: The franchise system of the company combines operational training with continuous sales support to deliver successful business operation results.
How to Apply for a Chai Sutta Bar Franchise
- Visit the Website: Open the official Chai Sutta Bar website located at “chaisuttabarindia.com”.
- Locate the Franchise Form: The website contains a section where you can find the franchise application materials.
- Complete the Application: Provide exact information for all mandatory sections of the form.
- Submit the Form: After finishing the application users should send their documents online through the website.
- Wait for a Response: After passing the shortlist selection the franchise team will initiate contact with you for additional procedures.
Support and Training from Chai Sutta Bar
The franchisees of Chai Sutta Bar get full support from the company during their entire franchise journey.
- Location Selection: Franchise owners receive guidance to find prime locations that attract maximum customers.
- Staff Training: The franchise team provides ongoing courses about both superior service delivery and operational excellence.
- Marketing Assistance: The franchise obtains proactive branding with promotional strategies to boost branding visibility while drawing in more customers.
- Operational Support: Expert advice on daily management, inventory control, and customer service for smooth business operations.
Benefits of a Chai Sutta Bar Franchise
- Rising Demand for Kulhad Chai: The special kulhad chai at Chai Sutta Bar offers a flavorful experience that enables patrons to become devoted customers.
- Low Investment Requirement: Other established food franchises require higher investments yet an outlet of Chai Sutta Bar can be established with affordable capital thus offering a wide range of business potential.
- High-Profit Potential: The combination of minimal raw material costs and high Indian chai consumption enables franchisees to achieve excellent profits.
- Established Brand & Marketing Support: Chai Sutta Bar provides its franchisees with established brand recognition and promotional support to enable them to attract customers while keeping them loyal.
- Easy-to-Manage Business Model: An operations structure that keeps tea-based drinks as the main focus simplifies business administration tasks.
- Scalability for Growth: Business owners can achieve distributed franchise success through an expansion model that helps them open additional outlets based on market request levels.
- Booming Tea Industry: The increasing Indian tea market provides industry stability that benefits chai-based business ventures.
Conclusion
Investors who seek to establish themselves in the Indian tea café market should seriously consider buying into Chai Sutta Bar franchise opportunities. The kulhad tea concept together with affordable pricing and recognized brand reputation has made CSB a profitable social business enterprise. A franchise system provides valuable returns while allowing fast expansion and brand-supplied continuous support to create a profitable but low-risk enterprise.
Franchises within the Chai Sutta Bar network need an initial capital between ₹16-25 lakhs which can yield returns over 12-18 months while building sustainable long-term business growth. The quickly growing brand Chai Sutta Bar represents an excellent franchise opportunity for those who want to enter the tea market with great passion.
Disclaimer: The information provided in this article is based on research and is for informational purposes only. Before investing in any franchise, we strongly recommend visiting the official website and consulting with the company for in-depth guidance to avoid any potential losses.
FAQs
What are the complete financial requirements to launch a franchise?
The complete investment required to establish a franchise requires an investor to contribute ₹16-25 lakhs. The investment covers franchise fees, and setup costs alongside equipment purchases, licensing, and marketing expenses.
The profit potential from operating a franchise amounts to what range?
Franchise owners of Chai Sutta Bar can expect to earn 35-40% of their revenue as profit since locations within this range produce monthly earnings of ₹1,50,000 to ₹2,50,000.
What is the timeframe for earning back your investment in a Chai Sutta Bar franchise?
The quick-return nature of establishing a franchise lets owners regain their initial investment between a year and eighteen months.
Do franchisees need to pay any royalty fee to Chai Sutta Bar?
The regular payments by franchisees to Chai Sutta Bar include a 4% royalty fee based on monthly revenue to sustain operations and obtain marketing support and corporate operational assistance.
Where does the process of acquiring a franchise begin?
Prospective Chai Sutta Bar franchise owners need to visit the official website where they should submit the franchise inquiry form and complete the application procedure. The review of your application by the CSB team leads to additional information about proceeding steps.
