What
image
  • imageAdvertising & Marketing
  • imageAutomotive
  • imageBusiness Dealerships
  • imageBusiness Services
  • imageEducation
  • imageFood & Beverage
  • imageHealth & Beauty
  • imageHome Based
  • imageHome Services
  • imageOthers
  • imagePet
  • imageRetail
  • imageTravel & Leisure
Where
image
image
At a glance
5 Lakhs - 10 Lakhs
Investment Range
11 - 25
Franchise Count
101 - 500 sq.ft
Area Required
18 - 24 months
Payback Period
3
Years in Franchising

About the brand

Chai City Franchise

Franchise Quick Facts

Brand Name Chai City
Industry / Business Category Tea & Coffee / Café
Founded Year 2021
Franchise Started Year 2022
Total Franchise Outlets 10 to 20
Estimated Investment INR 5 Lakh – 10 Lakh
Franchise Fee Not specified
Royalty Fee 5%
Space Requirement 100 – 200 sq.ft
Staff Requirement Dependent on outlet size and operations
Expected Payback Period 1–2 years

1. What is Chai City?

Chai City is a café brand operating in the tea and coffee sector, offering a variety of beverages and light snack options. It serves urban customers seeking quick-service or sit-down café experiences with high-quality drinks in compact retail settings. The brand is structured to support both new entrepreneurs and experienced business owners interested in café operations.

2. How the Business Works

Customers interact with Chai City outlets by visiting for dine-in, takeaway, or kiosk service depending on the format. Beverages and snacks are prepared using standardized processes to maintain consistency in taste and quality. Revenue is generated through sales of teas, coffees, and complementary snack items, supported by repeat visits and high-traffic locations.

3. Products or Services Offered

Traditional and Specialty Teas Masala chai, flavored teas, and iced variants
Coffee Beverages Hot and cold coffee options
Snack Items Light accompaniments suitable for café service
Takeaway and Kiosk Items Quick-service beverage offerings designed for on-the-go consumption
Café Experience Seating and social space for customers in café formats

4. How the Franchise Model Works

Franchise partners operate outlets under standardized operational systems. Responsibilities include staff management, beverage and snack preparation, inventory oversight, and customer service. The franchisor provides training, operational guidelines, marketing support, and supply chain assistance to ensure uniformity and support profitable operations.

5. Franchise Cost and Investment Overview

Estimated Investment INR 5 Lakh – 10 Lakh
Royalty 5%

The investment includes outlet setup, equipment, initial inventory, branding, and interior elements for café or kiosk formats. Additional costs include staffing, utilities, and marketing activities. Franchise partners benefit from structured guidance to optimize operational efficiency and profitability.

6. Space and Infrastructure Requirements

Area 100 – 200 sq.ft
Location Type High-footfall urban areas, shopping malls, transit hubs, and commercial streets
Infrastructure Needs Beverage and snack preparation counters, storage, seating (if applicable), and utilities
Staff Requirements Small operational team aligned with outlet size and service format

7. Training and Franchise Support

Operational Training Standardized beverage preparation, workflow management, and customer service
Setup Assistance Guidance on site selection, outlet layout, and launch preparation
Marketing Support Digital and traditional marketing strategies to attract and retain customers
Supply Chain Support Access to quality ingredients and operational resources
Ongoing Support Business operations guidance, troubleshooting, and system optimization

8. Revenue Model and ROI Factors

Revenue is generated through the sale of beverages and snack items across multiple formats including kiosks, takeaways, and café outlets. Factors affecting ROI include location traffic, outlet format, pricing, and operational efficiency. The expected payback period is 1–2 years depending on these factors.

9. Brand History and Expansion

Founded 2021
Franchise Commenced 2022
Franchise Outlets 10 to 20

Chai City has developed a franchise model emphasizing scalable café operations, brand consistency, and operational support. Expansion focuses on establishing outlets in urban and high-footfall areas to build a network of accessible tea and coffee cafés.

10. Key Advantages of the Franchise

  • Proven ‘Sip and Go’ business model supporting efficiency
  • Compact and scalable outlet formats
  • Structured operational and training support
  • Repeat customer potential driven by beverage consumption patterns
  • Franchise network with brand recognition in the target market
Food & Beverage Tea and Coffee Chain B2C Owner-Operated Individual/Family

Investment and financials

Cost overview
Investment range5 Lakhs - 10 Lakhs
Franchise / Brand feeAvailable on inquiry
Royalty / Commission5%
Investment tierMid
Area required101 - 500 sq.ft
Staff required2 - 6
Setup complexitySimple
Business term3 Years
Renewal availableYes
Returns outlook
Expected monthly revenue
1,20,000 to 4,40,000 per month
Revenue levelLow
Business modelB2C
Capital payback18 - 24 months
Capital sensitivityMedium

Investor fit profile

Operations
Operation modeOwner-Operated
Location typeMall/High Street/Kiosk
Home-based possibleNo
Can run part-timeNo
Primary customerIndividual/Family
Market characteristics
SeasonalityMedium
Recession resistanceHigh
Digital integrationHigh
Years in franchising3 years
Avg units / year5
Expansion velocityModerate
Ideal for
Small business owner Career changer Graduate entrepreneur First-time investor

Franchise support

Tax system inclusion
Head office support
Field assistance
IT systems included
Agreement template
Training and agreement details
Training location
Head Office
Business term
3 Years
Renewal available
Yes

Brand strength

3
Years Franchising
5
Avg Units / Year
2021
Founded
B
Brand Tier
B
Tier B — Growing brand
A+Established AMature BGrowing CStartup
Growing Moderate

Forefind rank history

#168#231#294#35720222023202420252022: #4152023: #2872024: #2172025: #170
Current rank
#170
#170 of 410 in Tea and Coffee Chain
2025
Moved up 245 places since 2022
Based on Forefind scoring model

Licences and compliance

Required licences and registrations for operating this franchise in India. Requirements may vary by state and city tier.
FSSAI License
Setup complexity: Simple

Frequently asked questions

The estimated investment ranges from INR 5 Lakh to 10 Lakh, including outlet setup, equipment, and initial inventory.

Franchisees operate café outlets providing tea, coffee, and snack items under standardized processes, managing day-to-day operations, staff, and customer service.

Outlets require 100 – 200 sq.ft depending on the format and location, suitable for kiosks, takeaways, or compact café operations.

The expected payback period is 1–2 years depending on location performance, customer traffic, and operational efficiency.

Interested parties can contact Chai City’s franchise team to submit inquiries, discuss requirements, select locations, receive training, and access operational support.

Disclaimer: All scores, rankings, and estimates on ForeFind are independently produced editorial assessments using publicly available data and validated brand-submitted information. They are not verified facts, financial advice, or investment recommendations. Full Disclaimer.

image