Chai Sutta Bar Franchise Cost in 2025: Profit, Process, and More

Chai Sutta Bar, popularly known as CSB, is the brainchild of Anubhav Dubey and Anand Nayak. Founded in 2016, the company quickly revolutionised one of the most popular beverages in India, chai (tea). 

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It stands out due to its affordable rates and kulhad (clay cup) usage, reaching over 370 cities in India and worldwide.

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Due to its rapid expansion in the last 9 years, small business owners are increasingly interested in owning its franchise. This blog will break down the Chai Sutta Bar franchise cost in 2025. 

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Chai Sutta Bar Franchise Cost in India 2025

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If you have your eyes set on Chai Sutta Bar, you are not alone! With its rustic charm and pan-India fan base, CSB has become a go-to franchise option for budding entrepreneurs.

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However, before you start planning your grand opening, let’s talk numbers. In this section, we will break down the initial investment you will need to bring your dream to life in 2025:

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Note: These costs can vary due to factors such as location, investment, outlet type, and footfall. 

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In addition to these costs, the brand charges a 4% royalty fee on the revenue you generate. Despite these variables, it provides a Return on Investment (ROI) of a whopping 108%, making it a good investment for small business owners.

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What's the business model of Chai Sutta Bar? 

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Chai Sutta Bar operates on 2 business models: FOFO (Franchise Owned Franchise Operated) and COCO (Company Owned Company Operated).

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Let us understand these business models thoroughly:

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FOFO (Franchise Owned, Franchise Operated)

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In this model, CSB rents its brand name to you (franchise investor) for a franchise fee. This is usually done for a pre-agreed time (5 years). More than 80% of the brands follow this business model. 

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COCO (Company Owned, Company Operated)

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In this Chai Sutta Bar business model, the company itself owns the outlet and manages its operations. However, most companies do not prefer this, as it diverts resources from their core business activities. 

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Apart from these, Chai Sutta Bar offers three types of establishments for its franchises. They are as follows:

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• Chai Sutta Kiosks: These offer 300-400 sq. feet of seating area, making them compact retail establishments. It is ideal for places with large footfalls, such as shopping malls, where people can stop by for a refreshing cup of chai. 

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• Chai Sutta Medium Stalls: Medium outlets usually cover between 400 and 500 sq. feet of seating area and offer a wider food selection, such as snacks with different flavours of chai, for a perfect evening. 

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• Chai Sutta Mega Cafe: These are fully furnished cafes covering a seating area of approximately 600-2,000 sq. feet. It offers the whole menu of Chai Sutta Bar within its premises. 

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Why Should You Own a Chai Sutta Bar Franchise?

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Chai Sutta Bar, with their ‘Cuddle the Kulhad’ approach, is quickly expanding. With a nationwide presence in over 370 cities and 600+ outlets, it connects every Indian. 

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Moreover, with around an 88% tea consumption rate in India, it is a part of a profitable and booming industry. 

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Here are the reasons why a Chai Sutta Bar investment is a wise choice in 2025: 

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Minimal Capital Expenditure (CAPEX)

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CapEx refers to investment required to start a business or franchise, such as equipment, building, machinery, etc. 

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Compared to other franchises, the Chai Sutta Bar franchise cost is low. This encourages small business owners and microentrepreneurs to start their business in India. 

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High Profits

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With an initial investment of approximately ₹20 lakh, it offers a high profit margin. Monthly estimated sales could be approximately ₹6 lakh.

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Daily income could range between ₹1,500 and ₹2,500. The chai sutta bar franchise profit margin can be approximately 22% (net). 

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Moreover, CSB is in their expansion mode, with plans to establish its prominence around the world.

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High Return on Investment (ROI)

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The franchise offers a higher-than-average return on investment. With a low initial investment, it can generate a 108% average ROI. 

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It stems from the chai’s popularity and wide consumer base in the nation. Therefore, the profit makes the Chai Sutta Bar franchise worth it. 

