Chai Sutta Bar Franchise Cost in India – Total Investment, Fees & Profit Margin 

The Chai Sutta Bar franchise combines brand strength with profitability and uniqueness in its offerings. The Chai Sutta Bar (CSB) provides kulhad chai in its youth-friendly modern setting to create a cultural event that has spread throughout India. The popularity of the Chai Sutta Bar Franchise in India highlights how well the brand connects with today’s generation.

Chai Sutta Bar started its mission to redefine tea traditions in India before developing into one of the fastest-expanding tea franchise brands, attracting young customers, entrepreneurs, and tea lovers alike. The brand’s ‘Taste the Kulhad Chai’ motto reflects its dedication to traditional values, eco-friendly practices, and a café-style setup that encourages social interaction.

The 600+ outlets across 370+ cities together with international locations in Dubai, Oman and Nepal make CSB more than a business venture because it represents a traditional movement that embraces innovation. Partnering with Chai Sutta Bar enables you to become part of a flourishing business operation which expands constantly throughout the years.

History of Chai Sutta Bar

Chai Sutta Bar Franchise in India – Total Investment, Fees & Profit Margin-chai sutta bar

In 2016, three friends—Anubhav Dubey, Anand Nayak, and Rahul Patidar—launched the first Chai Sutta Bar tea outlet in Indore, Madhya Pradesh. The founders introduced their tea outlet with a unique concept that combined kulhad (clay cup) tea service in a bar-style setting, excluding alcohol and smoking.

What began as a small tea stall quickly evolved into a profitable franchise business and a 100-crore company within six years—without accepting any outside investment. The three Indore outlets of CSB laid the foundation for its rapid growth across Madhya Pradesh, before expanding into metro cities and establishing international operations. Today, the brand has become a youth-focused symbol of creativity and Indian cultural spirit, proving that tea can be the start of transformative change.

Chai Sutta Bar Growth Timeline

2016

  • The company established its initial three restaurants in Indore, which is located in Madhya Pradesh.
  • The business introduced kulhad chai to its bar-like space, which operated without smoking

2017–2018

  • Rapid expansion across major cities of Madhya Pradesh
  • The concept found widespread acceptance among students, together with young working adults.

2019

  • The company reached high levels of exposure both in social media and throughout urban areas.
  • The establishment attracted young people who started making it famous on a national level.

2020

  • The company kept expanding to reach 85+ Indian outlets throughout the pandemic.
  • The company started global market expansion while entering new international territories.

2022

  • The franchise maintains a position as one of the fastest-growing tea businesses throughout India.
  • The company will persist in its growth trajectory while prioritizing quality maintenance and cultural development, and community engagement.

2024

  • The company has established itself through 600+ outlets, which operate in 370+ Indian cities.
  • The company achieved a prominent market position in Dubai, along with Oman and Nepal.
  • The company reached 100 crore revenue without accepting outside capital.

Why Choose Chai Sutta Bar Franchise?

The Chai Sutta Bar Franchise offers several compelling reasons for potential investors.

  1. Popular & Youth-Centric Brand: CSB operates as a chai-serving establishment rather than an alcohol-serving bar. This creates curiosity and footfall.
  2. Low Investment, High Return: The CSB franchise structure provides investors with an affordable business model that reaches profitability quickly when compared to McDonald’s or KFC food franchises.
  3. Proven Business Model: The complete franchise support at CSB includes branding solutions, together with interior design services and raw material supplies and marketing assistance.
  4. High Daily Demand for Chai: Tea consumption among millions of Indian people happens daily because it remains an unending trend.
  5. Global Brand: The company has established successful branches in Dubai and Nepal and Oman which demonstrate its global market potential.

 Chai Sutta Bar Franchise Cost in India 2025

Total franchise startup co

sts for Chai Sutta Bar depend on variables such as business location and both premises size and regional market classification. 

ParticularsCost / Info (Approx.)
Franchise Fee₹6 – ₹12 Lakhs
Interior & Furniture₹4 – ₹6 Lakhs
Equipment & Machinery₹3 – ₹5 Lakhs
Initial Raw Materials₹1 – ₹2 Lakhs
Staff & Training₹1 – ₹2 Lakhs
Branding & Marketing₹2 – ₹3 Lakhs
Royalty Fee4% of Monthly Revenue
Total Investment₹20 – ₹30 Lakhs

Return on Investment (ROI) for a Franchise at Chai Sutta Bar

The standard Return on Investment (ROI) reaches 108%, indicating you will recover your investment with extra profits. This franchise attracts many people because of this significant factor.

Most Indians enjoy chai beverages, and the growing popularity of Chai Sutta Bar ensures customer acquisition will not be a problem. New outlets benefit from the existing fan base of the brand because it enables them to begin earning profits quickly.

