Irani Chai Franchise Cost, Royalty Fees, Profit, Eligibility & More

Irani chai and café culture has a long and beloved history in India, especially in cities like Hyderabad, Pune, and Mumbai. Today, this heritage is being packaged into franchise opportunities that let entrepreneurs start their own Irani chai cafés or kiosks with a proven business model. This guide breaks down investment cost, fees, profit potential, manpower, franchisor support, pros & cons, eligibility, application process, risks, FAQs, and conclusion in simple language.

☕ Introduction: What Is an Irani Chai Franchise?

Irani chai franchises are branded outlets that serve authentic Irani-style tea (chai), snacks like bun maska, omelettes, and other quick bites. These franchises aim to recreate the vintage café experience that has been part of Indian culture for decades. Unlike independent cafés, a franchise comes with brand support and operational guidance.

💰 Investment Cost (INR)

The total investment for an Irani chai franchise varies widely based on the brand, outlet size, and format (kiosk vs full café). Below is a comparative cost overview:

Typical Brand Examples

• Hyderabadi Irani Chai: ₹2 – ₹5 Lakh total investment (compact kiosk)
• Irani Chai Café: ~₹6 Lakh total investment (mid-size outlet)
• Larger Café Formats: ₹15 – ₹20 Lakh+ in premium locations

💼 Franchise Fee & Royalty

Franchise Fee

• Most brands charge a one-time franchise fee around ₹1.5 L – ₹5 L for branding and licensing rights.

Royalty / Revenue Share

• Some franchises require an ongoing royalty or commission of ~5% – 8% of monthly sales.
• Higher commission models (e.g., ~30%) may exist in certain brands listed online; clarify before signing.

👉 Tip: Always read the franchise agreement closely for royalty terms, GST treatment, and renewal fees.

📊 Profit Margin & ROI

Profitability depends on location, customer traffic, menu pricing, and cost control.

Profit Expectations

• Gross Sales: Varies widely by format; small kiosks see lower sales than larger cafés.
• Net Profit Margin: Typically 15% – 30% depending on efficiency and sales volume.
• Payback / ROI Period: Usually 6 – 24 months based on outlet size and demand. Compact kiosk models can break even faster (around 6–12 months) while larger cafés may take longer.

Avoid exaggerated claims; real profits vary with operations, rent, and staff costs.

📍 Space & Manpower Needs

Space Requirements

Manpower

• Staff: 2–6 people depending on outlet size and hours of operation.
• Typical roles include tea makers, service staff, and a cashier.

🧑‍💼 Franchisor Support

Most established Irani chai franchise brands offer:

✔ Site evaluation and outlet setup guidance
✔ Branding templates and décor guidelines
✔ Training for staff and owners
✔ Standard operating procedures (SOPs)
✔ Marketing support and launch promotions
✔ Raw materials sourcing assistance
✔ POS and billing systems support

This support helps reduce early risk and standardises quality across outlets.

👍 Pros & 👎 Cons

✅ Pros

✔ Low to moderate investment compared to full-service restaurants.
✔ Heritage brand appeal attracts loyal customers.
✔ Multiple formats (kiosk to café) suit different budgets.
✔ Strong demand for tea culture across India.

❌ Cons

❗ Profit depends highly on footfall and location.
❗ Some models charge royalty or high commission.
❗ Quality and service execution are critical in a crowded F&B market.
❗ Franchise support quality can vary by brand. Always check references.

📋 Eligibility Criteria

To qualify for an Irani chai franchise, you typically need:

✔ Adequate investment capital (₹2 – ₹20 L+ depending on format and brand).
✔ Commercial space in a high-traffic area.
✔ Ability to manage staff and operations.
✔ Readiness to obtain licenses: PAN, GST, FSSAI, and local trade/shop license.
✔ Past experience in food or retail is helpful but not always required.

✍️ Application Process

Follow these general steps to apply:

1. Initial Enquiry
   Contact the franchisor via official websites or franchise platforms.
2. Profile & Location Submission
   Share your business plan, budget, and proposed location.
3. Site Approval
   Franchise team evaluates location for visibility and traffic.
4. Agreement & Fee Payment
   Review and sign the franchise agreement, then pay the franchise fee.
5. Setup & Training
   Build the outlet, install equipment, and train staff.
6. Launch & Marketing
   Officially open with launch campaigns and local marketing.

⚠️ Risks to Consider

• Rent fluctuations in premium locations can reduce profits.
• Seasonality may affect sales rhythm.
• Brand reliability varies: not all franchise claims match reality. Do due diligence.
• Customer preferences and competition from local tea stalls are strong.

❓ FAQs (Frequently Asked Questions)

Q1. What is the typical Irani chai franchise cost in India?
A: Normally between ₹2 L to ₹20 L+ depending on outlet size, brand, and format.

Q2. Is royalty charged on sales?
A: Many brands charge 5 – 8% royalty; some may have different terms.

Q3. How long does it take to break even?
A: Usually 6 – 24 months, depending on footfall and cost control.

Q4. What licenses are required?
A: PAN, GST, FSSAI license, and local shop license.

🏁 Conclusion

An Irani chai franchise in India offers a low-to-moderate investment entry into the popular tea and café business. With multiple formats and brand options available, you can choose a model that fits your budget and market. The key to success lies in choosing the right location, understanding franchise terms clearly, managing costs, and delivering great service. With careful planning and realistic expectations, this business can become a sustainable local café favourite.