How to Start Tea Time Franchise Business in India: Investment, Cost, and Profit Margin

Tea is one of India’s primary exports, making it one of the most important industries in the country. Additionally, it is one of the nations that consume the most tea worldwide. Tea is a beverage that people of all ages and demographics enjoy. A few people consider it to be more than just a cup. It may be found in every home as an essential component in India. In a household, there is likely to be more than one tea fan. Let’s check out How to start Tea Time franchise business in India.

Tea drinking has a significant role in the culture of Indian cuisine. Tea consumption is so widespread in India that more than 70 percent of the population does it daily. Since ancient times, the Indian population has frequented the neighborhood tea booths. They make people’s normal milk tea daily and sell it to them. Recently, people’s preferences have undergone a shift. They are interested in having a variety of tea tastes.

Along with conventional tea, consumers may now enjoy the unique taste that Tea Time has to offer. Below we will learn about the tea time franchise details, Tea Time franchise profit, Tea Time franchise business plan, investment and profit margin involved in Tea Time franchise, and the USP of Tea Time franchise.

How to start Tea Time franchise business in India

About Tea Time

With only one location, Tea Time was created by a small group of tea lovers in Hyderabad. Within only twenty-four months, they moved from having a single shop to having 200 stores throughout India. Tea Time is a popular Indian tea brand. They provide a large selection of teas, coolers, and shakes for sale at prices that customers find quite affordable. The firm has processing operations in several cities, including Hyderabad, Kolkata, and Assam.

The organization’s research and development hub is located in Hyderabad. There is a large number of people that have an interest in the franchising industry. It might be the first step toward running a successful firm if you are the right person for it. Even if you decide to purchase a Tea Time Franchise, the ideal choice is to go with an established, lucrative company that already has a strong brand name and a solid track record of success on your side.

The positive feedback provided by customers in the tea and health sectors has been largely responsible for the steep rise in popularity of the Tea Time brand. Each combination is meticulously crafted to elicit the kind of true joy that comes from drinking tea, and they are developed to satiate our fascination with and love for tea. They have seen a growth in both their customer base and their goodwill due to the quality and flavor of their products.

In case you missed it: Tea Bag Project Report, Manufacturing Plan

In Andhra Pradesh, Telangana, and Kerala, there are 200 Tea Time franchisees combined. In the future, the firm intends to open retail locations in the states of Karnataka, Maharashtra, Tamil Nadu, Goa, and Gujarat. Enjoying this libation in the city calls for familiarity with a dizzying array of flavors, each of which is of superior quality.

The firm has the ambitious goal of becoming India’s most extensive network of franchisees for the sale of their mouth-watering beverage. The business’s success can be attributed to providing high-quality tea at reasonable prices.

What is the USP of Tea Time?

A roadside tea stall in the old sense is not comparable to a modern tea shop offering new era tea. They not only create excellent traditional tea, but they also have a wide selection of unique varieties available. People may enjoy a pleasant atmosphere and a space to socialize at the tea shop, which is also open to the public. Tea Time is India’s very own retail location dedicated to selling tea.

Within a very short time, Tea Time established a strong reputation. Because of word-of-mouth advertising, the establishment has a large following of devoted customers hooked on the tea it serves. They provide many flavors of tea, cold drinks, and milkshakes for purchase. Tea Time’s drinks have a genuine flavor and are crafted using one-of-a-kind components. The Tea Board of India includes Tea Time as a member.

Several people sample and evaluate the tea leaves to guarantee that the flavor and quality are not compromised. Over more than two years, Tea Time has made sales of more than 2,300,000 cups of tea. The firm offers more than eight varieties of tea. Tea Time is rapidly becoming popular throughout the whole country of India. With little time to spare, the business has established a solid reputation in the industry. People are putting their faith in the goods produced by the firm and continually purchasing more items from them.

What are the requirements of the tea time franchise?

Expansion areas

The headquarters of Tea Time can be found in Hyderabad, which is located in Telangana. Over two years, Tea Time has established around 200 locations throughout the United States. Currently, the retail locations may be found throughout Andhra Pradesh and Telangana. Kerala has lately seen the opening of a few new retail locations.

The company is currently expanding its presence in the states of Karnataka, Maharashtra, Tamil Nadu, and Madhya Pradesh by creating additional retail locations. The firm intends to grow and create more locations throughout India shortly. The majority of the company’s operations are now focused on South India. They aim to establish retail locations in the remaining three zones as well.

In case you missed it: Tea Powder Project Report, Manufacturing Plan

Area

Tea Time franchises need a minimum of 150 square feet and a maximum of 200 square feet of space overall to get off the ground. The proposed location must have enough water and drainage facilities. The store must be located in a commercial location, such as a shopping mall, a local market, or a business district since that is where there is the most demand for tea.

