Table of Contents:
1. Cost Of Opening A Tea Shop In India
Tea is the most preferred business of all time, in every part of India. The sellers sell different types of tea prepared by automatic machines or in the traditional way, i.e. on the stove. Planning to open your own tea stall business? In future this article will help you in finding a detailed guide towards how to start a tea stall with a small amount of investment in a country like India. It contains a business plan with cost and profit margin. Starting a small tea stall business is very profitable and is a self-rewarding business.
Depending upon the investing capacity of the individual, the store can be set up in any size, at any scale. Also, the individuals can look out for famous tea outlets giving out their franchises. In a country like India, every time is tea time! Especially the mornings of the people in India are incomplete without tea. People, without a doubt, prefer tea over coffee. For every thirty cups of tea, one cup of coffee is preferred. In an Indian adult's daily routine, an average of two cups of tea is preferred every day. Sometimes it goes beyond 4-5 cups a day.
2. Chai Business In India
After China, India is the largest tea producer in the world and the highest tea consuming country on a global level. Tea is one of the most popular beverages consumed by the general public daily due to its added health benefits and taste. A tea stall, to begin with, is a perfect way to kick start a small business. Not only will it earn profits in metro cities, but also in small towns.
For women looking out for opportunities to become financially independent, tea shop business is a perfect option. Although to earn huge profits, the individual will have to put in a lot of hard work, long working hours and build customer relationships through customer interaction.
Varieties of tea the sellers can offer to the customers:
- Regular Tea
- Masala Tea
- Black tea
- Green tea
- White tea
- Yellow tea
3. Tea Shop Business Plan
1. Setting up of tea stall business plan
Depending upon the individual's investment capacity, a proper business model must be created. Depending upon the model, a small tea stall or a tea bar can be set up. Small tea stalls will sell the tea sling with other tea time snacks to the customers at a lower price. These stalls usually do not come with a seating arrangement. A cup of tea usually costs around Rs 5-10. Tea is offered to the customers in paper cups or kulhads. The stalls can sell other items such as bread toast, cigarettes, tobacco, noodles, omelettes, along with tea. This is the lowest cost model and can be set up with a minimal investment of Rs.50,000.
Whereas, tea bars are operated in retail locations with a proper seating arrangement and a pleasant ambience. The tea there is sold at a premium price. They serve different varieties of tea. Tea bars require huge capital investment.
2. Franchise /Ownership
In the recent past, the demand for tea bars has increased. A lot of companies are ready to offer franchises to individuals looking to start something new. To start a new business with an already established brand is a better option. With a well-established brand, customers start ringing in from the very first day. However, if the individual has prior experience in the line of business, they can also opt for starting their own company. A franchise is considered to be a safe option, but starting one's own venture can be more profitable.
3. Profit earned by tea stalls
Before starting the tea business, gross profit earned by selling one cup of tea must be calculated. A tea stall and a tea bar would definitely fetch different profit margins. A high-cost margin cannot be expected from a low-cost model. In a low-cost model, i.e., a roadside tea stall a 100% gross margin can be expected from one cup of tea sold as the overhead cost is estimated to be very low. A good amount of profit can be earned. The footfall of the general public is good.
This is the most crucial factor while determining the profitability of the tea stall. Individuals consume tea in India from morning to evening. To start a tea stall places like commercial locations, offices, shopping centres, markets and colleges are the best option. They help in ensuring easy accessibility—a place where a good number of pedestrians visit is also a good option. Tea is a perishable item. People prefer having it when it is warm and on the go. So one cannot usually operate it at a place far removed from the hustle bustle of the general public. Thus location has to be chosen wisely where there is a gathering of a huge crowd on a daily basis.
5. Stall business registration and license
All businesses have to be registered first before they are started. The tea stalls are usually run on proprietorship models. To run based on a proprietorship model, an individual's PAN card is sufficient. Also, a trade license from the local municipal authority is required to be sanctioned. For a tea bar, FSSAI registration and also fire license is required. The shop owner will have to come up with a shop name and get the GST number.
Also Read: Tea Brands in India
6. Establishment of the store
A small tea shop would require a variety of utensils and ingredients. Minimal utensils such as cooking pan, spoon, sugar, milk, gas, glasses and chai leaves. The stall can also be set upon a van so that changing location, if need be, can also be an option.
7. Go online
There are a lot of websites on the internet promoting the tea business online. A quality website and web hosting can be set up with a nominal investment, and the tea sale can shoot up. The shop's establishment will help build the brand reputation among the existing and potential upcoming customers. If proper use of social media websites is done to spread the word about the tea stall, it will help gather a bigger audience.
4. Tea Business Profit Margin
We hope our in-depth guide on how to start a tea stall turned out to be helpful for you. Starting a tea stall business in India is worth a shot as drinking tea is never going out of fashion in this country. But it needs a lot of planning to make the Chai business a huge success. If one chooses to start their own store rather than going to take a franchise, it will open future options for further expansion.
The Chai business has huge potential and also with changing times the demand for good tea cafes are increasing. It is pocket-friendly for the customers and is the best option for a small meet up with friends as, in India, a lot more can happen over a cup of tea than any other beverage!
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FAQs On Tea Shop Business Plan
Q. How much does it cost to start a tea stall?
Ans- The lowest cost model and can be set up with a minimal investment of Rs. 50,000 for Tea Shop Business Plan or Chai Business in India. Tea is offered to the customers in paper cups or kulhads. The stalls can sell other items such as bread toast, cigarettes, tobacco, noodles, omelettes, along with tea.
Q. Are tea stalls profitable?
Ans- The Tea Business Profit Margin many a time varies on a location basis. After calculating extra costs to this, a cup of tea would cost you around 3.5-5 Rupees. If you own a stall and sell a cup for 10-20 Rupees, you have a profit margin of about Rs. 15. For a Chai Business, where you can set higher prices, your profits could be up to 55-60 Rs per cup.
Q. How do I start a tea selling business?
Ans- Answering the peak pointers on how to start a tea business in India, follow these specific methods to success:
- Curate a proper business plan.
- Find target customers.
- Conduct market research.
- Register your business officially with the authorities.
- Legalise your Tea Business
Q. How do I open a tea cafe?
Ans- To make a Tea Shop Business Plan or open a Chai Business in India you must follow the steps below:
- Comply with local, country and state legal regulations
- Get all necessary licenses sorted first
- Research on your local competitors
- Invest in attractive interiors and decoration
- Pick a prime location to set your Chai Business
- Use what you learn from the competitors to target your consumer base
Q. How much does a Chaiwala earn?
Ans- In the competitive Chai Business, the Tea Business Profit Margin averaging on metropolitan cities based on selling 900 cups a day which is priced at 5 to 7 Rupees can make around Rs. 5300 daily approx. Tea Shops on Highway price their tea to Rs. 100 and an average selling on 400 cups per day makes the daily income up to Rs. 4000.
Q. What equipment is needed for a tea shop?
Ans- The Cost Of Opening A Tea Shop In India mainly depends on the equipments needed for a Chai Business. Some of the main ones will include-
- Plates And CupsEating Utensils
- Sugar And Cream Dispensers
- Tea Baskets To Hold The Tea While Steeping
- Honey Dispensers
- Table Linens
Q. How do I register for a tea shop?
Ans- Business License or Food License for Chai Business is needed as per the Tea Control Order, 2005. To get your Tea Shop Business Plan registered, the manufacturer should submit Form A to the concerned Licensing Authority. The license becomes valid for three years after being granted, after which it could be renewed for an additional 3 years.