Are you looking for a premium tea brand to start your own business with a very low and affordable investment? Look no further. Tea Time is providing franchise opportunities for everyone who aspires to kick-start their business. Tea Time Franchise Cost, Profit, and How to Get Started in 2024. In this, we will discuss what is the minimum investment to start a Tea Time business, what is the profit potential, what are the requirements and documents, how to get a Tea Time franchise, and whether it is worth the investment pros and cons.
Table of Contents
About Tea Time
Tea Time opened its first store in 2016 in Rajamundry by Uday Srinivas Tangella, Founder and Managing Director. Started with the vision of making good and premium tea available to everyone at a fair price. Now it has become India’s biggest tea chain, reaching millions of people. It serves products like hand-packed tea leaves, milkshakes, flavored milk, and coolers, including black tea, green tea, oolong tea, white tea, and others.
With zero artificial flavors to provide the real taste of desi tea. Currently, Tea Time is a fast-growing brand. Within 7 years, Tea Time has established 3800+ outlets across Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Maharashtra, Gujarat, Madhya Pradesh, Uttar Pradesh, Manipur, Karnataka, Rajasthan, Pondicherry, Delhi, Haryana, Odisha, Uttarakhand, Bihar, West Bengal, and Nepal.
Key Details of Tea Time Franchise
- Brand Name: Tea Time
- Industry: Food and Beverage services
- Number of Outlets: 3800+
- Tea Time franchise cost: 5 lakh
- Profit Margin: 40 to 80%
- Royalty Fees: 3%
- Space required: 150 to 200 sq ft
- Franchise Agreement: Life Time
- Return on Investment Period: 6 to 12 months
- Official Website: https://teatimegroup.com/
Tea Time Franchise: How Much Does it Cost to Sip Success?
Tea Time franchise cost breakdown:
Initial Fees: To be a franchisee of Tea Time, you need to pay 5 lakhs, which means you need to pay an upfront fee to acquire the franchise rights.
Estimated Setup Cost: This covers expenses related to setting up the physical outlet, including interior decoration, furniture, and signage, which requires 1 to 2 lakhs.
Startup Kit: The Tea Time brand provides a start-up kit to the franchisee within the initial fees. The kit contains movable equipment (refrigerator, deep freezer, stoves, utensils, etc).
Initial Inventory: The initial stock, which requires more than 1 lakh, including tea leaves, other beverages, snacks, and related supplies, will be supplied by Tea Time with an upfront fee.
Royalty Fee: Tea Time charges a 3% royalty fee on your monthly gross sales. This fee is for ongoing support, marketing, and brand development. Tea Time does not charge royalty fees greater than 9,000 per month.
Other Expenses: A franchise may need not more than Rs. 2 lakh for miscellaneous costs, including licenses, permits, insurance, and utility deposits.
Working Capital: Having sufficient working capital ensures smooth day-to-day operations. It covers salaries, rent, utilities, and other expenses.
Franchise Agreement: Once you become a franchisee of Tea Time, that agreement will be valid for life. This means you have long-term access to their brand, support, and expertise.
Total Investment: The total Tea Time Francie cost of 5 lakhs includes setup costs, inventory, ongoing royalty, and working capital. With the right location, quality products, and effective management.
| Initial Fees | 5 lakh |
| Estimated setup cost | 1 to 2 lakh |
| Initial Inventory | 50k to 1 lakh |
| Royalty Fee | 3% |
| Other Expenses | 1 to 2 lakh |
| Working Capital | 1 to 2 lakh |
| Franchise Agreement | lifetime |
| Total Investment | 5 lakh |
Profit Potential of Tea Time Franchise
Total Investment: The initial investment required to start a Tea Time franchise is Rs 5 lakh. This includes setup costs, inventory, and other expenses.
Profit Margin: Tea Time franchises offer a healthy profit margin to the franchise owner. The gross profit margin ranges from 40% to 80% of the total sales. This means that for every rupee generated from your outlet, a significant portion is converted into franchisee profit.
Net Profit Per Month: After deducting operating costs, including rent, utilities, salaries, and other expenses, the net profit margin remains 35 to 40%. Franchisees of Tea Time can earn 80k to 1 lakh per month. Considering these factors high sales volume, ideal location, and effective cost management, franchisees may earn 2 lakh per month.
