India’s tea culture has evolved into a booming business opportunity, and Tea Time has emerged as one of the fastest-growing tea café franchises in the country. With over 4,000 outlets nationwide and a 35% annual growth rate since 2020, Tea Time combines India’s rich chai tradition with modern café experiences, making it a highly attractive franchise option for entrepreneurs.
In this guide, we’ll break down everything you need to know about the Tea Time franchise cost, potential profits, and expected ROI in 2026. From start-up investment and operational expenses to monthly earnings and market growth trends, this guide will help you understand why a Tea Time franchise is a promising business venture in India’s expanding specialty tea market.
About The Brand: Tea Time
| Category | Tea Time Franchise |
| Founder | Tangella Uday Srinivas |
| Founded in | 2016 |
| Products Offered | Teas, Coffee, Snacks, Smoothies, Pastries, Desserts |
| Number of Franchises | 4000+ |
| Target Audience | Tea & Coffee Lovers, Young Adults, Health-Conscious Consumers |
| Growth Potential | High (Expanding globally/regionally, strong consumer demand) |
Tea Time is one of the fastest-growing food and beverage franchises in India, combining traditional chai culture with a modern café experience. With over 4,000 outlets nationwide, the brand has successfully captured the hearts of tea lovers by offering a unique blend of premium beverages, snacks, and wellness drinks.
Key Highlights of Tea Time:
Revenue Breakdown:
- Drinks: 60% of total revenue with 65-70% gross margin
- Food Items: 30% of total revenue with 50-55% gross margin
- Retail Products: 10% of total revenue (packaged tea blends and branded merchandise)
Financial Performance:
- Average Customer Spend: ₹150-200 per visit
- Daily Sales Range: ₹30,000-40,000 for typical high-performing outlets
- Several Revenue Streams: Well-balanced on-premise and take-home products
Tea Time Typical Menu with Price Ranges (2026)
| Category | Item Examples | Price Range (INR) |
| Teas | Dum Tea, Ginger Tea, Masala Tea | ₹10 – ₹25 |
| Premium Beverages | Kashmiri Tea, Special Blends | ₹40 – ₹160 |
| Coolers & Shakes | Milkshakes, Fruit Coolers | ₹50 – ₹99 |
| Snacks | Samosas, Biscuits, Bun Makkhan | ₹6 – ₹40 |
| Quick Bites | Sandwiches, Cheese Toasts | ₹65 – ₹130 |
Tea Time offers a highly profitable and unique business model for franchisees, catering to the deep-rooted tea culture in India while appealing to modern tastes and preferences.
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Why Choose a Tea Time Franchise?
Tea Time Franchise Cost: A Tea Time franchise is one of the most attractive business opportunities in the F&B sector for entrepreneurs. Here’s why it’s a smart investment:
Low Start-up Cost: The initial investment for a Tea Time franchise ranges from INR 10 lakhs to INR 25 lakhs, depending on location and outlet size. This cost covers interior setup, equipment, initial stock, and marketing expenses, making it one of the more affordable F&B franchise options.
Proven Business Model: Franchisees benefit from a tested and profitable business model, including support for staff training, operations, marketing, and branding. With an established reputation, attracting customers and generating profits becomes easier.
Scalable Opportunity: The business is highly scalable. Entrepreneurs can start with a small kiosk or café and expand to larger outlets as the business grows. Flexible options suit different budgets and experience levels.
High Demand and Cultural Significance: Tea is deeply embedded in Indian culture, and demand remains steady across homes, offices, and cafés. With growing interest in premium and specialty teas and the rise of café culture, the market is expanding.
The Indian tea market is expected to grow at a CAGR of 6.8% from 2026, while the Asia Pacific market is projected to grow at 6.6% CAGR, and regions like the Middle East & Africa could see 8.3% CAGR growth. This strong growth makes investing in a Tea Time franchise a profitable opportunity with long-term potential.
Tea Time Franchise Cost Breakdown (2026 Update)
| Feature | Unit Franchise | Master Franchise |
|---|---|---|
| Total Investment | ₹5 lakhs (inclusive of franchise fee) | Higher (depends on number of units) |
| Setup Costs | ₹1–2 lakhs | Depends on number of outlets |
| Initial Inventory | ₹50,000–₹1 lakh | Covers multiple units |
| Other Expenses | ₹1–2 lakhs | Depends on multiple outlets |
| Royalty Fee | 3% of gross sales (capped at ₹9,000/month) | Share of royalties from unit franchises + fees from owned units |
| Working Capital | ₹1–2 lakhs | Depends on multiple outlets |
A) Unit Franchise
Designed for individuals seeking to operate a single outlet, this model is ideal for entrepreneurs starting a small-scale tea business in India.
