All You Need to Know About Chaayos Franchise in India 2024
Beginning of Chaayos
One of the most successful tea brands that our country has experienced in this century is Chaayos. This brand was founded by Nitin Saluja and Raghav Verma, two engineers who has a good experience in working at the US consultancy firm, Opera Solutions. The idea for this business came in a very exciting way for the founders. It came when Nitin, a tea connoisseur, met Raghav through a mutual friend at their work location in Opera Solutions. Both of these friends immediately found out that they had few things in common. Yes, both friends shared a passion for tea and immediately decided to venture into creating a unique chai-focused startup. After coming with a startup story, both had to take up the hardest decision in their life, which was to quit their current job. But, they did not hesitate to do so and resigned from their jobs at Opera Solutions and dedicated themselves to building Chaayos from the ground up. Yes, it was not easy for both to quit their job and immediately start a company which would thrive in the market. Both, focused on lots of areas to make their tea-brand unique in the Indian market. They went through lots of product tastes so that customers when offered their product could get something unique which would touch their hearts and remember the brand. It was Nitin who took charge of product design and distribution networks, while Raghav deeply focused on business growth and advertising their brand. Both the founders of this brand did their role just perfectly and with utmost care. That is how they could open their first store in Gurgaon back in November 2012. Unlike traditional tea offerings to customers, Chaayos allowed visited customers to choose from 25 different flavoured teas that could be customized in over 12,000 different ways. Yes, this was something which none of its competitors or other businesses were doing in that time and that is what made Chaayos stand out. Initially, they had a motto which was “Experiments with tea” which perfectly reflected their commitment to offering a wide range of flavours and customization options. This is how the brand slowly started to attract lots of customers in their outlet. Additionally, not only in their menu options but, the founders carefully curated the interior of their store. The interior of Chaayos embodied the “Chai lifestyle”, as their interior featured elements like lamps made from cutting Chai cups, teapots, and a colour palette that amazingly reflected the brand’s innovative spirit. This well-thought business from both the founders was bound to be successful and their top-selling Chaayos store reported an annual revenue of whopping Rs 1 crore, this made a significant milestone in their business journey. Chaayos was born out of shared passion for friends who met by the grace of god. Without Nitin and Raghav meeting through a mutual friend, Chaayos would not have been established in the Indian marktet. Additionally, the passion to do something different and unique with a simple product, tea changed their life and the brand is achieving significant milestones today and will earn more in future.Chaayos Outlets (As of 2024)
Ever since the establishment of Chaayos, they have been expanding across India at a good pace. It has been more than a decade, they have been in the Indian market so, they understand how the market works and when is the best time to open one store and in which place. From 2012 to 2019 Chaayos had already expanded to 65 stores across places like Delhi, Noida, Gurugram, Faridabad, Mumbai, and Chandigarh. So, during their initial phases, the brand took good time to open stores across major cities in our country. But, they are all running successfully in the Indian market all the credit for such goes to their unique menu options and the highly customization option made available for customers. After 2019, Chaayos did not stop their growth instead, the expansion rate rapidly went up. By July 2024, Chaayos had already opened around 200 stores across India. Interestingly, it was the same year, when the company celebrated its seventh anniversary by opening its first outlet in Bangalore. So, Chaayos currently operates more than 200 stores in India and is looking to expand more in coming years.Chaayos Franchise Models
One of the reason how Chaayos became successful in the Indian market is by opening up new stores across India. Unfortunately, we do not know if Chaayos offer any franchise opportunity or not but, one could surely contact the officials to know more details about their franchise business opportunity. So, Chaayos does not have any franchise models but, we are expecting if they offered then that would be in Kiosk and a store option. So, the investment for both the franchise options would surely be different, going for the store option would be slightly more expensive than the Kiosk business opportunity.Chaayos Franchise Cost in Brief (As of 2024)
Opening a Chaayos franchise means you are required to make necessary investment. Unfortunately, we do not know if they offer any franchise or not but, the average amount that you require to open a reputed tea and coffee franchise in India is between Rs 5-20 lakhs. Now, this totally depends on the type of franchise model you have chosen. The bigger and expensive franchise model you choose the more you are required to invest in that business. Other than that, the cost of Chaayos franchise will highly depend on various factors such as infrastructure requirement, location, land, rent, and commission/revenue sharing model. So, if you are opening a Chaayos franchise in any part of India make sure you have a prime location to attract more customers and earn a healthy profit at the end of the month. Other than this, some percentage of royalty fees and advertising fees might be charged by the officials. As you will be using their brand image to run your business and other ingredients so, you might need to bear that cost as well.Eligibility Criteria & Requirements for a Chaayos Franchise
To become a franchise owner at Chaayos, it’s very important for you to follow all the requirements and must be eligible. This will help you and Chaayos to make the rest of the process for getting a franchise easier. Additionally, it will also boost up your chance of getting a franchise approval from the officials of the company. Now, here is a breakdown of different eligibility criteria and requirements to get a Chaayos franchise:-- Investment - Investment plays a key role in the eligibility criteria. People who do not have the capacity to invest in such a huge and reputed business, they will automatically not be allowed to open a franchise. The estimated investment required to start Chaayos franchise is between Rs 5-20 lakhs. You could either take loan or invest from your savings. If you happen to take loan, then you must have the capacity to repay that loan to the borrower.
