Starting A Chai Kings Franchise: Cost And Profit Analysis

April 30, 2024

Chai, a spiced and milky tea beverage, is more than just a drink in India; it's a cultural touchstone. From bustling city streets to quiet homes, the aroma and comforting warmth of chai are a ubiquitous presence. This deep-rooted love for chai translates to a massive market, making it a prime industry for entrepreneurs to explore.

Chai Kings as an Emerging Player in the Indian Tea Franchise Business

Emerging as a prominent player in this dynamic market, a Chai Kings franchise’s cost and opportunities are being greatly researched due to their delectable chai experience. Their commitment to quality extends beyond the cup, as they source only the finest tea leaves and authentic spices. 

This dedication to using premium ingredients is evident in the rich flavor profile of their chai, which has garnered a loyal following. But Chai Kings doesn't stop at tradition. They understand that today's consumers crave variety, and their menu boasts an exciting selection of innovative flavors that cater to diverse palates.  

The Chai Kings Story: From Dream to Franchise

Chai Kings is the brainchild of two passionate individuals, Balaji Sadagopan and Jahabar Sadiqe. Their entrepreneurial journey began in October 2016 with the opening of their very first outlet, not just any outlet, but one meticulously crafted to embody their vision for Chai Kings. From the warm and inviting ambiance to the carefully curated selection of chai varieties, every detail was thoughtfully considered to create an experience that would leave a lasting impression. 

The response was overwhelmingly positive, with customers flocking to enjoy their flavorful chai and friendly service. This initial success fueled Balaji and Jahabar's desire to share their love for chai on a larger scale. 

Thus, the Chai Kings franchise model was born, offering a unique opportunity for others to become a part of their growing success story. 

Also read : Starting a Tea Shop Franchise in Chennai, Tamil Nadu

Unique Aspects of Chai Kings

Cultivation of Their Own Tea Leaves

Unlike many other tea brands, Chai Kings takes a hands-on approach to quality control. They cultivate their own tea leaves in select regions known for producing exceptional yields. This allows them to ensure the freshness and superior quality of the tea leaves used in their chai, translating directly to a more flavorful and authentic experience for their customers.

Focus on Quality and Environmentally-Friendly Practices

Chai Kings prioritizes both quality and sustainability. 

They source not only their tea leaves but also their spices from reputable vendors known for using only the finest natural ingredients. This commitment to using premium ingredients shines through in the rich and complex flavor profile of their chai. Furthermore, they are dedicated to minimizing their environmental impact. They incorporate eco-friendly practices throughout their operations, which might include using biodegradable packaging materials and minimizing waste generation.

Takeaway and Delivery Options through Electric Vehicles

Chai Kings understands that today's consumers are on the go and appreciate convenient options. They cater to this need by offering takeaway and delivery services for their chai beverages. However, they go a step further by using electric vehicles for deliveries. This commitment to sustainable practices reduces their carbon footprint and demonstrates their environmental consciousness, which resonates with eco-conscious consumers.

Wide Variety of Teas and Different Flavors Offered

A Chai Kings franchise brings varied dishes based on varied preferences.

They move beyond the classic masala chai and offer a diverse selection of teas and flavors to satisfy a wide range of palates. Whether you enjoy the bold notes of ginger chai, the refreshing taste of lemon chai, or a unique herbal infusion, Chai Kings has something to tantalize your taste buds. This variety ensures there's a perfect cup of chai for every customer.

Advantages of Acquiring a Chai Kings Franchise

Advantages of Acquiring a Chai Kings Franchise

Owning a Chai Kings franchise offers a multitude of benefits for aspiring entrepreneurs. Here's a closer look at the key advantages:

Emphasis on Chai Quality - 'Cupful of Purity’

Chai Kings prioritizes quality above all else. Their motto, "Cupful of Purity," reflects their unwavering commitment to using only the finest ingredients. They cultivate their own tea leaves in select regions and source high-quality spices from reputable vendors. This dedication to premium ingredients translates into a consistently delicious and authentic chai experience for your customers. 

Vision for Growth 

Chai Kings is a brand on the rise. They have a clear vision for growth, with ambitious plans to expand to over 500 stores within the next five years. By joining the franchise network, you're aligning yourself with a brand that is positioned for significant growth. 

The franchisor's experience and expertise in navigating expansion can be invaluable in establishing and operating your own successful Chai Kings outlet.

Unique Selling Propositions (USPs) 

Chai Kings isn't afraid to innovate. Their extensive menu boasts an exciting selection of tea flavors that go far beyond the typical chai offerings. This allows you to cater to adventurous taste buds and offer customers a truly unique tea experience. 

Whether they're drawn to the bold notes of ginger chai, the refreshing taste of lavender earl grey, or a seasonal fruit infusion, your Chai Kings franchise can become their go-to destination for an exceptional cup of tea.

Investment and Costs Associated with a Chai Kings Franchise

Range of Investment for Starting a Franchise Unit

Chai Kings operates under a franchise model, which requires an initial investment to secure the rights to operate a store under their brand name. The exact investment amount can vary depending on several factors, including:

  • Location: The cost of leasing or purchasing a retail space can vary significantly depending on the city, town, or specific mall location you choose. Generally, prime locations with high foot traffic will command a higher investment than locations in less populated areas.
  • Outlet Size: The size of your chosen outlet will also influence the investment. A larger store will require more upfront costs for rent, equipment, and furniture compared to a smaller kiosk-style outlet.

Considering these factors, the initial investment to open a Chai Kings franchise typically falls within a range of ₹8 lakh to ₹20 lakh

What's Included in the Investment?

