The Indian retail tea sector is still experiencing amazing growth in 2025, as the organised chai outlets grow more popular amongst consumers who want good drinks and fast service cultures. The Chhaswala franchise cost has become an arduous search issue among would-be entrepreneurs looking to get into the drink business, which is very profitable.
Having more than 250 stores functioning in India, and an estimated revenue of more than 150 crore every year, Chhaswala has established itself as a significant force in the organised tea retail sector. The low-entry franchise structure of the brand, along with its Indian wine cultural flavour, contemporary outlet, design, and acceptable reinvestment, makes it an ideal investment opportunity for new rivals too and one that comes at a low-capital entry point and displays lucrative returns.
About Chhaswala: Brand Overview
Chhaswala is more of a contemporary understanding of the traditional tea culture of India, blending with the authentic flavors and latest standards of service to form a special experience of the customer. Like the story behind the chai brand when America was open in India, the brand has managed to expand into various cities in India drawing not just the traditionalists who enjoy chai but also the younger generation who are visiting the brand in search of Instagram-worthy cafes.
Through 250 company and franchise-operated outlets nationally, Chhaswala has a daily clientele of around 50,000 customers. The strategic retailing that has seen the brand dedicated in the ₹20-60 cup market help it gain high market share in tier-1 and tier-2 cities where the consumers grow fond of organized retail stores against the usual roadside tea hubs on grounds of hygiene, ambience and even product standardization.
Brand History
The Chhaswala venture has started as a small-scale operation focusing on transforming the unfreared tea retailing market in India using standardised quality, hygiene standards as well as attractive looks of the outlets. The movement of the brand is equally beneficial between 2018 and 2020, with the calculated placement of stores within high-cost footfall areas and the social media promotion of the brand among urban millennials.
By 2022, Chhaswala had grown to more than 100 centres and showed the feasibility of its franchise model and brought an investor on board, especially in terms of tier 2 and tier 3 cities. The pandemic era is ironically what solidified the brand since customers flocked to hygienic and trusted beverage stores compared to ordinary stalls. Through operating more than 250 outlets in 2025, with its expansion strategy aiming for 500 outlets in 2026, Chhaswala has gone on to become one of the fastest-growing tea retail chains in India and has continued to innovate its menu and has ensured its franchise profitability is also appealing in its framework.
Product Range | Chhaswala Menu Highlights
The Chhaswala menu concept involves a multiple beverage proposition structure with the facility being easy to conduct business with regard to operational simplicity and affordability. The product range targets diverse consumer trends in different times of the day, as well as with different consumer demographics:
- Classic masala chai: The strategic core menu includes classic masala and ginger tea, elaichi chai and cardamom-infused products, all based on proprietary tea blends, which maintain consistent flavor across all locations but offer familiar Indian-inspired tastes.
- The New: Upgraded products like chocolate chai, kulhad pizza chai, bun masks with chocolate chai, and seasonal items particularly appeal to younger customers and other social media fans.
- Coffee Salts: With market penetration, Chhaswala has filter coffee, cappuccino, and cold coffee selections to attract the coffee drinking niche so that the outlets are still viable during the day, and they do not lose business to rivals, consuming coffee and other businesses benefiting by consuming tea at times.
- Snacks and Accompaniments: Optimal incorporation of samosas, pakoras, bun maska, toast variations, and cookies is expected to drive the average transaction value, besides offering customers a wholesome snacking experience with an excellent probability of generating stronger margins than the beverages.
- Regional Specialties: Select stores also have something regional, like the cutting chai of the Mumbai-style stores or the special tea preparations of the local markets.
Market Positioning vs Competitors
| Brand | Average Price Range | Outlet Count (2025) | Primary Focus | Franchise Investment | Target Audience |
| Chhaswala | ₹20-60 | 250+ | Chai & Snacks | ₹8-15 lakhs | Mass Market, Youth |
| Chai Point | ₹30-80 | 200+ | Premium Chai | ₹10-18 lakhs | Urban Professionals |
| Chaayos | ₹40-100 | 180+ | Customizable Chai | ₹15-25 lakhs | Premium Segment |
| MBA Chaiwala | ₹15-50 | 100+ | Value Chai | ₹5-10 lakhs | Budget-Conscious |
| Tea Time | ₹25-70 | 150+ | Chai & Food | ₹12-20 lakhs | Family Audience |
Why Chhaswala is Popular in Tier-1 and Tier-2 Cities
- Affordability: products of 20-60 price range, can be purchased by middle and middle-income consumers on a daily basis, students and professionals.
