Chai Kings Franchise Cost in India: Model, ROI, Eligibility Criteria & Steps to Apply

Founded in 2016 by Balaji Sadagopan and Jahabar Sadique in Kilpauk, Chennai, Chai Kings has quickly scaled to over 50–60 outlets across India—primarily in Chennai, Bengaluru, Hyderabad and Coimbatore—with ambitious plans to reach 500 outlets in the next few years.

Known for premium teas sourced from Darjeeling, Assam and Nilgiris, Chai Kings offers diverse flavors—Masala Chai, Dum Chai, Badam Milk, Green Chai, Tulsi Chai—and complementary food items like Maggi, sandwiches, and cookies. Their brand promise focuses on hygiene, innovation, and consistency to carve a niche in India’s tea‑loving market.

💰 Investment & Cost Structure

Chai Kings Franchise Cost Summary

Component	Estimate (₹ Lakh)
Franchise Fee	3.5 – 6
Setup (Interior + Fit-out)	4 – 8
Equipment & Machinery	3 – 5
Initial Inventory	1 – 3
Working Capital (3–6 mo.)	2
Total Investment	8 – 20
Shop Area Required	150 – 1,000 sq.ft (ideal: 400–800)
Royalty	2 – 3% of monthly sales
Agreement Term	5 years, renewable

• For kiosk or smaller takeaway outlets, total investment falls in ₹12–15 lakh range, while full café formats may reach ₹18–22 lakh.
• Franchise fees range from ₹3.5 lakh for kiosk models to up to ₹5–6 lakh for outlet formats.

🏗 Franchise Model & Brand Support

Outlet Formats & Scale

• Kiosk / Express format: ~150–200 sq.ft; ideal for food courts, busy street corners.
• Dedicated café/outlet: 400–800 sq.ft; seated layout and service counter; suitable for malls, high-street retail, IT parks.
• Some listings even mention up to 1,000 sq.ft for high‑end outlets.

Support & Training

Chai Kings offers:

• Training in beverage preparation, customer service, staff SOPs, and operations.
• Operational manuals, menu SOPs, and quality protocols.
• Interior design and branding guidance, including seating, countertops, and kiosk decor.
• Supplier network and support for raw materials, teas, and packaged goods.
• Marketing collaterals for local promotions, social media support, and brand rollout.

📈 Financial Performance & ROI Potential

Monthly Sales & Margins

• Monthly turnover for a Chai Kings outlet typically ranges ₹10–12 lakh, depending on footfall and location.
• Profit margins are estimated at 30–40% of gross revenue. Franchisees retain ~97–98% after royalty deductions (~2–3%).

ROI & Payback Period

• Investments between ₹8–20 lakh are expected to be recouped within 6–10 months, although conservative estimates extend up to 2–4 years depending on outlet size, location, and turnover.
• Ideal urban locations can deliver payoff in under a year; smaller or semi‑urban setups might take toward 18–24 months.

✅ Eligibility & Ideal Profile For Franchisee

To qualify for a Chai Kings franchise, prospective investors typically require:

1. Financial readiness: ₹8–20 lakh capital (including setup and working capital).
2. Space: 150–1,000 sq.ft suitable for a kiosk or café; preferred location near offices, education hubs, malls or busy streets.
3. Experience/Energy: F&B or retail background is helpful but not mandatory; must be hands‑on and customer‑focused.
4. Operational discipline: Ability to manage staff, inventory, compliance with SOPs, and uphold quality.
5. Document readiness: KYC, PAN, GST registration, lease agreement and basic enterprise credentials.

📝 Step‑by‑Step: How to Apply

1. Submit Inquiry:
   • Visit chaikings.com and go to “Contact Us” → Franchise Inquiry page; fill in name, contact, investment, and location details.
2. Initial Screening:
   • Chai Kings reviews your background, capital credibility, and location viability before sharing franchise dossier.
3. Meet & Presentation:
   • Interview with franchisor; discuss business plan, alignment, and mutual expectations.
4. Site Selection & Approval:
   • Submit potential sites for Chai Kings’ evaluation covering footfall, competition, accessibility.
5. Agreement & Payment:
   • Sign a 5‑year franchise agreement; pay non‑refundable franchise fee (~₹3.5–6 lakh) and deposit as required.
6. Store Setup:
   • Collaborate on interiors, equipment installation, seating layout, and décor approved by brand team.
7. Training of Owner/Staff:
   • Operator and staff undergo brand training covering tea preparation, hygiene, service, billing systems.
8. Launch & Operations:
   • Grand opening; launch marketing support; begin daily sales and customer engagement.
9. Ongoing Support:
   • Continued brand guidance, supply chain support, business reviews, and marketing refresher materials.

⚖️ Pros & Cons for Investors

✅ Advantages

• Low-to-moderate investment (~₹8–20 lakh) compared to many QSR brands.
• Strong profit margins (~30–40%) and quick ROI in prime locations.
• Brand identity and trust from launch, backed by established SOPs.
• Operational simplicity—tea-focused menu, minimal inventory complexity.
• Support in marketing, supplier sourcing, and training.

❌ Considerations

• A handful of Reddit discussions caution high franchise fee vs simple business model with limited moat—similar to other tea franchises where personal brands may not yield sustained customer loyalty.
• Profitability varies based on location; Tier-II/III outlets may take longer to break even.
• Royalty commitment persists even during lean periods.
• Operational discipline is critical—staff training, cost control, and innovation are key in street-food markets.
• Some franchisees express caution about heavy dependence on brand appeal with basic product—suggesting due diligence and on-ground research before investing.

💡 Expert Tips Before You Invest

• Visit multiple existing outlets: Assess service quality, consistency, and customer footfall.
• Negotiate rent and lease terms carefully: Rental cost is a key operating expense.
• Review contract clauses thoroughly: Look for renewal, exit, and royalty escalation terms.
• Prepare backup funds: Plan for at least 3–6 months until stable cash flow.
• Talk to current franchisees: Get real‑world feedback on margins, supply chain, training support.

🧾 Franchisee Quick Checklist

• Investment ₹8–20 L (format & size-dependent)
• Space 150–1,000 sq.ft (ideal: 400–800)
• Franchise fee ₹3.5–6 L
• Royalty 2–3% monthly
• Agreement ≤ 5 years renewable
• Strong interest in F&B and operations
• Commitment to brand SOP and hygiene

🎯 Final Verdict

Chai Kings presents a compelling opportunity for entrepreneurs seeking a scalable tea franchise in India’s vibrant F&B scene. With manageable investment, strong returns, and brand support, ROI within 6–18 months is feasible for well‑selected locations and disciplined operators.

However, tea is a commoditized market and margins depend heavily on location, consistency, and tight operations. For those with moderate investment capacity, access to footfall zones like tech parks or high-street areas, and willingness to follow brand systems, Chai Kings can deliver a profitable and scalable business in under two years.