Tea isn’t just a beverage in India—it’s an emotion. The country’s love for chai runs so deep that words alone can’t capture it. But numbers? They do a pretty good job. India consumes a staggering 8,37,000 tonnes of tea annually, making it the nation’s most beloved drink.
Globally, tea is the second most consumed beverage after water. According to an IBEF report, India holds the second position in tea production. The growing tea café culture has sparked a surge in business opportunities, fueled by urban consumers eager to indulge in premium tea experiences.
A survey by the Tea Board of India found that a whopping 88% of Indian households drink tea—translating to 64% of the nation’s population being die-hard chai lovers. With such a massive demand, investing in the tea business is a golden opportunity. Let’s dive into one of India’s leading tea café chains—Chai Sutta Bar!
The Origin of Chai Sutta Bar
The journey of Chai Sutta Bar began in Indore in 2016, thanks to two ambitious entrepreneurs, Anubhav Dubey and Anand Nayak. While their families dreamed of them becoming CAs, MBAs, or UPSC officers, they had different plans.
After multiple attempts at cracking competitive exams, they pivoted to entrepreneurship. Their search for an innovative business idea led them to a simple yet powerful realization—chai is in demand everywhere. Armed with just INR 30 lakh in capital, they set out to build a tea café empire.
Their initial marketing strategies were unconventional but effective. They strategically opened their first outlet near a girls’ hostel, knowing it would naturally attract foot traffic. They also asked their friends to hang out at their café to create an illusion of popularity. These clever tactics paid off, and the business took off.
Chai Sutta Bar’s Explosive Growth
Chai Sutta Bar has grown exponentially, establishing itself as a favorite hangout spot for the youth. In just seven years, the brand has expanded to over 550 outlets across 320+ cities and even boasts international franchises in Dubai and Oman.
To cater to diverse business needs, Chai Sutta Bar offers three types of franchise outlets:
- Kiosks
- Medium-sized outlets
- Mega outlets
The Business Models of Chai Sutta Bar
Chai Sutta Bar operates under two franchise models:
- FOFO (Franchise Owned Franchise Operated) – Franchisees pay a non-refundable fee to use the brand name for a specific period while managing the outlet independently.
- COCO (Company Owned Company Operated) – The company owns and operates the outlet entirely, managing everything from setup to daily operations.
What’s on the Menu?
Chai Sutta Bar stands out from premium tea brands like Chaayos and Chai Point by offering quality tea at affordable prices. While competitors charge INR 100-120 per cup, Chai Sutta Bar serves delicious kulhad chai starting at just INR 10.
Kulhads—traditional clay cups—are a signature part of their service, and they source an incredible 3 lakh kulhads daily from around 500 potter families, supporting local artisans. The menu has evolved over time, offering a variety of teas such as:
- Chocolate Chai
- Adrak (Ginger) Chai
- Kesar (Saffron) Chai
- Masala Chai
- Tulsi (Holy Basil) Chai
- Elaichi (Cardamom) Chai
To boost profitability, Chai Sutta Bar has also introduced snacks like sandwiches, noodles, burgers, and pasta. Despite its ‘bar’ branding, smoking is strictly prohibited in its outlets.
Why Invest in a Chai Sutta Bar Franchise?
Chai Sutta Bar has transformed into a 100-crore company within just six years—without external investments. Here’s why it’s a lucrative franchise opportunity:
✔ Strong Brand Recognition – A trusted name in the market
✔ Low Investment, High Returns – Affordable franchise cost with strong ROI
✔ Comprehensive Support – Assistance in operations, marketing, and logistics
✔ Diverse Business Models – Multiple investment options for different locations
✔ Minimal Overheads – Efficient supply chain management
✔ Affordable Infrastructure – Cost-effective setup options
✔ Profitable Business Model – High margins with a proven track record
Chai Sutta Bar Franchise Cost & ROI
Investment varies based on location and outlet type, but here’s a rough estimate:
| Essentials | Cost & Requirements |
|---|---|
| Franchise Cost | INR 6 L – 8 L |
| Outlet Interiors | INR 5 L |
| Royalty Fee | 4% |
| Minimum Investment | INR 16 L – 18 L |
| Machinery & Equipment | INR 3 L |
| Minimum Space Requirement | 300 – 400 sq. ft. |
| Raw Material (Initial Investment) | INR 2 L |
| Expected ROI | 108% |
| Payback Period | 14 – 18 Months |
| Franchise Agreement Duration | 5 Years |
How to Apply for a Chai Sutta Bar Franchise
- Visit the official website: www.chaisuttabarindia.com
- Fill out the franchise application form.
- If shortlisted, the Chai Sutta Bar team will contact you.
- Submit required documents and location details.
- Undergo a site survey and approval process.
- Finalize agreements and receive business setup support.
- Complete training and outlet setup within 45-60 days.
- Open doors to your own Chai Sutta Bar franchise!
For queries, contact:
Eligibility & Documentation
To own a Chai Sutta Bar franchise, you need:
✔ Adequate Space – 300-2,000 sq. ft. near high-footfall areas
✔ Trained Staff – 2-4 employees for smooth operations
✔ Basic Business Skills – No degree required, but management knowledge helps
✔ Essential Licenses – GST, FSSAI, trade license, signage approval, business registration, etc.
Final Thoughts
Chai Sutta Bar’s meteoric rise proves its massive potential. In just seven years, it has become the go-to hangout spot for tea lovers. With India’s tea café industry booming, now is the perfect time to invest. If you’ve ever dreamed of running a successful business, this is your chance—grab a cup of chai and take the plunge!
Also Read:- MBA Chai Wala Franchise in India