Chai is not only the favourite drink of every Indian citizen, but it is also the first beverage that is consumed by the masses as the first thing in the morning. With various new flavours and increasing demand for Chai, there have been many new ventures and opportunities that have circled around this beverage and have generated huge profits for the entrepreneurs that have pursued their venture with Chai or rather Tea as their primary beverage, one such example is MBA Chai Wala.
Starting a Tea Franchise outlet in India can be a very profitable opportunity for an individual, and if you are talking about Tea, one of the famous names that instantly comes to our mind is Chai Sutta Bar Franchise.
The brand was founded in the year 2016 in Indore by young entrepreneurs. As unique the name sounds, so is the idea and concept of the brand behind their Tea-selling. Although the word ‘Sutta’ resonates with cigarettes in Hindi, the brand does not sell cigarettes, nor do they promote smoking. The reason behind adding the word is to inculcate the idea and motto of ‘we love only one smoke and that is of Hot Tea’. However, the unique name used by the brand is compelling enough to draw the attention of customers who belongs to office and colleges.
Although the brand started its operation in the year 2016, it already has more than 150 + outlets in more than 70 cities in India. Their expansion doesn’t stop within the boundaries of India, but they also have their outlets in countries like Oman and Dubai. Their continuous progress can be observed from the reports and scale of growth of 4000 + sales of Kulhads of chai/coffee in a day to over 3 lakhs + sales every day, counting all their outlets, within and outside the country. Within just a few years, the brand has progressed faster than any other brand in the Tea-selling industry.
As we can easily calculate the scale of business that the brand Chai Sutta Bar has built, we can easily grasp the various benefits or pros of having a Franchise of the same brand. However, there are also various USP’s of the brand that can help you understand the way this industry works and how you can scale your business easily in a short span of time. The various advantages of starting the Chai Sutta Bar Franchise are mentioned as follows.
- Indians love to have a taste and sense of the traditional India in their daily life. Chai Sutta Bar has implemented this feeling in their Tea, where they serve each flavoured tea or coffee in Kulhads. Kulhads give a feeling to the customer of the Indian ‘Mitti’, which also adds a good flavour and taste to the Coffee or the tea which is being served. This, as a Franchise unitholder helps you to stand out from all the other tea-sellers and outlets in your area and increases your sales.
- It is the brand value of the company that matters for every Franchise unitholder. From the above reports and statistics, it is already fair to say that Chai Sutta Bar is one of the leading Tea-selling brands in the country with a rapid progress in a very short period. They also have their venture in
foreign countries like Dubai and Oman. To be a part of such an amazing brand would surely help you boost the sales easily, as the brand keeps on getting recognition.
- One of the noteworthy benefits of having a Chai Sutta Bar Franchise is the pocket-friendly rates that they charge to their customers. Apart from the traditional taste and fancies, people look for the price of the items that are being served or offered to them. Chai Sutta Bar has the most competitive and less prices for tea and coffee in the market, which makes it easily stand out from its competitors.
- Another advantage of acquiring Chai Sutta Bar Franchise is that they offer different types of Franchise models to the interested individuals according to their budget and scope. This makes it easy for an individual to choose a Franchise model that suits his/her requirements.
As discussed earlier, Chai Sutta Bar Franchise offers different types of Franchise model to the interested individuals. They offer Kiosk, medium, and mega outlets, and hence the investment required for starting the same would differ for every individual. An estimated investment that is required would range between 8 to 16 Lakhs INR.
This estimate includes the Franchise fee which is around 6 lakhs INR, a few of it is for the interior and the machinery required for the same. Chai Sutta Bar also charges a 2% royalty fee, which is calculated on the sales, annually.
Requirements for Starting
A Franchise outlet represents the brand or the parent company as a whole. Hence, as Franchise unitholder there are certain guidelines and rules that are to be followed or practises that are to be implemented in the store for running the Franchise unit as per the standards of the brand. The various requirements for Starting Chai Sutta Bar Franchise are mentioned as follows.
- The minimum area required for starting a Franchise unit of Chai Sutta Bar would vary as per the Franchise model that is chosen by the individual. Usually, the area required would vary between 300 sq. ft to 500 sq. ft. This is the minimum requirement; however, it is better to consult the officials of the brand before making a decision.
- The minimum number of staff members that are required would again vary as per the type of Franchise model chosen, however, the usual staff members that are necessary would range between 2 to 4 staff members in every outlet, and even more than that if it is a mega outlet.
The recommended and the easiest way would be to visit the official website of Chai Sutta Bar and apply for the Franchise. Once you visit their website, you need to click on the ‘Franchise’ tab. On clicking the tab, you would be presented with an application form, you must fill the form with the details asked. On submitting the form, you would be contacted by the staff of Chai Sutta Bar, within a few days and if eligible the process would move further. The official website of Chai Sutta Bar is mentioned as follows,
What is the profit margin of Chai Sutta Bar Franchise?
The profit margin ranges between 30% to 40%
What is the total cost of machinery for mega unit in Chai Sutta Bar Franchise?
For mega unit, the total cost of machinery may go around 5 lakhs INR.
What is the average Roi for Chai Sutta Bar Franchise?
The average ROI is said to be 14 months for Chai Sutta Bar Franchise.
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