Chai Sutta Bar Franchise Cost in India: Model, ROI, Eligibility & Application Guide

India’s tea culture is legendary—and Chai Sutta Bar (CSB) has transformed this tradition into a youth‑centric, eco‑friendly café chain. Founded in 2016 by Anubhav Dubey and Anand Nayak (later joined by Rahul Patidar), CSB has grown into 600+ outlets across more than 370 cities, including international expansion in Dubai and Oman.

If you’re considering brewing business success with CSB, here’s an in‑depth look at costs, franchise models, returns, eligibility, and step‑by‑step setup guidance.

💸 Investment Overview

The investment for a Chai Sutta Bar franchise varies based on format, location, and scale. Here’s a breakdown of key estimates from trusted sources:

Cost Element	Kiosk/Standard Outlet	Full-scale Outlet
Franchise Fee	₹6–8 Lakh	Same fee applies
Setup Costs (Interior, etc.)	₹5 Lakh (furniture, décor)	₹5–7 Lakh depending on size
Machinery & Equipment	₹3 Lakh	Similar estimate
Initial Raw Materials	₹2 Lakh	₹2 Lakh
Working Capital	₹5 Lakh	₹3–5 Lakh
Miscellaneous	₹1 Lakh	–
Total Investment	₹16–18 Lakh typical	Up to ₹20–30 Lakh in major cities

• Some sources cite lower initiation: ₹11.5–12 Lakh total.
• Premium outlets or metro cities may push investment to ₹20–30 Lakh.

Royalty & Fees

• Royalty is typically 2–4% of monthly sales.
• Some sources specify a 4% royalty, plus occasional 1–2% marketing levy.

Franchise Model: FOFO vs COCO

CSB offers two formats:

• FOFO (Franchise–Owned, Franchise–Operated): You own and operate the outlet under CSB brand, paying franchise fee and royalties.
• COCO (Company–Owned, Company–Operated): Run entirely by CSB itself—not available to franchisees.

Ideal for entrepreneurs seeking ownership and control.

📈 Return on Investment

This franchise delivers strong returns:

• ROI (Return on Investment): ~108–110%.
• Payback period: Just 14–18 months, sometimes even 12–15 months.
• Profit margins: Net margins of 35–40% on revenue.
• Monthly returns: ₹50 K–1 Lakh profit typical, with some outlets reporting ₹90 K–1 Lakh monthly net.

Eligibility Criteria 🧩

To qualify as a franchisee, you need:

1. Commercial Space – Typically 300–400 sq ft, but kiosk formats can range 200–700 sq ft.
2. Investment Capacity – ₹16 Lakh minimum (₹20–30 Lakh desirable in metros).
3. Experience/Skills – No formal qualifications required. But familiarity with F&B and basic operations is preferred.
4. Staffing – You’ll need 2–5 employees, including baristas, cashier, and helpers.
5. Age/Education – Typically 21+ years and at least high school diploma.
6. Training Commitment – Required participation in CSB’s training program.
7. Licenses & Documents – Includes FSSAI, shop/trade license, GST, NOC, fire clearance (~₹20–30 K rent area).

🛠️ Setup Timeline & Support

Application & Setup Steps:

1. Apply online through CSB’s website.
2. Submit location details—photos, layout, address.
3. Site survey by area manager.
4. Approval meeting.
5. Franchise agreement signing.
6. Outlet setup (begin interior, signage, equipment, staff recruitment).
7. Training – initial staff/owner sessions.
8. Launch – Typically 45–60 days post-approval.

CSB provides interior design guidance, menu planning, operational manuals, staff training, and marketing support—especially at initial phases.

📂 Required Documentation

Prepare the following documents:

• Company registration (proprietor/partner)
• Trade/shop license
• FSSAI license
• GST registration
• Fire & NOC clearances
• Lease agreement/shop ownership
• Identity proof & photos

Pros & Cons

Why invest in CSB?

• Strong brand, youth appeal & eco-friendly identity (“kulhad chai”)
• Proven growth: ₹100 crore revenue in six years
• High margins & fast ROI (~14–18 months)
• Comprehensive support & turnkey setup

Consider these challenges:

• Royalties (2–4%), plus possible marketing fees
• Consistent adherence to brand standards
• Employee training and retention
• Site-dependence: footfall and location impact sales

ROI Snapshot Table

Metric	Typical Value
Total Investment	₹16–18 Lakh (up to ₹30 Lakh)
Royalty Fee	2–4% of monthly sales
Payback Period	14–18 months
Profit Margin	35–40%
Monthly Net Profit	₹50 K–₹1 Lakh+
ROI	~108–110%

How to Apply: Step‑by‑Step

1. Visit chaisuttabarindia.com, go to “Franchise” or “Enquire Franchise” section
2. Fill out the form with your details.
3. Wait for confirmation.
4. Submit location photographs and layout plans.
5. Undergo a site survey by CSB team.
6. Attend approval meeting with area manager.
7. Sign agreement and pay franchise fee.
8. Kickstart outlet setup & team training.
9. Target launch within 45–60 days of approval.

📞 Contact: +91‑6262300031
✉️ Email: business@chaisuttabarindia.com or chaisuttabar@gmail.com

Final Verdict

Chai Sutta Bar offers one of India’s most promising low-to-mid investment, high-ROI franchise opportunities. With a brand beloved by youth, eco-conscious positioning through kulhad chai, and exceptional financial returns (ROI ~108%), it’s ideal for entrepreneurs seeking a turnkey opportunity in the F&B landscape. A ₹16–18 Lakh investment can yield healthy profits (+₹50 K–1 Lakh/month), with full payback in under 18 months.