Tea is more than just a drink in India; it’s a part of our culture and lifestyle. Whether you’re from the bustling streets of Mumbai or the calm countryside of Assam, chances are that tea is a daily ritual. In fact, India is the 2 largest producer of tea in the world! But more than just being a beloved beverage, tea is a fantastic business opportunity. If you’ve been thinking about starting a tea shop, you’re on the right path. Now Shall we dive into a detailed guide to help you start your tea business in India.
Let’s Breakdown together!
Why Start a Tea Business in India?
Before we dive into the details, let’s quickly talk about why tea is such a great business opportunity in India.
Reason 1: With over 1.3 billion people, India has a huge tea-drinking population. Around 88% of Indian households consume tea daily. Statista
Reason 2: The Indian tea industry is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2021 to 2026.
Reason 3: Compared to other food and beverage businesses, starting a tea shop requires less investment.
Reason 4: India Tea Market was valued at USD 11,702.3 Million in 2024 and is expected to reach USD 17,934.1 Million by 2033, at a CAGR of 4.19% during the forecast period 2024 – 2033.
Step-by-Step Guide to Starting a Tea Business In India
Let’s break it down step by step, so you know exactly what to do.
1. Market Research
Before you set up your tea shop, it’s important to understand the market you’re entering.
- Who is your target audience? Are you catering to office-goers, students, or the general public?
- What kind of tea is popular? In some areas, people prefer a strong masala chai, while in others, green tea or iced teas are trending.
- Competition check: Are there other tea stalls or shops nearby? How can you differentiate yourself?
2. Choose Your Tea Shop Type
There are different kinds of Tea Business in India you can explore, depending on your budget and goals:
- Small Tea Stall: The classic roadside tea stall that serves chai, biscuits, and snacks. This is a low-investment option.
- Tea Café: A more premium setup offering a variety of teas, snacks, and a cozy atmosphere.
- Tea Kiosk: Perfect for malls, railway stations, or airports. It’s a quick-serve model.
3. Create a Business Plan
- Own Shop
starting tea business in India have a solid business plan is key to success. Here’s what to include:
- Investment: A basic tea stall can start with ₹50,000 – ₹1,00,000 while a tea café might need ₹5 lakhs – ₹10 lakhs.
- Location: Choose a high-traffic area like near offices, colleges, or public spaces. For a café, a trendy shopping area or a corporate park might work best.
- Menu: Start simple. Your menu can include classic chai, masala chai, ginger tea, and maybe a few snack options. For a café, you could expand to green tea, iced tea, and sandwiches.
- Suppliers: Look for local suppliers for your tea leaves. Quality matters, so choose suppliers from tea-producing states like Assam or Darjeeling.
Pro Tip: If you are looking for a proven business model with brand recognition, exploring tea franchise options is a smart move.
| Aspect | Tea Stall | Tea Café |
| Initial Investment | ₹50,000 – ₹1,00,000 | ₹5,00,000 – ₹10,00,000 |
| Target Audience | General public, office-goers, commuters | Young professionals, students, families, tourists |
| Location | High-traffic areas like streets, markets, stations | Shopping malls, corporate parks, trendy areas |
| Menu | Simple: Masala Chai, Ginger Tea, Snacks | Expanded: Variety of teas, Iced Teas, Snacks, Meals |
| Daily Earnings | ₹3,000 – ₹5,000 | ₹10,000 – ₹20,000 |
| Monthly Profit | ₹90,000 – ₹1,50,000 | ₹3,00,000 – ₹6,00,000 |
| Staff Requirement | 1-2 helpers | 3-5 staff (servers, chefs, cleaners) |
| Equipment | Basic (Stove, Kettle, Cups) | Advanced (Coffee machines, Refrigerators, POS) |
| Legal Requirements | FSSAI License, GST Registration, Shop License | FSSAI, GST, Fire Safety, and other licenses |
| Challenges | Competition, Seasonal dips in sales | High overhead costs, Competitive market |
| Franchise Options | Low-cost franchises | Premium franchises like Chaayos, Chai Point |
B. Franchise Business Model
Tea franchises business often come with an upfront franchise fee, royalty fees, and a percentage of monthly sales. The initial investment may include shop setup, training, and operational support. In return, you benefit from the brand’s reputation and established customer base.