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Operational and Marketing Support

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Even if you do not have experience in managing a food and beverage QSR, the company will provide extensive assistance to help you adapt and learn. 

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Their constant marketing and operational support in the form of training proves to be beneficial for franchise owners.

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Strong Brand Recognition and Established Media Presence 

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CSB has reached over ₹100 crore valuation without outside capital in the last 9 years, establishing its wide presence in the media and market. Therefore, Chai Sutta Bar is a common name in India with a loyal customer base.

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What Are the Eligibility Criteria for Opening a Chai Sutta Bar Franchise? 

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Now that we have thoroughly discussed the Chai Sutta Bar franchise cost, let's delve into the essential requirements.

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While prior experience in franchise management or knowledge of the tea and beverage industry is certainly a bonus, it is not mandatory. 

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Chai Sutta Bar welcomes passionate entrepreneurs who are ready to roll up their sleeves and brew success.

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Here’s what else you will need to qualify:

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• Area: The company recommends spaces within the range of 400-2000 square feet. However, these may differ according to the type of outlet you want to open.

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• Staff: According to CSB, you cannot operate the franchise alone. You must have 2-4 employees for operations assistance.

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• Equipment: Investing in proper equipment, such as a billing desk, tables, chairs, a counter desk, and a printing machine, is essential.

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• Training: The Chai Sutta Bar team provides extensive training to franchise staff. You must complete them to operate the cafe. 

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How to start a Chai Sutta Bar franchise? 

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Starting a Chai Sutta Bar is easy and hassle-free. You can apply for the franchise online using their website. Follow the steps below:

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• Search for the official website of Chai Sutta Bar. 
• Select the ‘Franchise’ option from the top right navigation bar. 
• Fill out the form with necessary information such as your full name, phone number, email, area, and store address, along with your budget. 
• Click on ‘Send.’

Following your application submission, the CSB team will thoroughly research your desired store location, measuring approximate profitability. Ideally, a retail outlet should be close to shopping malls, markets, universities, colleges, etc. 

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If you are selected, the area manager will arrange a meeting and provide all the training and assistance. 

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You may choose to do the interior design yourself or let the company take care of it. After about 45-60 days, your Chai Sutta Bar retail outlet will be ready!

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Documents Required for Starting a Chai Sutta Bar Franchise

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Before you own your own CSB franchise, you must get hold of the following documents:

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• FSSAI Registration 
• Shop agreement 
• GST registration and GSTIN number
• Trade license 
• Signage license
• Registration papers
• Business registration 
• Necessary photographs 

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Chai Lovers Assemble: The Bottom Line 

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Chai is more than just a tradition; it is an emotion for the country. From accompanying college gossip to being a trusted friend of corporate employees, chai connects everyone. 

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Coupled with earthen cups (kulhads), Chai Sutta Bar promises to spread Indian tea across borders. 

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As one of the fastest-growing food and beverage QSRs, Chai Sutta Bar has made headlines in the past few years. 

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Moreover, the Chai Sutta Bar franchise cost is low, making it perfect for up-and-coming entrepreneurs. 

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Invest in the Chai Sutta Bar franchise in 2025 and enjoy peace of mind and a high return on investment!

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Frequently Asked Questions 

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1. Is the Chai Sutta Bar franchise profitable?

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The Chai Sutta Bar franchise has a net profit margin of 22% with an average 108% ROI, making it one of the lowest investment, high-profit brands in India.

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2. What is the setup time for a CSB franchise? 

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After the company approves your franchise application, you will be able to inaugurate your QSR within 45-60 days.

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3. Who is the CEO of Chai Sutta Bar? 

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Anubhav Dubey is the CEO and co-founder of Chai Sutta Bar. 

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4. What is the minimum experience level for opening a CSB franchise?

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The company does not specify any minimum experience level for operating and managing the Chai Sutta Bar franchise. However, a basic level of business acumen is expected.

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5. Does CSB provide any support for franchisees? 

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Yes, the Chai Sutta Bar team will handle training and support to help you establish and run a successful business.