The Indian fondness for tea has provided a lot of opportunities to the businesspeople, and the Tea Time franchise has emerged as one of the fastest-growing tea brands in India. Tea Time is familiar with low-cost investment, fast payoff, well-established brand, which makes it an attractive investment option to potential business starters willing to venture into the food and beverage business.
The brand has a variety of tea blends, snacks, and beverages, and has been able to win the hearts of people who love tea in India. This blog will cover all the details of the Tea Time franchise, including the Tea Time Franchise Cost, information about the investment, the process of establishing the business, the advantages, and why the franchise is believed to be among the best franchising opportunities of 2025.
About Tea Time: Brand at a Glance
Tea Time is a tea chain that is one of the largest and rapidly developing in India and was established in 2016 by Uday Srinivas Tangella in Rajahmundry, Andhra Pradesh, after he had a successful career in Dubai and decided to become an entrepreneur in India. Tangella started with an initial capital of merely 5 lakh and had a vision of providing quality tea to the masses at affordable prices, particularly to the middle and lower-middle-income group that does not need to have a high price tag on a good cup of tea. The brand was fast becoming popular, and in a span of one year, Tea Time had more than 100 outlets, and it soon took the franchise path, which quickly spread the brand nationally.
As of 2024, Tea Time has almost 4,000 outlets in India, with over 3,000 more established by 2022, and a turnover of over 400 crore. It is a well-established brand that boasts of standardised taste, universal quality, and ensuring that it goes straight to the source of Assam tea in the case of the farm-to-glass experience, a factor that differentiates it from other competitors. Tea Time provides many different types of teas, coolers, shakes, and even snacks at pocket-friendly prices, with the signature cup of tea costing as little as 10 rupees.
One of the major reasons why Tea Time succeeded is that the company can convert unnecessary expenses like costly interiors and high overheads without compromising on the appearance and cleanliness of the environment in each of the outlets. The franchise scheme will be easy to use, low entry fee and split revenue, and thus appealing to the potential business persons in cities and rural regions. Thanks to this strategy, strict training process, and uniform procedures, Tea Time has been able to achieve the consistency of taste and service both throughout its massive network, making it solidifying its position as a leader in the Indian tea market.
Why Should You Consider a Tea Time Franchise?
Taking into consideration that it is possible to make a profitable decision about the Tea Time franchise because of a great number of advantages, such as existing brand recognition, tested business models, and powerful support systems. It enables business owners to get into an emerging market with a well-known and trusted brand and minimise the risks of launching a new business.
The Major Advantages of Tea Time Franchise
- Incumbent Market position.-Tea Time has established a good brand image and a following of customers. The advantage of franchisees is that their recognition is instant, thus it is easy to draw in foot traffic and earn trust faster than when launching a new and unfamiliar brand.
- Support and Training-They are also provided with extensive training, operational and marketing services to the franchise owners and lessen the hurdles normally encountered by startups. It helps to promote the success and consistency between outlets.
- Cost-Effective The franchise has low entry and high profitability, making it affordable to first-time entrepreneurs. The investment in franchisees is usually recouped in 12-18 months, and the profit margins are between 25% and 80%
- Market Demand-The Indian tea market has also been growing steadily due to the increased awareness in terms of health and the cultural significance of tea. A franchise like Tea Time finds this high demand and exploits it by diversifying the menu and its sophisticated ambience that draws a large crowd.
- Scalability and Growth -The scalable nature of the Tea Time business model enables the franchisees to have growth opportunities in various regions or diversify their product line, which is long-term. Profitability is enhanced further because of the flexible menu and the innovative marketing strategies.
What Is the Tea Time Franchise Model?
Tea Time has a range of franchise designs, which are fitted to various levels of investment, locations and business objectives. The key ones are the Unit Franchise and the Master Franchise, which have different functions and operational needs of operation.
Unit Franchise Model
- This is the most popular and entry-level model, which is perfect to use by entrepreneurs with moderate capital.
- The initial investment needed is approximately 5-7 lakhs with the small size of the shop (100-200 sq. ft) and minimum staff (2 employees).
- Characterised by a small layout, fast service, a small menu and high turnover.
- It is efficiency and speed-oriented, has a chosen list of tea flavours, fast food, and ready-packaged products.
- The profit margins are also normally high, and the payback period is approximately 5-10 months.
Master Franchise Model
- This is designed to serve bigger investors or investors who wish to diversify in an area.
- Includes a bigger arrangement (300800 sq. ft) with cosy seating, an expanded menu (including food), and a high-end customer experience.
- Master franchisees have the right to sell unit franchises, get a portion of the royalties of sub-franchisees and distribute products.
- Brings in greater revenue potential, territorial control and promotes rapid expansion.
