Chai Nagri Franchise is a good tea cafe franchise in India. We will discuss Chai Nagri Franchise Cost, Profit, How to get the franchise.
Mr. tea Franchise currently has 20+ outlets PAN India. You can directly enroll for the Chai Nagri Franchise by filling up the Google Form.
The products offered by the franchise are Tea, Coffee, Lassi, Mocktails, Milkshakes, Burger, French Fries, sandwiches, Pizza and many more snacks.
Table of Contents
Chai Nagri Franchise Cost
Chai Nagri Franchise Cost ₹10,00,000 Rupees as an initial investment. The Franchise Fee is ₹350,000 Rupees+GST. The minimum area required is 200 Square Feets. Royalty charged will be 2% on Sales.
The bifurcation of the Cost is given below-
| Particulars | Amount (Premium Model) |
| Franchise Fee | 3,50,000 Rupees |
| 18% GST on Franchise Fee | 63,000 Rupees |
| Machinery and Kitchen Equipments | 2,50,000 Rupees |
| Interior, Furniture and Civil Work (depending upon outlet Size) | 2,00,000 Rupees |
| Advance Raw Material | 80,000 Rupees |
| Other Expenditure (POS, Licenses, Misc) | 57,000 Rupees |
| Total Investment | 10,00,000 Rupees |
- The franchise agreement will be for a lifetime. There will be no renewal charges.
- All the machinery provided will be branded products like Fridge and Freezer comes with warranty.
- The franchisor provides training but recruitment should be done locally
- Raw Material will be provided by the franchisor
- Food, GST and Shop License is required.
- Return on Investment is around 18 months to cover the cost
Chai Nagri Franchise Profit
We will analyze Chai Nagri Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 3,00,000 Rupees i.e. 10,000 Rupees per day.
| Particulars | Amount (Cafe Model) |
| Gross Sales | 3,00,000 Rupees |
| Cost of Material @45% | (1,35,000) Rupees |
| Rent | (50,000) Rupees |
| Electricity and Water Supply | (10,000) Rupees |
| Salary of Workers and their Expenses | (45,000) Rupees |
| Royalty @2% | (6,000) Rupees |
| Other expenses (Marketing, Aggregator, Misc) | (12,000) Rupees |
| Net Profit | 42,000 Rupees |
We can conclude that the Profit Margin of Mr. tea Franchise is 14% for the Sales of 3,00,000 Rupees. The outlet may have less profits in the initial days but Tea has great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 4 Lakh Rupees per month and the profit margin will be 23% on Sales or 92,000 Rupees as Profit.
Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service.
The location should have a very high footfall. It should be in the main market of that area. You can open the outlet nearby colleges, corporates, Highways, Malls or any place where young people love to have Tea.
How to Get Chai Nagri Franchise?
To get the Chai Nagri Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best.
Thanks for reading the blog, If you have any queries regarding the franchise then you can ask me in the comment box or on my
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