And what should it be, should that business be all about the favorite beverage of India? Yes, I’m talking about chai. It might be a bit intimidating to start up a business, especially when you feel like you must work out everything yourself. But what if I told you there is an easier way—one where you become your own boss, yet have a large and experienced team to assist you, just like when you start a reputed Tea franchise in India?
This paper is your home economics handbook. We are not going to make use of any fancy words. we will simply discuss, as two friends sitting in a cafe, of how you can become your own tea shop, by collaborating with a brand that people already know they like.
India’s Rapidly Growing Tea Franchise Market
- The Indian tea market is projected to be worth US$24.10 billion in 2025, with US$18.89 billion from at-home consumption and US$5.20 billion from out-of-home tea (cafes, restaurants).
- The domestic tea market was valued at US$11.5 billion in 2024 and is expected to grow at a CAGR of ~3.1% between 2025 and 2033.
- Despite a 7.8% drop in tea production in 2024 to about 1,284.78 million kg, owing to adverse climate conditions in Assam, the demand for tea remains strong.
- On the export front, India exported 254.67 million kg of tea in 2024, generating ₹7,111.43 crore, and has climbed to the 3rd position globally in tea exports.
Why Start a Tea Franchise in India?
- Strong Market Fundamentals: With India’s home tea market alone expected to hit US$ 18.89 bn in 2025, there’s already a massive base of tea drinkers.
- Export Momentum: Export volumes reached 254.67 million kg in 2024, so being part of a tea business ties you into a globally recognized sector.
- Resilience Despite Production Challenges: Even though production fell in 2024, prices have gone up, which could mean better margins for value-focused tea outlets/franchises.
- Growing Premium & Specialty Demand: Consumers are increasingly willing to pay more for quality, specialty, and organic teas — a space where a franchise can differentiate and charge premium.
- Scalable Model with Stable Demand: A tea franchise can scale from kiosks to full cafés, providing flexibility.
13 best tea franchise in India (2026 list)
1. Tea Time
Tea Time is one of the major brands of tea and it has numerous outlets, particularly in South India. They are out to provide quality and clean tea and snacks at the price that is affordable by a majority. Their business is referred to as a low investment, high return business.
The stores are simple, clean, and bright. They are in busy street corners, around colleges, and neighborhoods. They are simple, yet extremely popular as a quick and everyday cup of chai. They sell lots of tea each day.
Tea Time is a safe and inexpensive business when you want to have a simple business that is easy to manage and will be able to win a significant number of customers, and models like the Tea Time Franchise further highlight how such straightforward chai outlets can achieve massive daily footfall and consistent profits.
- Cost of Investment: 4 lakh -5 lakh (extremely cheap)
- Royalty Fee: 3% (usually limited so that it never exceeds a fixed amount, which is good on your part)
- Profit Margin: This can be high ranging between 40 and 80 percent since the cost is low.
- Website: teatimegroup.com.
2. Chai Sutta Bar
You might have heard about Chai Sutta Bar (CSB) online. It is youthful, cool and energetic. They are recognized to serve tea in environmentally friendly clay cups (kulhads). Their ambition is to create a bar where friends can have a good time, yet alcohol free.
They make their cafes fun to look at, there is good music, and they are a favourable choice among the younger generation. They are opened in the proximity of colleges and coaching centers. The young generation find it cool to have drinking chai in a kulhad. Starts are more expensive though you have a powerful, up-to-date brand.
- Investment Cost: ₹20 lakh – ₹30 lakh
- Royalty Fee: 4% of net sales.
- Profit Margin: About 20% – 25%.
- Apply Link: www.chaisuttabarindia.com
3. MBA Chai Wala
This brand has a celebrity due to its founder, Prafull Billore. His experience of having opened a tea stall after failing his MBA is motivating. When one purchases this franchise, he or she is buying into that hard work story. The brand is well-motivating and positive, making it one of the best Tea Franchise in India for aspiring entrepreneurs.
The cafes are where individuals can interact, discuss ideas and get inspired. They provide events, open mics and networking. It is not just a tea shop, it is a community center. Its name alone attracts a great number of people.
- Investment: 8 lakh to 25 lakh (they provide smaller kiosk and bigger cafes).
- Royalty Fee: About 4% – 5%.
- Profit Margin: About 20% – 25%.
- Apply Link: www.mbachaiwala.com
4. Chai Garam
“Chai Garam” means hot tea. They will guarantee you a fresh, hot and clean cup of tea whenever you want one. They target corporate and office premises. Their kiosks are smart and professional and are located in the IT parks, office buildings, and metro stations.
