Most Indians like a cup of tea, whether it’s served in their own house or a restaurant. That’s why, in 2016, Anubhav Dubey and his friend Anand Nayak opened a business called “Chai-Sutta Bar” in Indore, Madhya Pradesh. The success of the franchise in the last 6 years naturally raises the curiosity about Chai Sutta Bar franchise cost.
All locations of the Tea Sutta Bar franchise offer the same high-quality chai in an ambiance that is both relaxing and elegant. Many potters and their families have benefited from the success of Chai Sutta Bar because they are responsible for making the clay kulhad used to serve tea at all the chain stores.
Let’s take a look at the development of Chai Sutta Bars, Chai Sutta Bar franchise price, and Chai Sutta bar franchise profit.
Why Open a Chai Sutta Bar Franchise?
Before delving into Chai Suta bar franchise cost, one must analyze the reasons for opening the outlet.
The initial investment required to open a Chai Sutta Bar franchise is modest, and the franchise quickly pays for itself through increased profits. It means Chai sutta bar profit margin is good. There is also full support for running and advertising the brand. Then there is a complete eco-system for the supply chain, including resources for vendors, salespeople, technology, logistical staff, and personnel management.
Chai sutta bar franchise profit is great owing to the success of the franchise in the Indian market. Additionally, the franchise’s significant potential is due to its reasonable pricing structure that is accessible to all customers.
Before paying for the Chai Sutta Bar franchise cost, you should know the vision of the franchise. Using the CSB franchise business model, Chai Sutta Bar hopes to increase its presence not just in India, but globally.
Their goal is to create CSB a globally recognized Chai Sutta Bar brand by offering delicious, well-prepared, and hygienically prepared beverages in Kulhad at reasonable costs while showcasing the best of Indian culture and heritage. This will also enhance Chai Sutta bar profit margin.
The Menu of the Chai Sutta Franchise
Ever wondered, about the Chai Sutta bar franchise fee? Then, having an idea about the franchise menu is a good to start.
- Chocolate Tea
- Ginger Tea
- Eliachi Tea
- Rose Tea
- Masala Tea
- Pan Tea
Chai Sutta Bar also serves coffee, milkshakes, sandwiches, and more in addition to its namesake beverage.
Franchise Information for Chai Sutta Bars
Multiple locations are currently offering the Chai Sutta Bar franchise opportunity. The franchisor estimates a 15-month payback period for a 16-lakh initial investment and a monthly return of 90,000.
This technique promotes Indian craftsmen, minimizes the use of plastic, and highlights Indian culture all at once.
Here are Some of the Eligibility Requirements for Owning a Chai Sutta Bar
- Investment: Financial Stability and the Capacity to Invest between 16 and 20 Lakh are Necessary for CSB Admission.
- Expertise: Even though the franchise agreement includes support and training, owning a Chai Sutta Bar requires years of expertise in the food services sector. The day-to-day activities can only function well with the help of an experienced company or owner.
- Location details: Opening the outlet at a proper location is important for those thinking of Chai sutta bar franchise price. The tea shop’s beverages and food areas need to be situated in a high-traffic commercial location. Locations within walking distance of a train station, bus stop, university, or major shopping district are preferred.
You don’t even need to be the owner of the property. In most major cities, monthly leases for commercial space cost between Rs 20,000-30,000.
Chai Sutta Bar Franchise Price
Chai Sutta Bar franchise fee is estimated to be around INR 2,00,000, though this figure may vary slightly from location to location.
Chai sutta bar franchise price is 6 lakhs anywhere in India, and a minimum investment of 16 lakhs is required. In terms of financial return, the initial investment in a Chai Sutta bar franchise generates a 2% ROI.
You should expect to spend about 3 Lakh on machinery and equipment, 5 Lakh on interior furnishings, and about 2 Lakh on initial raw materials. If thinking of Chai Sutta Bar franchise fee, remember, you’ll need to spend a total of 10 Lakhs, plus additional extraneous costs.
Documents Required to Open Chai Sutta Bar Franchise
- Registration of the company as a legal entity
- Trade license
- FSSAI license
- GST registration
- Shop and Establishment registration under the concerned state laws
- NOC from the fire department
- Environmental clearances
Chai Sutta Bar Profit Margin
This franchise location has a lower overhead than others, therefore it should be able to turn a healthy profit.
Chai Sutta Bar profit margin is around 35% to 40%. For the risk and investment required in the food industry, this rate of return is appropriate. In about 1.3 years, after the initial investment has been recouped, you will begin to see a net profit.
As a Chai Sutta Bar franchisee, you may anticipate the following and more during the franchise’s initial five years:
- A risk-free learning experience
- 35-40% Profit margin
- You should aim to have between 1.5 and 2 lakhs in liquid assets.
- The price of raw materials or food accounts for about 32% to 35% of revenue.
- The essential components, including raw materials, technology, and interior designs, will be provided by Chai Sutta Bar.
- 3-5 staff for proper management of the outlet
- Hiring a good internet service provider
- CSB offers promotional services, help with sales, a Chai Sutta bar menu, and in-house instruction for service workers.
- The franchise agreement for the Chai Sutta Bar includes detailed drawings of the bar’s interior.
Procedure for Getting Chai Sutta Bar (CSB) Franchise in India
The application process for the Chai Sutta Bar franchise can be found on their website.
Tel no: 91-6262300031
Address: 406, Janjeerwala Square, Silver Arc Plaza, New Palasia, Indore, Madhya Pradesh -452001, India.
We hope this blog gave you an insight into Chai Sutta bar franchise cost and Chai Sutta bar profit margin. If you are planning to open your own CSB outlet, let us know.