Chai Ops Franchise is one of the best tea cafe franchise in India. We will discuss Chai Ops Franchise Cost, Profit, How to get the franchise.
The products offered by the franchise are Tea, Pizza, Momos, Burger, Cold Coffee and everything that you can expect in a normal cafe.
Chai Ops Franchise Cost
Chai Ops Franchise Cost ₹13,00,000-₹18,00,000 Rupees as an initial investment. The Franchise Fee is ₹₹5,00,000 Rupees+GST. The minimum area required is 100-200 Square Feets. 3% Royalty will be charged on Sales.
The bifurcation of the Cost is given below-
|Particulars||Amount (Kiosk Model)||Amount (Stand Alone Model)|
|Franchise Fee||5,00,000 Rupees||5,00,000 Rupees|
|18% GST on Franchise Fee||90,000 Rupees||90,000 Rupees|
|Macinery and Setup Cost||2,50,000 Rupees||3,00,000 Rupees|
|Interior, Furniture and Branding |
(depending upon outlet Size)
|2,00,000 Rupees||5,70,000 Rupees|
|Advance Raw Material||1,00,000 Rupees||1,00,000 Rupees|
|Marketing and Opening Ceremony||1,00,000 Rupees||1,50,000 Rupees|
(POS, Licenses, Misc)
|60,000 Rupees||90,000 Rupees|
|Total Investment||13,00,000 Rupees||18,00,000 Rupees|
- The franchise agreement will be of 5 Years
- Initially 2 staff required, 1 chef and 1 cleaning staff,salary will be 12k-17k per head. Staff training will be done at Delhi
- Raw Material will be provided by the franchisor
- It will take 35 days to get the store ready
- Food, GST and Shop License is required.
- Return on Investment is around 12 months to cover cost
Chai Ops Packaging-
Chai Ops Franchise Profit
We will analyze Chai Ops Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 2,40,000 Rupees i.e. 8,000 Rupees per day.
|Particulars||Amount (Cafe Model)|
|Gross Sales||2,40,000 Rupees|
|Cost of Material @40%||(96,000) Rupees|
|Electricity and Water Supply||(10,000) Rupees|
|Salary of Workers and their Expenses||(40,000) Rupees|
|Royalty @3%+GST||(8,000) Rupees|
|Other expenses |
(Marketing, Aggregator, Misc)
|Net Profit||30,000 Rupees|
We can conclude that the Profit Margin of Chai Ops Franchise is 12.5% for the Sales of 2,40,000 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 30% on Sales or 1,20,000 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 Ops Franchise?
To get the Chai Ops Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best.
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