Chai Suta Bar Franchise in India: Everything You Need to Know

Vishal Sharma

Starting a Chai Sutta Bar franchise in India is a promising opportunity with a remarkable Return on Investment (ROI) of 108%. With profit margins ranging from 35% to 40%, equivalent to approximately ₹90,000 per month, franchisees can expect a lucrative and rewarding business venture. The franchise agreement spans five years and ensures a safe learning experience from a successful venture. Chai Sutta Bar provides crucial support, including raw materials, technology, interior layouts, and tie-ups with online delivery partners. With a manageable working capital requirement and comprehensive marketing and sales support, potential franchisees can embark on a successful entrepreneurial journey with Chai Sutta Bar. If you are interested in learning more or have any inquiries, please feel free to contact Chai Sutta Bar by phone at 91-6262300031 or email at [email protected] or [email protected].

Chat sutta Bar Franchise

Photo by Amit Sharma: Free Tea on Clay Cups Stock Photo


Chai Suta Bar, a thriving chai-based café chain, has rapidly gained prominence in India’s culinary landscape since its inception in 2016. Originating from the bustling city of Indore, Chai Suta Bar introduces a unique concept, steering away from the conventional café experience. Contrary to its name, the establishment does not endorse smoking but focuses on providing a purely chai-centric ambiance.


The increasing demand for tea in India, coupled with Chai Suta Bar’s commitment to serving hygienic and affordable beverages in traditional kulhads, has contributed to its remarkable success. As chai-based cafes continue to capture the hearts of Indian consumers, Chai Suta Bar stands out as a promising franchise option. 


Its vision extends beyond national borders, aiming to establish an international presence while promoting Indian tea traditions. The franchise model offers a distinctive blend of low CAPEX, operational support, and a profitable venture, making it an appealing choice in the competitive café industry.


Why Choose Chai Suta Bar for Franchising in India?


Chai Suta Bar, a frontrunner in India’s chai cafe scene, seamlessly blends tradition and modernity. Amidst the chai craze, it offers more than a drink—it’s an inviting space where tradition meets contemporary vibes. In this overview, delve into why Chai Suta Bar stands out and why it’s not just a tea destination but an appealing franchise opportunity.


Chai Market in India


  • Cultural Significance: India’s tea culture is deeply embedded in its social fabric, with chai being more than just a beverage. It’s a social ritual, a moment of connection. The chai market has witnessed exponential growth, and consumers are increasingly seeking unique experiences beyond traditional tea stalls.


Chai Suta Bar’s Distinctive Position


  • Unique Concept: In a crowded market, Chai Suta Bar distinguishes itself through its innovative approach. Unlike conventional chai cafes, it offers a distinctive theme, ambiance, and branding, creating a niche for itself. The brand’s name, while suggestive of smoking, cleverly emphasizes its dedication to chai.


  • Hygienic and Affordable: Chai Suta Bar addresses the growing consumer concern for hygiene by serving tea in traditional kulhads, ensuring a clean and authentic experience. Moreover, the affordability of their beverages makes them an attractive option for a diverse customer base.


Quality, Variety, and Modern Chai Experience


  • Emphasis on Quality: Chai Suta Bar prioritizes the quality of its offerings. From the selection of tea leaves to the preparation process, the brand maintains high standards, resonating with the discerning Indian consumer who values authenticity.


  • Diverse Menu: The menu goes beyond traditional chai, offering a variety of flavors and blends to cater to diverse tastes. This versatility enhances the brand’s appeal, making it suitable for a broad audience.


  • Modern Chai Experience: Chai Suta Bar redefines the chai experience, infusing modern elements into a traditional concept. The ambiance, décor, and overall atmosphere create a trendy and welcoming space, attracting not only tea enthusiasts but also those seeking a contemporary café experience.


Franchise Potential


  • Low CAPEX: Chai Suta Bar’s franchise model is designed with practicality in mind, offering a low initial investment compared to other players in the market.


  • Operational Support: Franchisees benefit from comprehensive operational support, including training, supply chain management, and marketing assistance, streamlining the process of establishing and running a successful Chai Suta Bar outlet.


