Every Indian starts their day with a hot beverage whether Tea or coffee, the majority of the Indian population cup tea over coffee. Besides morning beverages tea is also preferred in the evening and most importantly when it’s raining Tea makes best paired with pakora.
For an average Indian consumer 2 cups of tea on a daily basis the cups may vary according to mood and weather. In India, the Tea business is one of the most lucrative yet the most simplest form of business that requires no professional qualification, experience or education.
Any Indian can open up a small tea stall in the minimum possible investment which may not cross even ten- thousand in some cases. The size of the tea shop can be framed according to the investment of the entrepreneur. People around the shop make it a routine to visit the stall (Chai-Tapri) on a regular basis and bring more people if they love the service.
Once you open up your tea stall and have built a good reputation in the area, then people will regularly prefer to visit you. So the real question is are looking for a business opportunity to generate profits with the least possible risk? If yes then Chai Business is the right module for you to invest in. Here is all you need to know to start a Tea shop Business in India.
How to start tea Business in India: Easy Steps to Follow
If you have finalised the decision of starting a Tea shop business in India then the following below are the basic requirements and easy steps that one needs to follow.
Research and Plan Accordingly
Yes, you read it right even The tea business requires research and strategy to follow, before starting to understand the need and where tea stalls are less or nil in number. Make a list of places where teas are consumed most oftenly like Hospitals, office areas, railway stations, courts and other complexes.
Secondly, keep an eye on the competition and survey the needs of the people in the particular area for what extra you can do inclusive of selling tea.
Plan to launch a full-fledged Tea shop
Usually, if you have noticed the chai business in India, they don’t earn much from chai, but the other side products they sell like cookies, wafers, Maggi and other eating products are generally much sold. Even if you study the business model of Chaayos they follow the same strategy – offering teas in different flavours along with a variety of food items.
Try to launch different cup sizes, and choose the quality of tea leaves and other products from a reputed vendor.
Finalise the Location
Tea business plan are best suited at the foot crowded destinations, especially Hospitals, complexes, offices, railway stations etc. Chai stalls perform best near bus stops, colleges and established local areas.
In case you are planning to open a full-fledged cafe, find a larger area of about 600 sq feet. Make your shop noticeable to people despite the availability of other cheaper options.
Be prepared with Investment
Tea business can be set up with an initial investment of INR 50,000 and if you are planning to start on a big scale then be prepared with minimum investment of INR 10-20 lakhs. Read Article: how to get 50,000 loan with minimal documents.
Take the franchise of an established Tea-Bar
If recent times the demand for big tea bars and outlets has increased, and lots of big tea businesses are offering franchises also it is better to take advantage of the branding of an already established business. If you want to play safe then you opt for franchise.
Take Tea shop Business loans: OneNDF
In case you are planning to take a franchise or start up your own venture and dealing with monetary and credit issues, talk to a reputed banker using OneNDF, tell your requirements and get the loan amount disbursed, there are 100+ lenders associated with us that has offered nearly 2000 crore amount till date.
We specialised in funding small and medium businesses using 3 step approach. Click here to get in touch with our finance professionals.
Purchase the required essentials
The Tea business requires basic commodities that you can purchase from anywhere in the market, the commodities are
- Tea Vending machine
- Stove
- Kettle
- Teacups / Glasses / Kulhads
- Steel pans
- Ingredients such as Tea leaves, sugar, milk etc
- Chairs, Tables and Benches
License and Registrations
Tea business comes under the F&B industry hence it needs an FSSAI license that one can take using their online portal. If not get FSSAI registration it will bring you problems later.
GST number and registration is the compulsory need for every new business to legally establish itself and ensure smooth functioning. One needs to follow the terms & conditions prescribed by the Government of India.
At last, also initiate MSME / SSI registration although it’s not compulsory but very much important if done. MSME registration using Udyam Portal will open new doors of opportunities like loans at subsidized rates, full utilisation of government schemes and much more.
(Get your Tea stall insured from unpredicted natural disasters or any other incident. Insurance relieves the owner and works as a financial aid at the time of requirement.)
Promote and Advertise
Nowadays Tea businesses do need marketing and branding, in fact, some of the big-scale tea businesses start their promotion and advertising before launching the shop, it is a way through which goodwill can be obtained. New business tea business tactics include distributing free tea on the first day of testing. Distribution of pamphlets and ads on billboards for general public awareness is a must in the Tea shop business.
(Don’t compromise with the quality of eating products that you’ll sell, maybe that’s secondary but make a huge impact on sales.)
Online Ways to Market
Online ways in the Tea shop business are not more effective now but will make a big impact in the future, but still make a positive start by hosting a website and making a decent social media presence.
If you opening a big tea outlet or Tea bar then definitely online ways of promotion and advertising can be the game changer for you. Focus more on online ways such as
- Social media
- Blogs
- Website
- Email marketing
Conclusion
The tea business in India is one of the smallest and smartest business ideas that generally can be started with minimum investment and has the potential to give big long-term returns if done correctly. In case you lack investment then you can easily depend on One NDF Tea Shop business loans. Our team of finance professionals will call you and understand your vision and goal that you are trying to achieve with the borrowing amount.
Is it worth it to take a franchise of a reputed Tea shop?
If you are looking to take the franchise of a renowned Tea shop then it is a much better and more convenient option to take, you can take full advantage of the name and reputation of already built business, some of the famous tea bars that sell their franchise are Chaayos, MBA Chaiwala, Chai-Sutta Bar etc. In case of investment, call OneNDF for Franchise business loans.
Also if possible try to take franchises of underdog Tea sellers that own businesses at a small scale but earn huge profits.
Suggested Read: How to Start bakery business in India
Tea Business in India: Frequently Asked Questions
Q.1 Is the tea business profitable in India?
The cost per cup is Rs 3.5-5 and is sold for Rs 15-20, hence it has a profit margin of Rs 10-15.
Q.2 How much does it cost to open a Tea shop in India?
A small tea shop can be started with a minimum of 50 thousand to 1 lakh.
Q.3 What documentation is required for the Tea business in India?
- FSSAI certificate
- Trade licence
- GST registration
- Insurance
- MSME/SSI registration