Chai Sutta Bar Franchise Cost, Profit & Requirements (2025 Guide)
- nk4980445
- Jul 28
- 4 min read
Chai is not just a beverage in India—it’s an emotion. And when it comes to blending that emotion with business, few brands have done it better than Chai Sutta Bar (CSB). Launched with a vision to serve kulhad (earthen pot) tea with a unique twist, CSB has now emerged as one of India’s fastest-growing tea franchise chains.
If you're someone who dreams of starting your own cafe but wants an affordable, high-return model, the Chai Sutta Bar franchise might just be your perfect brew.
In this detailed guide, we’ll cover the franchise cost, investment requirements, profit potential, application process, and whether CSB is a viable business in 2025.
About Chai Sutta Bar (CSB)
Founded in 2016 in Indore by Anubhav Dubey and Anand Nayak, Chai Sutta Bar started as a small tea outlet and quickly became a nationwide sensation. Today, it has over 500+ outlets across 200 cities, serving a wide variety of teas, coffees, snacks, and beverages—served primarily in eco-friendly kulhads.
Its desi vibe, youth-centric branding, and focus on emotional connection with chai lovers have turned it into more than a tea stall—it’s a full-fledged lifestyle brand.
Chai Sutta Bar Franchise Cost in India (2025)
The franchise investment for starting a Chai Sutta Bar outlet in 2025 is fairly reasonable considering the brand’s popularity and operational model. Initial Investment
Expense Category | Approximate Cost |
Franchise Fee | ₹6 – ₹8 Lakhs |
Setup & Interiors | ₹10 – ₹12 Lakhs |
Equipment & Machinery | ₹2 – ₹3 Lakhs |
Initial Stock | ₹1 Lakh |
Other Licenses & Marketing | ₹1 – ₹2 Lakhs |
Total Investment | ₹20 – ₹25 Lakhs |
Note: These costs vary depending on the location, outlet size (200–400 sq. ft.), and local municipal fees.
Franchise Requirements
Before applying, make sure you meet these essential franchise criteria:
Space: Minimum 200–400 sq. ft. at a high-footfall location (college areas, commercial markets, or IT zones)
Staff: 3–5 employees (CSB helps with staff training)
Brand Fee: ₹6–8 Lakhs (includes brand licensing & support)
Experience: No prior experience in F&B needed
Tenure: 5-year agreement with renewal option
Profit Margin & Earnings
A major reason why entrepreneurs opt for Chai Sutta Bar is its high ROI and quick breakeven.
Revenue Factors | Average |
Monthly Sales | ₹4 – ₹6 Lakhs |
Gross Profit Margin | 40% – 50% |
Monthly Net Profit | ₹1 – ₹1.5 Lakhs |
Break-even Period | 12 – 18 months |
The brand’s focus on low wastage, high volume, and affordable menu items allows for excellent margins in busy areas.
Why Choose the Chai Sutta Bar Franchise in 2025?
Established Brand Value – Already a household name in many cities.
Eco-Friendly & Youth-Oriented – Serving tea in kulhads promotes sustainability.
Low Risk, High Return – Ideal for small and mid-level investors.
Ongoing Support – Site selection, branding, interior design, and staff training.
Product Diversity – Offers a variety of chai, coffees, cold beverages, and snacks.
Franchise Application Process
Visit Official Website: Go to www.chaisuttabarindia.com
Fill Franchise Inquiry Form: Enter basic details like name, city, investment capacity.
Initial Call with Team: CSB's franchise team will evaluate your location and investment readiness.
Site Approval & Agreement: If approved, you’ll sign a 5-year franchise agreement.
Outlet Setup: Brand helps with interior design, setup, and launch.
Training & Operations: Your team receives hands-on training to ensure quality.
Ideal Locations for CSB Franchise
If you're wondering where to open your outlet for maximum profit, consider:
Near college campuses
Inside IT parks or business hubs
Railway stations or bus terminals
Malls and shopping centers
Popular tourist areas or historical markets
Menu Highlights of CSB
Some of the top-selling items from Chai Sutta Bar’s menu include:
Chocolate Chai
Ginger Chai
Rose Tea
Kulhad Cold Coffee
Mojito
Sandwiches, Maggie, Burgers, and Puff Snacks
Their wide range appeals to both the tea lover and the quick snacker.
Challenges You Should Know
While the brand offers excellent support, here are some real-world challenges to be aware of:
High Competition – Local tea joints and new chai brands.
Urban Rental Costs – Rent can eat into margins in metro cities.
Seasonal Sales Drops – Rainy and extremely hot months may affect cold beverage demand.
Smart inventory management and seasonal menu tweaks can help overcome this.
Frequently Asked Questions (FAQ)
Q1. Is the Chai Sutta Bar franchise profitable?
Yes, with a reasonable monthly profit margin of ₹1–₹1.5 Lakhs, the business is profitable when run in the right location with proper management.
Q2. Can I open a CSB outlet in a small town?
Absolutely. Chai Sutta Bar has outlets in Tier 2 and Tier 3 cities, and small towns with youth and working populations are ideal.
Q3. Do I need food business experience?
No, the franchise offers complete training, making it suitable for first-time entrepreneurs.
Q4. What is the validity of the franchise agreement?
The franchise agreement typically lasts for 5 years, with the option to renew.
Q5. How long does it take to start operations?
From approval to launch, the process generally takes 30–45 days.
Conclusion
In a market as emotionally connected to tea as India, investing in a brand like Chai Sutta Bar makes both business and cultural sense. With low capital requirements, high brand visibility, and strong consumer loyalty, CSB presents a golden opportunity for aspiring cafe owners in 2025.
Whether you’re a first-time entrepreneur or looking to diversify your portfolio, Chai Sutta Bar offers a warm, profitable entry point into India’s booming beverage industry.
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