What is Chai Sutta Bar Franchise Cost and How to Start – Best Full Case Study 2022

Do you know how much the chai sutta bar franchise cost and how you can adapt it? I am saying this because by adopting the chai sutta bar franchise, you can generate net revenue of up to Rs 90,000/- per month.

Strange to know, right? For me as well, but when I researched in very depth, I found all stats and data perfect and accurate.

No one can imagine that the business of tea can make a person a millionaire in just 5 years, but it happened, and it happened in India, not anywhere else.

The chai sutta bar case study is quite interesting and inspirational for every person who wants to start a business but does not get an idea about the business.

Chai sutta bar was started as a small startup in Indore, MP in 2016 only with one small outlet the tea, and at the end of the Financial year 2020, its annual turnover is between 1 to 100 Cr INR.

This article contains the whole process, history, case study, chai sutta bar business model, chai sutta bar revenue model, and chai sutta bar franchise model details from zero to hundred which will enhance your thinking towards the business ideas.

Is Chai Sutta Bar Franchise Beneficial?

Kulhad chai, signature product of chai sutta bar

If you are thinking about acquiring the chai sutta bar franchise and are confused about the decision, then let me guide you through your confusion.

Not only for the franchise of the chai sutta bar, before taking the franchise of any company, but you should also have an exact date of the history of that company.

Fetching this data is quite mandatory because you should be aware of the existence of the company when a company was established, and for how many years it is running the business.

These aspects are essential to know before acquiring the franchise of any company.

Because, if you do not go through the past data of a company, it may be possible that the company has no secured future, and you commit a big loss of money by taking the franchise.

To assist you in making a proper decision, let’s explore more details about the chai sutta bar.

Who is The Owner of Chai Sutta Bar

Anubhav Dubey, owner of chai sutta bar

Anubhav Dubey is the owner of the chai sutta bar business model who established the chai sutta bar in 2016, in Indore MP with an investment of 3 Lacs rupees.

In actuality, Chai Sutta Bar was started by two friends cum partners; Anubhav Dubey and Anand Nayak, hence the idea of starting a tea business with a different idea was invented by Anubhav Dubey.

CSB is spread over more than 100 cities in 3 countries to date, and expansion is in the process still now, and they are operating more than 200 outlets now.

Chai Sutta Bar Turnover

According to the sources, the total turnover of Chai Sutta Bar in FY 2020 was around 100 Crores INR.

It is a business that was started with the investment of Rs. 3 lacs only as a small tea outlet, in just 4 years it became a business making a turnover of 100 Cr. INR per annum.

The chai sutta bar has never been renamed or rebranded, as it was started with the name “Chai sutta bar” and is still running with the same name.

Chai Sutta Bar Franchise Cost With Adoption Process

You may have a question about adopting a franchise of a chai sutta bar whether you should take the chai sutta bar franchise or not, right?

Well, this question varies from person to person due to its investment amount, yes the chai sutta bar franchise cost is Rs. 16 Lakhs.

Let’s explore more about the chai sutta bar franchise cost and requirements so that you can come to a certain conclusion about adoption.

Area Requirements

For opening a franchise of chai sutta bar, you require an area of 80-2000 sq. ft. at any high street, educational or commercial place.

Hence, it’s not mandatory to have an area of 2000 sq. ft., it depends on your location, and it is good enough if you acquire land of 300-600 sq. ft.

If your location is a crowdy area where there is a huge crowd of population, then you should conclude by taking the advice of an experienced person.

Investment Requirements

The investment amount does not vary with the area that you own, chai sutta bar franchise cost will remain the same for any area of the outlet.

Space Required300 to 400 square feet
Required machinery and equipment3 Lakh rupees
Placement of furniture and interior decoration5 Lakh rupees
Initial raw material2 lakh Rupees
Franchise cost6 Lakh Rupees
Total investment16 lakh rupees
ROI14 To 18 Months
Royalty2%

This is the pricing model for chai sutta bar franchise cost, and there are chances of cost-saving in only one aspect which is furniture setup.

Yes, the cost of decoration depends on the area that you acquire the franchise of chai sutta bar.

Rather costs like raw materials cost, franchise price of chai sutta bar, and others will remain the same.

The process to Acquire The Franchise of Chai Sutta Bar

The process of taking the chai sutta bar franchise is too simple, either you can visit their official site or you can call on their official contact number and inquire.