They serve busy office workers that require a quick 10-minute break. Their menu consists of healthy choices, sandwiches, and snacks that are good when having a quick lunch. In case your city is full of office parks, a Chai Garam franchise is a good opportunity as you will have a stable amount of customers during working days.
- Investment Cost: ₹10 lakh – ₹20 lakh
- Royalty Fee: About 4% – 6%.
- Profit Margin: Good, and payback period is 6-11 months.
- Apply Link: www.chaigaram.in
5. Yewale Amruttulya
This is a Pune-based brand that is popular. Amruttulya is nectar-like, and they are concerned with taste. They are aiming at producing the same perfect delicious cup of tea in each shop. They bring their own secret-recipe tea powder, sugar and spices.
You do not have to be a tea guru; all you have to do is follow their straightforward procedure. Their tea is known to be strong, milky and sweet. Best aspect: they have a zero-royalty model — you just purchase raw materials from them. This makes the Yewale Amruttulya Franchise an enormous advantage for new owners who want a simple, profitable, and highly scalable tea business.
- Investment Cost: ₹10 lakh – ₹12 lakh
- Royalty Fee: 0% (Zero Royalty!)
- Profit Margin: Excellent and the payback is estimated within 18 months.
- Website: https://www.yewaleamruttulya.com
6. Chai Kings
Chai Kings is not a new name, particularly in Chennai and other South India. They are highly professional and hygienic and technology oriented. They prepare their tea in clean and modern kitchens and deliver it in flasks that retain the heat, hence they are favored on office and home deliveries.
They are not a simple walk-in cafe, a large share of their business is delivered via delivery apps such as Swiggy and Zomato. They are selling tea but they act like a technology company. For aspiring entrepreneurs looking to enter the large online delivery market, Chai Kings is considered one of the best Tea Franchise in India.
- Investment Cost: ₹15 lakh – ₹25 lakh
- Royalty Fee: Around 6% – 8%.
- Profit Margin: Good, as they are vergood in terms of walk-ins and delivery.
- Apply Link: www.chaikings.com
7. Chai Point
Chai Point is a chain of the oldest and largest tea cafes in India. They are operated in desirable places such as the best airports, large IT parks, and upscale malls. They are specialists in corporate chai. Their product is known as boxC.in and it provides chai in special flasks to hundreds of offices (such as Google and Microsoft) daily.
As a franchisee, you have the opportunity of operating a high-end cafe and also avail yourself of this large corporate delivery system. Their cost of partnering is slightly higher, and they possess a high, reputable, quality brand name. With their strong corporate network and premium positioning, Chai Point is regarded as one of the best Tea Franchise in India.
- Investment Cost: 25 lakh -50 lakh (It is a premium-level investment).
- Royalty Fee: Around 6% – 8%.
- Profit Margin: Around 15% – 25%.
- Apply Link: www.chaipoint.com
8. Chaayos
There is one thing about Chaayos: its famous tea, which is called Meri Wali Chai (My Kind of Tea). They have been the first to allow you to customise your tea in 12,000 different flavours! You can select the degree of strength, the level of the milk, and the type of add-ons that you prefer (ginger, elaichi, tulsi, etc.).
Their cafes are stylish, quirky, and very cozy, which makes them an enormous success among millennials, as well as families. They also have a great food menu featuring special foods such as Kulhad Pav Bhaji and Thepla Tacos. The theme of Chaayos is personal, high quality, and fun experience for the customers. With their innovative approach and strong brand appeal, Chaayos is considered one of the best Tea Franchise in India. They are well-advanced in technology through their app and loyalty programs.
- Investment Cost: 6 lakh -11 lakh (Again, this is very low considering that this is a large brand and thus very appealing).
- Royalty Fee: Around 5%.
- Profit Margin: Good, and the payback is estimated to be approximately 1 year.
- Apply Link: www.chaayos.com
9. We Chai
It is another good, low-cost, high-return brand that is expanding rapidly. Their greatest selling feature is a very cheap entry. You can have your own tea shop running with an investment of mere 3-4 lakhs or so. Their return on investment (ROI) is very high at approximately 50 percent and this is striking. They specialize in the services of delicious tea particularly Tandoori Chai at extremely low prices.
This renders their shops to be very popular in smaller towns (Tier 2 and Tier 3 cities) and high-traffic neighbourhoods. We Chai is one of the most friendly and favorable places to go in 2025 in case you have a small budget but a big dream.
