To start an MBA Chai Wala Franchise, you have to read this blog (the most reliable information). We will discuss the Cost, Profit Margin and Review of the MBA Chai Wala Franchise.
The story of an MBA dropper Prafull Billore who started a successful Tea Franchise that become a social media sensation. MBA Chai Wala has 82,000 Instagram Followers and 5,00,000 subscribers on Youtube.
MBA Chai Wala offers a variety of Teas with different flavors at very affordable prices. Some flavored teas are also priced at only 10 Rupees.
Starting his journey from Ahemadabad, MBA Chai Wala have 50+ outlets in 15+ cities now. This is the most reliable source to get information regarding franchises because we directly contact the Public Relation Managers. Let’s begin-
Table of Contents
MBA Chai Wala Franchise Cost
MBA Chai Wala has 2 types of Franchise Models-
- Kiosk (Small Stall)
- Dining Cafe
MBA Chai Wala Kiosk Cost
The kiosk (Small Stall) of the MBA Chai Wala franchise cost around 16 lakh Rupees for 150 Square Feet Area. The breakup of the amount is given below-
|Franchise Fee||4 Lakh Rupees|
|Interior and Furniture||3.6 Lakh Rupees|
|Machinery and Kitchen Equipments||4.8 Lakh Rupees|
|Raw Material||60,000 Rupees|
|GST||2.34 Lakh Rupees|
|Total Investment for Kiosk||15.34 Lakh Rupees|
|Interior and Furniture||Amount|
|Furniture, Fixtures, Painting, Flooring, Ceiling, Internal Branding, Counter Display, Wooden Work||2 Lakh Rupees|
|Electrical Equipments, Fitting and Lightning, Civil, Plumbing Work||50,000 Rupees|
|Signage (External), Internal LED, Road Side Board||50,000 Rupees|
|CCTV/ LED TV (42 Inch)||40,000 Rupees|
|Music System 5.1||20,000 Rupees|
|Total Amount on Interior and Furniture||3.6 Lakh Rupees|
|Machinery and Kitchen Equipments||Amount|
|Pos System, Printer, Cash Drawer||75,000 Rupees|
|Inventory Management System||12,000 Rupees|
|Kitchen Equipment and Utensils||2,52,000 Rupees|
|Kitchen Partition, Stainless Stell Cabinet+Storage||76,000 Rupees|
|Serving Crockery+ Disposable Plates and Take Away Packaging Material||60,000 Rupees|
|Staff Uniform||5,000 Rupees|
|Total Amount on Machinery and Kitchen Equipments||4.8 Lakh Rupees|
You can pay for the franchise in Installments. Payment Installments are given below-
|Payment 1||1 Lakh+GST|
|Payment 2||10 Lakh+GST|
|Payment 3||Remaining Amount+ GST|
MBA Chai Wala Dining Cafe Cost
MBA Chai Wala Dining Cafe Franchise will cost around 25 lakh Rupees for 400 Square feet area. The breakup of the amount is given below-
|Franchise Fees||5 Lakh Rupees|
|Interior and Furniture||8.5 Lakh Rupees|
|Kitchen Setup||6.9 Lakh Rupees|
|Raw Material||60,000 Rupees|
|GST||3.78 Lakh Rupees|
|Total Investment for Dining Cafe||24.78 Lakh Rupees|
Important Details regarding MBA Chai Wala Franchise-
- 4,00,000-5,00,000 Rupees Franchise fee is valid till 5 years. It will be renewed for 2,00,000-2,50,000 Rupees for the next 5 years.
- 4% Royalty will be charged on Sales.
- Outlet Opening takes on an Average 45-60 Days
- If the area increases from the above models than costing will increase by 2,000 Rupees per Square feet.
- Staff Training will be provided for free
MBA Chai Wala Franchise Profit
The profit margin after deducting the all the costs will be 40% profit margin on each sale on an average when the Sales will be above 5,00,000 Rupees per month. Let’s understand the profit margin of MBA Chai Wala Franchise in the initial days with the help of an example. We are taking initial sales as 2,00,000 Rupees-
|Particulars||Amount in a Month|
|Gross Sales of a Month||2,00,000 Rupees|
|Salary of Workers (3 Workers)||40,000 Rupees|
|Electricity, Gas and Water Supply||12,000 Rupees|
|Raw Material @45% on Sales||90,000 Rupees|
|Royalty @4% on Sales||8,000 Rupees|
|Other Expenses||10,000 Rupees|
|Net Profit||20,000 Rupees|
Don’t get shocked by the lower profit because, in the initial days, the fixed cost is very high like Rent and Salary of Worker as compare to Sales. As the Sales increase, the net profit will also increase.
This is a lower amount of Sales in an outlet given in this example. The Sales will revolve around these figures in the initial days. But after good local marketing and branding, the profit will increase drastically. The example of a well-established franchise is given below-
How to start MBA Chai Wala Franchise
To start the MBA Chai Wala Franchise, you need to fill the form below then we will allot you a specialist on WhatsApp who will provide you with all the information regarding the franchise.
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
You can also enquire about the franchise from MBA Chai Wala Official Website-https://mbachaiwala.com/
MBA Chai Wala Menu
MBA Chai Wala Review
MBA Chai Wala is one of the most renowned brands in the tea industry due to its good digital presence. Not many franchises of MBA Chai Wala are spread all over India so it’s a good time to grab its outlet.
Chai Sutta Bar still has an edge over MBA Chai Wala due to early expansion and cost benefits. The interior of MBA Chai Wala is okish, the founder focuses more on self-branding.
The investment is worth it if the location is good. The target audience is Students and Corporate Employees who come after their hectic day to have a cup of tea and quality talk. So, Location plays a major role to attract them to the outlet. It should be closest to them to generate high Sales. The owner also suggest the following information regarding the location-
According to me, it will take around 1.5 years to cover the cost of the initial investment which is fair. You can also earn money through Swiggy and Zomato. The main focus should be to attract corporates and students because they will order food inside their office or college premises if they liked the snacks served with Tea.
I think a big outlet is not worth in a quick-service restaurant like MBA Chai Wala but the sitting arrangement is a must so a small outlet or Kiosk is highly preferable. Hope you will get the information regarding the MBA Chai Wala Franchise.
Thanks for reading the blog till the end, if you have any doubt regarding the MBA Chai Wala franchise then you can ask in the comment box.
For more blogs about Tea, Ice Cream and Food Franchises Cost, Profit and Review- https://aftercolleges.com/category/franchise-business/