Tea is one of the most loved drinks in India, with the country consuming over 837,000 tonnes of tea every year. But in recent years, chai is no longer just a roadside drink. It has become a modern café-style experience where people enjoy tea while hanging out with friends. One brand that has played a big role in this change is Chai Sutta Bar.
Known for serving tea in traditional kulhad (clay cups) and creating a relaxed café vibe, the brand has become extremely popular among students and young professionals. Because of its growing popularity, many entrepreneurs are now curious about the Chai Sutta Bar franchise cost in India and whether it’s a profitable business to start.
India’s tea market is also growing fast. It was worth around ₹78,000 crore in 2025 and is expected to grow even more in the coming years. With a strong youth customer base and an affordable menu, Chai Sutta Bar has expanded rapidly and plans to open hundreds of new outlets in the near future.
In this guide, we’ll explain the 2026 guide for Chai Sutta Bar franchise cost, investment required, profit potential, and how to start your own outlet step by step.
About Chai Sutta Bar: History, Leadership & Market Insights
| Aspect | Details |
| Brand Name | Chai Sutta Bar |
| Founded | 2016 |
| Business Model | Franchise-based tea café brand |
| Target Audience | Youth, students, working professionals, tea enthusiasts |
| Product Offering | Wide variety of teas, snacks, and beverages |
| Unique Selling Point | Affordable pricing, vibrant ambiance, youthful brand image |
| Ambiance | Trendy, vibrant, community-driven |
| Franchise Opportunity | Offers lucrative franchise opportunities for entrepreneurs |
| Expansion | Rapid growth with outlets across multiple cities in India |
| Customer Focus | Providing a comfortable space for tea lovers to relax, socialize, and enjoy tea |
| Brand Identity | Youthful, friendly, and community-driven |
| Popular Offerings | Masala chai, cutting chai, snacks, and other beverages |
| Growth Strategy | Focus on affordable pricing, operational support, and strong brand image |
The brand was established in 2016 by Anubhav Dubey and Anand Nayak. Both partners bonded over tea and wanted to set up a tea café that would be cheap yet stylish for youth; the first branch was in Indore, Madhya Pradesh. The launch name of the brand, Chai Sutta, is a play on chai- tea, which is almost a national drink in India, and sutta, the vernacular for a cigarette, which represents an informal get-together vibe.
The concept behind Chai Sutta was simple: provide a convenient setting that would allow people to consume tasty and healthy chai for a reasonable amount of money as well as offer a fashionable, cheerful setting. Due to the excellent quality of chai and the orientation of the young audience, professionals, students and tea lovers, the brand quickly gained a following.
Chai Sutta Bar Turnover & Net Worth 2026
Let us see the big picture- What is the overall performance of the brand?
The following are the important financial figures that are of interest to you as a prospective investor:
- Annual Turnover (2024): ₹220 Crore (increased by 100 Crore as compared to 2019, i.e. 340% growth in 5 years)
- Projected Revenue (2025–26): ₹500-700 crores
- CSB Net Worth: 100- 150 Crore+ (estimated).
- Daily Chai Sales: 4.5 to 6 lakhs+ kulhads per day in all the outlets.
- Total Outlets (2026): 600+ outlets operating in 370+ cities in India and international locations in Dubai and Oman.
By the end of 2026, Chai Sutta Bar will have 800+ stores and internationally. The brand has been expanding year on year.
Why Choose Chai Sutta Bar Franchise in 2026
This is why CSB is currently one of the most mentioned franchise opportunities in India, supported by tangible data:
- The overall investment is as low as ₹16 Lakh to ₹ 18 Lakh for a kiosk, one of the lowest in the organised cafe franchise business.
- An average of 108%, and most franchisees break even within 12-18 months.
- More than 550 active stores in 320 cities in India, with established presence overseas in Dubai and Oman.
- 3 lakh+ kulhads of chai sold daily- this is a figure that shows that there is enormous demand on a daily basis.
- The repeat-customer rate is 80%, indicating the company generates consistent recurring revenue.
