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Is the tea business profitable in India?

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Team CSB
Is the tea business profitable in India?

Tea is not just an average beverage in India. Even Though tea is not originally from India, the beverage has become a part and parcel of Indian culture. 

 

From the morning tea to evening tea with guests, or for tea break, the drink has seeped into our lives. Seeing an opportunity in this, many tea franchises are opened in India. 

 

Some very successful and some not so successful. However, on average tea franchise businesses are quite popular in the region. 

 

Tea business is becoming very profitable in the country due to various reasons:


  1. Low investment 

 

Tea franchise business doesn't require heavy investment like other business opportunities in India. Even with 10-12 lakhs Rupee, one can open tea franchises. 

 

Tea business is also a comparatively less labor intensive industry. This also reduces the operational spending required in any industry. 


2.           Great opportunity 

 

On average, daily Indians drink at least 3 cups of tea. Office goers at least have two tea breaks with one lunch time. 

Also, cafe culture is in vogue these days. Many youngsters prefer to go to tea Cafe franchises with their friends for small gatherings. 

 

Thus, the tea business offers good opportunities to those who know how to do this business. 


3.           Less Risk

 

Our second point gives us the idea for the third point. As tea franchise business has good opportunity, it comes with less risk. 

 

If the location of the tea Cafe and the quality of tea is good, then there will never be a dearth of customers. 

 

This means chances of risk are low in this business. 


4.           Less operational cost

 

Tea business doesn't require many things. Few seats if you want, a stove, cooking utensils, tea, sugar, some spices or ginger, and few staff to serve and make tea. 

 

That's it! The operational cost is very low in the tea business. 


5.           Customizable 

 

Tea franchise businesses are very much Customizable. It depends upon your budget, what kind of tea Cafe you want. 

 

It can be kiosk type or full cafe type. Even the menu can be customized as per your audience and your preferences. 

 

All these reasons point out that tea franchises are very profitable in India. This can be seen by the real life examples of Chai Sutta Bar, MBA Chaiwalla, Chaayos, Tea Time and others. 

 

These are some very popular tea franchises in India. They are doing quite well not only in India but in foreign countries as well. 


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