If you love chai and café business, a Chai Garam franchise can be a strong opportunity in India’s fast-growing tea café market. With high tea consumption and rising branded café demand in cities and towns, the Chai Garam concept blends traditional chai with snacks and beverages. This detailed guide covers investment cost, fees, profit potential, space & manpower needs, franchisor support, pros & cons, eligibility, application process, risks, FAQs, and conclusion — all in easy language.
☕ About Chai Garam Franchise
Chai Garam is a tea café franchise brand that started in New Delhi in the late 2000s and has expanded to 100+ outlets across 30+ Indian cities. The brand serves freshly brewed chai, coffees, shakes, cold drinks, and quick bites like sandwiches, pastas, and snacks — all designed for daily customers and tea lovers. Its format includes kiosks, compact cafés, and modular indoor outlets.
The franchise model suits first-time entrepreneurs and people interested in fast-moving, low-investment food & beverage businesses.
💰 Investment Cost (INR)
The total investment depends on the outlet format you choose. Below is a typical investment range:
| Franchise Model | Approx. Space | Total Investment (INR) | Notes |
| Kiosk Model | 60–300 sq.ft | ₹10 Lakh approx | Small space, indoor/outdoor kiosks |
| Compact Café | 200–500 sq.ft | ₹10 – ₹20 Lakh | Café format with seating |
| Full Café / Retail | 300–800+ sq.ft | ₹15 – ₹20 Lakh+ | Larger café space |
Franchise fee: Around ₹2 Lakh – ₹3 Lakh one-time.
Royalty: Approximately 4 % of net sales.
(*Figures are approximate and vary by location; GST and local costs apply.)
💼 Franchise Fee & Royalty
- Franchise Fee: ~₹2 – ₹3 Lakh (one-time brand & license fee).
- Royalty: Around 4 % of net sales (ongoing monthly).
The franchise fee covers rights to use the Chai Garam brand and access to operational systems. Royalty is paid regularly in return for ongoing brand support.
📊 Profit Margin & ROI
Profit and payback depend on location, sales, and cost control:
- Gross Profit Margin: Tea and beverages typically have high margins due to low raw material cost.
- Net Profit: Many outlets can earn 12–20 % net profit after expenses like rent, staff, utilities, and royalty.
- ROI / Payback: Most kiosk and compact café models target 12–24 months for break-even and ROI.
📌 Exact profitability varies widely with footfall, local competition, staff cost, and operational efficiency.
🏢 Space & Manpower Needs
🧱 Space Requirements
| Model | Space Needed |
| Kiosk | 60 – 300 sq.ft. |
| Compact Café | 200 – 500 sq.ft. |
Ideal locations include market streets, malls, colleges, commercial zones, transit hubs, and high-footfall public areas.
👥 Manpower
- Staff needed: 3–6 persons depending on outlet size and hours of operation.
- Roles include barista/tea maker, service staff, and cashier.
🤝 Franchisor Support
Chai Garam typically offers:
✔ Site evaluation and approval assistance
✔ Design, layout & interior guidance
✔ Training on operations, SOPs, and service
✔ Menu standardisation and recipes
✔ POS & billing software support
✔ Supply chain sourcing help
✔ Marketing and promotional guidance
✔ Ongoing operational support
This support is vital for new entrepreneurs entering the food & beverage sector.
👍 Pros & 👎 Cons
✅ Pros
✔ Low-to-moderate investment compared to many restaurant franchises.
✔ Strong brand presence with many existing outlets.
✔ High margin items like tea and beverages.
✔ Structured support and training.
❌ Cons
❗ Food & beverage business can be labour-intensive.
❗ Profitability heavily depends on footfall and location quality.
❗ Royalty reduces net margin, especially in lean periods.
❗ Contract terms may include restrictions — read agreements carefully.
📋 Eligibility Criteria
To qualify for a Chai Garam franchise:
✔ Investment capability: ~₹10–20 L+ with working capital buffer.
✔ Commercial space: High-footfall location.
✔ Basic business skills or willingness to manage staff.
✔ Legal compliance: GST, Shop/Trade licence, FSSAI (if applicable), fire safety, and local permits.
✔ Customer service focus: willingness to maintain brand standards.
✍️ Application Process
Here’s a typical process:
- Initial Enquiry: Contact Chai Garam via their official franchise contact or through a form request.
- Submit Profile & Location: Share investment plan and proposed location details.
- Site Evaluation: Franchisor validates location for footfall potential.
- Sign Agreement: Review and sign the franchise contract.
- Setup & Training: Complete store setup and attend training sessions.
- Launch: Open your outlet with support from the franchise team.
⚠️ Risks to Consider
- Location risk: Poor footfall can keep sales low.
- High competition: Other chai brands and local stalls compete.
- Operational costs: Rent and labour impact margins.
- Franchise contract terms: Some clauses may limit transfer or exit; read carefully.
❓ FAQs (Frequently Asked Questions)
Q1. How much is the Chai Garam franchise cost?
A: ₹10 L – ₹20 L approx depending on outlet format, including franchise fee and setup.
Q2. What is the franchise fee?
A: Around ₹2 – ₹3 Lakh (one-time).
Q3. Is royalty charged?
A: Yes — typically ~4 % of net sales.
Q4. What space do I need?
A: 60 – 500+ sq.ft. based on format chosen.
Q5. How soon can I break even?
A: Many outlets target 12–24 months for payback.
🏁 Conclusion
A Chai Garam franchise offers a well-structured way to enter India’s popular tea café market with moderate investment, brand support, and menu diversity. With careful location choice, cost management, and quality service, you can build a stable local café business. However, success depends on footfall, operational discipline, and understanding franchise terms in detail before signing.