How Much Does Tea Time Franchise Cost? Investment & Profit Breakdown

 India is a tea-drinking nation. In each city, corner, and station, chai brings people together. Riding the cultural and emotional wave, Tea Time became one of the lowest-cost and highest-margin tea time franchise cost in India. Spread across more than 3500+ outlets, with low investment requirements and rapid return on investment, it’s a startup dream for future entrepreneurs who wish to enter the food and beverage sector. This article covers everything you should know — costs, setup, ROI, and even some substitutes.

2. Tea Time Franchise Cost Breakdown

Starting a Tea Time franchise is surprisingly low in cost compared to other F&B franchises.
Here’s a quick cost breakdown:

Franchise Fee: ₹4.25 lakhs

Setup Cost (interior, equipment): ₹2.5 to ₹4 lakhs

Raw Material Deposit: ₹75,000 (refundable)

Total Investment: ₹6.5 to ₹9 lakhs (all-inclusive)

This investment covers branding, training, and raw material startup. Among the competitors, Tea Time provides one of the cheapest entry opportunities in the tea industry, hence it is the best choice among small-town investors and first-time business owners.

3. What’s in the Franchise Package?

The franchise package provides you with nearly everything you will require to begin.

Here is what you will get:

Brand Usage Rights (use Tea Time name & logo)

Outlet Design Support

Complete Equipment Package (tea brewing machine, fridge, utensils)

Staff Training & SOP Manuals

Initial Marketing Support

Raw Material Supply Chain Setup

With this turnkey model, you don’t have to reinvent the wheel. Their backend team takes care of ensuring product quality and consistency in your shop, a recipe for repeat customers.

4. Profit Margin & ROI Expectations

Tea Time isn’t only about affordability — it also guarantees good returns.
Here’s how the profits typically pan out:

Daily Sales: ₹6,000–₹10,000 (average outlet)

Gross Profit Margin: 60%+

Monthly Net Profit: ₹40,000—₹90,000 (location dependent)

ROI Timeline: 6 to 12 months

With a quick turnaround, you may be able to break even within the very first year itself. The model is sustainable even for Tier 2 and Tier 3 cities owing to India’s mass tea population.

5. Ideal Location for a Tea Time Outlet

Tea Time performs well where there is regular traffic and a youthful population.

Optimum locations are

School or college areas

Railway stops & bus stands

Shopping areas

IT park or business locality close proximity

Residential areas or apartment complexes

The brand also assists with location scouting and approval to ensure you get off to the right start.

6. Franchise Eligibility & Requirements

Tea Time does not need a hospitality background. Yet, some minimal assumptions are

Minimum space: 100 to 200 sq. ft.

Good footfall area

Basic business ethics & cleanliness

Willingness to undergo training

Initial capital (₹6.5 to ₹9 lakhs)

Even homemakers, young professionals, and retirees are successfully operating Tea Time outlets today. The model is easy enough to be managed with minimal staff.

7. Step-by-Step Application Process

Opening your Tea Time outlet is straightforward and hassle-free.
Here’s the overall application process:

Visit the official Tea Time website

Complete the Franchise Inquiry Form

Send location information for approval

Pay the initial franchise fee

Undergo training in Hyderabad

Setup outlet & delivery of raw material

Launch marketing & grand opening

The entire process usually takes 20 to 30 days after your application is approved.

8. Menu Variety: More Than Just Chai

Tea Time isn’t just about tea — it’s a full beverage brand. Here are some of the favorites:

Masala Chai, Ginger Tea, Green Tea

Milkshakes & Coolers

Lemon Iced Tea, Bubble Tea

French Fries, Maggi, Munchies

The extensive menu supports customers of different age groups and ups average order value (AOV) to enhance profit margins.

9. Backend Support and Franchise Support

The franchisees are not left on their own after the launch. Tea Time provides end-to-end support:

Inventory Supply: Timely and regular supply

Software: POS and billing solutions

Brand Promotions: Advertising across Pan-India

Training Refreshers: For new personnel or process

Quality Audits: Periodic checking to ensure standards

These support systems minimize your operational headache and ensure brand consistency.

10. Risks and Challenges of a Tea Time Franchise

Although it’s a low-cost venture, no model is risk-free. Here are some challenges:

High Competition in metro cities

Dependence on Weather (cold drinks sell less in winters)

Staff Turnover if not well-managed

Location is Key — poor choice can kill profits

But with the correct location and work, these are manageable. Tea Time’s biggest USP is the back-end strength, which keeps franchisees empowered.

11. Tea Time Franchise Alternatives in India

In case Tea Time is not suited for you, try these chai business alternatives:

Brand Name\tInitial Investment\tKey Strength

Chai Sutta Bar\t₹8–₹12 lakhs\tYouth focus, hookah-style ambience

MBA Chai Wala\t₹10–₹15 lakhs\tCelebrity branding, robust marketing

Starbucks coffee\t₹25–₹30 lakhs\tPremium cafe model

Chai Kings\t₹12–₹18 lakhs\tSouthern India focus

Yewale Amrutalay ₹10–₹12 lakhs Maharashtrian audience, high footfall

All have their niche. For smaller towns and cities, Tea Time is still the most accessible and profitable for instant returns.

✅ 12. Is Tea Time Franchise Worth It in 2025?

If you are searching for a low-investment business with consistent profits, Tea Time is a great option.

Affordable entry barrier

Expanding pan-India presence

Youth-oriented menu

Instant ROI

Powerful support system

Whether you’re a first-time business owner or a serial entrepreneur, Tea Time allows you to enter the F&B market without a massive risk.

Conclusion: Start Brewing Profits with Tea Time

Tea Time unites India’s passion for chai with a strong franchise model. With minimal investment, strong branding, and speedy returns, it provides a business model that is appealing to new as well as veteran investors. In 2025, while local and affordable businesses flourish, this tea time franchise cost is unique both for its emotional appeal and business sense. Look into it, compare it with options, and take the first step towards becoming a tea entrepreneur.

Tea Time Franchise fees and Procedure FAQs

Q1. What is the total cost of a Tea Time franchise?
A Tea Time franchise can be started by investing a total of ₹6.5 to ₹9 lakhs consisting of setup, franchise fee, and raw materials.

Q2. What is the return in terms of profit in a Tea Time shop?
A majority of the franchisees can reap a 60%+ gross margin and make ₹40,000 to ₹90,000 every month based on location.

Q3. Do I have the option to open a Tea Time outlet in a small town?
Yes, Tea Time is suitable for Tier 2 and Tier 3 cities with average foot traffic and lower competition.

Q4. Do I require F&B experience to start a Tea Time franchise?
No, the concept is easy for a beginner. There is full training and SOPs given.

Q5. How long does it take to open the outlet after applying?
It typically takes between 20 and 30 days from application through grand opening, including setup and training.

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