Mister Tea Franchise is one of the cheapest tea franchise in India when it comes to branding and services. We will discuss Mr. Chai Franchise Cost, Benefits, How to get Franchise.
The products offered by the franchisee include tea, coffee, lassi, mocktails, milkshakes, french fries, sandwiches, waffles and many other snacks.
Mr Tea Franchise Cost
Mr tea Franchise cost INR 9,00,000 as initial investment. The franchise fee is ₹ 500,000 + GST. The minimum area required is 100 sq.ft. Royalty charges will be Rs 2,000 per month, irrespective of sales.
The bifurcation of cost is given below-
| Description | Amount (Premium Model) |
| Franchise Fee (includes machinery and setup costs) |
Rs 5,00,000 |
| 18% GST on franchise fee | Rs 90,000 |
| Interior, furniture and civil works (depending on outlet size) |
Rs 2,00,000 |
| advance raw material | Rs 60,000 |
| Other Expenses (POS, License, Misc.) |
Rs 50,000 |
| total investment | Rs 9,00,000 |
- The franchise agreement will be for life. There will be no renewal fee.
- All the machinery provided will be branded products like fridge and freezers come with warranty.
- Franchisor provides 3 days trainingbut recruitment should be done locally
- Raw material will be provided by the franchisor
- Food, GST and shop license
- The return on investment is around 15 months to cover the cost
Mr. Tea Franchisee Profit
We will analyze the Mr.Tea Franchise Profit Margin with the help of an example. We will deduct all expenses from gross sales. We are assuming sales of Rs 2,40,000 per day i.e. Rs 8,000.
| Description | Amount |
| gross sales | Rs 2,40,000 |
| Material cost @ 50% | (1,20,000) Rs. |
| Rent | (30,000) Rs. |
| electricity and water supply | (10,000) Rs. |
| salary and expenses of employees | (45,000) Rs. |
| royalties | (2,000) Rs. |
| Other expenses (marketing, aggregator, miscellaneous) |
(9,000) Rs. |
| Net Profit | Rs 24,000 |
We can conclude that for a sale of Rs.2,40,000, the profit margin of Mr.Tea Franchise is 10%. The profits in the outlet may be less in the initial days but there is a lot of demand for tea in the market.
After good local marketing and branding, the sales will increase to Rs.3 lakh per month and the profit margin will be 20% on sales or Rs.60,000 as profit.
Location is a very important factor in determining a franchisee’s success rate, along with the quality of the food and service.
The location should have a lot of footfall. It should be in the main market of that area. You can open outlet near college, corporate, highway, mall or any such place where youth like to drink tea.