In this blog, we will discuss, Tea Post Franchise Cost, Profitability, Menu, and How to start tea Post Franchise. Is Tea Post the best tea franchise? This is the most reliable source to get franchise information with the most unbiased reviews so let’s begin.
“Tea and Talk” is the best combination with this idea, Tea Post was started in Rajkot in 2013 and now expanded to more than 180 Tea Cafes across 35 cities. it is a quick-service restaurant.
Tea post was awarded the Saurashtra Ratna Award for “Redefining Business Model” in 2017.
Tea Post Franchise Cost
Tea Post have 2 franchise Models- Basic and Premium Franchise Model.
Tea Post Basic Franchise Model cost around Rupees 15 lakhs which requires a minimum space of 100 square feet.
Tea Post Premium Franchise Model cost around Rupees 35-40 lakhs which requires a minimum space of 1000 square feet.
All the Machinery, Equipments and Interior Decorations are a part of this Initial Investment.
Expenses for running a Tea Post Franchise-
- All the Supplies (Raw Material) will be provided by the company excluding milk. The company charges 40% for Raw Material which is provided by the company.
- 5% Royalty+18% GST on Gross Sales on weekly basis will be charged by the company.
- 10,000 Rupees will be charged quarterly by the company
- P/L support, Software Maintenance and audits wil be done by the Company
- Online Marketing and Promotion will be done by the Company
- Accounting and Inventory Management Support will be provided by the company
- Continous Training will be provided
- Rent, Electricity, Workers Salary and other expenses will be the responsibility of the owner
|Particulars||Amount for Basic Franchise||Amount for Premium Franchise|
|Franchise Fees||2.5 Lakh Rupees||2.5 Lakh Rupees|
|Security Deposit (Refundable)||1 Lakh Rupees||1 Lakh|
|Interior. Machinery and Furniture||12.5 Lakh Rupees||35 Lakh Rupees|
|Electricity, Water Supply and Other Expenses||5,000 Rupees/ Month||30,000 Rupees/Month|
|Rent||15,000 Rupees/ per Month||25,000 Rupees/per month|
|Salary of Workers||25,000 Rupees/ per Month||45,000 Rupees/ per Month|
|Royalty @5% on Gross Sales+18% GST (Assume Sales= 1,00,000 per month)+ |
10,000 Rupees Quarterly
|10,000/per Month||10,000/per Month|
|Initial Investment||16 Lakh Rupees||40 lakh Rupees|
|Monthly Expenses||55,000 Rupees/ per Month||1,10,000 Rupees/ per Month|
Tea Post Franchise Profit Margin
The profit margin is 50% in a Tea Post franchise. So there are factors which you can before acquiring the franchise-
- The franchise have a good brand name in North India (Gujarat, Madhya Pradesh, Rajasthan and Maharasthra)
- It is preferable to open a franchise in Busy Market Area, High Streets, Highways, Commercial Hubs, Bus Depot, Railway Station, Institutes etc for high footfall.
- The franchise have effective pocket friendly prices, every product is under 100 Rupees.
- The franchise is maintaining a good quality along with the prices
- The management of Tea Post franchise is excellent but at the end the franchise owner have to maintain good behaviour with the customer and maintain good quality of food.
Let’s take an example to analyze the profitability of Tea Post Franchise-
|Particulars||Amount (Small Outlet)|
|Gross Sales||2,00,000 Rupees|
|Raw material @50%||(100,000) Rupees|
|Electricity and Water Supply||(5,000) Rupees|
|Aggregator Commission||(5,000) Rupees|
|Salary of Workers (3 workers)||(40,000) Rupees|
|Company Charges||(3,400) Rupees|
|Other Expenses||(4,600) Rupees|
The profit for Sales of 2,00,000 Rupees is only 7,000 Rupees which is very less. According to this example, if you open a Tea Post and generate a Sales of 1,80,000 Rupees then it will suffer a loss. So the Sales must be higher than 1,80,000 rupees per month to generate a profit.
The higher the Sales more will be the profit because fixed cost remains the same like rent, salary of worker’s amount will not change so frequently.
The profit margin is less due to high royalty and company charges charged by the company.
Initially, the franchise may suffer loss but after 1 year, The profit margin will increase approximately to 15%. (If Sales will be 4 lakh Rupees)
Tea Post Menu
How to Start Tea Post Franchise
To start a Tea Post Franchise, you have to apply for the franchise by directly filling the form below-
Then you have to fill the basic details on the link given on WhatsApp along with the list given below-
- Aadhar Card
- PAN Card
- 1 Passort Size Photo
- Front Page of Passbook
- 3-4 Image of the Location
After the successful registration, Tea Post will finalize the location based on Location Study and Experience. Then they can setup an outlet like given below-
Tea Post Review
The initial investment of Tea Post is very high and returns on investment is comparatively very low. The profit margin is 5% in an outlet where every item cost under 100 rupees.
Even if the daily footfall of customers is very high still profit will be very low. I feel that the Royalty fee and interior cost can be reduced.
Right now, Tea Post is a customer centeric franchise which is a good aspect but it is charging high initial invest which is a bad aspect. It may take years to cover the initial investment.
The outlets are no doubt really awesome with great quality Tea and Food and great interior at a very affordable price range. I visited the Skit and IIM Ahmedabad outlets and the tea is actually good.
Tea is a highly competitive franchise so the investment may be reduced if you consult with the Tea Post Customer Service regarding this matter.
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If you still have any doubt regarding the franchise then you can ask in the comment box below. Thanks for reading!