Franchise Form of Chai Sutta Bar Franchise Cost

While booking, you will have to pay Rs. 1 lakh + GST, The research and development team will visit your location of the franchise.

They will analyze and verify all the details, aspects, location, and other matters along with your decided shop, and then either they will approve or reject your application.

One tip I would like to share is to finalize around 4 shops for the franchise because if they find anything missing, they will reject your application.

If you have shops in multiple locations, there is almost no chance of rejection, and if none of your finalized shops are appropriate for franchise business, you do not have to worry.

The R&D team will guide you about the possibilities and requirements which you have to follow while choosing the shop and location.

Still, if you don’t find a proper venue, the R&D team supports you to avail the shop by communicating with the local brokers.

Staffing Process

You will need a minimum of 4 employees to work in your franchise, which is company policy.

After finalizing the shop and location, selected employees will have to go to Indore, where they will conduct a complete training of 20 days about their business.

After completing the training of your employee, you will have to visit their head office in Indore, and you will be provided a complete training of 4 days.

Machinery and Equipment Process

After completing the training of you and your employee, you will have to pay the machinery cost which is 7 lakhs rupees.

You will receive all the required equipment in a truck of 7 tons, which contains all the machinery and USP products.

External Products to Sell

The center point of the chai sutta bar business model is the tea and other relevant beverages, hence other products also are sold to increase the sales.

You will have to import some products from external sources like the local market.

Bread, Buns, chocolate syrups, vegetables, and other products that are being sold, you have to purchase from the local market.

But you can not purchase them randomly, the company will suggest to you the preferred brands that you will have to stock.

Profitability of Chai Sutta Bar Franchise

This is the main focal point where people concentrate when they think about investing in any business, right?

So, before taking the CSB franchise, it is reasonably necessary to go through its profitability especially when we are going to invest around 16 lakhs rupees.

Yes, the CSB franchise is profitable, but it also depends on your working pattern and strategy.

When the chai sutta bar business model was established, they were selling around 4000-5000 had per day, and today that figure has reached up to 1,00,000 kulhad per day.

These stats indicate the business reach of CSB, and according to that, we can easily conclude that if we acquire the franchise, we will be playing with a massive profit.

ROI Model

This is a very interesting fact given by the company that the timing of ROI is around 14-18 months.

ROI stands for Return of Investment, i.e. you will be covering the total investment of Rs. 16 lakhs in around one and a half years after starting the franchise.

It indicates that you care to collect revenue of up to 90,000 per month by working properly.

Foundation of Chai Sutta Bar Business Model

Almost more than 90% of people are addicted to tea, and everyone drinks tea as a regular beverage.

But Anubhav Duby was not amongst them, he was thinking beyond the normal thought process.

He was finding ways to take advantage of people for tea and wanted to convert the addiction into a business idea while he was preparing for the UPSC examination.

He thought about those points of view which are neglected by all the world, and the idea was that tea is the highest drunk beverage after tea in the world.

And, with this point, he found a huge potential in the tea business model and made up his mind to introduce the tea business in a different and advanced way.

He collaborated with his friend Anand Nayak and started a small outlet for the tea by giving it the name chai sutta bar.

Tea Flavors of Chai Sutta Bar

This company is offering a total of 7 flavors of tea which is its biggest plus point for the growth of the tea business model.

  • Chocolate Tea
  • Adrak Tea
  • Elichi Tea
  • Paan Tea
  • Tulsi Tea
  • Masala Tea
  • Rose Tea

You might have ever heard about these different flavors of tea, and they are serving them, that’s why I ever say that business is not great, but your idea and strategy to execute the business make it the greatest.

The secret to High Sales of Chai Sutta Bar

According to the company norms, you will have to offer everything FREE OF COST to every customer on the first day of opening your chai sutta bar franchise shop.

The quality of the product of CSB is ever best, but they are adding one more sweet to their business i.e. PRICING.

Yes, they have made their price very reasonable, the starting price of their tea is just rupees 10 onwards.

My Opinion For Chai Sutta Bar Franchise

CSB was invented in 2016, and the company is growing with consistency to date, and they are following its protocol thoroughly.

They never compromise on the quality of product, they never keep the approach to reduce the production cost for better margin.

Chai sutta bar is selling various products but the kulhad tea is their signature product which states that they are following a perfect business strategy.

If you have good enough investment and planning for taking the chai sutta bar franchise, you should not think twice before going ahead-considering your local population’s strength.

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