Is the Chai Sutta Bar Franchise Cost Within Reach? in 2024

Are you looking for a famous brand to start your own cafe? Look no further. Chai Sutta Bar is the current trending brand in India, providing franchise opportunities to aspiring entrepreneurs. Is the Chai Sutta Bar franchise within reach? In 2024, we will discuss the initial investment to open a franchise. What would be the profit margin? What are the requirements and documents? How do I get a Chai Sutta Bar franchise? and Chai Sutta Bar franchise worth the investment or not? 

About Chai Sutta Bar

Chai Sutta Bar was established in Madhya Pradesh in 2016. It serves more than 4.5 lakh Kulhad Chai daily. Each sip carries memories and warmth. 

It has the vision to serve a wishful cup of tea in every corner of the world. From India to beyond, they are spreading the love for chai.

Chai Sutta Bar is India’s fastest-growing chai chain. With 550+ franchise outlets across 320+ cities, we’re fueled by people’s love.

Here are reasons why you should choose the Chai Sutta Bar franchise. High margins, impeccable growth, and a tested business model await franchise partners. 

Key Details of Chai Sutta Bar Franchise

• Brand Name: Chai Sutta Bar
• Industry: Food and Beverages
• Number of Outlets: 550+ outlets
• Franchise cost: 16 to 18 lakhs
• Royalty fees: 4%
• Profit Margin: 35 to 40%
• Space required: 300 to 400 sq ft
• Franchise Agreement: 5 years
• Official Website: https://www.chaisuttabarindia.com/

Is the Chai Sutta Bar Franchise Cost Within Reach?

Franchise Fee: The applicant needs to pay 6 to 8 lakhs as a franchise fee to the brand. This fee is for you to operate under the Chai Sutta Bar and its established franchise model.

Estimated Setup Cost: Setting up your Chai Sutta Bar outlet involves expenses such as interior decor, furniture, and fixtures. The estimated setup cost falls between 5 to 6 lakhs.

Initial Inventory: To kickstart your business, allocate around 2 lakhs for inventory, and for the initial inventory you need to purchase 2 to 3 months of stock like ingredients, packaging materials, and other essentials required for daily operations.

Royalty Fee: As a franchisee, you’ll pay a 4% royalty fee on your monthly sales. This fee is for the brand to provide ongoing support, marketing, and brand support to franchise outlets.

Machinery and Equipment: Investing in quality machinery and equipment is crucial. Allocate approximately 3 lakhs for items like tea-making machines, refrigerators, and kitchen appliances.

Working Capital: Operating any business requires working capital to cover day-to-day expenses. Set aside 5 lakhs to manage cash flow, pay staff, and handle unforeseen costs.

Franchise Agreement: When you join the Chai Sutta Bar family, you’ll sign a 5-year franchise agreement.

Total Investment: The total Chai Sutta Bar franchise cost is around 16 to 18 lakhs including all franchise fees, estimated setup cost, initial inventory, working capital, and others.

Finally, the Chai Sutta Bar Franchise Cost is within reach of anyone who has business knowledge and financially afford around 20 lakh.

The cost of the franchise may vary based on the location and size of the outlet. to know exact and up-to-date cost information directly contact Chai Sutta Bar.

How Profitable is Investing in Chai Sutta Bar Franchise?

Total Investment: The total Chai Sutta Bar franchise costs between Rs 16 and Rs 18 lakh. It covers franchise fees, setup costs, inventory, machinery, and working capital.

Profit Margin: Chai Sutta Bar offers a healthy profit margin of 35 to 40% of the total revenue. 

Return on Investment: The return on investment (ROI) is impressive. At 108%, you’ll recoup your initial investment and earn additional profit. 

Payback Period: With an ROI of 108%, you’ll likely achieve payback within 14 to 18 months.

Chai Sutta Bar franchise is the most profitable business because of its 108% return on investment and profit margin of 35 to 40%. With this much profit, the franchisee can recover the initial investment within 14 to 18 months.

Eligibility Criteria to Get Chai Sutta Bar Franchise

Age and Qualification: The franchisee must be at least 21 years old. A minimum qualification of a high school diploma or equivalent is necessary.

Knowledge and Experience: Familiarity with the food and beverage industry is beneficial. Having experience in restaurant management can be advantageous.

Financial Resources: Ensure you have the financial capability to invest a minimum of Rs 16 to 18 lakhs to operate a franchise and run the business effectively.

Training: Franchisees or employees need to undergo training provided by Chai Sutta Bar to understand the operating system, products, and brand standards.

Commitment: Be committed to following the franchisor’s guidelines and maintaining quality standards. 

