How to Make Money from Tea Stall Business (Chai)

How to make money from tea stall business in India 

The tea shop business is the most profitable business idea with a very low investment. You can establish the tea shop based on your investment and you can also think of buying a franchise for tea business. Even though tea is one of the oldest beverages, but till today it is highly consumable all over the world. The idea of starting a tea shop in a physical location can be a great niche business.

Ideas to make money from tea stall business

Tea is the most popular one which is consumed daily because of many reasons such as the health benefits of green tea, lemon tea, and therefore, they love to consume tea for health reasons. This blog also gives you an idea about ‘how to start a herbal tea business.

If you are planning to initiate the tea stall business, here in this article you will get the detailed guide of how to start the tea stall business.

Tea stall business opportunities to make good money

Morning is incomplete without having a cup of tea and there is no such specific time for having tea as every time is tea time. Most people generally prefer tea over coffee; according to the study, it states that adults consume at least 2 cups of tea daily.

India stands as 2ndhighest producer for the tea crop after the china, chai business is not only profitable in metro cities but it is also a gainful venture in small towns. Tea business is a very easy step to start and is a great opportunity for women entrepreneurs who are looking for small business ideas with very low investments. The popularity of the tea is guaranteed so you can start without any doubt you can start your tea shop business is definitely and no doubt it will run successfully.

Tea stall business plan to make good money

In case if you miss this: How to Make Money from Ginger Garlic Paste Making.

Tea Stall Business Plan.
Tea Stall Business Plan.

You can design your tea shop business plan, as the tea stall will be depending upon the investment capital. You can run the business successfully if you can wish to draw a business plan for a small tea stall.

You can start the tea stall business in two ways based on your investment. If you are planning to start the tea stall business with low investment then you can start it by establishing a small tea stall. But if you are ready to invest more in this chain of business then you can definitely go for establishing a tea bar where you can set the menu with different types of tea. You can also plan for wholesale tea business but for that, you need to hire a few people to work effectively in order to reach the demand.

Tea bars offer the well-sitting arrangement with comfortable ambiance and they will offer with different types of tea such as –

  • Iced tea
  • Green tea
  • Bubbles tea
  • Ginger tea
  • Lemon tea
  • Cardamom tea
  • Aroma tea

Additionally, if you are interested in the tea business franchise model, then you can go for the tea business franchises where you will get a good business model that will help you to promote and establish your tea shop business.

Area required starting tea stall business

Location plays a crucial role in the tea business; therefore you have to select a location for your business which is a very important task to start your business. The success of the tea business indirectly depends upon the area and the location which you have selected to start your tea stall business.

Before establishing your tea bar business with the facilities, you need at least 600 sq. ft. area for the tea bar business, you can set up a comfortable seating arrangement with good interiors and comfortable ambiance that has to be loved by all the customers.

Make sure that your tea stall business can easily accessible to the nearby commercial location, colleges, shopping malls, markets would be the best place to open the tea bars. Additionally, you can also start the tea shop business on a movable van which would be a great idea so that you can change your location based on the demand.

Permission and licenses required to make tea in India

Below are the permits and licenses required to start a tea stall business.

Registration of firm: You can start the small to medium tea stall business either in a proprietorship or partnership firm. If you are willing to start this business as One Person Company, then you need to register your firm as a proprietorship. While coming to the partnership operation, you need to register as an LLP – limited liability partnership or as a Private Limited Company with Registrar of Companies (ROC).

GST registration: GST number is mandatory to run for any business to run successfully so the tea shop business is, therefore, need to apply for the GST registration.

Trade license: You have to obtain a trade license from the local authorities for your tea business.

MSME/SSI registration: This type of MSMS registration makes you avail of the government schemes and subsidies regarding your business. If you want to get the schemes and subsidies from the government you need to get the MSME or SSI registration it is compulsory.

Trademark: To secure your tea brand name you need to register for the trademark.
FSSAI registration – Food Safety and Standard Authority of India: Tea stall business comes under the food processing business; therefore, you must have to take the FSSAI license.

Fire license: As the tea stall business deals with the fire equipment, so have to acquire the fire license for safety purposes.

Tea marketing ideas

You can target the audience near the government offices, market places, colleges, schools, etc. This is because more than 80% of the houses in India consume tea every day. So, you also have to reach the targeted audience through online marketing. Presently, the online tea business in India is making good profits and becoming boom nowadays. You can also take orders online. This will help you to reach the targeted audience. You can also give different flavors along with the health benefits. This will increase your unique identity giving different flavors. This makes your brand so popular among the customers and attracts new customers also. To get good flavors of tea you can also get in direct contact with the tea leaf suppliers, instead of buying the processed tea powder. You can also learn Tea Powder Making Process from Green Tea Leaves.

The cost to start a tea stall business

You may also check this: How to Make Money from Babysitting Business.

The Cost to Start a Tea Stall Business.
The Cost to Start a Tea Stall Business.

Here are the costs involved in starting the tea business in India

The cost of milk – Rs. 30 per liter

The cost of water – Rs. 10 for 20 liters

The cost of tea powder – Rs. 350 per Kg

The cost of masala used in a tea (cardamom, ginger, honey, lemons, etc.) – Rs. 100

The cost of sugar – Rs. 40 per Kg

The cost of purchasing the utensils like tea filter, tea making vessel, teacups, spoon, storage boxes for storing all the ingredients – Rs. 500

Rental charges – Rs. 1,000 per day

The cost involved in purchasing the stove and cylinder is Rs. 2,000

The cost involved in getting the licenses required – Rs. 1,000

So, the total cost involved to start a tea business is Rs. 4,990

Profit calculations for the tea stall business

For calculation of profits, in the tea stall business, you need to first calculate the cost per tea leaving the fixed costs like rent, utensils, and storage boxes.

Milk (30ml) +water (10ml) + tea powder (2.5 gram) + sugar (10gram i.e.2.5 teaspoon) + chai masala (4gram i.e. 1 teaspoon) + Gas

Milk cost – Rs. 1 for one cup of tea

Gas cost – Rs. 1

Tea powder cost– Rs. 0.75 for one cup of tea

Sugar cost –Rs. 0.50 for one cup of tea

Chai masala cost – Rs. 0.30 for one cup of tea

So the total costs involved in preparing 1 cup of tea with 30 ml of quantity are Rs. 3.50

The sale price of each cup of tea is Rs. 10.

So, on each cup of tea, you can gain nearly Rs. 6 as profit. Based on the increase in milk prices and other prices the cost may very few times.


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