Investment Details:
- Total Investment: ₹5 lakhs (inclusive of franchise fee)
- Setup Costs: ₹1–2 lakhs (covering interiors, branding, furniture, and equipment)
- Initial Inventory: ₹50,000–₹1 lakh (including tea leaves, milk, sugar, spices, cups, and packaging)
- Other Expenses: ₹1–2 lakhs (for licensing, permits, FSSAI, GST, and municipal approvals)
- Royalty Fee: 3% of gross sales (capped at ₹9,000 per month)
- Working Capital: ₹1–2 lakhs (for salaries, stock, utilities, and marketing)
Operational Requirements:
- Space: Minimum 100 sq. ft. outlet at a high-footfall location such as bus stops, highways, hospitals, markets, railway stations, IT campuses, or colleges
- Staff: Two employees trained by Tea Time’s chefs
- Training: Comprehensive training provided, enabling individuals to learn the entire Tea Time menu in approximately three days.
Financial Performance:
- Profit Margin: 40%–80%
- Average Payback Period: 5 to 10 months
- Product Pricing: Starting from ₹15 (Dum Tea) to ₹99 (Premium Milkshakes).
B) Master Franchise
Aimed at individuals or entities interested in overseeing a larger territory, the Master Franchise model involves managing multiple unit franchises and expanding the brand’s presence in a specific region.
Responsibilities:
- Territory Management: Oversee and support multiple unit franchises within a designated area
- Recruitment: Identify and onboard potential unit franchisees
- Training and Support: Provide training, stock management, and logistical support to unit franchises
- Revenue Streams: Earn from a percentage of the franchise fees and a share of the monthly royalties paid by unit franchises
Benefits:
- Scalability: Opportunity to expand rapidly by adding multiple unit franchises
- Revenue Potential: Multiple income streams from franchise fees, royalties, and owned units
- Brand Association: Leverage Tea Time’s established brand recognition and operational support
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Tea Time Franchise Profit Margin & Income (2026)
With a 40-80% profit margin per cup in 2026, Tea Time franchises will offer impressive gross profit margins, thanks to low ingredient costs and steady daily foot traffic.
Franchise owners can achieve a net profit of between ₹1 Lakh and ₹2 Lakh per month after paying operational costs, including rent, utilities, and the typical 5% royalty fee (which is normally waived in the first year). This amounts to an annual range of ₹6 Lakh to ₹15 Lakh in terms of earnings, and performance depends on location, local demand, and daily sales volume.
ROI and Break-Even Analysis (2026)
The Tea Time franchise system is designed so that it requires minimal capital to break even, and most outlets break even within 5 to 10 months of opening. This can mainly be attributed to low overheads and a high number of customers served per day, which easily exceeds 200.
With an average selling price below ₹100, the brand is attractive to a significant demographic, ensuring stable, predictable cash flow. Tea Time has an impressive annual ROI of roughly 150%, which is reported by the established units; therefore, it makes the company one of the most reliable small-scale investment opportunities in the current F&B market in India.
Key Requirements to Open a Tea Time Franchise in 2026
One should learn all the elements of complementing a successful business venture, especially a franchise, before venturing into such an activity. Here are the essential elements that one must use in order to be successful with this:
Location
The location will define the overall success of any franchise. One would hope that locations like over a shopping mall, busy market streets, or office complexes or educational institutes guarantee healthy flows of customers to such locations. The location should thus be easily accessible and conveniently situated in a space that can accommodate comfortable seating for customers.
Investment in Infrastructure
Ambience would be the first thing that attracts and will keep the customer from coming back again. It should be a warm and hospitality-generating idea as is the concept. This calls for careful design and décor. The equipment included would be brewing machines, refrigerators for chilled beverages, ovens for serving snacks, point-of-sale systems etc.
Employees and Training
Good customer experiences are contingent on a well-trained staff. Franchisees must ensure the team receives training not just in customer service but also in preparing many of the teas and snacks sold within the franchise. It provides both franchisee and staff training, although it is reasonable to expect that local managers and baristas have knowledge of brand standards.