In addition, clients have sufficient room to sit down and relax with a hot cup of tea. The space in question has to be situated on the ground level to entice more clients. The firm will supply you with instructions on how to set up the retail location.

Experience

Starting a Tea Time franchise does not need any prior experience or specialized knowledge on your part. The franchise partner is responsible for cultivating positive relationships with the clientele. The franchisee is responsible for making any efforts required to grow a sizable clientele. It helps to know about tea and business. The franchisee is responsible for upholding the brand’s reputation and adhering to the rules established by the firm.

Staff requirements

Two to four staff members are expected to be at a retail location. The employees are obligated to assist the consumers in the process of beverage choosing. They should be well familiar with the menu. They should provide warm greetings to the customers. The corporation instructs the personnel on how to prepare and deliver the beverages properly.

Training

The corporation offers all of the help that is required to ensure the success of the franchise partner’s business. Tea Time offers comprehensive help to its customers when deciding where to locate new retail locations. In addition to that, they provide a full start-up kit. The firm will provide you with everything you need to prepare the cocktails listed on the menu, including any ingredients that may be required.

In addition to this, they provide the franchise partner with operational assistance. The firm is responsible for providing the preliminary management training. In addition to that, we give regular updates about our research and development efforts. The firm is responsible for handling all of the marketing and advertising efforts associated with the retail location.

In case you missed it: Paper Tea Cup Project Report, Manufacturing

What is the investment required for starting a tea time franchise?

The initial financial commitment required to launch a Tea Time franchise is between 4.5 and 5.5 lakhs. All of the costs associated with advertising, costs associated with branding, costs associated with commencement kits, costs associated with portable equipment, and costs associated with commencing stock are covered.

The royalty charge is three percent of the total revenue generated each month. On the other hand, it won’t be any higher than 9,000 yen. Repayment on time is always expected in the case of loans. If you choose to take out loans to establish a Tea Time Franchise, you need to consider various aspects, including the terms under which you will be required to repay the loans, the interest rates, and the terms under which you will receive the loans.

Because tea is a widely consumed beverage, investing in a Tea Time franchise may prove profitable and easy on the wallet. To start with a Tea Time Franchise, you will need to make a total investment of 4.25 lakhs. This entails paying for preliminary advertising and purchasing an all-inclusive start-up package comprising transportable equipment such as a refrigerator, ovens, and cutlery, among other things, in addition to an initial stock to get the company up and running.

You need to establish attainable targets to comprehend the consequences of your break-even point and, eventually, your revenues. Once you’ve established your objectives, you need a constructive outlook to get things moving in the right direction.

In case you missed it: Tea Tree Oil Project Report, Business Plan

A royalty fee of a tea time franchise

The monthly royalty payment to the brand will equal three percent of the product’s total revenue. It also includes a cost for marketing. Royalty and recurring payments for the unit franchisee The monthly royalty payment to the brand will equal three percent of the product’s total revenue. For instance, the royalty would be Rs. 3,000 if the total amount of your sales is Rs. 1 lakh.

Similarly, the royalty fee for three lakhs will be 9,000/-, and the fee for four lakhs would be 12,000/-. However, we have imposed a cap on the number of royalties that you must pay. The most that may be collected from you as royalties will be Rs.9000. When your sales reach or exceed three lakhs, you will be required to make this payment to the brand. Even if you sell for 10 Lakh rupees, you will not have to pay further fees. However, if your sales are less than 3,000 Indian rupees, you will be responsible for paying the mandatory 3 percent royalty.

Profit margin and return on investment in the tea time franchise

The number might be anything from forty to eighty percent, on average. The normal payback period ranges from five to ten months in length. The prices of the goods vary anywhere from ten to ninety-nine dollars. Your take-home (profit) after deducting rent, payroll, electricity, product cost, and royalty is Rs. 10,000.

If your average daily sale is Rs. 10,000/- and you exclusively sell the things with the lowest profit margin for the whole month. This would equate to around 80,000 to 100,000 Rupees. Within the first five to six months, you will see a return on your invested money.

In case you missed it: Tea Bag Making Business – Plan, License, Profit

Conclusion

After reading this post, we are certain that you now understand better how to get a Tea Time franchise. In India, one of the drinks that are consumed the most often is tea. It is so commonplace that practically every Indian person does it automatically, and they drink it to ward against exhaustion or to be invigorated before beginning a busy day.

Establishing a Tea Time franchise is simple, and you can be certain that it will bring in profits that are within reach. Tea breaks are standard practice at most business establishments, and purchasing this franchise can only guarantee that you will make a profit. As a consequence, you should provide your customers tea tailored to their individual preferences and likes.