Here’s a breakdown of popular tea franchise brands:
| Franchise Brand | Initial Investment | Royalty Fee | Franchise Duration | Links |
| Chai Point | ₹10 – ₹15 Lakhs | 6% of sales | 5 years | Contact |
| Chaayos | ₹12 – ₹18 Lakhs | 8% of sales | 5 years | Contact |
| MBA Chai Wala | ₹6 – ₹8 Lakhs | 5% of sales | 5 years | Contact |
| Manam Karupatti Kappi | ₹3.5 – ₹5 Lakhs | Nil | Lifetime | Contact |
| Kumbakonam Degree Coffee | ₹5 – ₹6 Lakhs | Nil | Lifetime | Contact |
Also Read this: What Is a Franchise, and How Does It Work?
4. Legal and Licensing Requirements
To start a tea business in India, you need to fulfil several legal requirements:
- FSSAI License: This ensures that your tea shop complies with food safety standards.
- GST Registration: Mandatory for businesses with an annual turnover above ₹40 lakhs.
- Shop and Establishment License: A local license from the municipal corporation to operate your shop.
- Fire Safety Certificate: Necessary if you’re opening a café or a large tea stall.
- NOC from Local Authorities: Required in some states to ensure your tea shop doesn’t violate any local regulations.
5. Location and Setup
Location is crucial for any business, especially tea stalls and cafés. For tea stalls, locations near busy areas like bus stops, railway stations, or office complexes are ideal. For tea cafés, premium locations such as shopping malls, high streets, or corporate hubs will attract a larger crowd.
- Bus Stops
- Railway stations
- IT Park / office Complexes
- Shopping Mall
- High Streets
- Corporate Hubs / Metro Stations
If you’re opting for a tea franchise, the franchisor often helps with site selection based on footfall and competition analysis.
6. Profitability of a Tea Business in India
Let’s talk numbers. How much can you earn from your tea shop?
- Tea Stall: A small tea stall can bring in ₹3,000 – ₹5,000 per day. That’s around ₹90,000 – ₹1.5 lakhs per month.
- Tea Café: A café in a good location can earn ₹10,000 – ₹20,000 daily, translating to ₹3 lakhs – ₹6 lakhs per month.
| Business Type | Daily Earnings (Approx.) | Monthly Earnings (Approx.) |
| Tea Stall | ₹3,000 – ₹5,000 | ₹90,000 – ₹1,50,000 |
| Tea Café | ₹10,000 – ₹20,000 | ₹3,00,000 – ₹6,00,000 |
7. Hiring Staff
If you’re running a small tea stall, you might just need one helper. However, for a café, you’ll need to hire servers, chefs, and cleaning staff.
If you are planning to start a Tea franchise business, Franchise brands will take the entire hiring process.
8. Marketing Your Tea Shop
Here’s how to spread the word:
- Offline Marketing: Print flyers, posters, and ensure you have good signage.
- Social Media: Create a business profile on Instagram, Facebook, and even Google My Business. Posting images of your tea varieties and cozy café ambiance can attract a lot of attention.
If you’re interested in starting a tea business in India but feel overwhelmed, FranchiseBhoomi is here to help. We connect you with the best tea franchise opportunities across India, making it easier to start your own tea shop. Whether you want to open a tea stall or a full-fledged tea café, FranchiseBhoomi has the resources and connections to guide you through the process.
Start Your Tea Business Today!
Tea isn’t just a drink it’s a business opportunity waiting to be tapped. With the right planning, location, and strategy, you can turn your tea shop into a profitable venture. And remember, FranchiseBhoomi is here to make your journey smoother. So, why wait? Start your tea business in India today!
Pingback: How to Start Pani Puri Business In India