Are you seeking a decent tea and cafe business? To make a huge profit from tea, coffee, and a variety of snacks. Look no further than Tea Post, India’s fastest-growing tea cafe chain, which provides franchise opportunities for people who want to start their own businesses. How Much Does a Tea Post Franchise Cost? and Profit. This will discuss the required initial investment, how much profit a franchisee can make, the requirements to start a franchise, how to get a Tea Post franchise, and the pros and cons of a Tea Post franchise.
Table of Contents
About Tea Post
| Company Name: Tea Post |
| Founders: Darshan Dashani |
| Established Year: 2013 |
| Buisness Sector: Tea cafe and quick-service restaurant |
| Headquarters: Elanza Crest, Sindhu Bhavan Road, Bodakdev, Ahmedabad, Gujarat, India. |
| Offering Items: Masala chai, khakhras, bhakhris, samosas, thepla, upma, poha, vadapav, noodles, maska bun, and sabudana vada. |
| Number Of Outlets: Over 250 outlets across India |
| Revenue in 2023: Rs. 44.3 crore |
| Official Website: Tea Post |
Tea Post was established by Darshan Dashani in 2013. It serves food in these main categories along with 14 varieties of tea and 8 varieties of coffee. Like snacks, sandwiches, and other dishes. Here are a few snacks available at Tea Post, like
| Chocolate Maska Bun: A small bite for breakfast |
| Poha: A Bestseller |
| Samosa (2 pieces): A bestseller |
| Thepla (3 pieces): A bestseller |
| Upma: A Bestseller |
| Maska Bun With Jam: A menu item |
| Spicy Masala Bun: A menu item |
| Veggie Fingers (5 pieces): A menu item |
| Cheese Garlic Bread: A menu item |
Tea Post reached one outlet to 50 outlets in just 3 years and more than 100 outlets in 2017. Currently, it has become one of the fastest-growing tea cafe chains in India, with more than 250 outlets across India in just nine years. It has a presence across 50 cities and 4 states in India. It serves more than 2 million cups of chai every month.
Key Details of Tea Post Franchise
| Brand Name: Tea Post |
| Industry: Tea and Snacks |
| Number of Outlets: 250+ in 50 cities |
| Franchise Fee: 2 to 5 lakhs |
| Franchise cost: 15 to 20 lakhs |
| Royalty fees: 5% on monthly sales |
| Franchise Agreement: 5 years |
| Profit Margin: 50% |
| ROI Timeline: 1 to 3 years |
| Space required: 1000 to 1500 sq ft |
| Franchise Form: Apply Here |
How Much Does a Tea Post Franchise Cost?
The total investment to start the Tea Post Franchise is between 15 to 20 lakhs including Franchise Fees, initial inventory, setup costs, equipment costs, interior, furniture, working capital, and others. This investment varies based on franchise outlet size and location. Here is the detailed cost breakdown of Tea Post Franchise:
| Franchise Fee | 2 to 5 lakhs |
| Estimated setup cost | 5 to 7 lakhs |
| Initial Inventory | 2 to 4 lakhs |
| Machinery & Equipment | 2 lakhs |
| Interior & Furniture | 2 to 3 lakhs |
| Royalty Fee | 5% on monthly sales |
| Working Capital | 5 lakhs |
| Marketing & Launch | 1 lakh |
| Miscellaneous Expenses | 2 lakhs |
| Franchise Agreement | 5 years |
| Total Investment | 15 to 20 lakhs |
Franchise Fee: The applicant needs to pay 2 to 5 lakhs to the Tea Post as franchise fees. This fee will grant you the right to operate a Tea Post outlet under their brand and use the Tea Post franchise model.
Estimated Setup Cost: The initial setup cost includes expenses related to interior decoration, machinery, and furniture. For the Basic Franchise Model, setup costs are around 5 to 7 lakhs.
Initial Inventory: To stock your outlet with raw materials and supplies, the franchisee needs to allocate an initial inventory budget of 2 to 4 lakhs. The franchisee may need to purchase 2 to 3 months of stock as initial inventory.