In conclusion, Chai Suta Bar emerges as a lucrative franchising option in India, leveraging the cultural significance of chai, a unique concept, and a commitment to quality and modernity. The brand’s focus on providing a distinctive chai experience positions it as a frontrunner in the dynamic and competitive chai market.


Requirements for Starting a Chai Suta Bar Franchise


Embarking on a Chai Suta Bar franchise journey involves meeting specific criteria, and ensuring a harmonious partnership between the brand and its franchisees.


1. Eligibility Criteria


Prospective franchisees should align with Chai Suta Bar’s values and vision. A passion for chai culture and a commitment to exceptional customer service are paramount. Previous experience in the food and beverage industry is advantageous but not mandatory.


2. Financial Requirements

Delve into the financial aspects with transparency. Franchisees need to understand the initial investment, franchise fees, and ongoing royalties. Chai Suta Bar provides a comprehensive breakdown, allowing potential investors to gauge the financial commitment accurately.


3. Background and Skills


Running a Chai Suta Bar demands a blend of business acumen and a customer-centric approach. The brand values individuals with strong leadership skills, a keen understanding of local tastes, and the ability to manage a team effectively. Chai Suta Bar supports its franchisees with training programs to ensure they embody the brand ethos.


4. Location Preferences


Explore the ideal setting for a Chai Suta Bar. The brand typically thrives in high-traffic areas with a mix of footfall. Urban and semi-urban locations with a diverse demographic often prove to be lucrative. Chai Suta Bar’s team assists in evaluating potential locations, considering factors like visibility and accessibility.


5. Target Market Analysis


Uncover the nuances of the target market. Chai Suta Bar has honed its understanding of consumer preferences and demographics, helping franchisees tailor their offerings to local tastes. This market analysis is a collaborative effort, ensuring the brand adapts while maintaining its core identity.


Embarking on a Chai Suta Bar franchise is a strategic partnership, and this section illuminates the prerequisites for a successful association. From personal attributes to financial considerations, potential franchisees gain a comprehensive understanding of what it takes to join the Chai Suta Bar family.


Cost Breakdown of Opening a Chai Suta Bar Franchise


Embarking on a Chai Suta Bar franchise is a thrilling venture, and a comprehensive understanding of the costs involved is paramount for potential franchisees. The detailed breakdown below provides clarity on the financial aspects associated with opening and running a Chai Suta Bar.

Initial Investment


  • Commercial Space: A minimum of 300 to 400 sq. ft is required for the Chai Suta Bar setup. This space serves as the canvas for creating the unique and inviting atmosphere synonymous with the brand.


  • Equipment and Machinery: Investing ₹3 lakh in essential brewing facilities and serving equipment is integral to delivering the high-quality chai experience that Chai Suta Bar is known for.


  • Furniture and Décor: Creating the distinctive Chai Suta Bar ambiance involves an investment of ₹5 lakh in furnishings, decor, and overall aesthetics, ensuring a welcoming environment for customers.


  • Raw Materials Initial Investment: Allocating ₹2 lakh for procuring initial raw materials, including quality tea blends and snacks, is crucial for kickstarting operations.

Franchise Fee


To become part of the Chai Suta Bar family and benefit from its established business model, ongoing support, and brand recognition, a franchise fee of ₹6 lakh is required.

Total Investment


The cumulative investment for setting up and launching a Chai Suta Bar franchise amounts to ₹16 lakh.

Return on Investment (ROI)


With an impressive ROI of 108%, franchisees can anticipate a lucrative and rewarding business venture.


Additional Information:


  • The Chai Suta Bar franchise agreement, spanning five years, guarantees a safe learning experience from a successful venture.


  • Profit margins range from 35 to 40%, equivalent to approximately ₹90,000 per month.


  • The working capital requirement is estimated at ₹1.5 to 2 lakh.


  • Raw material or food costs constitute approximately 32 to 35% of the turnover.


  • Chai Sutta Bar provides important raw materials, technology, and interior layouts.


  • The manpower requirement is 3 to 5 persons.


  • CSB facilitates tie-ups with online delivery partners.


  • The franchise agreement includes marketing and sales support, a Chai Sutta Bar menu, and staff training.


  • Interior layouts and design are provided under the franchise agreement.


