Chai Point Franchise Cost, Profit and How to Start in 2025

Are you looking to start the best chai brand to enter the business of the Indian favorite beverage chai? Then look no further; Chai Point is offering a franchise opportunity for aspiring entrepreneurs. In this article, we will provide insight into the Chai Point franchise, the amount of investment required, the expected return, the benefits of becoming the franchisee, and how one can apply.

About Chai Point

Chai is very popular in India and is consumed by several million individuals every day. Being aware of this potential, Chai Point was launched in 2010 by Amuleek Singh with a vision to deliver freshly brewed quality tea to working professionals. Chai Point is one of the leading tea cafes in India, which infuses the old concept of tea with a touch of contemporary outlet.

As the brand grew in popularity, Chai Point entered the franchise model and started opening franchise stores. This is a good opportunity for investors and those who wish to open their own businesses to take part in India’s tea café market. This is because the company has a well-established brand image, operates with the use of technology, and espouses sustainability as one of its core values in running the business.

As of now, it has its stores present in the retail segment, it also delivers orders online, and even has automated dispensers, which make it very effectively franchise-based and demand lower infrastructure investment.

How Much Does the Chai Point Franchise Cost?

To start the Chai Point Franchise costs between 20 lakhs to 30 lakhs including Franchise Fees, initial inventory, setup costs, equipment costs, working capital, security deposit, and others. This investment varies based on the Chai Point franchise outlet size and location. Here is the detailed cost breakdown of the Chai Point Franchise:

Franchise Fee: To acquire the rights to open the franchise outlet of Chai Point requires a franchise fee of approximately 1.5 lakhs to 3 lakhs.

Initial Setup Cost: Setting up the Chai Point franchise outlet requires an investment of between 5 lakhs to 10 lakhs including interior design, exterior design, furniture, fixtures, and others.

Initial Inventory: Purchase of the initial stocks of the franchise outlet requires investment of 2 lakhs.

Working Capital: To cover the day-to-day expenses of the franchise outlet requires a working capital of 5 lakhs.

Royalty Fee: Chai Point charges a royalty fee of 6% of monthly sales to provide marketing, advertising, and ongoing support.

Profit Potential of the Chai Point Franchise

Profit Margin: Chai Point franchisees can expect a profit margin between 15% to 25% of total sales.

ROI Timeline: Within 2 to 3 years franchisees can recover the initial investment of the Chai Franchise outlet.

Actually, if a person gets involved as a franchisee of Chai Point, then he can have a fixed return on investment within the first year of operation, so it is very suitable for being a very good venture.

Requirements for Franchise

Some of the standard requirements demanded of the franchisees on infrastructure include:

Store Size: To set up the Chai Point franchise outlet requires a minimum of 500 to 1500 sq. ft.

Equipment and Setup

Location Criteria

Location: Places like malls, business districts, and places where there is high human traffic density should be targeted.

Areas of high foot traffic (office spaces, shopping centers, metro stations).

Near office complexes for corporate dispenser sales.

It generally takes about 1–2 months to get through with the formation of the store and obtaining the operational permission.

Training and Support for Franchisees

Chai Point provided explicit training and operational assistance to its franchises to have a successful business.

This is because Chai Point is associated with a very strong brand image, so one does not need prior experience to enter into a franchise agreement with the company.

Why Choose a Chai Point Franchise?

Chai Point is not just a tea café, but it is a modern technology, innovations, and sustainability-based brand. These are some of the reasons why one should buy a Chai Point franchise:

Strong Brand Recognition: Chai Point is one of the fastest-growing tea brand stores in the organized category of the Indian tea market and is primarily located in corporate and metro regions. The brand relies on the quality of its tea products as well as the quality of the café services provided.

Multi-Channel Business Model

is engaged in multiple lines of business to generate its revenues; those are

Specialty stores: The chai is consumed directly by customers at outlets.

Chai Point has an in-house delivery option as well as tie-ups with other food delivery services, which include Swiggy, Zomato, etc.

Want in a store: Chai concentrates, tea products such as tea leaves, and packaged tea products consisting of snacks.

Tech-Driven Operations

Therefore, through the use of AI, Chai Point implemented Shark, an artificial intelligence system found in the cloud to manage the following:

Inventory and supply chain

Sales tracking at stores and dispensers

Customer insights for targeted marketing

Focus on Sustainability

It will be important for Chai Point, which takes an active part in reducing the adverse impact on the environment, to follow the following principles:

The second is eco-friendly packaging that is made from bagasse, which is the waste returned after sugarcane juice extraction.

Therefore, iced teas should be served in glasses instead of plastic materials.

This process entails that waste should be managed in its minimum possible volume to reduce generation through green activities.

Rapid Industry Growth: The market for tea cafés is quickly growing in India mainly due to urbanization and higher income levels among the population. That is why Chai Point, which is currently a ₹1.5 lakh crore market, will be able to achieve this growth.

How to Apply for a Chai Point Franchise?

Here is how one may go about becoming a Chai Point franchisee:

Step 1: Online Application

To establish their franchise, they have to first visit the company’s website at Chai Point and then complete the inquiry form.

Step 2: Business Proposal Review

The first criteria thereby used to judge the application include investment capability, location, establishment, and business experience.

Step 3: Location Selection & Approval

It also means selecting the location that has the desired footfall and accessibility.

Step 4: Documentation & Agreement Signing

The following documents should be produced in accordance with the requirements of law as follows:

Step 5: Store Setup & Branding

Chai Point is required to have its own inventory and billing systems and bring those systems into the company.

Complete the final design of the store and its logo.

Step 6: Franchise Training & Launch

Attend training programs.

Grand opening with marketing promotions.

Pros and Cons of the Chai Point Franchise

Explore: Tea Boy Franchise Cost, Fee, Profit & How to Start in 2025

Tea Bench Franchise Cost, Fee, Profit & How to Start in 2025

Chai Point Franchise Image Gallery

Conclusion

The franchise is most suitable for Chai Point because it is located in India with a growing market in tea cafes. Indeed, with strong brands, multi-channel sales, and technology-driven approaches, this can be viewed as a highly profitable business for the new generation of entrepreneurs.

Therefore, if it carefully chooses its location and abides by the guidelines of operations, a franchisee can get a return on investment in 8 to 12 months of operations and establish a successful tea business with Chai Point. Here are some benefits of Chai Point for a franchisee planning to invest in India’s F&B business: To learn more about franchise details, please log on to the official website of Chai Point and apply for a franchise now.

FAQs

Basavaraj

I am the admin and content writer for Bestfranchiseconnect. With over three years of experience, I provide valuable insights and engaging content on franchising. My commitment to delivering high-quality information ensures that Bestfranchiseconnect remains a trusted resource for franchise enthusiasts. Connect with me for expert advice and comprehensive guides.