Return on Investment: Within 6 to 12 months, as a franchisee of Tea Time, you can recover the initial investment of 5 to 6 lakhs. This relatively short payback period indicates a favorable investment opportunity.
| Total investment | 5 lakhs |
| Profit Margin | 40 to 80% |
| Net Profit Per Month | 80k to 1 lakh |
| Return on Investment | 6 to 12 months |
Tea Time franchises offer promising profit potential through a 6- to 12-month quick ROI, and with a 40–80% gross profit margin, franchisees can easily earn 1 lakh per month.
Tea Time Franchise Menu
- Tea varieties: Masala chai, premium milkshakes, flavored milk, and coolers
- Snacks: Khari biscuits, vada pav, misal pav, bonda, and khatta dhokla
- Other items: bubble tea, smoothies, crepes, and coffee
- Product prices: For Tea starts from Rs. 10 and Premium milkshakes from Rs. 99.
Eligibility Criteria to Get Tea Time Franchise
- To apply for the Tea Time Franchise, applicants must be 21 years old.
- A PUC or equivalent educational qualification is required to be a franchisee.
- If a franchisee has prior experience in the food and beverage industry or in managing a business, it is highly beneficial to operate a Tea Time franchise.
- Franchise applicants should be financially stable.
- A franchisee needs to have strong entrepreneurial skills to manage customers.
- Franchisees need to have a long-term commitment to the success and growth of the franchise.
Requirements to Open Franchise
Investment: The initial investment required to open a Tea Time franchise is Rs 5 lakh, including setup costs, inventory, and other expenses.
Business Experience: If franchisees have some experience in the food and beverage industry or retail business, that would be beneficial. You need to have a passion for tea, and customer service is essential.
Required Space: To open a Tea Time franchise in your preferred area, you need to have a minimum of 150 to 200 square feet.
Location: preferred locations with high footfall, such as commercial areas, shopping malls, or near educational institutions. like offices, colleges, and busy streets can attract more customers.
Required Staff: To operate the Tea Time franchise, you need to hire 2 to 3 employees, depending on the size of your outlet.
For cooking: Prepare and serve tea and other beverages.
Cashiers: Manage transactions and handle customer queries.
Cleaners: Maintain cleanliness and hygiene.
Manager/Supervisor: Oversee operations and staff.
Owning a Tea Time franchise requires dedication, effective management, and a passion for providing delightful tea experiences to customers.
Required Documents
To open a Tea Time franchise, you need to get the following documents:
- Identity Proof: Provide valid government-issued documents (Aadhar card or PAN card) for identity purposes.
- Address Proof: The applicant needs to submit an address proof document like an Aadhar card, passport, utility bill, or any other valid document.
- Financial Documents: The franchisee needs to prepare financial records, including bank statements, to demonstrate their financial stability.
- Business Plan: The franchisee needs to prepare a business plan that outlines their approach to operating Tea Time franchises, including details about the location, target audience, and marketing strategy.
- Franchise Application and Agreement Forms: Complete the Tea Time franchise application form with accurate information. Also, the franchisee needs to sign a franchise agreement form that outlines the terms and conditions and the franchise revenue share.
- Non-Disclosure Agreement (NDA): Sign the NDA, which ensures confidentiality regarding Tea Time’s proprietary information.
- Shop Agreement License: Obtain the necessary license or agreement for the shop space where you plan to set up the franchise and the FSSAI license required to start any food-related business.
- GST/Trade License: This must be a license for whoever wants to start their business in India.
Suitable Location and Required Area to Start Tea Time Franchise
Location:
The franchisee needs to choose a location that has high foot traffic and is easily accessible to potential customers. Here are the ideal places to open the Tea Time franchise:
Near bus stations, railroad stations, or metro stations.
Commercial centers and shopping malls.
School/college campuses.
Areas near hospitals.
Markets with significant customer traffic.
Required Area
To set up a Tea Time franchise in your preferred location, it must have at least 150 to 200 square feet. Also, ensure that the proposed location has proper facilities for water and drainage.
