Tea stalls have always been around and now, modern tea cafés are big hits. They pull in many young customers; hence, this change opens doors for business owners. The best way in is a tea franchise that is known for its well-known name. Follow their proven plan and get lots of help. This will cut your risk a lot. You can avoid starting a business from scratch and instead invest in well-established brands. We look closely at India's top seven tea franchises and will see how much they cost. Read this comprehensive guide till the end to clear your doubts.
Read also: How to Start a Tea Business in India?

Chai Sutta Bar: The Youth Icon

Chai Sutta Bar (CSB) has swiftly become a young sensation, known for its unique and eco-friendly vibe and kulhad (earthen cup) tea. Founded by two entrepreneurs, the brand has made its place in the market and its focus is on providing a relaxed and affordable space for friends to hang out.

Investment & Cost:

• The total investment for a Chai Sutta Bar franchise is relatively low. Total investment typically ranges from ₹20 lakhs to ₹30 lakhs.
• You have to pay a one-time franchise fee, which is around ₹6 lakhs to ₹12 lakhs depending on the model and location you choose.
• Royalty Fee: 4% royalty fee on your monthly revenue.

Requirements:

• A space of 400 to 2000 sq. ft. is recommended. And the location in high-footfall areas such as college campuses, shopping malls, and business parks are preferred.
• Profitability & ROI: Chai sutta bar boasts a high profit margin, with an estimated net profit of around 22%. The low-cost menu and high volume of sales contribute significantly to this profitability.
  Read also: 

Tea Post: The Community Hub

Tea Post outlets offer a clean environment, a consistent menu, and a variety of beverages that are popular among everyone, irrespective of their age. It was founded with the simple yet powerful idea of creating a high-quality tea experience. This makes this successful, as it blends tradition with modernity, making it popular. Currently Tea Post operates in four states. Its client base of these 200+ locations is expanding by providing over 15 flavours and a delectable selection of snacks.

Investment & Cost:

• The initial investment required for a Tea Post franchise typically ranges from ₹3 lakhs to ₹15 lakhs, depending on the type of model you choose.
• Initial Investment: ₹10-15 lakhs depending upon location and model chosen.
• Franchise fees: ₹3-5 lakhs.
• Royalty: 5-8% of monthly sales

Requirements:

A larger space is required, typically between 1000 and 1500 sq. ft., to accommodate a kitchen and a spacious seating area in a high-footfall location like:

• High-Street Locations
• College and University Campuses
• Corporate Hubs
• Residential Areas

Profitability & ROI: Tea Post is known for its strong profit margins and a reasonable ROI timeline of 18-24 months. The brand focuses on diverse food items for their menu, including Chinese cuisine and Indian fast food, which provides high revenue and high profitability.
Read also: Tea post franchise: Cost and how to get?

Chaayos: The Tech-Enabled Tea Cafe

Chaayos was founded in 2012 with a simple yet powerful idea. Even though there were many coffee chains in the market, the duo recognised a significant gap in the organised tea space. By letting the customers select from a wide range of ingredients and brewing techniques to make a "meri wali chai”. They established a brand that embraces customisation. This unique selling proposition (USP) has helped them in their success, creating a chain of loyal customer bases and a strong brand identity.

Investment & Cost:

• You must have the minimum investment capital of ₹6 lakhs to ₹11 lakhs. To maintain the cost during the first 6-8 months, it is recommended to set aside money.
• A one-time fee of approximately ₹1 lakh is paid to Chaayos for the right to use their brand name, business model, and intellectual property.
• Royalty Fee: Chaayos has an attractive revenue-sharing model where franchisees retain around 95% of the revenue and pay a monthly royalty fee of just 5%.

Requirements:

• A compact space of 200 to 400 sq. ft. is required, with seating being optional for smaller outlets. With a location that is in high-footfall areas like malls, metro stations, airports, and hospitals, etc. The brand has specific preferences for its locations.
• Profitability & ROI: A key benefit of the Chaayos franchise model is its focus on a quick return on investment. Many franchisees claim to have reached operational break-even and profitability within 12 months. This quick return on investment is a result of the brand's robust client base, efficient operations, and high revenue retention rate.

