How Much Does a Tea Time Franchise Cost? Full Investment Breakdown

 Tea is not just a beverage in India — it’s a lifestyle. With growing demand for hygienic, budget-friendly tea, the Tea Time business house has become very popular nationwide. Entrepreneurs seeking low-investment, high-return ventures like this one find it lucrative. This tea time franchise cost discusses the entire investment aspect, returns, and everything you need to begin your own Tea Time business.

2. What is Tea Time Franchise?

Tea Time is among India’s quickest-growing tea chains, providing affordable tea, snacks, and beverages with consistent quality. Hyderabad-headquartered Tea Time has 3000+ stores across the country. The brand’s differentiating value proposition is its low-cost model, speedy ROI, and wide product line, ranging from milk tea to green tea, lemon tea, coolers, and snacks. The company has a franchise-owned, company-operated (FOCO) business model.

3. Why Tea Time Franchise in India?

Selecting Tea Time as a franchise has numerous benefits. First, its brand name and expanding market provide legitimacy to new entrepreneurs. Second, its low investment cost and high demand make it possible for small-town entrepreneurs. Third, Tea Time’s product pricing (₹10–₹40) appeals to the masses, boosting sales volume. Fourth, the brand offers end-to-end support — from setup to training, minimizing the risk for first-time investors.

4. Tea Time Franchise Cost Breakdown

The cost of the Tea Time franchise in India varies between ₹4.25 and ₹5 lakhs based on the location and size of the shop. The details are as follows:

Franchise Fee: ₹225,000 (One-time)

Setup Cost (interiors, branding): ₹150,000

Equipment & Machinery: ₹50,000–₹75,000

Raw Materials (Initial Stock): ₹25,000

Total Investment: ₹4,25,000—₹5,00,000 (All-inclusive)

No royalty fees are applied, so this is a zero-royalty model, which is a first in food franchises.

5. Setup Process for Tea Time Outlet

The setup process is straightforward and quick. Once the agreement is signed and fees are paid, the brand takes 15–20 days to get your outlet ready. The outlet should be around 100–150 sq. ft. at a prime location such as near schools, markets, or colleges. The franchise team handles interior design, equipment installation, and initial staff training, ensuring you’re ready to operate seamlessly from day one.

6. Profit Margins & Earning Potential

Tea Time franchises have profit margins ranging from 40% to 60%, depending on the volume and location. On average:

Daily Sales: ₹4,000—₹8,000

Monthly Sales: ₹1.2—₹2.5 Lakhs

Net Profit: ₹40,000—₹1 Lakh/month

Because tea has minimal raw material expenses, and the outlet operates with bare minimum staff (1–2 people), the cost of operations is minimal. Break-even would typically occur in 6–9 months, which is quicker than most F&B franchises.

7. Franchise Support & Training

Tea Time offers end-to-end franchise support that includes:

Outlet design & branding

Equipment & machinery setup

Staff training (recipes, hygiene, POS usage)

Raw material supply chain

Marketing & digital branding support

Such detailed onboarding makes it novice-friendly for entrepreneurs with a non-hospitality background.

8. ROI Timeline and Financial Projections

With good footfall and active management, the majority of Tea Time outlets break even on their initial investment within 6–9 months. With a conservative net profit of ₹50,000/month, one can recover ₹5 lakhs in 10 months. With location strategy and consistent quality, some outlets even get ROI within 5–6 months. Post-break-even, it is a passive income earner with minimal recurring expenses.

9. Legal & Documentation Requirements

To open a Tea Time outlet, you’ll need:

Shop rental agreement

FSSAI license

GST registration

Local municipal approval

Franchise agreement with Tea Time

The brand’s legal team often helps in streamlining documentation and compliance, ensuring a smooth launch.

10. Real Franchisee Experiences

Franchise owners are very satisfied with low maintenance, healthy margins, and regular product support. Some indicate that it may be difficult to handle peak periods, but profitability makes the hustle worthwhile. Areas close to universities and office zones perform better. Most franchisees end up owning multiple Tea Time locations because they have had a good experience with the brand.

11. ⚠️ Risks & Challenges in Tea Time Business

As with any food business, Tea Time has its own issues:

Selecting a bad location can minimize traffic.

Inadequate hygiene or management of staff can damage reputation.

Over-saturation in certain metropolitan areas creates within-city competition.

With the support of the brand and open management, however, these threats can be efficiently mitigated.

12. Tea Time Franchise Alternatives

In case Tea Time does not fit your vision, there are alternatives to consider:

Franchise Name Investment Range, Unique Selling Point
MBA Chai Wala ₹10—₹12 Lakhs Youth branding, national popularity
Chai Sutta Bar ₹6—₹8 Lakhs Kulhad chai idea
Chaayos ₹15—₹30 Lakhs Premium, technology-enabled tea cafés
Yewale Tea ₹5—₹8 Lakhs Maharashtrian-style chai, regional popularity
Chai Thela ₹3 — ₹4 Lakhs Small stalls, rapid urban growth
Every brand has its customer base, price range, and business model. Keep your budget, location, and brand reputation in mind while selecting.

13. ✅ Conclusion

Opening a Tea Time franchise in India is a great way for budding entrepreneurs to enter a low-risk, high-scalable business. With an investment of as low as ₹5 lakhs, no royalty, quick ROI, and brand backup, it checks all the right boxes. If you are beginning your first business or adding business to your portfolio, Tea Time provides a well-paying and dependable entrée to India’s vast tea market. Tea Time Franchise Cost Just select the correct location, keep the product quality up, and your franchise can operate as profitably as its tea!

? ‍ ♂️ FAQs

1. How much is the minimum investment in a Tea Time franchise?
The minimum investment amount is around ₹4.25 to ₹5 lakhs, including equipment, raw materials, and setup.

2. Is there any royalty fee paid to Tea Time?
No, Tea Time has a zero royalty model, so you get to keep 100% of the profits.

3. What is the time taken to set up the franchise outlet?
The full setup process would take around 15 to 20 days after the signing of the agreement and the payment.

4. May I open Tea Time in a small town or village?
Yes, Tea Time franchises operate well in the city and also semi-urban areas, given that there should be traffic as well as exposure.

5. Who provides raw material to the outlet?
Tea Time provides a centralized provision of raw materials so that every outlet has taste and quality standardization.

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