Marketing and Promotions:
The proper marketing will be required to attract footfalls of significant numbers along with customer loyalty. Even though the centralized marketing team of the company will provide support to the franchisees, local outlets will have to perform all promotions, social media marketing, and loyalty programs to attract the customers to visit again and again.
Brand Compliance
This franchise, like any other franchisee, has set standards for their degree of brand compliance, service delivery, product quality, and overall image about the brand. Therefore, in light of such prescriptions, what will represent integrity and success in a franchise is the observance of them.
Required Documents
Having set the franchise, a few documents must be prepared legally and officially. These documents will serve as legal documentation and for compliance with local laws. Here are some of them:
- Franchise Agreement: Legally signed between franchisor and the franchisee; contains description of rights and obligations of parties negotiating it as terms of the franchise, process of royalty payment along with operational guidelines etc
- Proof of Identity: Government ID cards, including the recently provided Aadhaar, Passport or Voter ID, to establish legal identity.
- Proof of Residence: Utility bill, rental agreement, or even property deed
- Financial Documents: It requires proof of financial capability, such as bank statements or tax returns, and a certificate of net worth, demonstrating that the franchisee has the requisite financial wherewithal to manage the investments.
- Business Registration: A franchisee has to duly register his business under the head of sole proprietorship, partnership, or private limited company. He will have to get different licenses from municipal bodies of his particular local area, health departments, and food safety authorities.
- GST registration: The franchisees need to register for Goods and Service Tax (GST) as their business is operating in the Indian market.
How to Apply for Tea Time Franchise in 2026
Applying for it is pretty straightforward. The process has been developed to align the franchisor and the franchisee in their expectations and goals. To apply for a franchise, do the following:
Initial Question First
Connect with the brand to show interest in becoming a franchisee. One can do this through the company’s website or by reaching out to their franchise development team. The team will provide general information on the franchise model, tea-time franchise costs, and requirements.
Franchise Application
If you continue to be interested after this initial consultation, you will have to fill up an application form. The application form ordinarily includes information about your background, financial capacity, business experience, and the location of interest.
Screening and Appraisal
It reviews applications to ensure applicants have met the franchise’s opening requirements and appraises the feasibility of the proposed restaurant location, which will be consistent with the brand’s target market area.
Franchise Agreement
Upon confirmation of your application, you will be given the opportunity to sign a franchise agreement. The legally binding document will outline the terms and conditions, including investment details, royalty fees, and other obligations.
Launching and Training
Once you sign the franchise agreement, you will start the procedure of establishing your outlet. It would guide you through selecting a site, designing a store, and setting up a supply chain. In addition, the comprehensive training programme for you and your staff will begin before your outlet opens.
Tea Time Franchise Contact Details:
- Phone: +91 968 566 7676
- Email: franchise@teatimegroup.com
- Website: www.teatimegroup.com
- Head Office Address: Desi Tea Time Ltd., Plot No. 19, Cyber Pearl, Hitech City, Madhapur, Hyderabad, Telangana – 500081, India
Support and Training Provided by Tea Time Franchise
One of the biggest advantages of this franchise is the strong support and training the franchisor provides. It ensures their franchisees are ready and able to run an effective business through the services and advice they receive.
Pre-Opening Training Franchisees
Even before their store opens, their staff undergoes a comprehensive training program. This would include training in different varieties of tea preparation, service standards at the outlets, and the proper use of equipment. This would involve imparting both technical and soft skills, i.e., those related to brewing techniques and food handling, as well as customer service and communication.
Operational Support
It has consistently offered operational support to its franchisees to make day-to-day operations easier. It offers supply chain management, inventory level control, and product uniformity. Franchisees are provided with an operational manual detailing the brand’s procedures, ensuring all outlets share the same standard.
Marketing Support
The franchisor assists its franchisees with local and national marketing efforts. As it fosters the presence of its franchisees in their respective local markets, they benefit from national brand promotions, seasonal marketing events, and other social media activities that attract people to drive by and boost brand awareness.
Periodic Audits and Monitoring
Tea Time regularly conducts performance audits to ensure franchisees adhere to the brand guidelines. It maintains a uniform quality standard across all outlets and also provides an opportunity for franchisees to give feedback so they can improve their respective operations.
