How to Start MBA Chai Wala Franchise: Cost and Profit Review

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.

You can directly enroll for the MBA Chai Wala Franchise by filling up the Google Form or on Instagram.

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-

MBA Chai Wala Franchise Cost

MBA Chai Wala Franchise Cost

MBA Chai Wala has 2 types of Franchise Models-

  1. Kiosk (Small Stall)
  2. 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 Fee4 Lakh Rupees
Interior and Furniture3.6 Lakh Rupees
Machinery and Kitchen Equipments4.8 Lakh Rupees
Raw Material60,000 Rupees
GST2.34 Lakh Rupees
Total Investment for Kiosk15.34 Lakh Rupees
Interior and FurnitureAmount
Furniture, Fixtures, Painting, Flooring, Ceiling, Internal Branding, Counter Display, Wooden Work2 Lakh Rupees
Electrical Equipments, Fitting and Lightning, Civil, Plumbing Work50,000 Rupees
Signage (External), Internal LED, Road Side Board50,000 Rupees
CCTV/ LED TV (42 Inch)40,000 Rupees
Music System 5.120,000 Rupees
Total Amount on Interior and Furniture3.6 Lakh Rupees
Machinery and Kitchen EquipmentsAmount
Pos System, Printer, Cash Drawer75,000 Rupees
Inventory Management System12,000 Rupees
Kitchen Equipment and Utensils2,52,000 Rupees
Kitchen Partition, Stainless Stell Cabinet+Storage76,000 Rupees
Serving Crockery+ Disposable Plates and Take Away Packaging Material60,000 Rupees
Staff Uniform5,000 Rupees
Total Amount on Machinery and Kitchen Equipments4.8 Lakh Rupees

You can pay for the franchise in Installments. Payment Installments are given below-

Payment 11 Lakh+GST
Payment 210 Lakh+GST
Payment 3Remaining Amount+ GST
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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-

Particulars Amount
Franchise Fees5 Lakh Rupees
Interior and Furniture8.5 Lakh Rupees
Kitchen Setup6.9 Lakh Rupees
Raw Material60,000 Rupees
GST3.78 Lakh Rupees
Total Investment for Dining Cafe24.78 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-

ParticularsAmount in a Month
Gross Sales of a Month2,00,000 Rupees
Rent20,000 Rupees
Salary of Workers (3 Workers)40,000 Rupees
Electricity, Gas and Water Supply12,000 Rupees
Raw Material @45% on Sales90,000 Rupees
Royalty @4% on Sales8,000 Rupees
Other Expenses10,000 Rupees
Net Profit20,000 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-

MBA Chai Wala Franchise Profit

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-

How to start MBA Chai Wala Franchise

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-

WhatsApp Image 2021 12 28 at 2.49.38 PM

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.

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