- The age requirement from the officials of the company is not mentioned but, it’s always better that you are above 18 or 21 years old to start their franchise. Not below that age limit would be permissible to do business with any company in India.
- Area Requirement - As area for such businesses play a crucial role in the business development and earning potential, you are required to have a prime location to attract the franchise department of the company. The space where you plan to set up your franchise must have accessibility to all the basic requirements such as water supply, electricity supply with backup, emergency pathway (if possible), and types of machinery. Additionally, that is how you can increase the chance of your franchise application approval from Chaayos. The minimum space required to start any tea and coffee franchise in India is between 150-400 square feet.
- Criminal Background - Make sure you do not have any criminal activity or an active case against you going on. If so, then the officials of the company will not allow you to apply for the application and even if you have applied then the application will be rejected straightaway.
- Skill - You might not need a degree to start a Chaayos franchise but, it’s always better to have a good education qualification from a reputed university or school in India. Additionally, no degree is required to get one of Chaayos franchise in India.
- As a business owner, you must possess some leadership skills or qualities in you to attract the officials of the company. You must be very eager to learn new things and always find out new opportunities and ways to how you can cater to different customers across the country.
How to Apply for Chaayos Franchise?
Applying for Chaayos franchise is one of the most simple processes that aspiring entrepreneurs need to go through. But, it’s very important that you follow a structured process to apply for a Chaayos franchise so that it can increase the chance of your franchise approval. Here is a detailed guide of how one should apply for a Chaayos franchise in India:-- The first step that you need to go through is research about the brand. Before you apply for a Chaayos franchise application, do your research on the brand , how its franchise model works, business model, reviews from different customers, and the requirements of becoming a franchise owner.
- Make sure to understand the investment cost, infrastructure investment, support provide, ROI timeframe, and other relevant details.
- Now, when you have done all the ground research, you are now ready to contact the officials of the company. Reach out to Chaayos through their official website and search for the contact details of the company.
- After you find out the contact details of the company, use them to contact the officials and express your interest in becoming a franchisee.
- Make sure to request for a detailed information about the franchise opportunity being provided by the company. Additionally, do not forget to clarify any doubts that you have in your mind.
- Now, when you have contacted the officials, they might send you a application form to your personal contact details. Obtain it from the company, and make sure to fill it out with utmost care and submit it to the company.
- Make sure that you have your documents ready for the application form and the process after that. It’s better to ask the executive for all the documents that would be required for the application process and after that if necessary.
- After submitting your application to the company, an official team will review your application and the documents that you have submitted. This team might conduct interviews or meetings with you to further assess your suitability and interest as a potential franchisee.
- Now, if your application is approved by the company, you will finally be provided with a franchise agreement. Do not be in a hurry in this stage, make sure to read every points carefully and then sign the document once you think that everything is mentioned right.
- Upon signing the agreement, you will automatically undergo training and support from the company. When it comes to training, make sure that you understand them properly so that you do not face any problem in the future. Work closely with the support team to setup your franchise outlet as per the brand guidelines.
Total Investment Required for Chaayos Franchise
The total investment that you require to start a Chaayos franchise is between Rs 5-20 lakhs. Now, it totally depends on the type of franchise you are willing to open from the business. Additionally, this is just an average amount, the total investment could be higher or less according to the location, area, demand, and local laws. The franchise fee asked by Chaayos could be Rs 1 lakh, this would probably be a non-refundable amount that would be taken by the company. Some other necessary investments that you need to make are the following for the Chaayos outlet, not the Kiosk:-- Interior design - Rs 1-2 lakhs
- Furniture - Rs 1 lakh
- Cooking Utensils - Rs 50k to Rs 1 lakh
- Internet connectivity - Rs 30-50k
- Delivery Services - Rs 2-4 lakhs
- 1 billing counter - Rs 1-2 lakhs
- 1 billing desk - Rs 50-60k
- Advertisement area or brochures - Rs 10-20k
- Air conditioners - Rs 50k-1 lakh
- Parking area (if possible) - Rs 2-4 lakhs
Is Chaayos Franchise Profitable: Profits and Margins
Chaayos as a company has proved that they are one of the most profitable businesses in the hot beverage industry in India. The way they are expanding in the Indian market proves how sustainable they are with a smooth business operation. Similarly, Chaayos franchise can be a profitable venture for potential entrepreneurs due to its unique offerings, brand value, and a good support system. The revenue sharing options from Chaayos, allows franchise-owners to earn a percentage of the gross sales generated by that outlet. On the other hand, the return on investment for a Chaayos franchise can vary based on different factors such as location, foot traffic, and operational efficiency. To earn good profit margin from their franchise make sure you make proper investment in infrastructure and interior. The average profit margin of any tea and coffee franchise in India is between 15-50%. You could also expect a similar profit margin when you start a Chaayos franchise in India.Area Requirement
Unfortunately, the official area required to start a Chaayos franchise is not explicitly opened from the officials but, you could expect at least 150-400 square feet of area. Within this area any tea and coffee franchise can be opened easily with proper investments on it. Make sure this area fits in the following:-- 4-5 staff members
- 1 billing counter
- Kitchen area
- Sitting area (spacious one)
- Air conditioners
- Computer room setup
- Godown area
- Delivery service area
- Parking area (if possible)