Chaayos Franchise Cost, Profit & How to Get Started in 2024

Chaayos is a standout name amid the country’s bustling cafe scenery and presents its customers with an assortment of teas, but what makes them different from others is their cozy ambiance. The chain of tea cafes Chaayos, launched in 2012 by Nitin Saluja and Raghav Verma, has expanded quickly with a menu that includes hundreds of different types. Chaayos is undoubtedly a revolution in just how we take tea and has catered extraordinarily to the aspiring taste buds of avid “tea connoisseurs” all over India.

About Chaayos

Chaayos – From the house of Sunshine Teahouse Pvt. Ltd, which makes fresh chai as per customer preference. They say they are “determined to Spread Chai not Hate” and their slogan, as you will see in all of their quirky packaging is: “Experiment with Chai. Today, they have over 200 outlets across India and has somewhat become an addiction to the tea lovers for its traditional taste wrapped in modernity.

Chaayos Product Range

In addition to chai, Chaayos has something for everyone as their menu is pretty diverse and includes:

  • Shaam ki Chai: Adrak chai, Tulsi chai, Masala chai, and more.
  • Food: Bun maska, samosas, sandwiches and wraps
  • Drinks: Iced teas, shakes, and lassis.
  • Sweets: cakes, biscuits and sweets

The company claims its USP is the power to “add-on” (i.e. customize) chai using more than 12,000 possible combinations of choices offered at each outlet in real-time.

Chaayos Franchise Models

Franchise model of Chaayos:

Company Owned & Franchise Managed (COFM): The outlet is owned By Chaayos but operates by the franchisee. The branding and marketing are taken care of by Chaayos, while the franchisee executes running day-to-day operations.

Franchise-owned franchise-operated (FOFO): The job is such that the outlet gets operated by one entity, however, owned by another; adhering to Chaayos’ norms and leveraging its name through business.

How Much Does the Chaayos Franchise Cost?

How Much Does the Chaayos Franchise Cost?

The Chaayos franchise is a good cafe business opportunity with an initial investment amount estimated between ₹30 lakhs to 50 Lakhs. This includes:

  • Infrastructure Investment: ₹15-20 lakhs for one-store investments including furniture, interiors etc.
  • Territory Cost: INR 5 lakhs for Chaayos brand access franchise fee
  • Equipment: ₹5-10 lakhs in kitchen equipment, point-of-sale systems and the like
  • Table & Chairs: ₹5–7 Lakh For seating, lighting and decor.
  • Extra Expenses: ₹5-10 lakhs for opening stock, staff salaries (3 months), advertising and promotions, etc.

Chaayos Franchise Profit Margin and Return on Investment (ROI)

A Chaayos franchise would typically have a profit margin between 25% to 35%. The ROI which is One to Two years depends on a given location, sales, and operational performance. Its strong brand recognition and customer loyalty allow for a consistent cash roller

Space Requirements

Chaayos asks for a retail space of 300 to 500 square feet in franchising. This space should include:

Space: Seating areas, counter space, an organized flow that makes shopping easy.

Kitchen Area: Provide enough space for cooking/keeping food warm and serving beverages.

Storage centers: Ingredients and supplies that you have organized into like items are used again at some point so, have a storage facility.

Ancillary Uses: Public Restroom, Back of House Facilities, and Potentially Outdoor Seating Area.

Benefits of Chaayos Franchise

There are several benefits of investing in a Chaayos franchise.

Established Brand: A brand has an established use of its product and a loyal customer base.

Operational Support: Training and support with Daily Operation.

Marketing Support: Chaayos offers its marketing campaigns and strategies.

Product Innovation (Beyond the Basics): Secure new products and limited-inventory seasonal offerings that capitalize on regular releases from a branding perspective.

CUSTOMER LOYALTY: The product range is UNIQUE and CUSTOMIZABLE, with the added advantage of a high repeat customer rate.

Documents Required for Chaayos Franchise

Documents Required for Chaayos Franchise

Here is what the potential franchisees have to produce:

Identification Proof: Repeatedly of Aadhar License, PAN Greetings be unsecretive & layout Administrative Documentations

Business Registration – Business PAN Card, GST registration certificate, and Proof of business address.

Bank Statements: Last month’s utility bill, NOC from local authorities, and Fire departments for clearance.

How to Apply for a Chaayos Franchise?

Chaayos Email: Click here – https://www.chaayos.com/contact-us

Get Started: Complete & Submit Details Enter personal and business details in the franchise inquiry form.

Documentation: All documents need to be submitted as per Chaayos’ franchise policy.

