Chai Sutta Bar is the most prominent franchise in the tea Industry. The founders believe that the solution to every problem lies in Chai and Sutta. We will talk about the Chai Sutta Bar Franchise Investment Cost, Profit, Review, Menu and How to start this franchise. We are the most reliable source of information so please take your decisions according to this blog.
However, no tobacco is allowed inside the premises. The name is just a catchy phrase. The founder picture a Youth that knows “no sutta breaks”, only hygienic and eco-friendly Chai breaks.
Chai Sutta Bar has 250+ outlets in 140+ Cities. Chai Sutta Bar also has its presence in International Countries like UAE(Dubai), Nepal, and Oman. They are the largest consumer of Kulhad with 3 lakh+ kulhad everyday.
Chai Sutta Bar Franchise Unique Concept- They invite all the customers to become saviours of the motherland as they serve chai in eco-friendly kulhads. It’s a quick-service restaurant with a great ambiance and pocket-friendly prices.
Different Varieties of Teas are available at affordable rates like Masala, Elaichi, Adrak, Rose and Chocolate Chai. Even these flavoured teas cost only 10 Rupees. The outlet also serves snacks like pizza, burger, fries and sandwiches.
Chai Sutta Bar Franchise Cost
Chai Sutta Bar cost rupees 17 Lakhs as an Initial Investment for 200-250 Square feet Cafe. The cost will increase if the area increases. The breakup of 16 Lakhs is given below-
|Initial Investment||Amount (in Rupees)|
|Franchise Fees||6,00,000 Rupees|
|Interior Decoration and Furniture||4,00,000 Rupees|
|Raw Material||2,00,000 Rupees|
|Opening Ceremony||50,000 Rupees|
|GST on Franchise Fee||108,000 Rupees|
|Other Expenditures||42,000 Rupees|
|Total Investment (Approx)||17 Lakh Rupees|
Important Details of Chai Sutta Bar Franchise Cost-
- 2% Royalty will be charged on Sales. For example if the total Sales is 1,00,000 then 2,000 Rupees will be charged by the company.
- Franchise Fee of 6 Lakh Rupees is valid for 5 years. It will be renewed for 3 Lakh Rupees for the next 5 years.
- Interior cost 3-4 lakhs for 250 square feet. If the area increases then the cost will also increase accordingly. I personally like the interior of this cafe so much.
- Machinery include all the machinery and kitchen eqiupments and Utensils required for operations.
- Raw material will be provided by the company from some 3rd source. Raw Material include all tea flavors, Kulhad, Coffee Power, Chocolate Powder, Water Bottle, Packaging Material.
- Perishable Goods Include Milk, Cheese, Bread, Bun, Butter, Vegetables Etc. Perishable goods will not be provided by the company.
- Free Tea and Coffee will be offered on Opening Ceremony which is a ritual in Chai Sutta Bar
- Training Session for first 15 days in Indore for 4 employees.
- Complete Support will be provided by the Franchisor.
This is the initial investment cost. Now let’s talk about the profit margin and other monthly expenses with the help of an example.
Chai Sutta Bar Franchise Profit
Let’s analyze the Chai Sutta Bar franchise Profit Margin with the help of an example. Apart from the initial Investment, Company charges only 2% royalty on Sales.
The net profit will be calculated after deducting rent, electricity, royalty, Salary of employees, Raw Material and other expenses. So I am taking an example if the total Sales every month is rupees 300,000.
|Particulars||Amount (per month)|
|Gross Sales||300,000 Rupees|
|Raw Material @50% (Milk, Tea, Kulhad, Cheese, Butter, etc)||(150,000) Rupees|
|Electricity, Gas and Water Supply||(15,000) Rupees|
|Salary of Employees (3-4)||(45,000) Rupees|
|Aggregator Commissionn||(7,000) Rupees|
|Other Expenses||(6,000) Rupees|
|Royalty 2% on Sales||(6,000) Rupees|
|Net Profit||36,000 Rupees|
The profit with increase with the increase in Sales because fixed costs like Rent and Salary of employees will not increase. So if the Sales will be 4,00,000 per month then the net profit will be 80,000 Rupees per month i.e. 20% profit margin.
In terms of percentage, The initial profit margin of Chai Sutta bar on Sales of 3,00,000 Rupees is 12% but we can conclude that the profit margin is 20% after 1 year of local marketing and branding.
Chai Sutta Bar is a famous brand among youngsters who still do not expect very high profits from the first month. Marketing in the local area takes time.
Try to open the outlet where the footfall is very high especially considering the target audience that is corporates and students. Location matters a lot with a good brand name and marketing.
Generally, a good outlet of Chai Sutta Bar can easily generate Sales of 5-6 Lakhs per month.
Chai Sutta Bar Menu
How to Start Chai Sutta Bar Franchise
To start the Chai Sutta Bar Franchise, you need to fill out the form below then we will allot you a specialist on WhatsApp who will provide you all the information regarding the franchise.
You can also enquire about the franchise on Chai Sutta Bar official website- https://chaisuttabarindia.com/
If you are interested in taking any franchise then we reviewed the best franchises in India here- https://aftercolleges.com/category/franchise-business/
After registering and finalizing the location, Things needed to register for Chai Sutta Bar Franchise-
- Aadhar Card
- Pan Card
- 1 Passport Size Photo
- Front Page of Bank Passbook
- 3-4 Photos of the Location
Chai Sutta Bar Franchise Review
Chai Sutta Bar Franchise has a great brand name with good digital presence. They have tie up with digital platforms like Zomato and Swiggy.
The Chai Sutta Bar franchise fee is not very high as compared to the brand name and the company is charging only 2% royalty so it’s a fair deal.
4 lakh rupees on the Interior is worth it because the interior is really amazing. I will share some pictures in the end.
The franchise has great support staff. Training will be provided to employees. The business model is amazing and tea prices are affordable for every income group. They offer a variety of flavoured Teas for only 10 Rupees.
Chai Sutta Bar and MBA Chai Wala are the top franchises in the tea industry. You can prefer any of them according to your preference. Chai Sutta Bar is no doubt better than MBA Chai Wala in every aspect. Still, I personally recommend taking any of these franchises.
Thanks for reading your blog till the end, if you have any queries please ask in the comment box.
Sitting Area in Small outlets-
Sitting Area in large outlets-
Close Looks to Chai Sutta Bar Ambience-