Are you planning to open a Chai Sutta Bar Franchise but are not sure about the Chai Sutta Bar franchise price in India? Don’t worry! We are here to help. We will tell you the Chai Sutta Bar Franchise Cost in this blog!
Moreover, we will cover how to get a Chai Sutta Bar Franchise in India, the requirements, and some useful tips for starting your own Chai Sutta Bar. So, please read ahead!
Chai Sutta Bar
Chai Sutta Bar is India’s popular chai business, founded in 2016. It was an innovative business idea from the minds of young entrepreneurs Anand Nayak (Co-Founder), Anubhav Dubey (Co-Founder), and Rahul Gothi (Managing Director).
The company’s initial sales, which were 4,000–5,000 teas sold in “kulhads”, dramatically rose to 80,000+ per day sales. The brand has achieved global milestones by opening more than 450+ outlets in 195+ Indian Cities, Dubai, and Onam.
Chai Sutta Bar franchise partners also benefit from enormous profits and steady growth because of the established reputation in the market.
Chai Sutta Bar Franchise Cost
Before we tell you the cost of the Chai Sutta Bar Franchise, you must understand the franchise’s business model.
The Chai Sutta Bar franchise operates with two business models. The first is FOFO, which is an acronym for Franchise Owned and Franchise Operated. The other is COCO, which stands for Company Owned and Company Operated.
The COCO model is basically for opening company-owned outlets. In these types of franchises, the business manages every aspect of running the store.
So, the franchise you should be interested in is FOFO. Here, the brand name is simply rented by the firm to the franchisee for a non-refundable fee.
The next thing to consider is the outlet selection. There are three different types of franchise outlets for Chai Sutta Bar: kiosk, medium, and mega. The bigger your outlet will be, the more you’ll be required to invest.
Coming back to the Chai Sutta Bar Franchise Cost, here’s a breakdown for you:
|Commercial space||300 to 400 sq. ft (Minimum)|
|Franchise Fee||₹ 6 lakh|
|Equipment and machinery||₹ 3 lakh (Minimum)|
|Furniture and Decor Expenses||₹ 5 lakh (Minimum)|
|Raw materials Cost||₹ 2 lakh (Minimum)|
|Total investment||₹ 16 lakh (Minimum)|
|Payback period||14 to 18 months|
|Royalty fee||4% of turnover|
As you can see, the franchise fee of the Chai Sutta Bar is 6 Lakh. However, it may vary depending on the type of outlet you’re opening. The amount deposited as the franchise fee is non-refundable. Also, the agreement term for the same is 5 years.
The ROI (Return on Investment) is about 108%. However, you need to pay a royalty fee for the franchise every year. It is 4% of your total business turnover. Summing all that up, a Chai Sutta Bar franchise in India would need an investment of at least 16 to 18 Lakhs.
How To Get Chai Sutta Bar Franchise In India?
To buy the franchise of the Chai Sutta Bar, you have to follow certain specifications asked by the company. It includes the area and location of the outlet, your experience in the restaurant business, and the staff you’ll be hiring.
Once you apply for the franchise, you can discuss the aforesaid conditions with the brand. To know the application process, read the steps given below:
Application Process for CSB Franchise
Step 1: On the official website of Chai Sutta Bar i.e. https://www.chaisuttabarindia.com/franchise/. Here, you’ll get a franchise form.
Step 2: The form will ask you about your credentials and some details about the outlet. Fill it with the correct information.
Step 3: Do not forget to double-check the responses. It is because if you are qualified, the team or person from the company will turn to that information to get in touch with you.
Step 4: Now, submit the form.
Step 5: When you’ve finished entering all the necessary data and submitted the form, you’ll get a thank-you message. You may have to wait a few days to receive a response from the company’s side.
Documents Required for CSB Franchise
Here’s the list of the documentation essential for applying for the Chai Sutta Bar franchise:
- Business Registration
- FSSAI Licence
- Trade Licence
- Shop and Establishment Registration
- GST Registration
- NOC from the Local Fire Department
- Certificate of Environmental Clearance
- Signage License from the Municipality
Post Application Procedure
Once someone from the team contacts you, they might ask you to share management photographs and your retail location details. They will do an accurate site assessment and discuss with you to determine whether the location would be profitable.
After a thorough survey, they will either approve or disapprove your franchise proposal. If you get permitted to open the franchise, you’ll get assistance from the brand’s area manager to set up the business.
The CSB team may design the cafe’s interior, or you may do it on your own volition. They will also provide you with training to run the business, and you will work with a salesperson. All this process might take a time of 45 to 60 days, following which your outlet will be fully functional to make a profit.
Business Tips for Chai Sutta Bar Franchise
Here are some takeaway tips for you to run a profitable Chai Sutta Bar Franchise:
- Choose a location with the most foot traffic because this will help you attract more customers and ultimately increase your revenues.
- Initially, you can hire 2 to 4 people depending on the expected traffic to effectively run the Cafe.
- You can collaborate with food delivery services to increase your sales.
- If you have a tight budget, you can opt to rent a property or take a loan to meet the upfront costs.
Presently, one of the most profitable franchises in India is the Chai Sutta Bar. Franchise owners will undoubtedly see a greater return on their investment as CSB continues to grow outside of India.
If you want to be part of this huge Chai business chain, plan strategically to meet the Chai Sutta Bar Franchise Cost in India. With an investment of over 16 to 18 Lakhs, you can get into the commercial cafe business and multiply your money with every succeeding year.
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