Remember, your Tea Time franchise success not only depends on the location but also on providing quality tea and excellent customer service.
What kind of Support franchisee can expect from Tea Time?
The Tea Time brand supports a franchisee in different fields.
Selection Process: Tea Time assists the franchisee in selecting the right location to open a franchise outlet, considering optimal footfall and visibility.
Start-Up Kit: The franchisee receives a complete start-up kit from the Tea Time brand, which includes essential materials and guidelines for setting up your Tea Time outlet.
Menu Preparation: The franchise owner receives assistance in preparing the entire Tea Time franchise outlet menu based on the franchise location. This ensures consistency and quality across all offerings.
Operational Support: The brand offers ongoing operational support to the franchisee and also helps you manage day-to-day activities efficiently.
Management Training: Tea Time provides initial management training for the franchisee and new employees to overview the necessary skills to run your franchise store successfully.
Research and Development Updates: Franchisees always receive consistent updates on the research and development of the brand, which always keeps its offerings fresh and relevant.
How to Get Tea Time franchise?
A step-by-step explanation of how to apply the Tea Time franchise follows the below steps.
- Visit the official website: The first step is to visit the official website of Tea Time and explore the details about the brand’s history and its products.
- Navigate to “Franchise”: Locate the “Franchise” section in the menu bar of the official website.
- Fill out the Franchise Application Form: Once you’ve located the franchise section, read the given details, and scroll down, you will find an application form. Fill out the application form with your personnel and location details.
- Submit the application form: After completing the form, recheck the given details for accuracy and submit it.
- Wait for a Response: Tea Time’s team will review your application. If you meet the criteria for the Tea Time franchise, they’ll get in touch with you to discuss the franchise opportunity. This process may take a few days or a few weeks, so be patient.
Tea Time Franchise: Pros and Cons
Pros
Brand Recognition and Reputation: Tea Time is an established name with 3800+ stores in the world. It is a customer-recognized brand and famous for its quality tea.
Proven Business Model: The franchise operates based on a tried-and-tested model. Franchisees will benefit from the marketing strategies and supply chain efficiencies of the Tea Time brand.
Training and Support: Tea Time provides initial training for franchisees and staff members to operate and manage franchise outlets. Also provides ongoing support in marketing assistance, inventory management, and troubleshooting.
Product Diversity: Tea Time offers a variety of flavors in tea. servers snacks, milkshakes, and others, along with tea.
Affordable Investment: To open a Tea Time franchise, it requires a maximum 5 to 6 lakh.
High-Profit Margin: As a franchisee of Tea Time, you will receive 40 to 80% of the gross profit margin.
Quick ROI: Within 6 to 12 months, the franchisee will recover the initial investment.
Royalty Fees: Tea Time charges only a 3% royalty fee on the gross profit.
Cons
Dependency on Brand Reputation: Any negative publicity or quality issues can impact your local franchise.
Market Competition: The tea industry faces competition from coffee shops, health drinks, and home-brewed options.
You May Like
How Much Does a Tea Post Franchise Cost? and Profit in 2024
Is the Chai Sutta Bar Franchise Cost Within Reach? in 2024
Is Rajwadi Chai Franchise Right for You? Cost, Profit in 2024
Karupatti Coffee Franchise: Cost, Profit & How to Apply in 2024
Conclusion
In conclusion, Tea Time Franchise Cost, Profit, and How to Get Started in 2024. Starting a Tea Time franchise involves both opportunities and challenges. The brand’s established reputation, diverse tea offerings, training support, low investment of Rs 5 lakh, gross profit margin of 40 to 80% of the total revenue, quick ROI in 6 to 12 months, and only 3% royalty fees are advantages to opening a Tea Time franchise. Dependency on brand reputation and market computation are disadvantages. Considering both pros and cons, make your decision.
FAQ
How much does the Tea Time franchise cost?
To start a Tea Time franchise costs approximately $5. This includes the franchise fee, space requirements, and other setup costs.
Is the Tea Time franchise profitable?
Yes, Tea Time provides a healthy gross profit margin of 40–80% and a net profit margin of 35–40%. Tea Time franchisees can earn a minimum of 80k to 1 lakh per month.