Franchise Fee: This fee grants you the right to operate a Chai Kings franchise for a specific period. It provides access to the brand name, trademarks, and established business model.

Training and Support: Chai Kings likely offers comprehensive training programs for you and your staff on everything from brewing the perfect cup of chai to operating the cash register and maintaining customer service standards. Ongoing support from the franchisor may also be included in the fee.

Initial Inventory: The initial investment might cover the cost of procuring a certain amount of tea leaves, spices, cups, packaging materials, and other essential supplies to launch your business.

Signage and Marketing Materials: The franchise fee may cover the cost of signage for your outlet and marketing materials to help you promote your new business venture in the local area.

Space and Location Requirements

Space Specifications for Opening a Franchise

Kiosk-Style Outlet: This compact format might be ideal for high-traffic areas like malls or transportation hubs. The space requirement would likely be on the smaller side, focusing primarily on takeaway and delivery services.

Mid-Sized Cafe: This option offers more space to accommodate seating for customers who wish to enjoy their chai in-store. This format would require additional space for tables, chairs, and potentially a small restroom facility.

Large Cafe: For entrepreneurs seeking a spacious cafe environment, this option allows for a comfortable seating area, perhaps with additional offerings like snacks or light meals to complement the tea selection. This format would require the most significant amount of space.

Preferred Locations for Setting up the Franchise

To maximize your chance of success, target high-foot-traffic areas with good visibility and accessibility, like busy streets, malls, transportation hubs, or office complexes. Consider demographics to ensure there's a population who enjoys tea and appreciates quality, and avoid locations saturated with similar tea chains or cafes. Collaborate with the Chai Kings franchise team to find the optimal spot that aligns with your budget and their brand vision.

Franchise Application Process

Steps to Apply for the Franchise

Franchise Application Process

Ready to be a Chai Kings franchise owner? Here's a simplified application process:

  1. Research: Learn about Chai Kings' model (website or franchise expo).
  2. Apply: Submit your interest through their website or at a franchise expo.
  3. Qualify: The franchisor assesses your suitability.
  4. Review: You'll receive a Franchise Disclosure Document (FDD) to review with a lawyer.
  5. Plan: Develop a business plan for your outlet.
  6. Location: Find a suitable location with the franchisor's guidance.
  7. Sign: Sign the franchise agreement after securing financing and permits.
  8. Train: Participate in training programs to prepare for launch.

Official Website Details for Further Information

For the most up-to-date information on the Chai Kings franchise application process, visit their official website at The website may have a dedicated franchise section with detailed information, downloadable application forms, and contact details for the franchise development team. You can also explore their website to learn more about their brand story, menu offerings, and commitment to quality.

You may be interested in: Top 10 Coffee and Cafe Franchise Opportunities in India

Chai Kings' Market Presence and Expansion Plans

Current Operational Status including the Number of Stores and Locations

Currently, Chai Kings has 56 outlets of which 50 are in Chennai. These outlets are strategically located in cities and towns across India, catering to a growing customer base who appreciates their commitment to quality and innovative chai experiences.

Future Expansion Goals to Enhance Presence in India

Chai Kings isn't resting on its laurels. They have ambitious plans for significant expansion in the coming years. Their vision is to become a household name synonymous with exceptional chai, and their growth strategy reflects this ambition.

They have set a target of opening over 500 stores within the next five years. This aggressive expansion plan indicates their confidence in the brand and their dedication to making Chai Kings a national tea franchise leader.  This growth will likely focus on strategic expansion into new cities and regions across India, allowing them to reach a wider audience and introduce their unique chai offerings to new communities.

Profitability and Payback Period

Profit Margin Potential

Industry benchmarks suggest that Tea franchises in India generally operate with profit margins ranging from 30 % to 40%.

Chai King’s existing franchise outlets report a turnover of Rs 10 lakhs to Rs 12 lakhs per month. This might translate to a potential profit margin within the industry benchmark, but it's important to remember this is not a guaranteed outcome.

Transparency Disclaimer:  Franchise profitability can vary significantly depending on several factors, including location, operating costs, and overall market conditions. It's important to conduct thorough due diligence and consult with a financial advisor before making any investment decisions.

Estimated Payback Period:

  • General Range: The payback period for a franchise investment can typically range from 2 to 5 years.
  • Factors Affecting Payback Period: Several factors influence the payback period, including the initial investment amount, operational efficiency, and overall sales volume


The world of chai is brimming with potential, and Chai Kings offers a compelling franchise opportunity for entrepreneurs seeking to be a part of this exciting market. Their commitment to quality, innovative flavors, and a rapidly growing network positions them for national success.

Are You Ready to Brew Your Success Story?

If you possess a passion for chai, a dedication to exceptional customer service, and an entrepreneurial spirit, a Chai Kings franchise might be the perfect opportunity for you.  To learn more and take the next step, reach out to Chai Kings through the following methods:

  • Official Website: Visit the official Chai Kings website at The website may have a dedicated franchise section with detailed information, downloadable application forms, and contact details for the franchise development team.
  • Contact Information: Look for a designated contact email address or phone number for franchise inquiries on the website. Alternatively, social media platforms might offer options for direct messaging their franchise development team.

We encourage you to conduct thorough research, review the FDD, and consult with a financial advisor before making any investment decisions.  With careful planning and a commitment to excellence, you can be well on your way to brewing your own success story as a proud owner of a Chai Kings franchise.

Ready to start your franchisee journey? Become a part of Kouzina’s family and partake in their success!

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