Kulhad Chai is India’s leading chai franchise that stands out due to its distinctive method of preparing tea. Initiated in Uttar Pradesh, specifically in Lucknow, Kulhad Chai is the dream of two couples namely, Mrs. Shikha Mishra and Mr. Shukla. The company has expanded into one of the fastest-growing chai franchise businesses in India and provides a unique tea in Kulhads – clay cups, which give a different taste and smell to tea. Thus, the mission of Kulhad Chai is to bring the Indian favorite –” Desi Chai” to every corner of the world.
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About the Kulhad Chai Franchise
Kulhad Chai is unique with its addition of kulhads which not only improves the taste of tea but is also sustainable. The franchise has become popular because of the quality service delivery and the culture of taking teas. The business model focuses on the combination of traditional activities and innovative entrepreneurship; therefore, it may be considered a favorable opportunity for potential franchisees.
Key Details of Kulhad Chai Franchise
- Brand Name: Kulhad Chai
- Industry: Food & Beverage
- Number of Outlets: 550+
- Franchise Cost: ₹30 lakhs – ₹50 lakhs
- Profit Margin: Females: 40 % – 50%
- Space Required: 250 to 550 sq. ft
- Franchise Agreement: 5 to 10 years
- Official Website: https://www.kulhadchaiindia.com/
Kulhad Chai Franchise Models
Kullad Chai has provided various franchise options for potential investors to cater to the different investment capabilities and business requirements. These franchise models are set up to be as versatile and inclusive as possible for the various types of individuals interested in the chai café business.
Urban Tea & Food Lovers Kullad Outlet
| Urban Tea Kulhad Chai Franchise Cost | INR 4 lakhs – 5 lakhs |
| Franchise Fees | INR 1 lakh |
| Business ROI | Between 12 to 15 months |
| Profit Margin | from 40% to 50% |
| Required Area | 100 – 300 sq. Ft |
This model offers equipment for the kitchen, equipment layout, and branding and marketing assistance. As for the advantages that the franchisees get, it can be noted that they have a high return and a good reputation.
Desi Kullad Kiosk / Shop-In-Shop Model
| Kiosk Model Kulhad Chai Franchise Cost | INR 2 lakhs |
| Franchise fees | INR 1 lakh |
| Profit Margin | 40 to 50 percent |
| Required Area | 50 sq. Ft |
| Business ROI | 10 to 12 months |
This model aims to be economical but still effective and offer the best Chai experience to consumers. This makes it a better option for entrepreneurs who are looking to penetrate the chai café business with relatively low capital investment.
Kullad Desi Franchise Model
| Kullad Desi Model Kulhad Chai Franchise Cost | INR 6 lakhs – 7 lakhs |
| Franchise fees | INR Sixty thousand per annum |
| Profit Margin | 40 to 50 percent |
| Required Area | 250 – 550 sq. Ft |
| Business ROI | 12 to 15 months |
This model incorporates the desi look with an extensive range of food items that will help capture any market and create a high tea drinking paradigm.
Why Should You Choose Kulhad Chai Franchise?
Unique Offerings: Kulhad Chai is a tea house that serves its tea products in traditional kulhad along with some snacks and baked products. Besides improving the taste of the tea, the use of the kulhad method is also environmentally friendly.
Supply Chain: It also guarantees a constant source of quality tea leaves and other inputs in the production line in different outlets. The incorporation of superior quality raw materials ensures superior quality tea is produced.
Employee Training: All franchisees and their personnel are oriented and trained on ways of preparing tea, handling clients, and running the business. This includes food quality, cleanliness standards, and business organization in order to provide quality services.
Low-Cost Operations: The franchise model is characterized by high efficiency and effectiveness of cost with nearly negligible operational cost and good cost control. This approach is also useful in achieving maximum profits for the franchisees.
Low Royalty Fees: Kulhad Chai has low royalty fees; which means more revenues for franchisees, which makes good business sense for investors.
How Much Does It Cost to Franchise a Home-Based Kulhad Chai Business?