- Hygiene Standards: pre-built procedures, open areas to be prepared, and quality control suit health conscious, post-pandemic clients.
- Instagram-Ready Design: The rustic and chic design, colourful art and stylish presentation of dishes provide social media shareable moments.
- Strategic Places: Placed in shopping malls, learning institutions, work stations and in homes.
- Fast Service: 3-5 minute turnaround time preferences, a group of time struck cities.
Chhaswala Franchise Models
Franchise Type: FOFO (Franchise-Owned, Franchise-Operated) – complete operational control with brand support
1. Kiosk/Counter Model:
- Space: 100-200 sq ft
- Investment: ₹5.75-9.25 lakhs
- Focus: Takeaway, minimal/no seating
- Best for: High-traffic areas, food courts, malls, first-time entrepreneurs
2. Standard Outlet Model:
- Space: 200-400 sq ft
- Investment: ₹10.25-15.75 lakhs
- Seating: 8-15 patrons
- Features: Both takeaway and dine-in, most popular option
3. Premium Outlet Model:
- Space: 400-800 sq ft
- Investment: ₹15.25-22 lakhs
- Seating: 20-35 customers
- Features: Superior ambiance, flagship locations, extended hours
Chhaswala Franchise Cost in India (2025)
The chhaswala franchise cost breakdown gives potential franchisees clarity on capital requirements that can assist them to make investments, and source funds required by borrowing via individual savings, bank loans or even an investor. These amounts are merely representative figures depending on the type of location, city level and the location-specific operations of an outlet:
| Cost Component | Kiosk Model | Standard Outlet | Premium Outlet |
| Franchise Fee | ₹1,50,000 – ₹2,50,000 | ₹2,50,000 – ₹4,00,000 | ₹4,00,000 – ₹6,00,000 |
| Setup & Interiors | ₹2,00,000 – ₹3,50,000 | ₹4,00,000 – ₹6,00,000 | ₹6,00,000 – ₹9,00,000 |
| Equipment | ₹1,50,000 – ₹2,00,000 | ₹2,50,000 – ₹3,50,000 | ₹3,50,000 – ₹5,00,000 |
| Inventory | ₹50,000 – ₹75,000 | ₹75,000 – ₹1,25,000 | ₹1,00,000 – ₹1,50,000 |
| Marketing/Launch | ₹25,000 – ₹50,000 | ₹50,000 – ₹1,00,000 | ₹75,000 – ₹1,50,000 |
| Total Investment | ₹5,75,000 – ₹9,25,000 | ₹10,25,000 – ₹15,75,000 | ₹15,25,000 – ₹22,00,000 |
Franchise Fee:
- Kiosk: ₹1.5 lakhs
- Premium outlets: Up to ₹6 lakhs
- Includes: Brand rights, training, operational manuals, supplier networks, marketing collateral
Setup & Interiors:
- Range: ₹2 lakhs (kiosks) to ₹9 lakhs (premium outlets)
- Covers: Civil work, electrical, plumbing, furniture, lighting, branding, décor
Equipment:
- Range: ₹1.5 lakhs to ₹5 lakhs
- Includes: Tea/coffee machines, refrigerators, POS systems, water purifiers, display units
Initial Inventory:
- Range: ₹50,000 (kiosks) to ₹1.5 lakhs (large outlets)
- Covers: Tea, coffee, milk, spices, snacks, packaging, supplies for 15-30 days
Marketing & Launch:
- Range: ₹25,000 (kiosks) to ₹1.5 lakhs (premium outlets)
- Includes: Grand opening, local advertising, social media, sampling activities
Space & Location Requirements
Minimum Space:
- Kiosk: 100-200 sq ft (takeaway focus)
- Standard: 200-400 sq ft (8-15 seating)
- Premium: 400-800 sq ft (20-35 seating)
- Ceiling height: 10-12 feet minimum
Ideal Locations:
- Commercial Complexes: These consist of consistent weekday professional traffic.
- Educational Institutions: High transactions by students, lower value of transactions.
- North East Residential Area: Morning / evening traffic, regular clientele.
- Shopping Areas: Impulse buying, Weekend Traffic.
