Chai Sutta Bar (CSB) has revolutionized the tea industry in India by offering a unique combination of authentic chai served in eco-friendly kulhads (earthen cups) along with a cozy café experience. Established in 2016, this fast-growing brand has gained immense popularity among tea lovers and young entrepreneurs alike. If you’re looking to start a profitable venture, opening a Chai Sutta Bar franchise in 2025 could be a lucrative option.
Why Choose Chai Sutta Bar Franchise?
- Rapid Growth: Over 400 outlets across India and expanding internationally.
- Affordable & Loved Products: The brand offers tea priced as low as ₹10, making it accessible to all.
- Strong Brand Presence: Known for its youthful vibe, eco-friendliness, and a welcoming ambiance.
- Low Investment: A Chai Sutta Bar franchise is more affordable compared to other café brands.
Chai Sutta Bar Franchise Cost in India (2025)
1. Franchise Fee
- ₹6–₹8 Lakhs (one-time payment).
2. Setup and Interiors
- ₹10–₹15 Lakhs, depending on the size and location of the outlet.
3. Equipment and Initial Inventory
- ₹3–₹5 Lakhs (includes tea-making equipment, furniture, and initial stock).
4. Working Capital
- ₹1–₹2 Lakhs (for staffing, utilities, and initial operations).
Total Investment: ₹20–₹30 Lakhs
Profitability of a Chai Sutta Bar Outlet
Revenue Potential
- Daily Revenue: ₹8,000–₹25,000 (location-dependent).
- Monthly Revenue: ₹2.4–₹7.5 Lakhs.
- Annual Revenue: ₹28 Lakhs–₹90 Lakhs.
Profit Margins
- Net Profit Margin: 25%–30%.
- Annual Profit: ₹7 Lakhs–₹27 Lakhs.
Break-Even Period
Most franchisees achieve break-even within 12–18 months, depending on footfall and operational efficiency.
Steps to Start a Chai Sutta Bar Franchise
1. Apply for the Franchise
- Visit the official website of Chai Sutta Bar and fill out their franchise application form.
- Alternatively, contact their corporate office directly for inquiries.
2. Initial Discussions
- Attend meetings with the CSB team to discuss investment, location, and expectations.
- Present your preferred location and financial capabilities.
3. Finalize Location
- Choose a high-visibility area such as colleges, IT parks, malls, or high streets with good foot traffic.
4. Sign the Agreement
- Complete legal formalities, including signing the franchise agreement and paying the franchise fee.
5. Outlet Setup
- Work with the CSB team to design and set up the outlet as per their standardized layout and branding guidelines.
6. Training and Launch
- The franchise team provides comprehensive training for staff on operations, menu preparation, and customer service.
- Plan a grand opening to attract initial footfall.
Advantages of a Chai Sutta Bar Franchise
- Affordable Investment: Low setup cost compared to other café franchises.
- Eco-Friendly Branding: The use of kulhads attracts environmentally conscious customers.
- Wide Target Audience: Appeals to college students, office-goers, and tea enthusiasts.
- Comprehensive Support: Includes marketing, staff training, and operational guidance.
- High Demand: India’s tea market is thriving, making CSB a recession-proof business.
Challenges of Operating a Chai Sutta Bar Outlet
- Location Dependence: Success relies heavily on selecting the right location.
- Competition: The tea café market is competitive, with other brands like Chaayos and local tea stalls.
- Consistency: Maintaining quality and adhering to brand standards is crucial.
Key Offerings at Chai Sutta Bar
- Chai Varieties: Classic Kulhad Chai, Chocolate Chai, Adrak Chai, and more.
- Snacks: Maggi, sandwiches, momos, and burgers.
- Ambiance: A casual and youthful environment perfect for hangouts and work breaks.
Starting a Chai Sutta Bar franchise in 2025 is an excellent opportunity for entrepreneurs looking for a low-investment, high-profit business. With India’s tea culture evolving and the brand’s strong presence, the venture promises both financial and personal rewards. By ensuring the right location, quality service, and adherence to the brand’s principles, you can establish a thriving business in your city.