Requirements to Open Franchise

• Space Needed: To open a Chai Sutta Bar franchise you need to have a commercial area of 300-400 square feet. 
• Royalty Fee: The franchisee of Chai Sutta Bar needs to pay a royalty fee of 2%  on your monthly sales. To support you in marketing, branding, and ongoing support.
• Business Registration: Ensure proper business registration, especially if you’re operating as a sole proprietorship or partnership.
• Licenses: Obtain an FSSAI License to comply with food safety regulations.  Also, you need to have a Trade License for the legal operation of operating a franchise outlet in the specified area.
• Registrations: Complete the necessary shop agreement and other registration paperwork. Provide the required documents to the franchisor.
• Required Staff: To start a Chai Sutta Bar franchise, you’ll need 4 to 5 employees: a manager, baristas, cashier, kitchen staff, and cleaner/utility staff, to ensure efficient operation

Required Documents

• Registration of the Company as a Legal Entity: Ensure your business is legally registered.
• Trade License: From the local municipal corporation obtain a trade license. This license allows you to run your franchise store in a specific place where businesses operate. It’s like a permission slip for your store
• FSSAI License: As a food business, you must obtain an FSSAI (Food Safety and Standards Authority of India) license.
• GST Registration: Register for Goods and Services Tax (GST) to comply with tax laws.
• Shop and Establishment Registration: Register your franchise outlet under the relevant state laws.
• NOC (No Objection Certificate) from the Fire Department: Ensure your premises meet fire safety standards. The NOC certifies that your establishment adheres to fire safety regulations.
• Environmental Clearances: If applicable, obtain environmental clearances based on your location and business activities.

Which location would be ideal for a Chai Sutta Bar franchise, and how much space would be needed?

The ideal location for a Chai Sutta Bar franchise would be in a high-traffic area, close to places like bus or railway stations, shopping high streets, or educational institutes. Aim for visibility and accessibility to attract customers.

As for the space needed, Chai Sutta Bar offers three types of franchises:

Kiosk: Requires a minimum of 150 square feet.
Medium Outlet: Requires approximately 800 square feet.
Mega Outlet: Requires around 1200 square feet.

What kind of Support franchisee can expect from Chai Sutta Bar?

Guidance and Training:

• Site Selection: Assistance in choosing the ideal location for your franchise.
• Store Setup: Support during the setup phase, including interior design and infrastructure.
• Marketing Strategies: Guidance on effective marketing techniques to attract customers.
• Staff Training: Training programs for your team to maintain quality service.

Ongoing Assistance:

• Field Support: Regular visits by Chai Sutta Bar’s field support staff to offer guidance and address any concerns.
• Customer Service: Access to a customer service department for assistance with operational issues.

Brand Reputation:

Partnering with Chai Sutta Bar gives you access to a trusted brand with a successful track record.
Media coverage, brand reputation, and global presence created trust in the Chai Sutta bar brand. so the franchisee will benefit from this customer trust and can easily lead profitable franchises.

Unique Concept: Chai Sutta Bar’s concept of “Taste the Kulhad Chai” in a smoke-free environment sets it apart. Health-conscious people appreciated this fresh approach.

How to get the Chai Sutta Bar franchise?

Follow the below steps to apply for the Chai Sutta bar franchise:

• Visit the official website: Go to the Chai Sutta Bar’s official website to gather franchise opportunity information.
• Navigate to “Franchise”: Look for the “Franchise” section on the website’s menu bar to access franchise-related details and the franchise application form.
• Fill out the application form: Complete the franchise application form provided by providing accurate details about your background, experience, personnel details, location details, and financial capacity.
• Submit the form: Submit the completed application form.
• Wait for a response: Once the application is submitted, wait for a response from the Chai Sutta Bar franchise team regarding the status of your application. 

Chai Sutta Bar franchise worth the investment or not?

Pros:

Brand Reputation: Chai Sutta Bar is a well-known and respected brand in the tea market. Operating around 550+ outlets in 320+ cities. So franchisees can blindly trust this brand and take advantage of the brand’s established reputation and customer trust.

Profit Margin: Chai Sutta Bar offers a competitive profit margin, averaging 35% to 40%. The popularity of chai ensures a steady customer base.

Quick ROI: With a 35 to 40% profit margin, franchisees can easily recover the initial investment within 14 to 18 months of time.

Support System: Franchisees receive comprehensive support, including training, marketing assistance, and operational guidance.
The company’s expertise contributes to franchise success.

Unique Concept: Chai Sutta Bar’s focus on “Taste the Kulhad Chai” sets it apart.
Smoke-free ambiance appeals to health-conscious consumers.

Cons

Initial Investment: The franchise fee and setup costs range from 16 lakhs to 18 lakhs. Franchisees must allocate funds for inventory, marketing, and other expenses. Compared to other chai businesses, this is a little bit expensive in the industry.

Royalty Fee: A franchisee needs to pay a 4% royalty fee on gross sales, which is payable to the Chai Sutta Bar. Franchisees need to factor this ongoing cost into their financial planning.

Competition: The tea and cafe market is competitive. Success depends on location, marketing efforts, and quality of service.

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Conclusion

In conclusion, is the Chai Sutta Bar franchise cost within reach? In 2024, the Chai Sutta Bar franchise will be the best choice for entrepreneurs because it not only sells Chai but also makes business on trendy fast foods. This is a package of fast food and beverage cafes with an affordable initial investment of 16 to 18 lakhs. Your franchise doors open to a well-established brand and a proven business model. A competitive profit margin of 35% to 40% awaits those who brew success with passion and dedication. The impressive 108% return on investment within 14 to 18 months speaks volumes about the franchise’s viability. 

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