Chai Vaai Cafe Franchise is one of the best most affordable tea franchises in India as compared to the branding and services it is giving. We will discuss Chai Vaai Cafe Franchise Cost, Profit, How to get the franchise.
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Chai Vaai Cafe Franchise Cost
Chai Vaai Cafe Franchise Cost ₹16,00,000 Rupees as an initial investment. The Franchise Fee is ₹2,75,000 Rupees+GST. The minimum area required is 350 Square Feets. Royalty charged will be 6% on Sales.
The bifurcation of the Cost is given below-
|Particulars||Amount (Premium Model)|
|Franchise Fee||2,75,000 Rupees|
|18% GST on Franchise Fee||50,000 Rupees|
|Machinery and Setup Cost||6,00,000 Rupees|
|Interior, Furniture and Civil Work|
(depending upon outlet Size)
|Advance Raw Material||1,30,000 Rupees|
|Total Investment||16,00,000 Rupees|
- The franchise agreement will be for 5 Years.
- Trained staff with proper training will be provided, there will be a minimum of 3 Staff
- Raw Material will be provided by the franchisor
- Food, GST and Shop License is required.
- Return on Investment is around 15 months to cover the cost
Chai Vaai Cafe Franchise Profit
We will analyze Chai Vaai Cafe 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 @35%||(84,000) Rupees|
|Electricity and Water Supply||(10,000) Rupees|
|Salary of Workers and their Expenses||(45,000) Rupees|
|Royalty @6%+GST||(15,000) Rupees|
|Other expenses |
(Marketing, Aggregator, Misc)
|Net Profit||40,000 Rupees|
We can conclude that the Profit Margin of Chai Vaai Cafe Franchise is 17% 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 3 Lakh Rupees per month and the profit margin will be 25% on Sales or 75,000 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 Vaai Cafe Franchise?
To get the Chai Vaai Cafe 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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