How Much Does It cafe to Start a Chai Sutta Bar Franchise cost ?

 Chai is not only a drink in India — it’s a feeling. In the sea of high-end cafes and international chains, Chai Sutta Bar (CSB) has risen as a desi brand with a street culture attitude, appealing to the millennial generation through kulhad chai, offbeat branding, and economical chai sutta bar franchise cost .

If you’re looking to invest in a low-cost, high-demand franchise, Chai Sutta Bar might catch your attention. But how much does it really cost to open one? Is it profitable? Let’s break it all down.

2. What is Chai Sutta Bar?

Founded in 2016 in Indore by Anubhav Dubey and Anand Nayak, Chai Sutta Bar quickly became a viral franchise sensation. The brand is known for:

Serving tea in kulhads

Targeting young people and office workers

Competitive prices ranging from ₹10

Providing snacks and fusion chai flavors

From a single outlet to 400+ outlets in India and even abroad (Dubai, Muscat), CSB is showing that chai can give competition to coffee if promoted appropriately.

3. Why is Chai Sutta Bar is Popular?

Chai Sutta Bar became popular because

✅ Reasonable pricing for the middle class

✅ Kulhad tea made Indian-style (eco-friendly & aesthetic)

✅ Desi vibe with modern touch

✅ High recall value because of quirky name

✅ Excellent Instagram appeal (highly photogenic branding)

It’s not about the tea — it’s the brand aura and consistency that scaled quickly.

4. Franchise Model Overview

There are three main franchise types that Chai Sutta Bar has on offer:

Type of Outlet\tIdeal Area\tApprox. Cost
Kiosk Model\t150–200 ft.\t₹10–12 Lakhs
Café Model\t300–500 sq.ft\t₹16–18 Lakhs
Lounge Model\t600+ sq.ft\t₹20–22 Lakhs
✅ Franchise Fee: ₹6–8 Lakhs (location dependent)
✅ Agreement Duration: 5 years (renewable)
✅ Royalty: 4%–6% on net revenue

5. Initial Investment & chai sutta bar franchise cost (Detailed Breakdown)

Here’s how the total investment could be:

Expense Type\tEstimated Cost (₹)
Franchise Fee\t₹6–8 Lakhs
Interior & Furniture\t₹4–6 Lakhs
Kitchen Equipment\t₹2–3 Lakhs
Initial Raw Material\t₹1 Lakh
Branding & Signage\t₹50,000–₹1 Lakh
Licensing & Registration\t₹25,000–₹50,000
Staff Hiring & Training\t₹1–2 Lakhs
Miscellaneous Expenses\t₹50,000+
Total Investment: ₹16–20 Lakhs (café model)

6. Setup Requirements (Space, Equipment, Interiors)

Minimum Space: 150–500 sq. ft. (depending on model)

Location Preference:

Near colleges, tech parks, high-footfall areas

Railway stations, malls, and main markets

Essential Equipment:

Tea brewing unit

Kulhad storage and dispenser

Display freezer for snacks

POS system & billing

CCTV & security

Interiors:

Rustic wooden aesthetics

Open kitchen/bar counter setup

Wall art reflecting chai culture

7. Licensing & Legal Approvals

To start a Chai Sutta Bar franchise legally, you’ll need:

FSSAI License

GST Registration

Shop & Establishment Act License

Trade License from local municipal body

NOC from fire department (if café/lounge model)

Agreement with the CSB parent company

8. Brand Support & Training

360° support to the franchisee includes:

Outlet interior design & layout support

2 weeks of staff training

Daily operations SOPs

Launch events & social media support for marketing

Raw material & supply chain management

✅ CSB standardizes quality, taste, and customer service at all outlets.

9. ROI Expectations & Profit Margin

Average Daily Sales: ₹8,000–₹20,000 (depending on location)

Monthly Revenue: ₹2.5–₹5 Lakhs
Profit Margin: 30%–40% (after costs & royalty)

Cost Factor Share of Revenue
Raw Material 30%
Staff & Rent 20%–25%
Royalty Fee 4%–6%
Net Profit 30%–40%
Breakeven Time: 12–18 months (subject to footfall)

⚠️ 10. Issues of Operating a CSB Franchise

Although CSB is a successful franchise brand, it should be noted:

High level of competition in F&B industry

Consistent quality & hygiene maintenance

Holding out for high footfall properties

Logistics of Kulhad supply in hinterland cities

Seasonal fluctuation of demand

A wise franchisee must have sound business skills and grassroots marketing plans to survive.

11. Alternative Chai Franchise Brands in India

If Chai Sutta Bar is not a good fit, here are some popular alternatives:

Brand Name Franchise Cost Unique Selling Point
MBA Chai Wala ₹10–15 Lakhs Business-themed chai
Chaayos ₹25–30 Lakhs Customizable teas
Chai Point ₹20–25 Lakhs Corporate-focused
Tea Time ₹5–7 Lakhs Low investment, mass model
Sardarji Chai Wale ₹8–12 Lakhs Punjabi-style branding
These brands also provide good marketing support, reasonable margins, and scalability.

✅ 12. Conclusion

Chai Sutta Bar is more than a tea shop — it’s a youth-oriented, kulhad-centric brand with emotional, cultural, and business attraction. chai sutta bar franchise costs a franchise investment of ₹16–20 lakhs, strong back-end support, and a tested ROI; it can be an excellent low-risk, high-reward investment.

But success also relies on location, execution, and customer experience. Compare the brand with other chai franchises before taking the plunge, and ensure your entrepreneurial spirit aligns with the brand’s energy.

❓ 13. FAQs: Chai Sutta Bar Franchise

1. What is the overall franchise investment of Chai Sutta Bar in 2025?
The overall investment varies between ₹16–20 Lakhs for a typical café model, i.e., franchise fees, interiors, and setup.

2. Is Chai Sutta Bar a profitable business?
Yes, with a net profit margin of 30–40% and monthly sales of ₹2.5–5 Lakhs, it provides decent ROI within 12–18 months.

3. How much space is needed to start a Chai Sutta Bar?
Based on the model, space is needed between 150 sq. ft. (kiosk) and 600+ sq. ft. (lounge).

4. Does Chai Sutta Bar offer training and raw material?
Yes, the company provides full training and SOPs and maintains a regular supply of raw materials and kulhads.

5. Is there any substitute for the Chai Sutta Bar franchise?
Yes. Others, such as MBA Chai Wala, Tea Time, and Chaayos, provide similar offerings with different costs and branding tastes.

source by linkdot.io