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Complete Guide to Tea Time Franchise Cost & Profit Margin

May 21, 2025

India’s passion for tea is ageless. With more than 80% of Indian families taking tea on a daily basis, the market for chai-based business opportunities keeps on growing. In this increasing culture, one name that holds the promise for aspiring entrepreneurs is Tea Time, one of India’s fastest-growing tea chains. Reputed for its value-for-money menu, quality consistency, and quick service model, Tea Time has become the choice of small investors from all corners of the country.

In this comprehensive guide, we will lead you through the process of opening a Tea Time franchise in India — covering the Tea Time Franchise Cost, investment model, profit margins, legal process, and everything else that will help you make an informed choice in 2025.

Why Choose a Tea Time Franchise?

The Hyderabad-based tea chain Tea Time Pvt Ltd was established in 2017. In a matter of mere years, it has grown spectacularly throughout India with over 3,500 stores as of early 2025. The brand has reached both metropolitan cities and Tier-II and Tier-III towns, which is evidence of its versatility and mass popularity.

Tea Time has more than 15 varieties of tea such as Assam chai, green tea, ginger tea, dum tea, and coolers like lemon iced tea and mojitos. Its affordable price (₹10-₹30 per cup) and high day-to-day footfalls make it the perfect model for volume-led profitability.

Top reasons to opt for Tea Time:

Low investment barrier
Quick return on investment (ROI)
Proven operating model
Strong backend supply chain and brand support
Nationwide recognition and trust

Market Potential for Tea Businesses in India :

Prior to diving into the franchise model and understanding the Franchise Business in India, there needs to be an understanding of the magnitude. As per a report by IMARC Group, the Indian tea industry achieved ₹12,000 crore in 2023 and is likely to exhibit a CAGR of 4.2% from 2024 to 2029.

Further:

India consumes more than 1 billion kilograms of tea each year.
The organized tea café industry is expanding more rapidly than roadside stalls due to urban living and hygiene considerations.
Low-cost tea chains such as Tea Time are fueling expansion in Tier-II and Tier-III towns.

This implies even a small store in a semi-urban area can clock decent daily traffic, making it a good investment.

Tea Time Franchise Investment: Cost Breakdown

One of the biggest advantages of starting a Tea Time restaurant is the franchise cost. It is in the “low investment, high return” category and is ideal for new business owners.

An overview of Tea Time franchise investment in 2025 is provided below:

Component	Estimated Cost (INR)
Franchise Fee	₹2,50,000
Brand Deposit	₹50,000
Raw Materials & Setup	₹1,50,000 – ₹2,00,000
Total Investment	₹4,50,000 – ₹5,00,000

This includes branding, initial training, machinery, and the first stock of raw materials. GST and other applicable taxes may be extra.

Requirements to Open a Tea Time Franchise :

Although Tea Time’s entry barrier is low, the following minimum space and infrastructure needs exist:

Minimum shop size: 100–150 sq. ft.
Ideal locations: Colleges, bus stops, markets, corporate parks
Minimum setup: Water supply, electricity, single-phase power
Ownership: Leased or owned space

The brand also seeks associates who can run day-to-day activities actively, maintain hygiene, and uphold customer service levels.

How Much Profit Can You Make?

Tea Time operates on a volume pricing system, where increased sales at low costs generate improved profits. Here’s an approximate calculation of the monthly income:

Daily Sales Projection

Average cups sold each day: 200–300
Average selling price per cup: ₹15
Daily revenue: ₹3,000–₹4,500
Monthly revenue: ₹90,000–₹1,35,000

Monthly Expense Estimate

Rent (location dependent): ₹10,000 – ₹15,000
Salary (1 staff): ₹8,000 – ₹10,000
Raw material cost: ₹30,000 – ₹40,000
Utilities and maintenance: ₹3,000 – ₹5,000

Net Profit

Total expenses: ₹55,000 – ₹70,000
Monthly profit: ₹35,000 – ₹65,000
Annual profit: ₹4.2 lakh – ₹7.8 lakh

So, you can hope to break even in 6–8 months, depending on where you are and the footfall at your place.

Step-by-Step Process to Get a Tea Time Franchise :

Here’s how you can start your Tea Time outlet:

1. Online Application

Fill out the franchise inquiry form on the official Tea Time website. You will be required to provide information such as name, contact details, proposed outlet location, and investment potential.

2. Initial Call and Proposal

If your location and profile suit their expansion strategy, a franchise executive will call you for a detailed conversation and provide the proposal document.

3. Location Approval

Your chosen location will be judged by the brand. Photographs, Google Maps location, or even a site visit might be required.

4. Franchise Agreement & Payment

Post-approval, you’ll sign a franchise agreement. You’ll then have to make the payment (₹4.5–5 lakh) to activate the setup process.

5. Outlet Setup & Branding

The company will assist with:

Interior layout
Installation of machinery
Branding and signboards
Menu boards and uniforms

6. Training & Launch

Tea Time offers pre-training for the owner and employees, which includes:

Tea preparation techniques
Hygiene practices
Customer relation
Inventory management

After training and setup, your store can be launched in 15–20 days from the agreement date.

Tea Time Franchise Support :

Among the key reasons for Tea Time’s success is its strong franchise support system. Here’s what it has to offer:

Supply Chain: Centralized raw material supply ensures consistency
Marketing: Digital promotions and local marketing guidance
Training: Pre-launch and continuous operational support
POS System: Billing and sales tracking tools
Menu Innovation: Periodic updates and seasonal launches

This makes it possible for even non-F&B background owners to run a successful outlet.

Common Challenges and Tips for Success :

1. High Local Competition

Despite the immense tea market, local tea stalls and cafés are immediate competitors. Emphasize cleanliness, brand identity, and consistency of taste to differentiate.

2. Staff Turnover

Train several staff members so your business is not impacted if one decides to leave. Providing small rewards or bonuses may elevate loyalty.

3. Limited Space

With small kiosks, every space matters. Employ vertical storage shelves and effective layout planning to use up your space effectively.

4. Marketing

Don’t just wait for walk-ins. Leverage Google My Business, Instagram reels, and WhatsApp marketing to get local customers.

Tea Time Franchise vs. Competitors

Here’s a quick comparison to show how Tea Time stacks up against other tea franchise brands in India:

Brand	Investment (INR)	No. of Outlets	ROI Period	USP
Tea Time	₹4.5–5 lakh	3,500+	6–8 months	Low cost, high volume
Chai Sutta Bar	₹10–15 lakh	500+	12–18 months	Youth-centric vibe, café style
MBA Chai Wala	₹10 lakh +	200+	12–15 months	Premium branding
Chai Thela	₹5–6 lakh	100+	8–10 months	Focus on hygiene, variety

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Final Thoughts : Is Tea Time Franchise Worth It?

If you’re looking for a low-risk, high-footfall franchise business in India with manageable operations and quick ROI, the Tea Time franchise is definitely worth considering. With minimal investment, a supportive franchise model, and India’s undying love for chai, this business offers both stability and scalability.

In 2025, as the demand for quick-service beverages continues to grow, Tea Time offers an affordable gateway into the F&B world, especially for small-town entrepreneurs, working professionals, or even recent graduates wanting to start a business.The Tea Time franchise cost remains one of the most competitive in the market, making it accessible for a wide range of aspiring business owners.

So, if you’ve been dreaming of becoming your own boss with a chai counter that draws crowds daily, now might be the best time to apply for a Tea Time franchise.