For further details and inquiries, potential franchisees can contact Chai Suta Bar at Tel no: 91-6262300031 or via email at [email protected]  or [email protected]. The official website is Chai Suta Bar. The address for communication is 406, Janjeerwala Square, Silver Arc Plaza, New Palasia, Indore, Madhya Pradesh – 452001, India.


Cost Breakdown of Opening a Chai Suta Bar Franchise


Embarking on the journey of opening a Chai Suta Bar franchise involves careful consideration of various costs. From the initial franchise fee to ongoing operational expenses, understanding the financial aspects is pivotal for aspiring franchisees.

Here’s a table detailing the costs associated with opening a Chai Suta Bar franchise:

Cost Category

Amount (in INR)


Franchise Fee

₹6 lakh

One-time fee granting the right to operate under the Chai Suta Bar brand and benefit from its established business model.

Initial Investment Range

₹ 16 lakh

Covers real estate, equipment, and initial operational costs, ensuring a well-equipped

and operational Chai Suta Bar outlet.

Royalty Fees

2% of turnover

Ongoing fee contributing to support services provided by Chai Suta Bar, including marketing initiatives and operational assistance.

Equipment and Interior Setup

Variable based on location

Includes costs related to kitchen equipment, interior design, and furnishings, ensuring the outlet meets Chai Suta Bar’s operational and aesthetic standards.

Potential Financing Options


Franchisees may explore partnerships with financial institutions or seek guidance from Chai Suta Bar on securing funding for their venture.

Support from Chai Suta Bar

Training and operational guidance

Beyond financial aspects, Chai Suta Bar provides support through training programs, operational guidance, and ongoing assistance, enhancing the franchisee’s chances of



As you delve into the detailed breakdown of costs, envisioning the investment required and the support provided by Chai Suta Bar will pave the way for a well-informed decision on this exciting entrepreneurial endeavor.


Application and Launching a Chai Suta Bar Franchise


Embarking on the entrepreneurial journey with Chai Suta Bar involves a streamlined process that ensures a successful launch and continued support for franchisees.


1. Application Process


  • Prospective franchisees initiate the process by submitting a comprehensive application to Chai Suta Bar.

  • The screening process involves a thorough evaluation of the applicant’s background, financial capacity, and alignment with the brand values.

2. Training Programs


  • Accepted candidates undergo rigorous training programs, equipping them with the knowledge and skills essential for operating a successful Chai Suta Bar.

  • Training covers various aspects, including product knowledge, customer service, and business operations.

3. Site Selection and Setup


  • Chai Suta Bar provides guidance on selecting an optimal location, considering factors such as foot traffic, demographics, and market potential.

  • Assistance in interior design and setup ensures that the franchise reflects the brand’s aesthetic and operational standards.

4. Launch Strategies


  • Franchisees receive support in devising effective launch strategies, leveraging both online and offline channels to create a buzz in the local market.

  • Marketing materials, promotional activities, and event planning contribute to a successful grand opening.

5. Ongoing Support


  • Post-launch, Chai Suta Bar continues to provide ongoing support to franchisees.

  • Regular evaluations, operational guidance, and marketing assistance contribute to the sustained success of the franchise.

6. Evaluation Criteria


  • Chai Suta Bar employs specific criteria to evaluate the performance of franchise outlets, ensuring adherence to brand standards and customer satisfaction.

  • Continuous improvement initiatives are implemented based on feedback and market dynamics.


Opening a Chai Suta Bar franchise involves a collaborative journey, where the brand’s commitment to support and the franchisee’s dedication converge for a thriving business venture. Aspiring entrepreneurs can navigate the application process and launch with confidence, backed by a robust framework designed for success.



In summary, Chai Suta Bar emerges as a distinctive player in the flourishing chai cafe market, offering a unique and modern experience. With a focus on quality, variety, and ongoing support, it presents a compelling franchise opportunity. 


Aspiring entrepreneurs are encouraged to explore the rich cultural significance of chai in India and consider Chai Suta Bar for its established brand, comprehensive support, and the potential for a successful venture. The chai culture is thriving, and Chai Suta Bar stands poised to not only embrace it but also lead the way for entrepreneurs seeking a flavorful and rewarding business opportunity.


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