Royalty Fee: Tea Post charges a 5% royalty fee to the franchisee. This fee is for ongoing support, brand maintenance, and marketing efforts from the brand.
Working Capital: The franchisee needs to allocate separately 5 lakhs to cover day-to-day operational expenses as working capital. Working capital ensures the smooth operation of the franchise. This money is required until your franchise outlet starts to make a profit.
Franchise Agreement: The franchise agreement spans up to 5 years. During this period, franchisees will operate their outlets under Tea Post as per their guidelines. If you want to extend this duration, renewal is available.
Profit Potential of Tea Post Franchise
Profit Margin: As a franchisee of the Tea Post outlet, you can expect a gross profit margin of 50% on each sale. This profit margin indicates strong potential growth for Tea Post franchisees.
Net Profit Margin: The Tea Post’s franchise net profit margin of 13% signifies that after covering all costs associated with running the franchise, including rent, utilities, staff wages, and other operating expenses,
Return on Investment: The franchisee can recover the initial investment within 1 to 3 years. This indicates a profitable opportunity for potential franchisees, as they can expect to see returns on their investment relatively quickly. This makes it an attractive option for entrepreneurs seeking a profitable venture.
| Profit Margin | 50% of total revenue |
| Net Profit Margin | 13% on each sale |
| ROI Timeline | 1 to 3 years |
Eligibility Criteria for Becoming a Tea Post Franchisee
| You need to be over 21 years old to qualify for a Tea Post franchise. |
| The applicant must have completed 12th grade, or having a relevant educational background can be beneficial. |
| If the franchisee has prior experience in the food and beverage industry, it is advantageous. |
| As franchisees, you should demonstrate financial stability and have the necessary capital to invest in the Tea Post franchise. |
| Franchisees should have a genuine passion for tea and a commitment to delivering good customer service. |
| Successful franchisees are those who are committed to the growth and development of their business. |
| Getting a Tea Post franchise requires a long-term commitment. Franchisees should be prepared to dedicate their time, energy, and resources to the growth and success of the business over the long term. |
Requirements to Open Tea Post Franchise
Investment: The basic franchise model requires an initial investment of approximately 10 to 20 lakhs. The investment covers machinery, equipment, interior decorations, and other essentials. The franchisee should afford this investment.
Business Experience: No specific business experience is mandated, but you need to have basic skills like business management, customer handling, etc.
Required Space: The Tea Post franchise requires a larger space of 1000 to 1500 square feet.
Location: locations like market areas, high streets, highways, commercial hubs, bus depots, railway stations, and institutes. Choose areas with high footfall for maximum visibility and customer engagement.
Required Staff: The franchisee needs to hire at least 3 to 10 workers for smooth operations. Staff should be trained in food preparation, presentation, menu planning, and pricing.
Required Documents
To open a Tea Post franchise, you need to have the following documents:
| Identity Proof: You need to provide valid government-issued documents of identity proof, such as an Aadhar card or PAN card. |
| Address Proof: Submit your address proof document, which could be your Aadhar card, passport, or utility bill. |
| Financial Documents: Documents that demonstrate your financial stability and ability to invest in the franchise. like bank statements, bank passbooks, and others. |
| Business Plan: You need to make a business plan that outlines your strategy, target audience, marketing approach, and financial projections for the Tea Post franchise. |
| Franchise Application Form: Fill out the Tea Post franchise application form with accurate details. |
| Shop Agreement License: If you have taken land for a lease to open a franchise, obtain the necessary licenses and permission to start your shop. |
| GST/Trade License: Ensure compliance with GST regulations and obtain a trade license. |
Suitable Location and Required Area
If you are thinking of opening a Tea Post franchise, you need to consider these key points regarding a suitable location and required areas:
Suitable Locations
| Busy Market Areas: Look for bustling market areas with high footfall. |
| High Streets: prime locations on busy streets. |
| Highways: Consider spots near highways for travelers. |
| Commercial hubs: business districts and commercial complexes. |
| Bus Depots and Railway Stations: Places with significant commuter traffic. |
| Institutes: near universities, colleges, and educational institutions. |
Required Area
| Tea Post offers two franchise models. Basic Franchise Model, or A Place to Talk, and Apni Chai ki Dukarn. |
| A Place to Talk Tea Post franchise model requires a minimum 100- to 400-square-foot area. |
| The ideal locations to open this franchise model are busy areas near universities, malls, hospitals, corporate parks, and markets. |
| To start Apni Chai Ki Dukan (Premium Franchise Model), a minimum area of between 1000 and 1500 sq ft is required. |
What kind of Support franchisee can expect from Tea Post?