- Cost of Investment: 3.5 lakh -5 lakh (Very cheap!).
- Royalty Fee: This is usually revealed when applying (some sources indicate that it is extremely low, or even non-existent).
- Profit Margin: Very high with a possible 50% ROI and payback within 1 year.
- Apply Link: www.wechai.co.in
10. KULHAD CHAI
This brand’s name says it all. They specialize in the provision of authentic and traditional chai in kulhads. They are very down-to-earth, rustic, and conventional. They aim to recreate the traditional smoky and earthy flavour of tea which one acquires when using a real clay cup.
They also have a very relaxed atmosphere in their shops, often adorned with traditional art. They are not loud compared to some other brands but have a huge following with whom they share the original taste. This is a beautiful brand to be associated with if you like the idea of promoting Indian tradition and serving an authentic product. With their modest investment requirement and strong brand identity, they are considered one of the best Tea Franchise in India.
- Investment Cost: ₹6 lakh – ₹8 lakh
- Royalty Fee: This is a frequent revenue-sharing arrangement of which you will negotiate with them.
- Profit Margin: Good, since the price of kulhads is cheap and the demand is high.
- Application: www.kulhadchaiindia.com
11. Tea Factory
The design of the Tea Factory is very unique and cool. Their cafes are factory-like! They are shipping containers, open pipes and rough wood, which gives them an industrial and edgy appearance. This makes them a massive Instagram success and among younger customers who seek a new experience.
But it is not only about appearance, their menu of teas, coolers, and fast food is very nice. It is an actual cafe and people go there to spend hours. Tea Factory is a sure winner should you wish to start the most trendy looking cafe in your neighborhood.
- Investment Cost: ₹8 lakh – ₹12 lakh
- Royalty Fee: Around 4%.
- Profit Margin: Good, and the payback is 8-10 months.
- Apply Link: www.theteafactory.co.in
12. Tealogy
Tealogy is a novel brand that combines tea and astrology to create an entertaining idea. Their cafes are warm, homely, and somewhat mystical and cheerful. They desire to be the most preferred place of meeting and chatting with friends.
Their menu has more than 75 items such as numerous varieties of chai, Lassi, coffee, and snacks. They are very high returns of investment that can be up to 90. That implies that they possess an extremely lucrative and effective mode of operation. They make a fantastic selection of a contemporary, casual coffee shop.
- Investment Cost: ₹10 lakh – ₹20 lakh
- Royalty Fee: 2% (This is very low!)
- Profit Margin: Excellent, and there is a possibility of 90 ROI.
- Apply Link: www.tealogy.in
13. Tea House
This is another fantastic cheap alternative, as Tea Time. The brand of the “Tea House” utilizes an extremely straightforward, no-frills, model. They have the goal of delivering good products at a minimal price hence everyone can afford it.
The franchise fee includes nearly all you need to start: equipment, initial inventory and branding. This is ideal when you are a first time entrepreneur who would want to begin small and safe. And their royalty model is zero within a period of 5 years, which is a great advantage. You just pay a little renewal fee after 5 years.
- Investment Cost: 3.5 lakh -4.5 lakh (Very cheap indeed)
- Royalty Fee: 0% (Zero Royalty the first 5 years)
- Profit Margin: It is very high, since your running costs are very low.
- Website: www.teahousegroup.com
How to Select the Best Tea Franchise to Your Budget.
All right, there are 15 choices, how do you choose only one? It’s like choosing a car. The most desirable car is the one that suits you. This is one easy way to consider it.
Be honest about your budget (Low-cost vs. Premium)
This is the initial and the foremost step. Look at your savings. To which extent can you afford to invest?
- Low-Budget ( 3 lakh- 8 lakh): When your budget is within this bracket, you are spoilt! Take a glance at Tea Time, We Chai or Tea House. These are low investment, no or low royalty and high profit margins. They are ideal in beginning small and becoming big.
- Mid-Budget ( 8 lakh-15 lakh): This is the bracket that exposes a host of popular brands. You may consider MBA Chai Wala, Yewale Amruttulya, Chaiops or Tea Factory. These brands are highly followed and popular.
- High-Budget (15 lakh and above): Have a bigger budget and desire a high-quality and large-scale business, consider Chai Sutta Bar, Chai Point, or Chai Kings. These are larger investments, yet with a very large established premium brand name.
Consider the Customer Vibe (Who is your customer?)