Starting a Kulhad Chai franchise involves several costs:
- Franchise Fee: ₹10 lakhs to ₹15 lakhs for usage of brand, training personnel, and early assistance.
- Setup Costs: ₹10 lakhs to ₹15 lakhs for interiors, furniture, and equipment.
- Initial Stock: ₹ 5 lakhs to ₹ 10 lakhs for the first stock of tea and snacks.
- Marketing Fee: About ₹2 lakhs for advertising and brand recognition.
- Working Capital: ₹2 lakhs to ₹5 lakhs for the most essential and routine expenditures.
Summary of Costs
| Expense | Cost |
| Franchise Fee | ₹60,000 to ₹2 lakhs |
| Setup Cost | ₹5 to ₹8 lakhs |
| Initial Stock | ₹2 to ₹2 lakhs |
| Marketing Fee | ₹2 lakhs |
| Working Capital | ₹2 to ₹5 lakhs |
| Total Investment | ₹4 to ₹20 lakhs |
Profitability of the Kulhad Chai Franchise
A Kulhad Chai franchise can generate a monthly income of ₹8 lakhs to ₹12 lakhs, depending on location and customer traffic. The gross profit margin is approximately 60%, with a net profit margin of 20% – 30%. This results in a monthly profit of ₹1.6 lakhs to ₹3.6 lakhs. The franchise typically offers a return on investment (ROI) within 18 to 24 months.
Revenue and Profit
| Metric | Amount |
| Revenue Per Month | ₹8 lakhs – ₹12 lakhs |
| Gross Profit Margin | 60% |
| Net Profit Margin | 20% – 30% |
| Profit per Month | ₹1.6 lakhs – ₹3.6 lakhs |
| Return on Investment Period | 18 to 24 months |
How to Get a Kulhad Chai Franchise
1. Initial Inquiry: Contact the Kulhad Chai team through the phone or go to the official webpage at www. kulhadchaiindia. com and download the franchise application form.
2. Location Selection: Identify and select a suitable and strategic place for the shop.
3. Booking Amount: Deposit a booking amount of ₹21,000 for the location and which can be adjusted against the franchise amount.
4. Document Submission: For agreement preparation, fill in the missing information: firm’s details, Aadhaar Card, PAN Card, shop address, and email ID.
5. Agreement Formalities: Pay the franchise fee and sign the franchise agreement.
6. Outlet Setup: The outlet inauguration and design will take 25 to 30 days for the company.
7. Marketing Activities: Kulhad Chai will start advertising through social media platforms to ensure that consumers are aware of the product.
Pros and Cons of a Kulhad Chai Franchise
Pros
Established Brand: Kulhad Chai is one of the well-known brands in the chain of chai.
Unique Product Offering: That special taste that you get when you drink kulhad chai that is prepared in the traditional way.
High-Profit Margins: Reasonable profit margins with low royalty expenses.
Support System: Training, logistical support, and marketing guidance.
Cons
High Initial Investment: Is capital intensive, meaning that it would need a large cash outlay at the start.
Competitive Market: The café market can be described as very saturated.
Location Sensitivity: Location plays a very central role in the achievement of success.
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Conclusion
In Conclusion, Kulhad Chai Franchise Cost, Profit & How to Get Started in 2024? Kulhad Chai is one of the best franchise business options for everyone who has plans to invest in the tea business. This is encouraging as it shows that the focus areas for this business product have originality, good brand backing, and profitability on top of the high initial investment.
FAQ
What amount of capital is needed to open a Kulhad Chai franchise?
To Start the Kulhad Chai franchise Costs between 4 to 20 lakhs based Franchise model you choose including franchise fee, setup costs, working capital, and other.
Is the Kulhad Chai franchise making money?
Yes, yes it’s a profitable business having monthly sales of around 800000 rupees to 1200000 rupees, and having net profit margin of 20% to 30%, and having ROI of 18-24 months.
Why should someone go for a Kulhad Chai franchise?
Kulhad Chai could be an interesting approach for me as they offer specific kulhad tea, focus on sustainability, and the possibility to get huge revenues in the expanding industry.
