How to Start Chai Sutta Bar Franchise in India? | Franchise Cost of Chai Sutta Bar

Tea is a popular beverage in India and across the globe. The love for tea among Indian audiences has given the sector a strong consumer base, leading to rapid expansion in recent years. Tea has become a multibillion-dollar market in recent decades, with India being the world’s second-largest producer. The CSB brand originated in Indore, Madhya Pradesh, where serving ginger tea in a clay cup is a part of the local tradition. The company intends to expand aggressively through franchising its outlets. This article will cover the franchise cost, profit, criteria, and how to take a Chai Sutta Bar franchise in India.

Chai Sutta Bar Franchise in India

Chai Sutta Bar, a well-recognized brand in the tea industry, was established in 2016 by Anand Nayak and Anubhav Dubey with managing director Rahul Patidar in Indore. They currently have 450 franchise outlets in 195 cities spanning four countries. Within seven years, the brand has grown tremendously, more than any other brand in the tea-selling market. Chai Sutta Bar is an Indian-fusion fast-casual caf� concept that specializes in made-to-order delectable food items and tea.

Some Key Facts About Chai Sutta Bar

The early dealing of 4 to 5 thousand teas in clay cups has increased rapidly to 80 thousand or more daily sales.
Through the Chai Sutta Bar franchise opportunity, they are looking to broaden their footprint in India and internationally.
The word “bar” in the name implies that the CSB serves hygienic Indian-traditional tea and drinks in a clay cup (Kulhad) at reasonable costs.
The name comprises the term ‘Sutta,’ which indicates swapping smoke for tea. It is a distinctive brand name and also a rise in Indian cultural tea. It also supports the Indian potters who make the clay cups (Kulhads), reduces plastic consumption, makes it easy to decompose, and more.

Benefits of Taking a Chai Sutta Bar Franchise

The following points will give you a good idea of all the benefits that come with owning a Chai Sutta Bar franchise.

Indians enjoy the taste and feel of traditional India in their daily lives. Chai Sutta Bar has infused this emotion by serving each flavored tea in kulhads. Kulhads remind the consumers of the Indian soil and also offer a fantastic flavor and taste to the tea.
Every franchisee is concerned with the company’s brand value. Chai Sutta Bar is one of the country’s biggest tea-selling brands, having made tremendous expansion in a short period of time. They also have a presence in other countries. Being a member of such a great company will improve sales effortlessly as the brand grows in popularity.
One of the most notable advantages of owning a Chai Sutta Bar franchise is the fair prices they offer their customers. Chai Sutta Bar boasts the most competitive and affordable tea and coffee pricing, allowing it to differentiate itself from its competitors.
Another benefit of buying a Chai Sutta Bar caf� franchise is that they provide different franchise models based on their budget and scope. This makes it easy to select a franchise model that meets the prospect’s needs.

How to Start a Chai Sutta Bar Franchise in India?

The following are steps to start a franchise of Chai Sutta Bar in India.

Step 1: Required licenses and registrations

These are the licenses and paperwork required for a Chai Sutta Bar franchise:

Sole Proprietorship/LLP/Private Limited Company Registration
FSSAI Certification
Trade License: issued by the local municipality
Registration of Shops and Establishments
NOC for GST Registration at the local fire department
Get an Eat House License from the city police commissioner.
MOEF Certificate of Environmental Clearance
Municipality signage permit

Step 2: Choose a CSB Franchise Model

There are two different models to start Chai Sutta Bar franchise and they are below:

FOFO model

The franchise-owned, franchise-operated model is a business structure in which a firm provides a franchise operator with the brand name for a specific time frame. This contract is created by paying a non-refundable charge referred to as the franchise cost to the company. Then the franchisee can run the business under the company’s established brand name.

COCO model

The company-owned, company-operated model is operated and oversees all parts of the firm from opening to closing. It is not affiliated with franchise locations and is owned and run entirely by the company.

Step 3: Choose an Outlet:

CSB has three types of outlets:

Kiosk: A small establishment that mostly provides take-out service and has a set menu.
Medium: This outlet is larger than a kiosk and provides consumers with a small sitting space. Such outlets’ menus fall between the kiosk and mega outlet offerings.
Mega: The mega outlet is bigger and provides consumers with more sitting area. This type of establishment has a full menu.

Step 4: Pick the right CSB locale

Choosing the right location for your CSB franchise will be essential to its success. The core premise is to choose a location with high foot traffic since this will help you gain more consumers and, eventually, more revenues. CSB prioritizes locations near crowded markets, colleges, workplaces, railway or bus terminals, or shopping malls. Depending on the type of outlet, the requisite space ranges from 400 to 2000 square feet.

Step 5: Experience is required

You must have prior experience in the food sector to be eligible for a CSB franchise. Even if you have no prior expertise, you can apply for a franchise since CSB provides training and assistance to help you get started. It assists you in developing a strategy and determining the type of business that is best for you.

Step 6: Determine the Cost

The Chai Sutta Bar Caf� franchise fee is Rs. 6 lakh in India, with a necessary investment of around Rs. 16 lakh. The franchise has a 2 percent ROI. The breakdown is provided below:

Franchise fee: Rs. 6 lakh
Equipment and machinery: 3 lakh
Commercial space: 300�400 square feet (minimum)
Raw materials investment: 2 lakh
Interiors and furniture: 5 lakh
Total investment: 16�18 lakh
Term of the franchise: 5 years

If you cannot cover the CSB franchise fee, you can request an advance with suitable conditions.

How to Apply for Chai Sutta Bar Franchise?

The steps to apply for Chai Sutta Bar Franchise cost in India are as follows:

Step 1: If you want to start a franchise, go to the Chai Sutta Bar’s official website.
Step 2: When you visit the official website, you will see a franchise option on the top navigation bar. Click on it.
Step 3: The page will then lead you to the franchise application form.
Step 4: There, you must complete the form that is requested of you. (Name, Phone Number, Email Address, Area in which you wish to operate a CSB outlet? Message to Address).
Step 5: When you have finished filling out the form, click the ‘SEND’ button. After submitting, you will receive an email stating that the “application was successfully submitted.”

FAQs on Chai Sutta Bar Franchise in India

The following are FAQs related to the Chai Sutta Bar franchise.

What are the CSB franchise prerequisites?
Franchisees must be experienced multi-unit food service operators with strong financial records to get a Chai Sutta bar caf� franchise.

How much does it cost to operate a CSB franchise?
The cost of starting a Chai Sutta bar caf� varies based on various factors, including the business’s location, the size of the space, and the type of equipment and furnishings necessary. Yet, most Chai Sutta bars will cost between Rs. 15 and Rs. 17 lakh.

How long does the CSB application process take?
From the application date to the launch date, the application procedure can take up to 40�45 days.

How can I get in touch with the Chai Sutta Bar caf� franchise?
You must submit a franchise application by visiting the company’s official website. You may also contact at 91-6262300031, Business@chaisuttabarindia.com and chaisuttabar@gmail.com

How many Chai Sutta bars are there in India?
Almost 200 exclusive CSB outlets are located across India and overseas.