What type of store do you desire to operate?
Are you fond of the youthful, student-centered, energetic atmosphere? Check out Chai Sutta Bar or MBA Chai Wala.
- Do you adore the old-fashioned, original, perfect-cup-of-tea atmosphere? Yewale Amruttulya or KULHAD CHAI is to you.
- Would you like a contemporary, upmarket, laptop-and-coffee-shop atmosphere? Chaayos or Chaiops would be very suitable.
- Are you in the mood to have a simple, fast, and everybody-welcome atmosphere? Tea Time is the clear winner.
Check the Royalty and Support
Ask: “What do I get for my money?”
Yewale Amruttulya or Tea House with 0 royalty is an amazing brand. It implies that you retain the entire profit.
A brand such as Tealogy with 2% royalty is also not bad.
- In the case of brands, which have a 4 6% royalty, ensure that they provide you with good support (large national advertising, good training, etc.) to make it worth it.
Be the Customer!
It is the most enjoyable aspect of your research. You should visit some of these franchise stores in your town before you make your decision.
- Buy their tea. Is it delicious?
- Look at the menu. Is it interesting?
- See the customers. Is it busy? Are people happy?
- Talk to the owner if you can! Ask them whether they are satisfied with the support of the brand.
Select a brand that you like and believe in.
How to Apply for a Tea Franchise in India: Step-by-Step Guide
You have selected your favorite brand. You’re excited. What’s next? It is quite a professional and simple process.
Step 1: Go to the Official Website and locate the page with the franchise.
This is your starting point. Head to the company site (I have attached the links above) and search a button that reads franchise, Partner with us or Business opportunity.
Step 2: Complete the “Interest Form”
You will see a simple form. It will request such simple information as:
- Your Name
- Your Phone Number
- Your Email
- Your City
- The level of investment you are ready to make.
Complete this form and press the button Submit. This is equivalent to waving your hand and yelling, “Hi, I am interested!
Step 3: The First Phone Call
Within several days, one of the managers of the franchise team of the brand will contact you. This is a friendly call. They will inform you more about the brand and will question you a couple of questions. It is also your opportunity to ask questions!
“What is the total cost?”
What is the type of training you provide?
“Do you help me find a location?”
Step 4: The Meeting and Location Search.
In case the call is successful, a formal meeting (possibly online or in person) will take place. You will talk about the business plan. Once that is done, then you and the team of the brand will begin to search the ideal location of the shop. After identifying a good location, the brand will then approve it.
Step 5: The Signing of the Agreement (The Legal Part)
The Franchise Agreement will be signed once the location is final. This is the large official contract.
My pleasant suggestion: read this paper carefully. And though it be lengthy read each page. Ask a lawyer to read it, by your means, if you can. The rules, fees and promises of the next 5 or 10 years are all provided in this document.
Step 6: Grand Opening, setting up and training!
This is the most thrilling one! Once you sign the contract and pay the fees, it is fast.
You will have the help of the design team of the brand to construct the shop.
You and your new employees will train on how to make everything.
And here will come your supplies and equipment.
then… you will have your Grand Opening! You have become a business owner.
Conclusion
The beginning of a new business is like a mountain that is big and very frightening. But to take a franchise is to get a helicopter to fly you half way up.
You don’t have to invent a menu. You don’t have to build a brand. All you need to do is to operate the shop, head your team and be a smiling face to your customers.
The Indian affection towards tea is strong, ancient, and increasing each day. The future is these contemporary tea cafes. You can have a small budget of 4 lakhs or a big one of 40 lakhs and you will find a brand on this list that will perfectly fit you.
You can do this. You have to add your chapter to the great Indian chai story.
FAQs
Which is the lowest-cost tea franchise to open?
Among our list, Tea Time, We Chai and Tea House are the cheapest to invest in with investments as low as 3.5 lakh to 5 lakh.
What does “Royalty Fee” mean?
It is a low percentage (e.g., 2-5 percent of your monthly sales) that you pay to the brand who uses their name and provides you with further assistance. Other brands such as Yewale Amruttulya pay a 0% royalty which is an advantage.
Should I have experience in any business or cooking?
No! That’s the best part. All these brands will offer full training to you and your employees in terms of making every single item and operating the business. All you have to do is to be passionate about learning.
What is the turnover period before realizing a profit.
This is referred to as the payback period. It varies according to your location and sales. In the case of low-cost franchises, it may take less than 6-12 months. In the case of bigger cafes it is typically 12-24 months.