Brand Recognition and Training:
Strong Brand Presence: Tea Post is India’s fastest-growing tea café chain and operates over 200 outlets in 50 cities in India successfully.
Training: Franchisees and staff will receive thorough training on Tea Post’s operational processes, menu, and customer service from the brand.
Location Assistance:
The Tea Post team will assist you in selecting the location for your franchise.
The recommended location includes market areas, high streets, highways, commercial hubs, bus depots, railway stations, and institutes.
Marketing and Advertising Support:
The Tea Post brand will assist franchisees in both conventional and digital marketing.
Franchisees will benefit from the brand’s existing marketing campaigns and strategies.
Menu and Product Innovation:
The brand will take care of regular updates to the menu with new offerings based on your franchise location.
franchise will be getting access to Tea Post’s signature chai products and snacks.
Operational Guidance:
Franchisees will receive ongoing support in managing day-to-day operations and also assistance in maintaining quality standards.
How to Apply for the Tea Post Franchise?
Here is a step-by-step guide to applying for a Tea Post franchise:
Visit the official website: Start applying for a franchise by visiting the official website of Tea Post.
Navigate to “Franchise”: On the official Tea Post website, look for the section labeled “Franchise.” It is usually present on the menu bar of the official website. Click on it to read the given details regarding the franchise opportunity. Scroll down to find the franchise application form.
Fill out the application form: Fill out the franchise form by providing your personal information, family details, educational background, and business-related information.
Submit the form: After filling out the form, recheck it once for accuracy before submitting it online.
Wait for a Response: The Tea Post team will review your application. It may take a few days or weeks. Be patient and wait for their response.
Pros and Cons of Tea Post Franchise
Pro’s
Brand Recognition: Tea Post is a well-known tea brand in India, having more than 200 outlets in 50 cities in 4 states in India. It is known as India’s fastest-growing tea café chain.
Franchise Models: Tea Post is offering two franchise models: A Place to Talk and Apni Chai ki Dukhan. Based on your investment and space, you can choose.
Support and Training: The Tea Post brand provides thorough training on operational processes, menus, and customer service to franchise applicants and employees. Also provides assistance in selecting the ideal location for your franchise and provides ongoing support.
Profit Margin and ROI: As a franchisee, you will receive a 50% gross profit margin. Within 2 to 3 years, you can recover the initial investment.
Cons
Investment: Initial investment varies based on the franchise model (basic or premium) you need an investment between 10 and 20 lakhs. Consider the financial commitment carefully.
Competition: The café industry is competitive, and success depends on location, footfall, and efficient management.
Franchise Allotment Not Guaranteed: Submitting the franchise form doesn’t guarantee franchise allotment.
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Conclusion
In conclusion, how much does a Tea Post franchise cost? and profit, investing in a Tea Post franchise presents an exciting opportunity. Through its growing record and brand reputation, with a decent initial investment of 15 to 20 lakhs, a gross profit margin of 50%, a net profit margin of 13% on Tea Post products, and a return on investment a return on investment within 2 to 3 years. Also provides training and ongoing support to the franchisee and staff. To maximize success, consider opening your franchise in bustling market areas, high streets, highways, commercial hubs, bus depots, railway stations, or near institutes.
FAQ
What is the total investment of the Tea Post Franchise?
To open a franchise of Tea Post requires 15 to 20 lakhs including franchise fees, setup costs, working capital, and others.
What is the profit margin of the Tea Post franchise?
As a franchisee of Tea Post, you will receive a gross profit margin of 50% of total revenue and 13% net profit on Tea Post products.
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