- Appropriate for those who want to conquer a particular region and push the development of the brands.
Key Features Across Models
- Efficiency in the supply chain guarantees uniformity.
- Theoryless menu training for employees.
- Continuous assistance, such as advertising, operational recommendations, and technology (POS terminals, inventory control).
- The aggressive expansion strategy focuses on tier-2 and tier-3 cities and metropolitan markets.
These business modes enable Tea Time to focus on a large pool of entrepreneurs, ranging from the small-town shop owners to the large-scale regional operators, with opportunities to scale its investment capacities and powerful support mechanisms.
Also Read: Chai Sutta Bar Franchise Cost
Investment Breakdown: What You Need to Open a Tea Time Franchise
There are a number of expenses involved in opening a Tea Time franchise; collectively referred to as the Tea Time franchise cost, and they can be broken down into three broad categories: Franchise Fee and Royalty, Setup Costs, and Ongoing Costs. The list of each category is as follows:
Franchise Fee & Royalty
The franchise fee is a single advance payment to Tea Time so as to obtain the right to operate under their brand name and access to their business systems, training and support. This cost is normally between ₹2 lakh and 4 lakh based on the location and model of franchise. Also, a security deposit of 1-2 lakh rupees can be stipulated, which is normally refundable upon expiry of the contract.
Royalty fees are monthly payments, normally ranging from 4 to 8 per cent of the gross sales of the month, and go into brand advertising, new product introduction, and the maintenance of the business. A brand development fee and training fee might also be part of the initial investment in some franchise models of franchises.
| Component | Unit Franchise | Master Franchise |
| Franchise Fee | ₹2,00,000 | ₹5,00,000 |
| Security Deposit | ₹1,00,000 | ₹2,00,000 |
| Brand Development | ₹50,000 | ₹1,00,000 |
| Training Fee | ₹25,000 | ₹50,000 |
| Monthly Royalty | 3% of sales | 1.5% of sales |
Setup Costs
Set-up costs consist of all the expenses that are required to physically put up the franchise outlet. These include:
- Shop Space: Rent/lease a commercial space that is suitable to open a tea outlet.
- Interior Arrangement and Renovation: Store design, tiling, partitioning and branding will require a budget of between ₹8 lakh and ₹4 lakh, depending on the size of the outlet and the location.
- Equipment: Tea brewing machine, refrigerators, POS machines, furniture, and safety equipment are bought. The cost of equipment will be between ₹3 lakh to ₹6 lakh.
- First Inventory: Tea leaves, milk powder, flavourings, packaging and other freebies to be purchased in the first few months of operation, estimated at ₹1 lakh to ₹2 lakh.
- Marketing/Branding: Signage, menu boards, and initial promotion costs can be approximately ₹50000 Indian.
| Component | Unit Franchise | Master Franchise |
| Store Setup | ₹3,00,000 | ₹8,00,000 |
| Equipment | ₹2,50,000 | ₹5,00,000 |
| Furniture | ₹1,00,000 | ₹3,00,000 |
| Signage | ₹75,000 | ₹1,50,000 |
| Initial Inventory | ₹1,50,000 | ₹2,50,000 |
Ongoing Costs
Continuing expenses are the expenses that are recurring costs needed to keep the franchise up and running to make it profitable. These include:
- Working Capital: Money required to run day-to-day business including salaries of the staff, utility bill payment, rent, and restocking of the shelves. This is normally ₹1 lakh to ₹1.5 lakh in the first few months.
- Royalty and Marketing Fees: Payments made to the franchisor monthly are usually a percentage of gross sales (4-8% as royalty and 2-3% as marketing).
- Cost of Goods Sold (COGS): Direct costs of tea products, supplies, and raw materials that Tea Time can provide by using its supply chain to guarantee quality.
- Licensing & Regulatory Fees: The renewal of the required licenses and permits that are different depending on location.
- Utilities & maintenance: Constantly incurred costs on electricity, water, internet and equipment repairs.
| Component | Estimated Monthly Cost (INR) |
| Rent | ₹10,000 – ₹15,000 |
| Salary (1 staff) | ₹8,000 – ₹10,000 |
| Raw Material Cost | ₹30,000 – ₹40,000 |
| Utilities/Maintenance | ₹3,000 – ₹5,000 |
| Marketing Fees | 2% – 3% of sales |
| Working Capital | ₹2,00,000 – ₹4,00,000 |
The successful launching and the further functioning of a Tea Time franchise requires the careful budgeting and financial planning of each of these cost branches.
Profitability & ROI: How Fast You Can Break Even
In India, the Tea Time franchise owners can usually break even within a time span of 5 to 12 years, with the majority of their break-even period being 6 to 9 months based on the location, sales performance and the efficiency of the operation. Its annual ROI is between 40 and 50% and thus, it is an extremely good deal to any entrepreneur who would want to make fast returns in the food and beverage industry.
