India loves to drink tea. On average, Indians drink two or three cups of tea every day. There are a few people, whom I know, who get depressed if they don't get their shot of tea at regular intervals. So, it makes sense that there is a 'CHAI WALA' at almost every road corner. Today we will talk about a business that has taken the concept of CHAI to another level. The name of the business is Chai Sutta Bar. (1) They have become so big that we have a Chai Sutta Bar franchise at 250+ outlets nationally and internationally!
The Start of Chai Sutta Bar
Anubhav Dubey, the founder of Chai Sutta Bar, was born in 1996 in Rewa in Madhya Pradesh. His mother and father always imagined that Anubhav would one day work for the Indian Administrative Service. (2)
Therefore, following completing his schooling, he was dispatched to Delhi to prepare for the UPSC examinations. Anubhav, away from his family and friends in the nation's capital, put his head down and began preparing for the challenging exam.
However, he was not destined to be an IAS. While studying, Anubhav got in touch with Anand Nayak, his childhood friend. Among various things, they discussed tea, which was their favorite beverage. They discussed that perhaps they, too, could start a tea business. But as we discussed, there is a tea stall at every corner. Anubhav and Anand decided to start a chai business with a twist!
Chai Sutta Bar shops are styled on the lines of a liquor bar and a place where one can smoke! However, both these two things are not allowed at their stalls. Nevertheless, the concept resonates with the youth. This has led to their growth 2x a day and 4x times a night.
They started their first tea stall in Indore in 2016 and have never looked back. Working with an extremely limited budget, the two co-founders quickly recognized that they did not have any funds for marketing, interior design, branding, and other similar activities.
However, the brand soon picked up loyal followers, and they were able to launch stores in the three cities of Indore, Bhopal, and Ujjain.
Today, the Chai Sutta Bar franchise is present in more than 150 cities across three countries, operating more than 250 retail locations, and its annual revenue is greater than Rs 100 crore.
How to Start a Chai Sutta Bar Franchise
Before beginning your own Chai Sutta Bar franchise, you must thoroughly understand the specifics regarding the Chai Sutta Bar franchise cost, designs, needed expertise, rules and regulations, practicality, and more.
You can go with either the franchise-owned and franchise-operated (FOFO) model or the company-owned and company-operated (COCO) model. (3)
In the FOFO model, Chai Sutta Bar levies a cost for the use of its brand name when it is rented out. When the brand name is rented, an agreement between the corporation and the franchise owner must be signed. In this scenario, the investor in the franchise is the owner, and the franchise is responsible for paying for all of the business's expenses.
In the COCO model, the company handles all of the major aspects of the business itself in this regard. The money for the franchise comes from the firm itself, and the company's workers are the ones that run it.
Chai Sutta Bar provides the following three sorts of outlets:
The Kiosk is the most condensed form of retail space, and it typically has a restricted food and drink selection. The seating area is somewhere between 300 and 400 square feet in size.
The Mediumlocation is slightly larger than a kiosk but smaller than a mega location. It has a smaller seating area but offers a significantly more extensive menu.
The Mega is the largest sort of location that Chai Sutta Bar has, and it provides customers with the whole menu and a sizable seating area for those who enjoy chai.
Moreover, Chai Sutta Bar prefers prospective franchise owners with prior experience working in the Food and Beverage industry. This preference helps ensure that franchise owners can manage business operations without difficulty.
In addition, your odds of turning a profit go up directly to the amount of experience you have. Experience enables you to develop strategies and create a business plan that contributes to the expansion of your firm.
Even if you have no previous experience in the food and beverage industry, operating a chai sutta bar franchise is possible.
Training and assistance from Chai Sutta Bar are available as you get started in your endeavor. It assists you in formulating a plan and gaining an understanding of the kind of enterprise that will be most fit for you.
Location Requirements for Chai Sutta Bar Franchise
Just like other foods and drink businesses, the success of your Chai Sutta Bar franchise will be greatly influenced by the location that you choose. The rule of thumb is to choose a site with the potential for the greatest foot traffic since this will help you obtain more consumers, ultimately leading to increased revenues.
Chai Sutta Bar Franchise cost
An increasing number of people are investing in the brand's franchise opportunities. You must pay a franchise fee of Rs. 6 lacks and a 2% royalty annually to acquire a franchise. Moreover, the cost of Machinery, interiors, and raw materials can easily set you back by another Rs. 10 lakhs. You can expect an ROI of around 30 to 40%.
Should You Start a Chai Sutta Bar Franchise or
The concept that the Chai Sutta Bar brand has introduced is unique. There have been a lot many other tea shop franchises that have come up in the last 3-5 years. The market is expanding.
So, it makes sense that if you what to start a tea business, you can collaborate with people with experience operating in the space. So, if you have decided to start a tea business, you can consider the Chai Sutta Bar franchise.