Chai Sutta Bar Franchise Models
1. FOFO Model
In this model, the franchise owner invests and manages the outlet. The brand provides support like training, store setup guidance, branding, and supply chain assistance. The franchisee pays a one-time franchise fee and a small royalty on sales.
2. COCO Model
This stands for Company Owned, Company Operated. In this model, the company invests in and manages the outlet itself. It is usually used for prime locations and brand-controlled stores rather than franchise investors.
Common Outlet Formats
- Kiosk Outlet: A small takeaway setup usually located in malls, railway stations, or busy markets. It requires less space and lower investment.
- Standard Café Outlet(Store): A medium-sized outlet with seating for customers. This is the most common format and is usually opened near colleges, offices, and high-footfall areas.
- Premium Café Outlet(Lounge): A larger outlet with better interiors, seating space, and an expanded menu, designed to provide a full café experience.
Chai Sutta Bar Franchise Cost in India (2026) — Full Table
Here’s a clear breakdown of all costs involved in opening a Chai Sutta Bar franchise:
| Cost Component | Estimated Cost (INR) | Details |
| Franchise Fee | ₹6 – ₹8 Lakhs | One-time, non-refundable brand licensing fee |
| Interior & Setup | ₹5 – ₹7 Lakhs | Store design, furniture, lighting, décor |
| Equipment & Machinery | ₹3 – ₹5 Lakhs | Tea brewing machines, kulhad storage, refrigerators, etc. |
| Initial Raw Material Stock | ₹1 – ₹2 Lakhs | Tea, milk, spices, snack ingredients |
| Licensing & Permits | ₹1 – ₹2 Lakhs | FSSAI, GST, shop establishment, health trade licence |
| Marketing & Branding | ₹1 – ₹3 Lakhs | Launch promotions, signage, digital marketing |
| Total Investment (Kiosk) | ₹16 – ₹18 Lakhs | For smaller, high-footfall kiosk setups |
| Total Investment (Store) | ₹18 – ₹25 Lakhs | For medium to full-size café setups |
| Total Investment (Lounge) | ₹25 – ₹50 Lakhs | For premium lounge-style setups in top-tier cities |
| Royalty Fee (Monthly) | 4% of monthly sales | Ongoing fee for brand support, marketing, operations |
Franchise Fee
Chai Sutta Bar franchise cost in India encompasses designing the store, furniture such as sofas, tables, and chairs, kitchen utensils, and appliances such as tea brewers, grinders, and refrigerators. The cost of starting a franchise ranges from INR 6-8 lakhs, depending on the store size and location. Inasmuch as the Chai Sutta investment cost is higher, the kiosk is normally cheaper than the standard investment, while the lounge type is costlier.
Setup Costs
Equipment setup costs include store layout and shop fittings, the purchase of furniture, and kitchen tools, such as tea brewing machines, grinders, and refrigeration. The franchise’s initial investment might cost anything from INR 10-30 lakhs, depending on the area and size of the store. Break-even for a Chai Sutta Bar investment cost is calculated; the kiosk setup is relatively cheaper than the lounge setup.
Running Costs
Franchise monthly expenses, those of human resources, premises and other necessities such as rent, electricity, water, and basic materials, amount to INR 2 to 4 lakhs depending on the size of the franchise and its location. All those constant costs are required to maintain the franchise’s functioning and profitability. All these costs notwithstanding, Chai Sutta Bar’s investment cost remains reasonable compared to a typical food and beverage franchise.
Royalty and Marketing Fees
Franchisees should also consider the regular payment of royalties and marketing fees as part of the Chai Sutta Bar Franchise Cost in India. Generally, monthly royalty fees range from 4% of the franchise’s sales and cover essential services, including brand support, franchisee training, and operational assistance. Additionally, marketing fees, typically 2-3% of monthly sales, contribute to nationwide promotions and social media campaigns, ensuring the brand’s consistent visibility and success.