Ongoing Support
Franchisees receive full-time support for troubleshooting, staff training, and guidance on operating. The team is ever ready to tackle any issues that may arise to ensure the smooth running of the business and a proper response to market dynamics.
Advantages and Disadvantages of Tea Time Franchise Business
Advantages:
- Brand Identity: A brand like this, which is aware of the market, can be seen as an advantage for franchises rather than setting up an independent tea shop.
- Strong Low investment: The initial investment to start this is relatively low compared to other food and beverage businesses.
- Comprehensive Support: It trains and supports its franchisees in terms of marketing and operation that results in a minimised chance for a failed venture
- Continuous growth: demand for premium, new tea products, especially for the young category.
Disadvantages
- Competition: The business of tea cafes is becoming increasingly competitive as many new entrants and large brands are entering to claim a piece of the market. The franchisee will definitely face challenges from so many people.
- Location Dependence: Success depends heavily on the location for any franchise. Areas that have very heavy footfalls-a shopping mall, a business district, and a college are ideal but quite pricey.
- Business Needs: Just as in any other business, running a franchise requires consistent effort. The franchise owner needs to monitor daily activities, such as human resources and quality, to help the business generate profits.
Market Trends of Tea and Related Products in India
This has led to a mushrooming of specialty tea houses and franchised outlets that serve a wide range of teas and snacks.
Rise in High-end Tea Consumption:
Premium and organic tea is in higher demand. The health-conscious consumers are looking for herbal teas, green teas, and more functional-benefit teas. Organic tea has seen strong demand, as customers increasingly seek high-quality products that deliver on a health promise.
Tea as a Lifestyle Product:
The drink has also become a way of living. With many niche tea outlets sprouting across metros, offering tea as a premium add-on, the cafe culture in the country has brought forth a tea cafe where not only tea is consumed but also a social activity is indulged in.
Ready to Drink (RTD) Teas
The prepared-to-drink tea market is gaining momentum in India as more working professionals, students, and the youth seek healthy drinks that won’t upset their stomachs. Brands have now introduced bottled iced teas, fruit-infused teas, and low-sugar teas to cater to this segment.
Tier-2 and Tier-3 City Development:
Tea cafes are already very strong in main cities like Delhi, Mumbai, and Bangalore. However, demand for such centres is rapidly rising in Tier-2 and Tier-3 cities. Rapid urbanisation and rising disposable incomes in Tier-2 and Tier-3 cities offer significant opportunities to open new tea franchises.
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Why Tea Time Franchise is Worth the Investment
- Location Impact: Metropolitan outlets in commercial areas or near educational institutions break even in 10-14 months; in Tier-2 cities, it takes 14-18 months.
- Net Profit Margins: 18-22% after all expenses, including royalty payments.
- Monthly Revenue: ₹4-7 lakhs for standard cafés; premium locations can exceed ₹10 lakhs.
- Monthly Profits: Franchisees typically earn ₹70,000 to ₹1.5 lakhs after operational expenses.
- ROI: Averaging 25-30% annually; some locations report up to 40% ROI.
- Customer Acquisition Cost: ₹20-30 per customer due to strong brand recognition.
- Customer Retention: 65-70%, significantly higher than the industry standard of 40-45%.
- Repeat Purchases: Regular customers make 3-4 visits per month.
- Low Product Wastage: Under 5%, contributing to healthy profit margins.
- Tiered Pricing Strategy: Captures value across different consumer segments, ensuring long-term profitability.
- Scalability: Franchise model supports multi-unit expansion.
Conclusion
Tea Time franchise cost provides an attractive opportunity in India’s booming tea market. A tested business model, coupled with minimal investment requirements, creates the perfect entry point for F&B industry entrepreneurs. However, for every business, all obstacles have their own rank among others and their own locations. This franchise will thrive among franchisees who select good locations, operate properly, and focus on customer experience.
FAQs
How much does it cost to open a Tea Time franchise?
The investment would be between INR 10 lakhs to INR 25 lakhs, depending upon the outlet size and location.
Does the franchise continue to offer support?
The Tea Time provides continuous support in operations, marketing, and training to franchisees until the expiry date of the franchise agreement.
How much will I have to pay in royalty fees?
It takes royalty fees that range mostly between 5% and 7% of monthly revenue.
Can a franchise be opened at any location?
Location Selection is vital. Tea Time assists the franchisee in selecting a location with high footfall and that closely aligns with the brand’s target market.
