Chai Sutta Bar Franchise – Cost, Requirements, ROI & Process (2025)

 Tea, or “chai,” is more than a drink in India — it’s a daily ritual, an emotion, and a billion-dollar opportunity. Among several tea café chains, the chai sutta bar franchise (CSB) has turned out to be a game-changer, giving a modern café twist to traditional flavors. This franchise has turned out to be a preferred business for young entrepreneurs who wish to make a low-investment, high-return business. Is it indeed worth all the hype? Let’s dig into the reality of establishing a CSB franchise in 2025.

What is Chai Sutta Bar?

Established in 2016 in Indore, Chai Sutta Bar soon spread all over India by offering kulhad chai with a twist. The brand is renowned for its rustic atmosphere, desi taste, and pocket-friendly prices, catering to students, working professionals, and tea enthusiasts of all ages. It now has 450+ outlets in India and overseas, with no signs of slowing down.

The business model of the franchise is in a QSR (Quick Service Restaurant) mode, with rapid service, minimum operational expense, and high traffic.

Why Become a Chai Sutta cafe Franchise?

It’s not merely starting a franchise such as CSB — getting into a brand that is identified by youth, culture, and value. Following are some of the reasons:

Brand Recognition: Already an established name in key cities and Tier 2 towns.

Distinct Concept: Serves chai in sustainable kulhads with a modern street-style feel.

Low Establishment Cost: Can begin with ₹16–₹22 lakhs based on location.

High Margin of Profit: Chai enjoys one of the highest margins of mark-up in F&B.

Quick Urban Pull: Is popular among college students; thus, locations near college campuses are the best.

Ecosystem Support: Training, logistics, and marketing are taken care of by the company.

Investment Breakdown: Chai Sutta Bar Franchise Cost (2025)

Let’s examine more closely what it costs financially to open a CSB outlet.

ExpenseEstimated Cost (INR)
Franchise Fee: ₹6,00,000—₹7,00,000
Infrastructure & Interiors ₹5,00,000—₹7,00,000
Equipment & Machinery ₹2,00,000 — ₹3,00,000
Initial Raw50,000 — ₹1,00,000
Branding & Marketing ₹1,00,000—₹2,00,000
Miscellaneous/License Fees: ₹1,00,000 approx.
Total Investment: ₹16–₹22 lakhs
Tip: Costs may vary depending on city, shop size, and design requirements.

Space and Location Requirements

Location plays an important role in the success of the franchise. Chai Sutta Bar restaurants are typically located in areas with high traffic. Here’s what you will need:

Minimum area: 200–500 sq. ft.

Preferred locations: Close to colleges, tech parks, metro stations, or markets

Footfall requirement: Suitable for places with a daily footfall of 500+ individuals

The company assists in site identification and approval prior to setup.

Profit Margin & ROI of Chai Sutta Bar Franchise

Let’s talk numbers — because ROI is what you’re really here for.

Daily Sales (Avg): ₹12,000–₹20,000

Gross Profit Margin: 60–70% (chai has low raw material cost)

Monthly Revenue: ₹3.6L to ₹6L

Monthly Expenses: ₹1.5L—₹2.5L

Net Profit: ₹1.5L—₹3L per month

ROI Period: 12–18 months

This makes CSB one of the best low-investment, high-profit franchise options for new entrepreneurs in 2025.

Franchise Support & Training

The business is not all about handing over the keys. CSB also offers robust backend support such as:

Total Training: Owners & staff for service, hygiene, and POS.

Raw Material Procurement: Centralized supply chain for tea, kulhads, and snacks.

Marketing Support: National campaigns, social media promotional activities.

Design & Layout: From seating arrangements to signage, everything is decided by their team.

Operations Manual: SOPs for day-to-day functioning, employee behavior, hygiene, etc.

How to Apply for a Chai Sutta Bar Franchise?

You can directly apply from the Chai Sutta Bar official website. This is the step-by-step method:

Go to www.chaisuttabarindia.com

Select the ‘Franchise’ tab option

Provide your personal details, preferred location, and investment strength

Wait for a business development executive to contact you

Discussion & Location Completion

Agreement Signing & Fee Payment

Outlet Setup & Opening

The company typically takes 30–45 days from approval to open.

Is Chai Sutta Bar a Good Franchise in India?

Let’s dissect it according to EEAT principles:

Expertise: Brand has a focus on chai with 20+ variants.

Authoritativeness: It is one of India’s top 5 chai franchises.

Trustworthiness: Transparent investment model, great support, high franchisee satisfaction.

Experience: Hundreds of operational stores with live testimonials.

Keeping these in mind, CSB is a good bet for young business wannabes and small-town entrepreneurs.

Alternative Tea Franchise Options in India (2025)

In case you’re exploring more options, here are some top tea franchise alternatives:

1. Starbucks coffee
Premium pricing, corporate vibe

Investment: ₹30–₹40 lakhs

Target: High-end urban locations

2. Tea Time
Budget-friendly, Tier 2 & 3 cities

Investment: ₹5–₹7 lakhs

Profit margin: 40–50%

3. MBA Chaiwala
Strong brand following on social media

Investment: ₹15–₹20 lakhs

Focus: Youth and storytelling

4. Yewale Amruttulya
Marathi-style strong tea

Investment: ₹10–₹15 lakhs

Focus: Western India region

Tips to Succeed in the Tea Franchise Business

Select a good location: Close to educational institutions or business centers

Prioritize hygiene: Even street chai requires clean operations

Train your personnel: Hospitality is key in food retail

Digital presence: Set up Google Business Profile and Instagram Page

Provide combos: Chai + Bun Maska or Chai + Maggi are best sellers

✅ Conclusion: Should You Start a Chai Bar Franchise in 2025?

If you’re looking to start a profitable business with moderate investment, Chai Sutta Bar Franchise is a proven model with national recognition and sustainable growth. The investment-to-return ratio is appealing, especially for Tier 2 and 3 cities. Plus, the company provides ample support to make your business a success. However, do your due diligence on location, competitors, and ROI expectations before jumping in.

Last Word: Chai Sutta cafe franchise is among the best franchise options in India under ₹25 lakhs in 2025.

❓ 5 Interesting FAQs on

1. Can I have a Chai Sutta Bar outlet in a small town?
Yes, CSB encourages outlets in Tier 2 and Tier 3 cities where chai culture is active.

2. Is F&B experience a prerequisite to opening a CSB outlet?
No. The company offers complete training and SOP manuals for hassle-free operations.

3. How long does it take to break even?
The majority of franchises get back their investment in 12 to 18 months depending on location and sales.

4. Are kulhad and tea powder supplied by the company?
Yes. All raw materials, such as kulhads and ingredients, are supplied centrally by CSB.

5. Can I own more than one Chai Sutta cafe franchise?
Yes, most franchisees have more than one outlet depending on the success of their initial outlet.

source by: linkdot.io