Chai Shai Bar Franchise is a great tea franchise in India that is growing at a rapid speed. We will discuss Chai Shai Bar Franchise Cost, Profit, and How to get the franchise.
Table of Contents
Chai Shai Bar Franchise Cost
Chai Shai Bar Franchise Cost ₹13,50,000 Rupees as an initial investment. The Franchise Fee is ₹500,000 Rupees+GST. The minimum area required is 250 Square Feets. 2% Royalty will be charged on Sales.
The bifurcation of the Cost is given below-
|Particulars||Amount (Premium Model)|
|Franchise Fee||500,000 Rupees|
|18% GST on Franchise Fee||90,000 Rupees|
|Setup Cost||2,75,000 Rupees|
|Interior, Furniture and Branding |
(depending upon outlet Size)
|Advance Raw Material||1,25,000 Rupees|
(Marketing, Licenses, Misc)
|Total Investment||13,50,000 Rupees|
- The franchise agreement will be for 7 years and it will be renewed at 50% of the franchise fee
- The franchisor provide training and Staff will also be provided
- Raw Materials will be provided by the franchisor
- Store timing 5 am to 10 pm
- FSSAI, GST and Shop License is required.
- There should be minimum 2 workers
- The Return on Investment will be 10-12 Months to cover the cost
Chai Shai Bar Franchise Profit
We will analyze Chai Shai Bar 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 @40%||(1,20,000) Rupees|
|Electricity and Water Supply||(10,000) Rupees|
|Salary of Workers and their Expenses||(50,000) Rupees|
|Other expenses |
(Marketing, Aggregator, Misc)
|Net Profit||50,000 Rupees|
We can conclude that the Profit Margin of Chai Shai Bar Franchise is 17% 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 25% on Sales or 1,00,000 Rupees as Profit.
- Selling price per Cup is varies from Rs 10/- to 80/-
- Profit margin per cup is 50% to 75% depending upon the quantity
- Break Even(no profit no loss) for daily sales is 150cups ( Rs 2500/-)
- After 150 cups per day, the outlet will be profitable
- If sales is 500 cups daily the approximate profit is Rs 5,000/- per day
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.
Chai Shai Bar Menu
Chai Shai Bar offers many items on their Menu apart from Tea like Coffee, Mocktails, Shakes, Slush, Lassi, Pasta, Pizza, burgers, Sweet Corn, Maggi, and Grill Sandwich.
How to Get Chai Shai Bar Franchise?
To get the Chai Shai Bar 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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