Profitability Overview
- Tea Time franchise gross margins stand between 40%-80%, with net margins after expenses of 35%-50%.
- Revenue is typically between ₹1.2 lakh and ₹2.5 lakh monthly, and net profit is between ₹24000 and ₹100000 monthly, depending on the location and performance of the outlets.
- Unrealistic standards in high-foot traffic locations can propel monthly revenue up to ₹2 lakh.
Influencing Factors of Break-even.
- The location and customer footfall have a great influence on the pace of break-even.
- Other factors that are important in faster ROI are operational efficiency, menu pricing and good marketing.
- Its business concept is low cost and cheap menu items; this contributes to the running volume of the business and rapid recoup of investments.
Investment & Payback Table
| Metric | Typical Range |
| Total Investment | ₹4.25–10 lakh |
| Monthly Revenue | ₹1.2–2.5 lakh |
| Monthly Profit | ₹24,000–1 lakh |
| Payback Period | 5–12 months |
| Annual ROI | 40–50% |
The Tea Time franchise is regarded as a scalable and high-profit business that has a short
break-even time, particularly in areas with a high customer base.
Site Requirements & Setup Size
The space and location requirements of opening a franchise of Tea Time are normally a minimum of 100 to 200 square feet of outlet space. The best places are locations with a high number of people around colleges, bus stops, markets, hospitals, and commercial centres. The store can contain the necessary facilities like tile flooring, water supply, outlet counter and kitchen partition, and other basic facilities like air conditioning, CCTV, and internet connection are usually needed.
More specifically:
- The size of the minimum shop is between 100 and 150 or 200 square feet, as the source varies.
- Places must be in the high-density locations such as colleges, transport systems, shopping centres, or markets.
- The staff needs are typically 2-5 employees, and kitchen and sitting areas are typically optional yet suggested.
- Preparation normally takes the use of utilities like water, electricity (single-phase power) and proper licensing (GST, FSSAI, trade licenses).
- Interior needs involve certain design features like tile flooring and a counter.
One of the reasons that is attributed to the total investment in the franchise cost is the investment in space and set up, which is usually between ₹4.25 lakh to ₹10 lakh with royalty payments of about 3 per cent of the monthly gross sales, which has a limit of around ₹9000. A lot of franchise arrangements are keen on the relevance of a modulated location and a calculated outlet size to ensure maximum customer traffic and profitability.
Brand Support: What Tea Time Offers Franchisees
The Tea Time franchise has a full support program for its franchisees and aims to help the franchisees achieve business success and uniformity across all locations through its operations, marketing, training, and technology.
- Operational Support-Tea Time offers continuous operational support, quality assurance, and best practices exchange to preserve the brand standards and customer experience. New products and operational enhancement is continuously guided to the franchisees, and this ensures long-term growth and profitability.
- Marketing Support-The brand provides franchisees with new marketing techniques like social media optimisation, SEO, social media campaigns, influencer partnerships and events. The marketing services also involve unit interior and exterior advertisements, local advertisements, and Google Business Page management. Nonetheless, digital, television, and print advertising would usually not be addressed at the brand level.
- Training and personnel development.-Tea Time provides extensive training to the franchise owners and employees in areas of operations, marketing, customer service, and product knowledge. This involves the regular, seasonal and new menu training and a training helpdesk as a follow-up on the queries.
- Technology and Supply Chain-The franchisees are provided with access to business management software, POS, inventory management tools, and customer relationship management platforms to streamline operations. The brand also has a central procurement system to ensure quality and competitiveness in prices to support the inventory management.
Additional Support
- Menu direction and price advice are given.
- They include business management software and operation manuals.
- There is an online tie-up support for delivery services.
- There is a provision of financial forecasts and cash flow recommendations to facilitate working capital management.
In general, the support structure of Tea Time will enable franchisees to start, run and develop their locations effectively with the help of the reputation and resources of the brand.
Step-by-Step Franchise Application Process
The process of the Tea Time franchise application is easy and is achievable through several major steps. Here’s a step-by-step guide:
- Internet Research: Click on the official Tea Time site and fill in your information in the franchise enquiry form, giving your name, contact details, the city of your choice, and the amount of money you would be willing to invest.
- Initial Call & Discussion: Once you fill out your information, an executive of the Tea Time franchise will call you to talk about your profile, location preference and eligibility.
- Location Approval: The franchise team will review your selected location and might take photos of the location or visit the location to confirm that it satisfies their criteria (100200 sq ft).
- Document Submission: Present the required documents, like ID proof (Aadhaar/PAN), address proof, passport-size photographs, bank statements, and proof of the location of the business.