- Transportation Hubs: Foot traffic always, increased competition.
Profit Margin & ROI Expectations
Knowledge on financial performance indicators allows would-be franchisees to have realistic expectations and make sound investment choices upon Chhaswala franchise opportunities. The chhaswala franchise cost should be compared with the calculated returns and payback periods in order to analyze the total investment.
Average Monthly Revenue & Net Profit Margins
The size of the average monthly revenue and Net profit margins of Chhaswala franchises by different outlet format and quality of the management is quite varying. Kiosk business is estimated at 2.5-4 lakhs every month at 18-25% net income ( 45,000-1,00,000 profit ). The performance of the standard outlets is 20-28% marginal revenue of ₹4-7 lakhs (profits 80,000-1,96,000) whereas the performance of high-end outlets is 22-30% marginal revenue of 6-12 lakhs (profits 1,32-3,60 000).
Beverage companies have seasonal recoveries in their dollar sales with winter sales being 20-35% upward, and summer 10-20% downward. Quality of location places, efficiency of operations, and ability of franchisee management have a heavy bearing on performance, and appropriately managed outlets in locations of prime performance always perform better than projected expectations, at the same time as under-managed outlets fail to perform as well as projected regardless of the encouragement of the brand.
Payback Period Estimates
Investment Recovery Timeline
Kiosk Model:
- Investment: ₹5.75-9.25 lakhs
- Monthly profit: ₹45,000-1,00,000
- Payback period: 12-18 months
- Best for first-time entrepreneurs seeking quick capital recovery
Standard Outlets:
- Investment: ₹10.25-15.75 lakhs
- Monthly profit: ₹80,000-1,96,000
- Payback period: 15-22 months
- Requires sustained operational excellence and stable traffic
Premium Outlets:
- Investment: ₹15.25-22 lakhs
- Monthly profit: ₹1,32,000-3,60,000
- Payback period: 18-24 months
- Suitable for experienced entrepreneurs with patience for longer recovery
Acceleration Factors (can reduce payback by 20-30%):
- Strategic location selection
- Aggressive local marketing
- Operational efficiency improvements
- Cost optimization initiatives
- Strong customer service and loyalty building
Extension Risks:
- Poor location selection
- Inadequate marketing
- Operational inefficiencies
- Intense local competition
- Economic downturns affecting consumer spending
Factors Affecting Profit
- Location Quality:The best locations where people co-exist create better revenues, location choice is the most important aspect of success in the long term.
- Operational Efficiency: Margins can go up with 3-5% minimization of wastage, maximizing employee productivity, managing utilities, and inventory.
- Local Competition: The presence of tea chains, traditional stalls and coffee outlets brings which increases the competitive levels with regard to pricing remanence and demands more marketing efforts.
- Customer-Serving Personnel: Customer-oriented personnel improve the delivery of services in the store, lesser mistakes, and promote repeat business; low-quality personnel attract complaining customers and result in a loss of customers.
- MarketingEffectiveness: Compared to depending on location traffic alone, strategic local marketing, social media and loyalty programs can boost revenues up to 15-25%.
How to Apply for a Chhaswala Franchise
- Make inquiry and send inquiry form or send an enquiry to franchise team directly at official site.
- Meet with franchise development managers to discuss information.
- Full application form including comprehensive details of finances and business.
- Hand in the necessary papers: identification documents, PAN card, bank statements, property document, business plan.
- Offered place is evaluated by the company (2-3 weeks)
- Sign franchise agreement at the time of location offer.
- Pay franchise fees
- 7-10 days of training(mandatory).
- Complete process time line 4-8 weeks.
Documents Required
The following are the various documents prepared by the applicants to enhance quicker processing of applications:
- Best Identity Proof: Aadhaar card, passport or driver license.
- Address Proof Utility bills, property documents or rental agreements.
- PAN Card: This is required on tax compliance and financial verification.
- Bank Statements: Within 6 months showing financial ability
- Business Plan: Detailed proposal describing the market analysis and plans.
- Location Documents: Lease agreements, property papers or NOC by the property owners.
- Pictures: Passport pictures of candidates and partners.
- Experience Certificates: Past history of business experience or employment documentation proving pertinent talents.