Approvals: Chaayos reviews your application and does its own due diligence.

Franchise Fee: After being approved, sign the franchise agreement and submit payment of the required franchise fee.

Support in launching the franchise: training, marketing, and continuous support throughout your life as a franchisor.

Steps to Run a Successful Chaayos Franchise

Steps to Run a Successful Chaayos Franchise

A successful Chaayos outlet requires a mix of commitment, operational finesse, and customer focus. Follow these crucial steps for guaranteed success:

Location Selection:

  • High-traffic area with high visibility and access is good for setting up a franchise outlet.
  • Opt for places around corporate offices, college campuses, markets, and neighborhoods to…

Staff Training:

Ensure to hire and train employees to offer outstanding customer service, hygiene as well clean throughout the establishment.

Make sure staff know about the variety on offer so that they can help to choose.

Marketing and Promotions:

  • Your Chaayos Outlet will be digitally or traditionally marketed by the brand itself
  • Local marketing with passing out flyers, initial discounts, and participating in local events.

Customer Engagement:

  • Concentrate on building a friendly, homey environment where guests can stay while they are at the outlet.
  • Introduce loyalty programs, and give special offers to keep repeat customers.

Quality Control:

  • Follow Chaayos guidelines and use ingredients accordingly to ensure consistency in the quality of products.
  • Keep track of and evaluate customer feedback, regularly.

Innovation:

  • Similarly, keep changing the menu with new product launches or seasonal offerings by Chaayos.
  • It provides customers with many flavors and urges them to ask for a new flavor or different mixes of items.

Operational Efficiency:

  • Maximize how you manage your inventory, minimizing wastage and improving the constant supply of ingredients.
  • Establish effective systems for order processing and delivery which increases customer knowledge.

Support Provided by Chaayos

  • Chaayos provides a lot of help to their franchisee and they provide the complete support to run their successful outlet.

Training:

  • Franchisee and employee operations, customer service, and product preparation-related comprehensive training programs.
  • Ongoing Maintenance Training to Convey New Products and Optimum Practices on a Regular Basis

Marketing:

  • Supporting local and national marketing initiatives to lead people through the doors.
  • Marketing collateral: Posts, banners & social media content

Operational Guidance:

  • Those are the operational manuals and guidance to assist franchised partners in accomplishing their everyday lives proficiently.
  • Support from the Chaayos operations team to know about the problems and their solutions if any.

Supply Chain Management:

  • System to ensure the centralized procurement of high-quality ingredients and products in a timely manner.
  • Help you manage inventory and control costs

Technology:

  • Automation of transactions and sales performance tracking via Point-of-sale (POS) systems & software
  • Use of Chaayos CRM (to drive customer engagement and loyalty).

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Conclusion

As such, investing in a Chaayos franchise has the potential to be the right opportunity given that India is developing an increasing café culture. In such a competitive food and beverage industry, it is making more than just profits but wants to let the franchisees be successful through a strong brand name, and full business concept support from beginning to end. Innovative products, reasonable pricing, and operational excellence make Chaayos franchises a lucrative investment.

FAQs

What is the average cost of setting up a Chaayos franchise?

The initial investment ranges from ₹30 lakhs to ₹50 lakhs, covering setup costs, equipment, and operational expenses.

How long does it take to achieve ROI with a Chaayos franchise?

Franchisees typically achieve ROI within one to two years, depending on location, sales performance, and operational efficiency.

What support does Chaayos provide to franchisees?

 Chaayos offers comprehensive training, marketing support, operational guidelines, and ongoing assistance to franchisees, ensuring smooth business operations and growth.

Can I open a Chaayos franchise in a tier-2 city?

Yes, Chaayos is expanding its presence in tier-2 cities, and you can apply for a franchise in these locations. Ensure the chosen location meets the brand’s requirements for footfall and accessibility.

How can I differentiate my Chaayos outlet from other cafés?

Focus on providing a unique and personalized customer experience, leveraging Chaayos’ customizable chai options, maintaining high standards of service, and engaging in local marketing activities to build a loyal customer base.

What are the ongoing fees associated with a Chaayos franchise?

Franchisees are required to pay ongoing royalty fees, which are typically a percentage of the monthly gross sales. This fee covers continued access to the Chaayos brand, support services, and marketing initiatives.

How can I apply for a Chaayos franchise?

To apply for a Chaayos franchise, visit the official website, fill out the franchise inquiry form, and submit the required documents. Chaayos will review your application, conduct due diligence, and guide you through the approval and setup process.