Chaayos Franchise Cost: A Comprehensive Guide to Investment, Profit & Expansion

Brewing Opportunity in India’s Tea Café Market

India’s love affair with chai is deeply ingrained in its culture — but the way we consume it is changing. From roadside stalls to organized cafés, the “tea economy” is evolving. In this shift, Chaayos, founded in 2012 by IIT-Delhi alumni Nitin Saluja and Raghav Verma, has emerged as a pioneer of personalized, modern tea experiences.

For entrepreneurs, the prospect of owning a Chaayos outlet is tempting: a scalable, tech-enabled brand with strong customer loyalty. But to assess whether it’s the right franchise opportunity, one must understand its franchise cost, ROI, profitability, and growth potential. This article takes you through a detailed, data-backed breakdown – from investment structure to application steps, competitor benchmarks, and realistic financial forecasts.

Market Context: The Rising Tea Café Wave

Global and Indian Market Trends

• According to Statista, the global tea market continues to grow with annual CAGR projections as consumers increasingly choose premium and specialty tea formats.

• In India, tea café franchises are becoming more attractive than coffee chains due to lower setup costs and cultural affinity. Industry experts note that starting a tea franchise often requires less capital than a coffee shop, making it less risky for first-time entrepreneurs.

• According to a report by Tea Time (2025), its model has scaled to 4,000+ outlets, with very fast ROI and strong margins.

• Franchise India lists Chaayos as a fast-growing chain with more than 200+ stores across India, signaling solid brand traction.

These shifts highlight why investing in a Chaayos franchise makes strategic sense: the brand rides the wave of tea’s mass appeal while offering an organized, scalable café format.

Chaayos Franchise Cost & Investment Breakdown

Here’s a detailed look at the investment involved in opening a Chaayos franchise.

Initial Capital and Franchise Fee

Based on multiple sources:

• The franchise fee for Chaayos is approximately ₹1,00,000 (1 lakh).

• Infrastructure / Fit-out Costs (interior, kitchen setup, equipment) range from ₹5 lakhs to ₹10 lakhs, depending on location and store size.

• The total initial investment is therefore estimated at ₹6 lakhs to ₹11 lakhs for a standard store.

Space & Infrastructure Requirements

• Typical store size needed: 200–400 sq.ft.

• Staff: About 2–5 employees per outlet.

• Mandatory equipment: Kitchen (optionally), POS system, internet connectivity, AC, CCTV.

• Required licenses and documentation: PAN, GST registration, address proof, trade license, etc.

Operating Costs & Revenue Sharing

• Royalty fee: Chaayos charges a 5% royalty on monthly gross sales.

• Operating costs include rent, raw materials (tea bases, spices, snacks), salaries, utilities, local marketing.

• According to BharatFranchise, the revenue-sharing model is very favorable: franchisees retain approximately 95% of revenues.

Profitability & ROI Forecast

Break-even Timeline

• Many Chaayos franchisees reportedly break even within ~12 months.

• This quick ROI is facilitated by moderate capex, strong brand pull, and high revenue retention.

Profit Margins & Revenue Estimates

• According to FranchiseInvestment.in, Chaayos’ profit margin lies between 15%–25%, depending on location and scale.

• Average billing per customer is estimated at ₹150–₹300, according to BharatFranchise.

• With efficient operations and good footfall, monthly net profit can build up quickly — especially since royalty is only 5%.

Competitor Comparison (Tea Café Franchises)

To put Chaayos in context, here’s how it stacks up against other tea franchise models:

Key insight: Chaayos offers relatively low entry cost and one of the most favorable revenue-sharing models among tea café franchises, making it especially attractive for small-to-medium investors aiming for a fast return.

Risks, Challenges & Key Considerations

While the Chaayos franchise model looks attractive, it’s important to factor in potential challenges:

1. Location Risk: Since optimal stores require 200–400 sq ft, location is critical. Footfall in corporate hubs, high streets, malls or transit points can dramatically affect revenues.

2. Operating Expenditure: Even though capex is moderate, rent and utilities (AC, internet) can add up, especially in metros.

3. Competition: There’s fierce competition from other tea chains (Chai Point, Tea Time), coffee shops, and local chai stalls.

4. Brand Uncertainty: Some sources suggest ambiguity around whether Chaayos officially runs a “franchise program.” For example, a YouTube channel claims Chaayos follows a COCO (company-owned, company-operated) model, and “they don’t offer franchise opportunities.” YouTube Meanwhile, multiple franchise-listing websites estimate franchise costs. This contradictory information introduces risk.

5. Documentation & Compliance: Acquiring licenses (GST, trade, FSSAI), and meeting brand documentation requirements may be time-consuming.

Step-by-Step Franchise Application Guide

If you’re convinced Chaayos is your path forward, here’s a practical roadmap to apply — assuming they have or will run a franchise model in your region.

1. Research & Preliminary Inquiry

• Visit the Chaayos official website and look for “Franchise / Partner” or “Business Development” sections.

• Alternatively, use franchise portals (like Franchise India) to express interest.

• Prepare a business proposal including: your location, shop size (200–400 sq ft), projected footfall, and financial capacity.

2. Initial Screening & Financial Assessment

• Submit your financials (assets, capital). Chaayos expects about ₹6–11 lakhs for investment + some buffer for 6–8 months’ operational expenses.

• Share your business background: prior retail or F&B experience boosts chances.

• Propose a location: high-traffic zones like malls, corporate parks, or metro stations are ideal.

3. Assessment & Negotiation

• Chaayos team may visit your proposed site to evaluate footfall, accessibility, and lease terms.

• Negotiate terms: franchise fee, revenue share (royalty), store design, vendor suppliers, and training support.

