Chai Garam is a pocket cafe that focus on adding value along with affordable cost. We will discuss Chai Garam Franchise Cost, Profit, How to get the franchise.
Chai Garam Cafe is completely location flexible because it can open in any desired area. You can open Chai Garam outlet inside corporate buildings, Malls, Airport, Metro and Railway Stations, Petrol Pump, Food Court etc.
Chai Garam Franchise Cost
Chai Garam Franchise Cost ₹10,00,000- 15,00,000 Rupees as an initial investment. The Franchise Fee is ₹350,000 Rupees+GST. The minimum area required is 100 Square Feets. Royalty charged will be 4% on Sales.
The bifurcation of the Cost is given below-
|Particulars||Amount (Cafe Model)||Amount (Kiosk Model)|
|Franchise Fee||3,50,000 Rupees||3,50,000 Rupees|
|18% GST on Franchise Fee||63,000 Rupees||63,000 Rupees|
|Setup and Civil Work Cost||4,00,000 Rupees||3,00,000 Rupees|
|Interior, Furniture and Branding |
(depending upon outlet Size)
|5,00,000 Rupees||1,50,000 Rupees|
|Advance Raw Material||50,000 Rupees||30,000 Rupees|
|Other Expenditure||37,000 Rupees||27,000 Rupees|
|Total Investment||14,00,000 Rupees||9,20,000 Rupees|
- The franchise agreement will be of 7 years
- 45 Man Days shall be provided at the outlet for setup and training by the company.
- Transport, Boarding and lodging shall be included for this period by the company.
- Assistance in Setting up the entire supply chain
- Payback Period: 18 months
Chai Garam Franchise Profit
We will analyze Chai Garam 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|
|Royalty @4%+GST||(14,000) Rupees|
|Other expenses |
(Marketing, Aggregator, Misc)
|Net Profit||36,000 Rupees|
We can conclude that the Profit Margin of Chai Garam Franchise is 12% 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 20% on Sales or 80,000 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 Garam Franchise?
To get the Chai Garam 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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