Read also: Chaayos franchise: Cost, benefits and requirements

MBA Chai Wala: The Inspiring Story

Brand Profile: In India, tea is the most widely consumed beverage after water. Starting an MBA Chai Wala franchise is a unique chance, as it offers a profitable business for new owners. You will get a brand with an amazing story and a business plan that works well, as lots of people already know this name. The brand, founded by Prafull Billore, has grown into a national sensation. It’s more than a tea cafe; it’s a symbol of passion and entrepreneurial spirit.

Investment & Cost:

• MBA Chai Wala offers several models, with varying investment levels.
• The total investment for a franchise outlet ranges from ₹14 lakhs to ₹25 lakhs. The accurate amount will depend on the type of model you are going to choose.
• The franchise fee is approximately ₹4 lakhs.
• Profitability: The brand claims a high profit margin, with an estimated monthly revenue of ₹3 lakhs to ₹4.5 lakhs.

Requirements:

• A space of 150 to 300 sq. ft. is generally required. The brand prefers the location with a high footfall, such as residential and commercial neighborhoods.
• Profitability & ROI: MBA Chaiwala offers the lowest initial investment, which makes it more accessible. The products have a high profit margin, and the brand's popularity drives high-volume sales.
  Read also: MBA Chaiwala franchise cost and how to get it?

Chai Point: The Corporate Favorite

Chai Point, the popular tea cafe chain that sells close to a million cups of high-quality, freshly brewed tea every day, is looking to go public and list on the stock exchange by mid-2026. The brand's focus on technology and a scalable model sets it apart.

Investment & Cost:

• The total investment for a Chai Point franchise is in the range of ₹25 lakhs to ₹30 lakhs.
• The brand also asks for a one-time franchise fee, which is approximately ₹1.5 lakhs to ₹3 lakhs.
• Royalty Fee: Chai Point charges a royalty fee of around 6% of monthly sales.

Requirements:

• The space requirement is typically between 600 and 800 sq. ft for a full-service café, and the location should be in a high-footfall area like a mall or corporate park, etc.
• Profitability & ROI: With its strong brand equity and a proven business model, a Chai Point franchise can achieve a break-even point in 18-24 months.

The Tea Factory: The Low-Cost Option

The Tea Factory is a rising star in the franchise space, known for its low investment model and high-profit potential. The brand focuses on offering a wide range of beverages and snacks at an affordable price point, making it a popular choice in various markets.

Investment & Cost:

• The total investment for a Tea Factory franchise is highly affordable, ranging from ₹5 lakhs to ₹10 lakhs.
• The franchise fee for this brand is approx, ₹2 lakhs. This low entry barrier makes it an excellent option for new entrepreneurs.

Requirements:

• A smaller space of 350-1000 sq. ft. is sufficient for them but the brand looks for the location in high-footfall.
• Profitability & ROI: The brand claims a high expected ROI of 75% and a quick payback period of just 1 year. The combination of a low investment, high profit margins, and a proven business model makes it an attractive option for people who want to invest in them.

Read also: Chai Franchises are now Everyone’s Cup of Tea

The Tea Planet: The Specialized Experience

The Tea Planet stands out by offering a specialized menu that includes a variety of bubble teas, fruit teas, and other unique beverages. As they export the raw material from their direct source of high- quality, the brand focuses on premium offerings.

Investment & Cost:

• The total investment for a Tea Planet franchise ranges from ₹6 lakhs to ₹12 lakhs, depending on the store model.
• The franchise fee is a one-time payment which is around ₹4.7 lakhs.
• Royalty Fee: A great advantage of The Tea Planet is that they don’t charge a royalty fee from the franchisor and let them keep all profit to themselves.

Requirements:

• A space of 300 to 1000 sq. ft. is required in a major city like Bengaluru, Hyderabad, or Chennai. The brand is expanding its franchise.
• Profitability & ROI: The Tea Planet franchise offers a high profit margin of around 40%. This makes it an exceptionally attractive option for those looking to maximize their returns.

Conclusion: Making the Right Choice

The Indian tea franchise business is expanding, with options for every budget and ambition. There’s a franchise for every entrepreneur in today’s market. But before making your decision, it is crucial to:

• Conduct Due Diligence
• Evaluate Location
• Understand Your Commitment
  By carefully evaluating these factors, you can select the best tea franchise opportunity in India that not only fits your financial goals but also aligns with your passion.
  You might also like: Top Bubble Tea Franchise Business in India