Chai Sutta Bar Franchise in India (2025): Build a Profitable Tea Café Business Under ₹20 Lakhs
Tea isn’t just a beverage in India — it’s a daily ritual. Chai Sutta Bar (CSB), founded in 2016 by Anubhav Dubey and Anand Nayak, has turned this everyday experience into a thriving café culture brand. With a strong social message and sharp business acumen, CSB has grown into one of India’s most talked-about and scalable tea franchise chains.
If you’re looking to enter the food & beverage industry with a youth-driven brand, strong unit economics, and rapid scalability — the Chai Sutta Bar Franchise could be the perfect opportunity.
Table of Contents
Introduction: A Tea Startup That Brewed Big Success
Founded in Indore, Madhya Pradesh, Chai Sutta Bar started as a modest tea outlet catering to college students. Within a few years, the brand scaled across India and even internationally, with outlets in UAE, Nepal, Canada, and the UK.
Their unique selling point? Kulhad chai (tea in clay cups), combined with modern café aesthetics and street-style food. The brand balances tradition and trend with precision.
Today, Chai Sutta Bar operates over 550 outlets in 320+ Indian cities, making it one of the fastest-growing tea franchises in the country.
Franchise Investment & Setup Details
| Item | Estimated Cost |
|---|---|
| Franchise Fee | ₹6 – ₹8 Lakhs |
| Setup & Interiors | ₹5 – ₹6 Lakhs |
| Equipment & Machines | ₹3 Lakhs |
| Initial Stock & Supplies | ₹2 Lakhs |
| Branding & Signage | ₹1 Lakh |
| Working Capital Buffer | ₹3 – ₹4 Lakhs |
| Total Investment | ₹15 – ₹20 Lakhs |
| Royalty Fee | 2% – 4% of revenue |
| Break-Even Period | 12–18 months (approximate) |
| Expected Profit Margin | 35% – 40% |
Why Chai Sutta Bar? What Makes It a Strong Franchise Brand
- Cultural Relevance: Tea is an emotional, daily part of Indian life.
- Youth Appeal: Café design, music, and social campaigns attract college-goers and millennials.
- Social Mission: CSB empowers potter families by using over 3 lakh kulhads daily, supporting rural artisans.
- Diverse Menu: Offers more than just tea — Maggi, sandwiches, burgers, and more to increase ticket size.
- International Presence: CSB outlets are now in UAE, Canada, UK, and Nepal, enhancing brand value.
Founder’s Vision: Anubhav Dubey’s Entrepreneurial Journey
Anubhav Dubey, co-founder of CSB, started the brand at just 22. Originally preparing for the UPSC exams, he pivoted toward entrepreneurship with a single goal — make chai classy, cool, and scalable.
“We built Chai Sutta Bar not just as a tea café, but as a space for community and culture. We wanted kulhad chai to have a global stage while keeping it deeply rooted in India.” — Anubhav Dubey
Under his leadership, CSB has gained massive media coverage, including features in:
- CNBC TV18
- YourStory
- Times Now
- NDTV
Franchise Support & Training
When you become a CSB partner, you get more than just the name. The brand provides:
- Site Selection Guidance
- Interior Layout and Branding Assistance
- Staff Hiring and Training
- Digital Marketing & Social Media Tools
- Vendor Tie-ups for Inventory
- Post-Launch Operational Monitoring
Their franchise team ensures a plug-and-play setup experience, even if you’re new to food retail.
Performance Highlights & Industry Stats
Here are some compelling data points to show CSB’s traction:
- Over 4 crore kulhad chai cups sold annually
- 550+ stores opened in just 7 years
- Present in over 3 countries and 320 cities
- Revenue milestone of ₹100+ crore (2023)
Industry Insight: According to IMARC, India’s tea café market is expected to grow at a CAGR of 9.5% from 2023 to 2028. With urban café culture booming, CSB fits squarely into high-demand consumer behavior.
Ideal Franchise Locations
CSB is flexible with outlet formats. You can start in:
- Malls and High Streets
- Near Colleges & Hostels
- Metro Stations or Transit Points
- Tier 2 & Tier 3 Cities (low rent + strong tea culture)
Cities like Indore, Pune, Bhopal, Bilaspur, Jaipur, Nashik, and Lucknow are especially suitable for mid-sized outlets or kiosks.
Pros and Cons: Is It Right for You?
Pros:
- Affordable entry point under ₹20 lakhs
- Fast brand recognition and digital presence
- Low royalty fee (2–4%)
- High repeat customer base
- Minimal food wastage (chai-based)
Cons:
- Heavy focus on footfall — site selection is crucial
- Limited menu compared to large-format cafés
- Outlet aesthetics must be maintained consistently
Required Documents to Apply
To begin the franchise process, you’ll need:
- ID Proof & Address Proof
- PAN Card & GST Registration
- Business Registration/LLP Documents
- Rent/Lease Agreement or Site Ownership Proof
- Food Safety License (FSSAI)
- Trade License (as per local laws)
Related Franchise: Rowdy Momos Franchise in India (2025)
How to Apply for a Chai Sutta Bar Franchise
You can apply directly through their official site:
- Visit: www.chaisuttabarindia.com/enquire-franchise
- Fill Out the Form:
- Name
- City & State
- Investment Capacity
- Contact Number & Email
- Get a Call from Their Team
- Site Visit & Discussion
- Agreement Signing & Setup Begins
The whole process from enquiry to launch usually takes 4–8 weeks depending on location readiness.
Final Thoughts: Is CSB the Right Franchise for You?
If you want to own a tea café that’s affordable, relevant, and professionally supported, Chai Sutta Bar is a solid option. With reasonable investment and a growing urban demand for casual tea cafés, the brand offers a low-risk entry into India’s thriving F&B sector.
It’s ideal for:
- First-time business owners
- Small-town investors looking for a scalable brand
- Investors interested in café culture with social impact
Take the first step toward owning a profitable tea café.
Click the button below to apply for the Chai Sutta Bar franchise today.
FAQs- Frequently Asked Questions
Q1: What is the total cost to open a Chai Sutta Bar franchise?
A: ₹15–20 lakhs, including franchise fee, setup, inventory, and working capital.
Q2: How long until I break even?
A: Franchisees typically reach break-even in 12–18 months.
Q3: Is CSB a good fit for Tier 2 cities?
A: Yes. CSB performs well in towns like Ujjain, Ranchi, and Nashik thanks to affordable pricing and local appeal.
Q4: Do I need to operate the outlet myself?
A: No. While active oversight helps, trained staff can manage daily operations under your supervision.
Q5: How do I apply for a franchise?
A: Fill the enquiry form on the official CSB website. Their team will guide you through the process.