- Location and Documentation: After the approval of your location and documents, sign the franchise agreement and pay the franchise fee, which is 2.25-5 lakh basis the outlet model.
- Outlet Set-up and Branding: Tea Time shall aid in the setting up of the shop, installation of equipment, branding and supply of the startup package, which will include the necessary machinery and initial stock.
- Training and Launch: The company will train you and your employees on how to prepare tea, hygiene, customer service and operation in 3 days. Once trained and established, your outlet can go live in 15- 20 days upon payment.
Risks & Challenges to Prepare For
There are various risks and challenges that are associated with starting up a franchise of Tea Time, which you need to be ready to face to have the best chance of success. These comprise financial, operational, as well as market-related challenges which are prevalent in the tea and snacks franchise industry in India.
Financial Risks
- It demands a huge start-up cost, such as franchise fee, infrastructure, machinery and stock. The recurrent expenses, such as royalty payments, marketing contributions, and working capital, should be used with caution in order to mitigate cash flow problems.
- Break-even cycle usually involves a period of 12 to 18 months, and failure to estimate costs or exaggerated initial sales may cause financial pressure.
Operational Challenges
- It is important to maintain the quality of the products, inventory management and staff training. Areas of operational failure can damage customer experience and brand image.
- The problem of staffing, like attrition and seeking reliable staff, is a general occurrence that must be managed proactively.
Market & Competition Risks
- The market of tea shops is very competitive, with both organised franchises and disorganised local participants. To be unique, one needs innovation and good marketing as well as good customer service.
- The choice of location is very important as a location that is poorly selected will lead to low foot traffic and profitability.
Compliance and Regulatory Problems.
- Franchisees are required to comply with food safety requirements (such as FSSAI), with labour legislation and tax laws. Failure to comply may result in lawful or monetary fines.
- Seasonality and Demand Fluctuations.
- Tea demand is also a seasonal one, which is affected by weather, festivals and local tastes. The operations and inventory management should be flexible in order to be profitable all year round.
Limited Autonomy
- Franchisees are required to adhere to the operational procedures and brand specifications of franchisors and, thereby, lack autonomy in decision-making and menu adaptability.
To mitigate these risks, it is recommended to plan its financial operation, the proper choice of location, training of employees, and adherence to the regulations. Most of these challenges can be overcome by constant performance reviews and close integration with the franchisor.
Conclusion
The Tea Time franchise is one of the most promising businesses in the Indian food and beverage industry, with affordable prices, quality, and a business concept that has experienced rapid growth to thousands of locations across the country. Additionally, the Tea Time franchise cost is relatively low compared to other café brands, making it an attractive option for first-time entrepreneurs and small investors.
With its differentiated product mix, strong supply chain, and comprehensive franchisee support, Tea Time can not only offer its clients the best experience of quality tasting tea, but also help the businessperson with the lowest entry, break-even period and the ability to employ. The factors that make Tea Time an appealing choice to any individual willing to pursue a profitable and sustainable business in the growing tea retail sector are innovation, customer experience and scalable operations.
FAQs
Q.1 How Expensive is the Launch of the Tea Time franchise?
The amount of initial investment that will be required to open up a Tea Time unit franchise will be between ₹0.45 to ₹5 lakh, which includes franchise fee, marketing, starter kit and equipment and initial stock of raw materials.
Q.2 What is the Least Space and Location Needed to Establish the Outlet?
It must be a minimum of 100 to 150 square feet in size and preferably placed close to colleges, bus stops, markets, railway stations or corporate parks where there would be a large number of people to see the outlet.
Q.3 What Facility or Interior Arrangement is Required?
The shop should be tiled, water should be provided, an outlet counter, a partition in the kitchen and should have access to electric power and water. The company offers principles and support of interior design and branding.
Q.4 What Number of Employees do you Need to Operate a Franchise?
In most cases, at least 2 workers who underwent the training offered by Tea Time would have to work daily to prepare tea and offer customer service.
Q.5 Do you Require Prior Experience in the Food and Beverage Industry?
There is no need of doing any previous experience because Tea Time offers extensive training to the franchise owners and workers that covers menu preparation, hygiene, customer relations, and inventory management.
Q.6 How Long is the Term of the Franchise Agreement, and the Policy for Renewing?
The franchise agreement is usually for 5 years and can be renewed with the terms of Tea Time.
Q.7 What Documents are Needed to Apply to the Franchise?
These are ID, address proof (electricity bill, residential rental agreement), PAN card, bank statements to be verified with respect to finances, passport-sized photographs, and a duly filled franchise application form.
Q.8 What is the Duration of the Outlet Set-up and Start-up with Payment?
Franchise payment, establishment, training and outlet launch normally require 15-25 days after payment of franchise fees.