Official Contact Number, Email & Website
Prospective franchisees will be able to contact Chhaswala by using formal contacts, by way of questions and applications:
- Website: The official site of Visit Chhaswala, with the information about the franchise, application forms and the details of the brand.
- Email: Get in touch with the franchise development team through official email addresses stationed on the site.
- Phone: Got questions, call and talk directly with franchise managers via dedicated helpline numbers.
- Social Media: Subscribe to it on the official social media to receive more updates, the introduction of new business objectives, and success stories of franchises.
What to Expect After Applying
After the application, there are proper evaluation procedures that the company undergoes to secure the proper evaluation before approval. Answers usually come in not more than 7-10 business days in order to confirm applications and ask them to supply further information. Depending on the Location accessibility and complexity, location evaluation processes take 2-4 weeks. The process of finalizing the agreement and recording the document usually takes 1-2 weeks on approval.
Such set up processes as interiors, equipment fitting, and staff recruitment take about 4-8 weeks (depending on the location preparedness and on the regulatory approvals within a given location). Training is done according to what is set up within a timeline of set ups, usually 1-2 weeks before the set launch dates. Along the way, franchisee support departments provide expert support to franchisees, answer questions, and emphasize proper set up in the manner brand standards and operational excellence deem appropriate.
Chhaswala Franchise vs Amul Franchise: Cost & Opportunity Comparison
Franchise opportunities rates allow an entrepreneur to compare the available openings according to individual price, industry, and business targets. Although they both are trusted Indian brands operating in different business areas with dissimilar needs:
| Comparison Factor | Chhaswala Franchise | Amul Franchise |
| Industry | Beverage/Tea Retail | Dairy Products Retail |
| Total Investment | ₹5.75 – ₹22 lakhs | ₹2 – ₹10 lakhs |
| Franchise Fee | ₹1.5 – ₹6 lakhs | Minimal/None |
| Space Required | 100 – 800 sq ft | 150 – 500 sq ft |
| Setup Time | 4-8 weeks | 2-4 weeks |
| Monthly Revenue | ₹2.5 – ₹12 lakhs | ₹3 – ₹8 lakhs |
| Net Profit Margin | 18% – 30% | 8% – 15% |
| Payback Period | 12 – 24 months | 18 – 30 months |
| Operational Complexity | Moderate | Low to Moderate |
| Staff Required | 2-6 people | 1-3 people |
| Working Hours | 10-14 hours daily | 8-12 hours daily |
| Perishability Risk | High (dairy-based) | Very High (dairy products) |
| Brand Recognition | Growing | Established |
| Target Audience | Youth, Urban Consumers | All Demographics |
Conclusion: Is Chhaswala the Right Franchise for You?
Considering personal strength, financial position, and market position and the brand strength position and support system are some of the factors that must be carefully analyzed when making evaluation of Chhaswala franchise opportunities. Chhaswala franchise cost between 5.75 lakhs and 22 lakhs makes it a medium-level investment choice available to potential investors and can potentially provide decent returns with a 12-24 months payback period in well-operating stores.
Having 250+ operational stores in 2025 and expansion strategies to include 500 outlets by 2026, Chhaswala already shows the viability of the business model and market acceptance. Location choice, efficiency of operation, local marketing effectiveness, and commitment of franchisee to uphold the brand standards are ultimately what determines success. Potential franchisees must take prudent due diligence, visit the existing ones, deal with the existing franchise partners, and be also transparent when evaluating their ability and capacity to invest their money to achieve any result of win-win partnerships.
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FAQs
What is the lowest cost of the Chhaswala franchise?
The lowest chhaswala franchise cost is about 5.75 lakhs of kiosk model, which is friendly enough and can be established by smaller scale entrepreneurs in the organized beverage retail sector.
What is the mean pay back period of the Chhaswala franchise?
Quality Chhaswala stores usually break even after 12-24 months through location quality, operational efficiency and outlet form where kiosk format breaks even in less time than top of the line stores.
Is Chhaswala a royalty hostage taker?
Yes, Chhaswala requires continuous royalty payments or acquisition of proprietary products through certified supply markets, aiding the growth of brand and the ongoing serving of franchise partners over life of operations.
Will I be able to receive the franchise of Chhaswala in a tier-3 city?
Chhaswala accepts applications for franchises in tier three cities where the market looks promising and has good population demographics, location, and franchisee capability, with control of the brand standards in advancing markets with proper consumer awareness levels.