• Review legal documentation: franchise agreement (typically 5-year term), non-compete clauses, territory rights.

4. Signing & Payment

• Once approved, sign the Franchise Agreement.

• Pay the one-time franchise fee (₹1 lakh approx).

• Deposit for premises (if leasing) and select vendors for design, equipment, and fit-out.

5. Store Setup & Training

• Work with Chaayos-approved vendors to design and set up the outlet.

• Chaayos provides training on menu, operations, customer service, POS software, inventory management, and hygiene.

• Integrate technology (POS, internet, inventory systems) as per brand SOPs.

6. Pre-Launch & Marketing

• Run a soft launch to test processes, staff, and operations.

• Coordinate with Chaayos for local marketing support — branding materials, digital/social campaigns.

• Set up delivery integrations (if required) and launch day promotions.

7. Grand Opening & Ongoing Operations

• Officially open to customers with brand support.

• Track monthly sales, monitor royalty payments (~5%), and manage operations (staff, inventory, quality).

• Use Chaayos’ support systems (relationship managers, menu updates) to scale.

Competitive Landscape & Opportunity Comparison

To fully appreciate the Chaayos franchise opportunity, you should consider how it stacks up versus other tea and beverage franchises, and the broader F&B sector.

• Tea vs Coffee Franchises: As noted by tea investment analysts, setting up a tea café typically requires lower initial investment compared to a coffee chain because tea equipment is cheaper, and high-margin tea cost per cup is low.

• Other Tea Franchises:

  • Tea Time: Lower royalty (3%), smaller kiosk-format options, and extremely fast ROI (5–12 months).

  • Chai Point: Larger footprint needed, higher investment, slower break-even, but stronger presence in corporate and metro hubs.

• New Entrants: Viral brands like Dolly Ki Tapri have also started franchising, with investments ranging from ₹4.5 lakh to ₹40 lakh, showing that tea franchising is highly diverse and competitive.

Global & Macro Insights: Why Tea Franchises Are a Smart Bet

1. Changing Consumer Preferences: Globally, consumers are gravitating toward specialty and artisanal teas, fueling the rise of boutique tea cafés.

2. Lower Barrier to Entry: Compared to international coffee franchises, tea cafés often require less capex, making them accessible to a broader set of entrepreneurs.

3. Scalability in Emerging Markets: In India and other emerging economies, tea enjoys widespread daily consumption, reducing the risk linked to premium café cycles.

4. Repeat Business: Tea customers tend to be more frequent and loyal; beverage cost is low but perceived value is high.

Why Chaayos Could Be Your Best Tea Franchise Bet

• Balanced Investment & Reward: With moderate capex (₹6–11 lakh) and low 5% royalty, the financial risk is manageable, yet the returns can be strong.

• Proven Brand: Chaayos has built over 200+ stores with a loyal customer base — franchising with such equity gives you a head start.

• Tech-Enabled Infrastructure: Chaayos supports you with operations, training, and POS/delivery integration, making it easier to run efficiently.

• Fast ROI Potential: Breaking even in ~12 months is realistic, based on current franchisee reports.

Challenges & What to Watch Out For

• Mixed signals around whether public, open franchising is fully supported by Chaayos (some sources claim otherwise).

• Your chosen location’s footfall and rental costs will heavily influence profitability.

• Ongoing operational costs (rent, staff, utilities) need realistic planning.

• Despite low royalty, marketing, and local promotions may still require your investment.

Localizing the Opportunity: Chaayos Franchise in Jaipur & Beyond

For entrepreneurs in Jaipur (or elsewhere in Rajasthan):

• Identify high-footfall locations: malls, office parks, or transit hubs.

• Leverage local demand: Jaipur has a thriving café culture; a tea café like Chaayos can stand out by offering customized “meri wali chai.”

• Contact Chaayos’ corporate office: their registered address is Sunshine Teahouse Private Limited, 382, 100 Feet Rd, Ghitorni, New Delhi, Delhi 110030.

• Network with other franchise owners or attend franchise expos to understand scale, operations, and local strategies.

Conclusion: Chaayos Franchise

The Chaayos franchise presents a compelling blend of affordability, brand strength, and high-growth potential within India’s booming tea café market. With an investment range that remains accessible to first-time entrepreneurs and a proven business model backed by strong customer loyalty, Chaayos positions itself as a lucrative opportunity for those seeking sustainable and scalable returns. Its tech-driven operations, modern café experience, and nationwide expansion strategy further enhance its appeal, especially in urban and semi-urban markets where consumer preferences are shifting toward premium yet familiar beverage experiences.

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FAQs (Frequently Asked Questions) — Optimized for “People Also Ask”

Q1. What is the Chaayos franchise cost?
A1. The estimated Chaayos franchise cost (initial investment) ranges from ₹6 lakh to ₹11 lakh, covering the franchise fee (~₹1 lakh) and infrastructure/fit-out costs (~₹5–10 lakh).

Q2. How much revenue share or royalty does Chaayos charge?
A2. Chaayos charges a royalty of around 5% on monthly gross sales. Franchisees reportedly retain around 95% of revenue, making the model financially attractive.

Q3. What size of shop is needed for a Chaayos outlet?
A3. Most Chaayos franchise models require 200–400 sq.ft of space.

Q4. How long does it take to break even on a Chaayos franchise?
A4. Many franchisees report breaking even within 12 months, depending on location, sales, and operating costs.

Q5. Does Chaayos officially allow franchises, or is it a company-owned model?
A5. There is mixed information: some franchise portals list Chaayos franchise opportunities, while other sources (including a YouTube video) claim the company primarily follows a COCO model (company-owned, company-operated) and may not offer franchising broadly.