Total Investment
Chai Sutta Bar franchise cost in India includes equipment, and the starting cost to establish Chai Sutta ranges from INR 16 to 50 lakhs. This includes the cost of acquiring the franchise, the costs of establishing the outlet, and the initial working capital. Given that these channels deliver higher returns than other franchise businesses, this franchise is affordable in the growing tea café business.
Chai Sutta Bar Monthly Income & Profit — Table
Let’s be real about what you can expect to earn.
| Metric | Kiosk / Small Outlet | Medium Store | Large Café / Lounge |
| Expected Monthly Revenue | ₹2.5 – ₹4 Lakhs | ₹4.5 – ₹7.5 Lakhs | ₹7.5 – ₹12 Lakhs |
| Gross Profit Margin | 60% – 65% | 60% – 70% | 60% – 70% |
| Monthly Operating Costs | ₹1.5 – ₹2 Lakhs | ₹2.5 – ₹4 Lakhs | ₹4 – ₹6 Lakhs |
| Royalty Fee (4%) | ₹10,000 – ₹16,000 | ₹18,000 – ₹30,000 | ₹30,000 – ₹50,000 |
| Net Monthly Profit | ₹75,000 – ₹1.5 Lakhs | ₹1.5 – ₹2.5 Lakhs | ₹2.5 – ₹4 Lakhs |
| Net Profit Margin | 20% – 25% | 25% – 35% | 30% – 40% |
| Break-Even Period | 14 – 18 Months | 12 – 18 Months | 18 – 24 Months |
| ROI | ~108% | ~108% | 80% – 100% |
Key Factors Affecting Profitability
Environmental conditions such as place, traffic, training, and productivity are the key determinants of profitability. Adequate site choice, with lots of traffic and customers from that area, will result in high sales. However, it is cardinal to sustain the quality standards and engage customers incessantly to ensure perpetuity of profitability.
How to Apply for Chai Sutta Bar Franchise in 2026
Franchising with Chai Sutta Bar is relatively easy to apply for. The process follows the following steps:
Step 1: Access the Official Website
Access the official Chai Sutta Bar official website. The franchise option appears in the upper-right menu.
Step 2: Complete the Franchise Application Form
The web-based form will require simple information such as your name, phone number, desired city/ location, area covered, and investment capacity.
Step 3: First review by the CSB Team
Once you have submitted the form, the CSB team will review your application. They usually consider your preferred location, financial ability, and intentions.
Step 4: Site Survey and meeting with the area manager
In case your application is promising, a CSB area manager will meet with you. They will visit your suggested area, evaluate its potential for footfall, and recommend whether it is a good place.
Step 5: Approval & Franchise Agreement
In case the location is approved, you will sign a franchise agreement with CSB. These are your rights, duties, the term of the agreement, and the fee plan.
Step 6: Store Design
The interior design and setup is assisted by the CSB team. You may stick to their standard design or make minor customisation according to their design specification. The outlet typically takes 45 to 60 days to prepare after the agreement.
Step 7: Training of Staff Prior to Opening
The CSB crew takes you and your staff through intensive training, teaching you and your people how to make tea, serve customers, maintain a clean store, work the store, and manage inventory.
Step 8: Grand Opening
You open your outlet! CSB typically provides the launch stage with a bit of marketing assistance.
Chai Sutta Bar Franchise Contact Number
To find the most relevant and recent information about contacts, the following are the official details:
- Webpage: www.chaisuttabar.com.
- Address: 1 st floor, Red Square, PU3 Commercial, opposite C21 Mall, Scheme No. 54, Indore, Madhya Pradesh 45 2001.
- Franchise Enquiry: The official site has its Franchise form.
- Link: https://www.chaisuttabarindia.com/enquire-franchise/
Note: Recruitment should be done only using the official site. Do not deal with third-party agents who purport to handle franchise deals with CSB; such dealings are fraudulent.
Challenges in Owning a Chai Sutta Bar Franchise
While the market is competitive, Chai Sutta stands out with its affordability, vibrant ambiance, and extensive support for franchisees. Unlike premium coffee chains, it connects emotionally with India’s love for chai, making it a household name.
