Chai Sutta Bar Franchise in India: Requirements, Cost & Process

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Chai Sutta Bar Franchise in India: Requirements, Cost & Process

Chai Sutta Bar is a popular tea brand in India. It has more than 600 outlets across 370+ cities, making it the largest chai chain in the country. It operates through franchisee-owned outlets run by entrepreneurs. If you want to learn about Chai Sutta Bar Franchise details, check out this comprehensive guide!

About Chai Sutta Bar (CSB)

Founded in 2016, Chai Sutta Bar (CSB) is a famous India-based tea chain. It is known for serving kulhad chai (tea served in an earthen cup) and providing a lively, modern ambiance. Apart from hundreds of outlets in India, the chai business has presence in Dubai, Nepal and Muscat. 

Founders of Chai Sutta Bar and their Journey

The founders of CSB are Anubhav Dubey and Anand Nayak. They established CSB in Indore, Madhya Pradesh. They made a financial investment of Rs. 3 lakh to open up their first tea store, which was in close proximity to a hostel to draw customers. What began as a small business is now India’s largest tea chain. The market capitalization of CSB is estimated at Rs. 100 crore.

CSB Franchise Models

There are two different types of Chai Butta Bar Franchise models:

• Franchise Owned Franchise Operated (FOFO) Model: In this model, CFB only licenses the brand name to franchise operator/franchisor for the prescribed non-refundable amount/franchise fee for a predetermined period of time.

• Company Owned Company Operated (COCO) Model: In COCO model, the establishment is fully owned and operated by the franchisor. From opening the store to running it, everything is handled by the franchisor. 

Types of Outlets for CSB Franchise

The following are the types of outlet options available for operating a Chai Sutta Bar franchise:

• Kiosk: It is a compact outlet that provides takeaway services and comes with a limited menu.

• Medium: A medium CSB outlet offers a small seating space for the customers. It has a moderately extensive menu.

• Mega: CSB’s mega outlet provides a spacious seating area. It provides a full menu for customers so they can have a wonderful experience when they dine-in. 

Requirements for Chai Sutta Franchise

Here are some requirements for running a chai sutta’s franchise:

• Area: You need to choose a place where you want to set up your franchise shop. It must meet the specifications laid down by CSB.

• Required Skills: To purchase a franchise of CSB, you don’t need any specific degree. In fact, you don’t need a degree at all. However, you must be familiar with the basics of tea-making and running a business. Further, you must know how to communicate nicely with customers and comply with rules set forth by CSB.

• Training: You must provide training to your staff. The CSB will assist you in this.

• Staff: Every outlet requires staff members to assist the business owners in running the business. These members must assist the consumers and wish them politely so they have a good time and provide positive feedback.

• Investment: For a bar cafe, the CSB franchise cost is between 6 to 12 lakh rupees, and a minimum investment of 20-30 lakhs is required. The royalty fee (in percentage) for the franchise of CSB is fixed at 4%.

Documents Required for Chai Sutta Bar Franchise

The following documents are required for running a franchise of CSB in India:

• Certificate of registration/incorporation 

• Passport-size photographs 

• FSSAI Registration 

• Address Details

• Identity Proof of Owner(s)

• GST registration

• GSTIN number

• Trade license 

• Registration under Shop and Establishment Act

How to Apply for Chai Sutta Bar Franchise?

To apply for CSB franchise, the following steps must be fulfilled:

Step 1: Visit the official website of CSB.
Step 2: Now, click on Franchise visible on the dashboard.

Step 3: Next, fill the franchise form with details like name, contact number, email, area in which you want to open the CSB outlet, budget and message. Then, click on send.

Step 4: You will receive a thank you message after completing the above-stated steps, indicating you have successfully submitted your form.

If you are shortlisted, the CSB franchise team will get in touch with you.

Procedure for Opening CSB Franchise

Generally, it takes 45-60 days to open a CSB franchise outlet. The procedure for opening CSB franchise takes place in the following manner:

• The applicant has to provide management photographs and details regarding the retail location.

• CSB surveys the location and discusses whether the location is suitable for the business.

• Following a meeting with the CSB area manager, the CSB team decides whether they approve the plan or not.

• If the team gives their approval, the applicant must agree with terms and conditions.

• After approval, the CSB area manager assists the applicant in establishing the franchise business and signs a contract.

• The CSB team can design the interior. If the franchisor wants to design the interior, they can do it as well.

• Finally, the franchisor and staff get training from CSB and a salesman works with them. 

Conclusion

CSB is a well-known tea franchise, with presence in across 370+ cities in India and international outlets in Canada, UAE, Nepal, etc. You can initiate the CSB franchise process by filling out the application form available on the official CSB. If shortlisted, the CSB team will get in touch with you.

For assistance in setting up a business in India and obtaining a certificate of incorporation from the Registrar of Companies (ROC), connect with Registrationwala. 

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