Why Owning a Tea Franchise can be the Best Investment Opportunity

Vaishnavi Gupta
Vaishnavi Gupta Jul 03 2020 - 3 min read
Why Owning a Tea Franchise can be the Best Investment Opportunity
A tea franchise is a lucrative business model also because of the fewer requirements it needs to start it as a business.

Tea Franchise Opportunity

Tea is more than just a cup of tea to start the day in India. It is a drink that Indians can’t live without. Tea cafés are becoming favorite hangout spots for Indians to have a conversation over ‘chai’, thereby making it a perfect place for investors to invest their money well.

The country consumes 837,000 tonnes of Tea every year. With such a high consumption of the drink, Tea franchises are emerging as a huge business opportunity. A tea franchise is a lucrative business model also because of the fewer requirements it needs to start it as a business. There are various tea cafes in India that are operating on the franchise model. One such café, Tea Time, offers lucrative franchise opportunities for like-minded entrepreneurs. 

Overview of Tea Time

As a nation, we consume the largest amount of tea in the world. In fact, tea is the second largest consumed drink in the world after water. Tea Time is the second largest tea producer in the world. Tea Time is one of the largest tea brands of India, having a chain of tea outlets selling different kinds of Tea, Coolers & Shakes at reasonable prices.

What makes the brand different is the authentic taste & the unique ingredients they use. Its processing plants are located at Hyderabad, Kolkata, Assam, Vizag, Rajahmundry and, R&D lab in Hyderabad.

Tea Time procures the best tea leaves only after the tea tasters ensure the quality. Each blend is uniquely crafted to invoke an authentic tea sipping experience and made to satisfy the addiction and love for tea.

Tea Time has over 500 outlets spread across Andhra Pradesh, Telangana, Kerala, Maharashtra, Gujarat, Madhya Pradesh, Uttar Pradesh, Manipur, Karnataka, Rajasthan, Pondicherry, Tamil Nadu, Delhi, Haryana, and Odisha. The brand will soon open stores in other parts of India.

Why invest in the Tea Time franchise?

As Tea Time continues to expand around the globe, it is looking for passionate and motivated entrepreneurs to join its strong batch of franchisees. Similar to the art of tea-making, the success of any franchise is dependent upon the franchise development process. Fortunately, the brand discovered the perfect methods for both and is known as one of the successful Small Scale Business. A middle-class family also can afford to start the Tea Time franchise.

Tea Time serves premium milkshakes, coolers, and freshly made Tea in a welcoming atmosphere. The connections its franchisees can make within their communities play a big role in both their success and their love for what they do.

Unit Franchisee Requirements

Minimum 100 sqft outlet at a busy location which can be near to bus stops, highways, hospitals, markets, railway stations, IT campus, colleges, etc. The outlet should have tile flooring, kitchen partition, water connection & an outlet counter. The franchisee has to arrange the said ones only while the rest will be taken care of by the brand.

4.25 Lakhs is the total amount required to start a unit franchise of Tea Time. It includes the franchise fee, marketing fee, and the complete start-up kit consisting of the movable equipments (Refrigerator, Deep Freezer, Stoves, Utensils, etc) and an initial stock to start the business.

The profit margin ranges from 40% to 80%. The average payback period is from 5 to 10 months. Reasonable product prices start from Rs 12 (dum tea) to Rs 99 (premium milkshakes).

The franchisee needs to have 2 employees who will be trained by the brand to run the business. Anybody can learn the entire Tea Time menu in 3 days.

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