Chai Sutta Bar Franchise Cost In India [Is it a good investment?]

“Chai” is not just a beverage, but a daily way of life for most Indians. Indians are typically very eager to drink tea, whether at home, outside, or at someone else’s home! In a day, an average Indian typically consumes chai almost 2-3 times a day or even more. Acknowledging this fact, a young Indian decided to start a cafe especially for “Chai lovers”. Anubhav Dubey along with his friend Anand Nayak co-founded “Chai-Sutta Bar” in 2016. Its first outlet was in Indore, MP. Within 5 years of the startup, the young entrepreneurs have taken the brand of “Chai-Sutta Bar” not just across India but also around the Globe.

Currently, it has 150+ outlets in 70 cities. It has its outlet in other countries as well like Oman and Dubai. From selling 3000-4000 Kulhads of chai/coffee daily to over 3 lakhs kulhad daily Anubhav and his team have led the startup to a new height.

The name “Chai-Sutta Bar” is a reference to a combination loved by office employees or college students. Here Sutta refers to “Cigarettes”. However, contrary to the name “Sutta” and “Bar”, Chai-Sutta bar does not sell cigarettes. The brand's motto is “The only smoke we love is of Hot Tea.”

What’s so unique about Chai-Sutta Bar

• They sell Chai/Coffee in Kulhads. Which is a unique and traditional way of drinking tea in India. When hot tea is served in Kulhads, the “Mitti” of which kulhads are made up, adds to the flavour and smell.
• They offer beverages and snacks at pocket-friendly prices. They offer a reasonable place where you could hang out for a while with your friends, colleagues, or family.
• Chai-Sutta Bar offers 100+ Varieties of Chai. Along with regular chai, This wide range of variety attracts people of different tastes.

Chai-Sutta Bar is one of the fastest-growing chai franchise chains in India. Its simplicity and uniqueness are something that has made it loved by so many customers in a short period. Due to which it is the best option for someone to invest in its franchise. Chai-sutta bar franchise costs and expenses are not much. Due to which one can expect good returns.

Let’s take a look at the details of a Chai-Sutta Bar (CSB) Franchise cost:-

1. Franchise Models

• FOFO (Franchise owned Franchise operated) - In this model, the company rents out the brand name to the franchise operator for a Franchise fee for an agreed interval of time.
• COCO (Company-owned Company operated) - This could be another outlet owned and operated by the company. From setting the store to running it, it's all supervised by the company.

2. Types of Outlets

• Kiosk - A small outlet which mainly offers take away service and offers a selective menu only.
• Medium - Larger than a kiosk outlet, this offers a small seating area to customers. The menu offered by such outlets is in between kiosk and mega outlet offers.
• Mega - This outlet is larger than a medium outlet and offers comparatively larger seating space to customers. This type of outlet offers a complete menu.

3. Experience

The CSB franchise requires you to have some experience in the food industry. However, they do provide training to the franchise operator and its staff.

If you do not have any experience you can still apply for a franchise and they will look into your application and see if you could handle day-to-day operations.

4. CSB Franchise location

When it comes to profitability and footfall in the food industry business, location plays a vital role. As any restaurant/cafe owner would like to open his/her restaurant’s outlet at a location that would attract a huge number of footfalls, so does CSB ask from you as a franchise operator.

CSB requires a location near colleges, office areas, or crowded markets. As it is a favourable place for setting up one of its outlets. Also, it is better for franchise owners as location influences profit.

Area requirement for outlet would be 400-2000 sq. ft. However, this will differ as per the type of outlet you wish to open.

5. Investment and Chai-Sutta Bar Franchise cost.

The investment estimate is approximate and may vary from location to location.

The machinery and equipment will cost you around 3 Lakhs, Interior furniture would be around 5 Lakhs, Initial raw material will be around 2 Lakh. Overall your total investment would be 10Lakhs and some other miscellaneous expenses as well.

Chai-Sutta Bar Franchise cost is INR 6 Lakhs and 2% royalty annually.

6. Profit and Payback time

The expected profit margin is comparatively high in this franchise outlet as the overall expenses are less.

The profit margin is expected to be 35-40%. Considering the investment and uncertainty in the food business, this return is quite reasonable. It will take you approx 1.3 years to start generating net profit only as your initial investment would have been paid off till then.

Conclusion

Chai-Sutta Bar is a fast-growing cafe chain in India. Considering the love for tea in India, it still has a long way to go. Moreover, as the team is planning to spread its footprints to other countries as well, this shows that the company’s management has a plan for the brand.

A CSB franchise outlet could be a secondary source of income for someone looking for a small investment. A CSB franchise is easy to manage the business, thus, anyone with a small amount to invest could open his/her franchise outlet.

For details like Chai-Sutta Bar Franchise cost and other details visit the company’s website and you can also apply for the franchise in the franchise section. To apply for the Chai-Sutta Bar franchise click here.

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FAQs

Q. What is the revenue of Chai-Sutta Bar?

Ans. Starting as a small kiosk, the Chai-Sutta Bar cafe chain now has a  turnover of INR 100 Cr.

Q. How much does a single outlet of CSB earn monthly?

Ans. As per the franchise model of CSB, you can get returns on an investment of INR 16 Lakhs in 18 Months. This means that a single outlet earns approximately INR 90,000 per month.

Q. How much staff is required for smooth operations of an outlet?

Ans. It depends on the type of franchise you open. However, 4-5 staff members would be sufficient as the CSB cafe model does not require much servicing.

Q. Can I apply on behalf of someone else?

Ans. No, you cannot apply on behalf of someone else. The person who wishes to own a franchise outlet or on whose name the franchise would be registered had to apply on their own.

Q. Can I sell Cigarettes at my franchise outlet?

Ans. No, the company does not allow selling cigarettes on any of their franchise or company-owned outlets. The company’s motto is “The only smoke we prefer is the smoke of hot tea.”