Chai Point Franchise Cost in India: Profit Margin, Space, Requirements

Chai Point was founded in 2010 and has become one of India’s most popular tea café chains. Known for its tea, quick snacks, beverages and light meals, Chai Point appeals to office-goers, students and everyday tea lovers. With growing demand for organized tea cafés across cities, many entrepreneurs consider opening a Chai Point franchise.

This article outlines required investment, setup cost, profit potential and whether a Chai Point outlet is a viable business for you.

About the Chai Point Brand

Chai Point offers a variety of teas (chai, masala chai, iced tea, premium teas), snacks, sandwiches, light meals and beverages. Their model focuses on quick service, consistent taste, hygienic preparation and affordable pricing — which attracts daily commuters, working crowd and students. The brand’s recognition and streamlined operations make it a favourable pick for tea- lovers and café customers.

Is Chai Point a Franchise or Company-Owned Model?

Chai Point offers a franchise / store-partner model. Entrepreneurs invest capital to set up an outlet under Chai Point brand while the company provides recipes, supply-chain support, training, operational guidelines and brand backing. Franchisee handles daily operations, staff, supplies and local execution.

Total Chai Point Franchise Cost in India

• Small Takeaway / Kiosk Outlet: ₹15–22 lakh
• Standard Café Outlet (with seating): ₹22–35 lakh
• Larger Store / High-footfall Location Outlet: ₹35–50 lakh
  Most franchisees begin with ₹20–30 lakh depending on size and location.

Chai Point Franchise Cost Breakdown

• Franchise / Brand Fee: ₹3–5 lakh
• Interiors & Café Setup: ₹6–12 lakh
• Kitchen & Beverage Equipment (tea boilers, counters, storage): ₹4–6 lakh
• Initial Inventory & Consumables: ₹1–2 lakh
• POS / Billing & Order System Setup: ₹50,000–₹1 lakh
• Signage, Branding & Launch Costs: ₹1–2 lakh
• Staff Hiring & Training: ₹1–2 lakh
• Working Capital Reserve: ₹1–2 lakh
• Rental Deposit / Lease Advance: depends on city and locality

For a small kiosk or takeaway-focused outlet, total setup can remain within ₹15–22 lakh.

Space & Location Requirement

• Kiosk Outlet: 200–300 sq ft (for takeaway and minimal seating)
• Small Café: 300–500 sq ft (basic seating + beverage preparation area)
• Full Café: 500–800 sq ft (dine-in, seating, order counter, storage)
• Best suited locations: near offices, colleges, busy markets, transport hubs, residential zones — areas with high footfall and frequent tea demand.

Chai Point Profit Margin & ROI

• Net Profit Margin: 15%–25% after expenses (raw materials, staff, rent, utilities)
• Monthly Profit: ₹40,000–₹1.2 lakh depending on sales volume and location
• ROI Timeline: 12–20 months for well-run outlets in suitable areas

High customer repeat rate for tea and snacks helps maintain stable earnings.

Royalty & Ongoing Charges

Chai Point usually charges a royalty or revenue-sharing fee on sales (percentage or fixed, per agreement).
Franchisee takes care of:

• Rent and associated lease costs
• Utilities, electricity and water
• Inventory replenishment and supplies
• Staff salaries
• Maintenance and daily operations

Efficient cost control and high turnover are essential for profitability.

Support Provided by Chai Point

• Store layout and setup guidelines
• Training for staff in beverage preparation, hygiene and service
• Supply-chain support for tea, snacks, packaging and ingredients
• Brand and marketing support for promotions and launch
• Billing and POS system support
• Operational and quality-control standards to maintain uniform service

This helps even first-time entrepreneurs manage café operations smoothly.

Who Should Invest in a Chai Point Franchise?

Ideal for:

• Investors with ₹15–30 lakh capital ready
• People with small- to medium-size commercial/rental properties in busy areas
• Entrepreneurs interested in food/ beverage business with moderate investment
• Individuals ready to manage daily operations, staff, supply and customer service

Chai Point works especially well in areas with office crowd, students or high pedestrian traffic.

Risks & Challenges

• Sale depends heavily on location and footfall — bad location reduces profit
• Tea cafés face high competition from local tea stalls, other QSRs and food courts
• Operating costs (rent, utilities) and maintenance may reduce margins if not managed carefully
• Consistency in taste and service quality is essential — poor hygiene or service can damage brand reputation
  Good location, strict quality control and efficient operations help overcome these issues.

How to Apply for a Chai Point Franchise

• Submit franchise interest with shop location, investment capacity and city details
• Company evaluates proposed site for feasibility and footfall potential
• On approval, sign agreement and pay franchise fee/deposit
• Complete setup — interiors, equipment, inventory, staff hiring
• Train staff as per brand guidelines
• Launch outlet under Chai Point brand and start operations

Conclusion

Chai Point offers a mid-investment café franchise opportunity with costs ranging from ₹15–30 lakh for small to medium outlets. With rising tea demand in urban India and a strong brand presence, it can be a profitable food-service venture. For entrepreneurs with good locality, customer base and commitment to quality, a Chai Point franchise could be a stable and rewarding business option.