Threat from other brands of Tea and Coffee
The tea café segment is budding in India and with the introduction of the Chai Point and Tea Trunk competitors basic’s and other coffee-based franchises worldwide targeting the same customer.
Investment Requirement at the Start and Monetary Struggles
The initial Chai Sutta Bar Franchise Cost in India ranges between INR 20,00,000 to INR 50,00,000, depending on the outlet’s size and location. While this upfront investment might pose a challenge for some franchisees, it’s essential to factor in additional costs like site selection, outlet design, and procurement of raw materials.
Customers’ experience and quality are also consistent with their expectations.
Customer retention requires the organization to ensure that products and services delivered are of equal quality to previous ones. A franchiser requires a franchisee to ensure each cup of tea meets the brand’s standards and service requirements, including cleanliness and atmosphere.
Management Issues, Organizational Structures, and Staffing Requirements
Overall, it can be very stressful to manage everyday tasks, which include inventory, customer complaints, and employees. One of the pressing issues in the food and beverage industry is high employee turnover, which complicates staff control.
Chai Sutta Bar VS Competitors — Comparison Table
| Brand | Total Investment | Franchise Fee | Royalty Fee | Outlets (2026) | Profit Margin | Break-Even |
| Chai Sutta Bar | ₹16 – ₹25 Lakhs | ₹6 – ₹8 Lakhs | 4% | 550+ | 35% – 40% | 12 – 18 months |
| Chai Point | ₹25 – ₹35 Lakhs | ₹10 – ₹12 Lakhs | 5% – 8% | 250+ | 25% – 35% | 18 – 24 months |
| Chaayos | ₹30 – ₹50 Lakhs | ₹10 – ₹15 Lakhs | 6% – 8% | 200+ | 20% – 30% | 18 – 30 months |
| MBA Chai Wala | ₹10 – ₹20 Lakhs | ₹3 – ₹5 Lakhs | 5% | 300+ | 25% – 35% | 12 – 20 months |
| Café Coffee Day | ₹50 – ₹70 Lakhs | ₹15 – ₹20 Lakhs | 6% – 10% | 500+ | 15% – 25% | 24 – 36 months |
| The Tea Trunk | ₹20 – ₹30 Lakhs | ₹8 – ₹10 Lakhs | 5% – 7% | 100+ | 20% – 30% | 18 – 24 months |
Conclusion
Opening a Chai Sutta franchise is a fantastic opportunity for those looking to venture into the tea café business. The Chai Sutta Bar Franchise Cost in India is affordable, and the potential for high returns on investment is significant. Chai Sutta Bar stands out with its strong brand image, robust operational support, and a dedicated customer base, offering numerous growth opportunities.
By following the guidelines for investing and understanding how franchising works, you can easily succeed as a franchisee. If you are interested in tapping into the growing tea café market, Sutta Bar is the ideal franchise choice for you. It’s that simple – sign up today and be part of this thriving tea movement!
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FAQs
How much would one need to invest to establish the franchise of Chai Sutta Bar?
The initial investment required to open a chai sutta franchise in restaurants in India may range from 20 to 50 lakhs, depending on the size of the outlet, the location, and whether it will be a kiosk, a small store, or a large lounge-style outlet.
How much do royalty fees for a Chai Sutta Bar franchise cost?
The royalty fees paid by this franchise typically range from 5% to 8% of gross monthly sales. Such fees are paid for the management and for the right to use the brand name, respectively. Further, there may be marketing charges aimed at nationwide marketing campaigns.
Is it possible to own and run this franchise on your own?
Yes, only one person can own a franchise of this business, but it can be run by more than one person. Nonetheless, one needs the right business sense, operational capacity, and love for the brand.
What is the investment requirement of Chai Sutta and what return can be expected?
The Chai Sutta Bar franchise cost in India is relatively very cheap and attractive, and the investment is known to generate huge profits. Most franchisees can break even, with an average outlet’s monthly income between INR 5-10 lakhs, and most achieve break-even within 12-18 months.
