The Business of Chai: Chai Sutta Bar Franchise Costs Made Simple

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Written By Chirag Dude

Chai Sutta Bar, also known as CSB, originates from Indore, Madhya Pradesh, where enjoying a traditional cup of ginger tea in a clay cup called “kulhad” is a beloved part of local culture. Despite its name implying a connection to smoking (“Sutta” means cigarette), smoking is not allowed at these establishments. The growth of Chai Sutta Bar has not only brought prosperity to many potters and their families who craft the kulhads but has also provided employment opportunities. Let’s delve into the journey of CSB and how you can start your own chai sutta bar franchise.

The Indian Tea Business:

In India, the tea business, fondly called the “Chai Business,” reigns supreme in the consumer market. Indian people regularly enjoy coffee and tea, with about 80% of the locally-produced tea consumed within the country. While hot tea is in high demand during winter, it’s a refreshing beverage suitable for any time of the day or season. Chai Sutta Bar, with over 200 franchisee outlets across India, proves that tea can be a lucrative business. Are you interested in joining this profitable venture? You’ll find all the franchise details here.

Fastest-Growing-Chai-Franchise-in-India-Chai-Sutta-Bar

Unveiling Chai Sutta Bar:

Chai Sutta Bar is an Indian cafe chain that began in early 2016, originating from a Chai Cafe in Indore, Madhya Pradesh. From an initial sale of 4,000 to 5,000 teas served in kulhads, they now sell over 80,000 teas daily. CSB aims to expand its presence both in India and globally through its franchise opportunity. The name “Bar” suggests that CSB offers delicious, traditional Indian tea and beverages served in kulhads at affordable prices. The ambiance resembles a local corner shop with a bar table. They plan to have at least 200 franchisees throughout India. The word “Sutta” in their name encourages a switch from cigarettes to tea, promoting Indian culture and reducing plastic waste.

Why Choose Chai Sutta Bar Franchise

The Chai Sutta Bar franchise offers several compelling advantages:

  • Minimal Investment, Maximum Returns: You can expect high returns with minimal capital expenditure.
  • Comprehensive Support: CSB provides operational and marketing support, ensuring the success of your franchise.
  • Efficient Supply Chain: A well-established supply chain ecosystem supports vendors, sales, technology, logistics, and personnel.
  • Reliable Brand: CSB is a trusted and reliable brand in the Indian tea industry.
  • Profitability: Low overheads, growth assurance, high return on investment, affordable infrastructure, and various investment models for better geographical reach make it a profitable venture.

Chai Sutta Bar Franchise Cost Breakdown

chai sutta bar franchise cost and store image

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

  • Commercial space (minimum 300 to 400 sq. ft)
  • Equipment and machinery (₹3 lakh)
  • Furniture and interior decor (₹5 lakh)
  • Initial investment in raw materials (₹2 lakh)
  • Franchise fee (₹6 lakh)

The total investment required to start chai sutta bar franchise is ₹16 lakh, with an impressive ROI of 108%. The payback period is 14 to 18 months, and a 2% royalty fee is charged on turnover. The agreement term is 5 years.

Chai Sutta Bar Cost In IndiaCost (in INR)
Commercial Space (300-400 sq. ft)₹3,00,000
Equipment and Machinery₹3,00,000
Furniture and Interior Decor₹5,00,000
Initial Investment in Raw Materials₹2,00,000
Franchise Fee₹6,00,000
chai sutta bar franchise price

Chai Sutta Bar Franchise Models:

CSB offers two franchise models:

  • FOFO (Franchise Owned Franchise Operated): In this model, the company licenses its brand name to the franchise operator for a non-refundable fee for a specified period.
  • COCO (Company-Owned Company Operated): This establishment is entirely owned and operated by the company, with no involvement from franchisees.

Requirements for Chai Sutta Bar Franchise:

Before applying for a Chai Sutta Bar franchise, ensure you meet these requirements:

  • Location: You need a suitable commercial space that meets the business’s specifications.
  • Skills: While a degree is not necessary, you should be familiar with tea preparation and business management.
  • Training: CSB provides ongoing support and training.
  • Staff: You’ll need 2-4 staff members to assist customers and maintain the outlet.

Chai Sutta Bar franchise offers a high ROI of 108%. With numerous chai cafes like CSB spread across the country, there’s a steady consumer base, making it a worthwhile investment.

How to get Chai Sutta Bar Franchise

You’ll receive a confirmation message upon submission. If shortlisted, the franchise team will contact you.

1. Visit the official Chai Sutta Bar website.

2. Fill out the franchise application form with the required information.

chai sutta bar franchise form online apply

3. You’ll receive a confirmation message upon submission. If shortlisted, the franchise team will contact you.

Franchise Application Process

Once shortlisted, the process involves:

  • Providing photographs and information about your retail location.
  • A thorough location survey to determine profitability.
  • Approval by the area manager.
  • Agreement negotiation.
  • Business setup and contract creation.
  • Interior design by CSB or according to your preference.
  • Training and support from CSB.
  • Outlet opening within 45 to 60 days.

Chai Sutta Bar Franchise Contact Details

Corporate Office: 1st Floor, Red Square, PU3 Commercial, opp. C21 Mall, Scheme No 54, Indore, Madhya Pradesh 452001

Email: chaisuttabar@gmail.com & Business@chaisuttabarindia.com

Phone: +91-6262300031

Conclusion

Chai Sutta Bar’s journey from humble beginnings to success showcases the potential of entrepreneurship with dedication and strategy. The Chai Sutta Bar franchise offers an exciting, generous, and profitable opportunity for aspiring entrepreneurs. By following business tips and meeting requirements, you can embark on your journey with Chai Sutta Bar and be part of this thriving venture.

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