Starting a business that requires minimal time for profitability can be an ideal investment through the Chai Sutta Bar franchise.

Franchise Requirements

1. Space Required

  • Minimum area: 200 sq. ft. to 400 sq. ft.
  • High footfall locations like: Near colleges, Marketplaces, Railway stations or metro stations, Corporate parks

2. Store Setup

  • Signature “kulhad” chai counter
  • Our establishment features branded interior decorations that showcase Chai Sutta Bar wall art.
  • Casual seating area (optional for takeaways)

3. Manpower Required

  • The staff requirements consist of 2–4 employees who will prepare chai and operate the counter.
  • CSB team delivers the training to franchisees

4. Franchise Duration

  • 5 years initially (renewable)

Menu Highlights

Chai Sutta Bar offers:

  • Chocolate Chai
  • Elaichi Chai
  • Masala Chai
  • Rose Chai
  • Tulsi Chai
  • Ice Tea
  • Cold Coffee
  • Maggi
  • Sandwiches
  • Puffs & Buns
  • Kulhad Pizza (in some outlets)

Documents Required for Franchise Application

Documents required for the franchise application are :

  • ID & Address proof (Aadhaar/PAN card)
  • Passport-size photos
  • GST & FSSAI registration
  • Shop/property documents or lease agreement
  • Bank statement (for financial verification)

Chai Sutta Bar Franchise Models

FOFO (Franchise Owned Franchise Operated)

The franchisee maintains ownership of their outlet and operates it independently under terms that grant the Chai Sutta Bar brand rights through a non-refundable Franchise Fee. Upon signing the agreement, the franchisee receives the outlet management responsibilities for the specified duration under company-established guidelines.

COCO (Company Owned Company Operated)

The COCO model has outlets that belong entirely to the company, while the company operates them. The company takes full responsibility for store setup and daily management of all aspects. All outlets managed by Chai Sutta Bar operate independently from the franchise model and receive direct management from the company.

How do you apply for a Chai Sutta Bar Franchise?

Step-by-Step Process:

  • Visit Official Website: www.chaisuttabarindia.com 
  • The franchise application requires information about the name and location, as well as contact details and business background.
  • CSB’s franchise team evaluates phone calls during the telephonic interview process.
  • Team members will physically check the site and approve its suitability for the business.
  • Agreement signing will follow approval for franchise ownership and payment of the franchise fee.
  • The setup and training phase for new outlets includes interior design work alongside branding initiatives together with recruitment and training of staff members.
  • The outlet starts its operations through marketing initiatives from CSB at its grand opening.

Franchise Support:

CSB provides complete franchise support that includes these benefits to their franchise partners. Through CSB you will always have support in your business operations. Every franchise partner receives complete business support through an end-to-end system from CSB.

1. Location Assistance: The franchise assists partners who need help selecting a location by analyzing city movement data and customer traffic statistics and market competition.

2. Interior & Equipment Support: The franchise partners receive help with their interior design, furniture selection, branding needs, kitchen equipment purchase and Point of Sale system installation.

3. Staff Training: Your team receives training both at first and throughout operations to maintain service quality and product consistency and hygiene standards.

4. Marketing & Promotion: Our company provides marketing assistance through national and local programs that support both levels.

  • Digital promotions
  • Social media visibility
  • Inauguration campaigns
  • Seasonal offers and combo strategies

5. Operational Guidance: The company provides continuous support for daily operations as well as supplier management and inventory controls and customer satisfaction metric tracking.

Conclusion

The Chai Sutta Bar franchise presents customers with more than chai beverages as it delivers an innovative cultural experience at affordable prices to youth customers. The Indian traditional beverage company CSB provides business opportunities through its traditional heritage and international growth plans to entrepreneurs pursuing the popular Indian drink market.

The franchise support system and brand recognition, together with eco-friendly kulhad cups at CSB, provide all franchisees, including new business owners, with essential resources for successful business operations. 

The Chai Sutta Bar franchise remains successful throughout India and internationally because it offers both small startup costs and returns on investment exceeding 100% during the first year.

FAQs

1. How much does it cost to open a franchise Chai Sutta Bar in India?

In terms of the total investment, it varies between ₹20 to ₹30 lakhs due to the region and setup.

2. How much profit can be generated from a Chai Sutta Bar franchise?

The estimated ROI is about 108 percent, which can be achieved within 1 year of the franchise’s operation.

3. What is the space requirement for setting a CSB outlet?

You will need an area of 200 to 400 sq. ft. in a region with high pedestrian traffic.

4. How long does it take to open a CSB franchise after approval?

The construction period generally lasts from 45 to 60 days.

5. Does Chai Sutta Bar provide marketing support or training?

CSB provides every franchisee with extensive training, operational guidance, and marketing assistance with all of their franchises.

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