Tea Time Franchise Cost in India: Model, ROI, Eligibility & Application Guide

Tea Time is a fast-growing tea café brand with over 4,000 outlets across India (and even Nepal), popular in Andhra Pradesh, Telangana, Maharashtra, Delhi, West Bengal and more . Its low investment entry and robust support system make it appealing to first-time entrepreneurs in the F&B space.

💸 Investment Breakdown

Local sources consistently estimate ₹4–10 Lakh total investment depending on format and location:

Component Estimate
Franchise Fee ₹2.25 – 5 Lakh
Setup / Interiors ₹1–5 Lakh
Equipments & Initial Stock ₹0.5–2 Lakh
Licenses & Misc. Costs ₹0.5–2 Lakh
Working Capital (1–2 months) ₹1–3 Lakh
Total Investment Range ₹4.25–10 Lakh based on scale/location
  • Most units fit within 100–200 sq ft, suitable for kiosks or compact storefronts .
  • Some sources report setups under ₹5 Lakh all-inclusive.
  • Master franchise or multi-unit setups may go up to ₹9–10 Lakh .

🎯 Franchise Model & Fees

Tea Time

Tea Time offers a unit franchise, with potential master franchise opportunities:

  • Franchise Fee: ₹2.25–5 Lakh one-time.
  • Royalty: 3% of gross monthly sales, capped around ₹9,000/month.
  • Agreement Tenure: Ranges from lifetime to 5 years per sources.
  • Space Needed: 100–200 sq ft in high-footfall zones like metro stations, bus stops, colleges .

📈 Profitability, ROI & Payback

Tea Time boasts high margins and fast returns:

  • Gross Margin: 40–80% depending on sales mix.
  • Net Margin: 35–50% after Opex .
  • Monthly Revenue Example: ₹1.2–2.5 Lakh typical .
  • Net Profit: ₹24–100 K/month .
  • Payback: 5–12 months; median 6–9 months .
  • Annual ROI: Between 40–50%.

✅ Eligibility Criteria

Ideal franchisee profile:

  • Age & Citizenship: 18–21+; Indian national.
  • Investment Capacity: ₹4.25–10 Lakh ready.
  • Location & Space: 100–200 sq ft in high-traffic zones .
  • Staffing: 1–5 trained staff .
  • Business Readiness: Passion for customer service and compliance with brand standards.
  • Documentation: ID proof (Aadhaar/PAN), GST, FSSAI, lease agreement, bank statements.

No prior F&B experience is required—full training and support is offered.

🛠️ Franchise Support & Setup Process

Tea Time provides extensive franchisee backing:

  • Training: Recipes, hygiene, POS, customer service in ~3 days.
  • Outlet Kit: Includes fridge, deep freezer, stove, utensils, initial stock .
  • Branding & Interiors: Menu boards, counters, signage, and lollipop boards included .
  • Operations Help: Site evaluation, layout, equipment setup, launch marketing.
  • Central Supply: Raw materials and stock consistency guaranteed.
  • Ongoing Advice: Regional area managers for marketing and business guidance.
  • Setup Timeline: 15–20 days from agreement to launch.

⚖️ Pros & Cons

✅ Pros:

  • Low capital barrier in F&B segment.
  • High profit margins and quick Payback.
  • Established brand with national presence.
  • Turnkey solution—training, setup, supply, marketing.
  • Zero business experience needed—ideal for first-timers.

❌ Cons:

  • Strong reliance on location footfall for success.
  • Ongoing royalty and marketing fee expense.
  • Market is highly competitive—many tea/snack brands.
  • Potential profit deviation—some units may underperform.
  • Fringe cases of low quality or inconsistent product as per anecdotal reports .

🧭 Application Steps

  • Franchise Enquiry: Visit teatimegroup.com and submit your details .
  • Site Discussion: Franchise manager contacts you for location details and eligibility.
  • Site Visit: Tea Time’s team inspects and approves the outlet spot.
  • Agreement & Fee: Sign up (lifetime or 5-year tenure); pay ₹2.25–5 Lakh.
  • Outlet Setup: Branding, equipment installation, staff hiring & training.
  • Stocking: Receive kitchen kit and initial raw materials.
  • Launch: Soft opening to iron out operations, followed by official launch.
  • Regular Support: Access to operations consultants and marketing support.

📝 Fast Facts Snapshot

Metric Estimate
Total Investment ₹4.25–10 Lakh
Space Requirement 100–200 sq ft
Royalty 3% of gross, capped ₹9,000/month
Gross Margin 40–80%
Net Margin 35–50%
Monthly Revenue ₹1.2–2.5 Lakh
Monthly Profit ₹24,000–100,000
Payback Period 5–12 months
Annual ROI ~40–50%

💡 Final Word

Tea Time offers a compelling, low-risk entry into the booming quick-service tea café sector—with ₹4–10 Lakh investment, high margins, and speedy ROI. The brand’s turnkey support makes it novice-friendly, though success depends heavily on picking the right location and managing daily operations effectively.

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