Tea Shop Business

How to Start Tea Shop Business in India – 6 Steps Guide

Running Tea Shop Business is a profitable business idea, you can establish the tea shop as per your investment also you can consider buying a franchise for tea business.

Tea is the oldest beverages which are highly consumable all over the world, starting tea shop in physical location can be a great niche business, tea is popular for many reasons such as most of the people are aware of the health benefits of green tea, and therefore, they consume tea for health reasons.

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.

#1 Tea Business Opportunities

Morning is incomplete without the cup of tea and there is no such specific time for tea every time is tea time, people generally prefer tea over the coffee, the study says that the adults consume at least 2 cups of tea every day.

India is a 2nd highest producer for the tea crop after the china, chai business is not only preferred in metro cities but also it is a profitable venture in small towns, tea business is easy to start and a great opportunity for the woman entrepreneurs who are looking for the small business ideas.

By considering the popularity of the tea it is guaranteed that your tea shop business is definitely run successfully.

#2 Tea Business Profit Margin

Let’s find out the cost of the cutting chai

Total quantity of the tea -40 ml

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

Milk cost -RS 30 INR per liter (RS 1 INR for one cup of tea)

Water cost– no cost if tap water is used

Tea powder cost– RS 350 INR per kg (RS 0.75INR for one cup of tea)

Sugar cost– RS 40 INR (RS 0.50 for one cup of tea)

Chai masala cost-RS 350 INR per Kg (RS 0.30 for one cup of tea)

Labour and other cost – RS 1 INR per day

The total cost of tea – RS 3.50 INR

Table of Profit Margin for Chai Business

Ingredient Quantity (for one cup of tea) Cost of ingredient ( kg/liter) Cost (For one cup of tea)
Milk 30 ml Rs 30 per liter Rs 1
Water 10 ml No cost
Tea powder 2.5 gram Rs350 per kg Rs 0.75
Sugar 10 gram Rs 40 per kg Rs 0.50
Tea masla 4 gram Rs 350 per kg Rs 0.30
Labor and other Rs 1 per day Rs 1 per day
Total     Rs 3.50

#3 Tea Stall Business Plan

Your business model for the tea stall is depending upon your investment capital; to run the business successfully you must have to draw a business plan for a tea stall.

You can start the tea stall business with two ways by considering your investment, if you are planning to start the teas stall with low investment then you can start the business with small tea stall and if you are ready to spend more in this chain business then definitely go for the tea bar where you can serve the different types of tea.

Tea bars offer the well-sitting arrangement and comfortable ambience and they will offer different tea flavours such as

  • Iced Tea
  • Green Tea
  • Bubbles Tea
  • Cardamom Tea
  • Aroma Tea

Additionally; if you are interested in franchises business model then go for the tea business franchises where you will get the well to establish a business model and they will help you to promote your tea shop business.

#4 Area Required For Tea Shop Business

Location plays a crucial role in every business, therefore, selecting a location for business is a very important task, the success of your business is indirectly dependent upon the area location that you had selected for the teas stall business.

Establish you tea bar with the facilities, you will require at least 600 sq ft area for the tea bar, where you can setup comfortable sitting arrangement and good interior which is comfortable for your customers

Make sure that your tea stall is easily accessible; generally nearby commercial location, colleges, shopping malls, markets are the best place to open the tea bars

Additionally, you can start the tea shop business on the movable van so that you can change your location.

#5 Permission and Licenses Required To Make Tea in India

Registration of Firm: You may start the small to medium tea stall business either a Proprietorship or Partnership Firm.

If you are starting this business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

GST Registration: GST number is mandatory to run Tea Shop Business; therefore, you have to apply for the GST registration

Trade License: you can obtain the trade license from the local authorities

MSME/SSI Registration: MSMS registration will allow you to take the government schemes and subsidies regarding your business.

Trade Mark: you can secure your tea brand name with simply registering for the trademark.

Food Safety and Standard Authority of India (FSSAI): tea stall business is categories under food processing business; therefore, you must have to take the FSSAI license.

Fire license: tea stall business deal with the fire equipment, therefore, you have to take the fire license for the safety purpose.

Related Business Ideas:

Papad Making Business

Ginger Garlic Paste Manufacturing Business

Spice Powder Making Business

Potato Chips Making Business

#6 Tea Marketing Ideas

More than 80 % of the houses in India are consuming tea for every day but not all of them are your targeted audience, the audience, and marketing of you tea business depends on the promotional strategy and facility you provided.

You can aware the people about the consumption of tea for the health benefits, apart from all traditional marketing strategy you can use the online marketing strategy to reach to people

You can innovate your new flavour for tea that will become your unique identity. So people easily attract your brand and will never go for other tea.

Tea Shop Business is a profitable business idea in India.

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