Chai Model Shop Franchise

Franchise Quick Facts

1. What is Chai Model Shop?

Chai Model Shop is a tea and beverage café concept that combines traditional Indian-style drinks and snacks with a modern retail format. It operates in the quick service food and beverage segment, offering tea, Indian-inspired beverages, and snacks served in eco-friendly formats.

The franchise focuses on delivering culturally inspired beverage experiences while maintaining affordability and accessibility for a wide customer base.

2. How the Business Works

The business operates through café-style outlets offering beverages and snacks for dine-in and takeaway.

Customers visit the outlet, place orders for tea or snacks, and receive products prepared using standardized processes. The use of traditional serving formats such as clay cups adds a distinct element to the customer experience.

Revenue is generated through:

• Sale of tea and beverage items
• Snack and light food offerings
• Repeat visits driven by daily beverage consumption

The operational workflow emphasizes efficient service, consistent quality, and customer experience.

3. Products or Services Offered

Chai Model Shop provides a combination of beverages and complementary food items.

Beverage Categories

• Traditional chai and tea variants
• Indian-style beverages
• Iced and flavored drink options

Food Categories

• Indian snacks and street-style items
• Fusion snack options

Service Features

• Beverages served in clay cups (kulhads)
• Focus on eco-friendly serving methods

The product mix is designed to appeal to both traditional and modern consumers.

4. How the Franchise Model Works

The franchise model is structured for scalability and standardized operations.

Role of the Franchise Partner

• Invest in outlet setup and infrastructure
• Manage daily operations, staff, and inventory
• Maintain hygiene, quality, and service standards

Operational Structure

• Standardized recipes and preparation methods
• Flexible outlet formats depending on location size
• Focus on consistent customer experience

Franchisor Support

• Training in operations, product handling, and service
• Guidance on store design and setup
• Marketing and branding assistance
• Ongoing operational support

This structure enables franchisees to operate within a defined system while maintaining efficiency.

5. Franchise Cost and Investment Overview

The investment requirement is moderate within the café segment.

Investment Details

• Estimated investment: INR 10–20 lakhs
• Franchise fee: INR 3,00,000
• Royalty fee: 2%

Cost Components

• Interior setup and branding
• Kitchen and beverage equipment
• Initial inventory and supplies
• Rental deposit and working capital

Ongoing costs include rent, staff salaries, utilities, and raw material procurement.

6. Space and Infrastructure Requirements

Space Requirement

• Approximately 300–1500 sq. ft.

Preferred Locations

• High footfall urban areas
• Shopping complexes and commercial zones
• Family-oriented retail locations

Infrastructure Needs

• Tea and beverage preparation equipment
• Snack preparation setup
• Seating area depending on format
• Storage and inventory management systems
• POS and billing system

Staffing

• Typically 4–8 staff members

7. Training and Franchise Support

The brand provides structured support systems for franchise partners.

Support Includes

• Training on beverage and food preparation
• Guidance on hygiene and operational standards
• Store setup and layout planning
• Marketing and promotional support
• Ongoing operational assistance

These systems aim to standardize service quality across locations.

8. Revenue Model and ROI Factors

Revenue is derived from beverage and snack sales.

Revenue Drivers

• Daily demand for tea and beverages
• Affordable pricing attracting a wide customer base
• Combination of beverages and snacks increasing average order value

Cost Considerations

• Rental and utility costs
• Staff salaries
• Raw material expenses

ROI Outlook

• Expected payback period is approximately 10 to 11 years
• Profitability depends on location performance, customer footfall, and cost management

9. Brand History and Expansion

Chai Model Shop was established in 2022 and began franchising in the same year. The brand is currently in an early expansion phase with a limited number of outlets.

The expansion strategy is focused on growing through franchise partnerships across different regions.

10. Key Advantages of the Franchise

• Distinct positioning with traditional beverage presentation
• Combination of tea and snack offerings increases revenue potential
• Eco-friendly serving approach aligning with sustainability trends
• Scalable café model with flexible outlet sizes
• Structured franchise support system
• Appeal across multiple customer segments

11. Investor Questions

What is the investment required for Chai Model Shop franchise?

The estimated investment ranges between INR 10 to 20 lakhs, including setup, equipment, and working capital. The franchise fee is INR 3,00,000 with an ongoing royalty of 2%.

How does the Chai Model Shop franchise business work?

The business operates as a café offering tea, beverages, and snacks. Customers order at the outlet, and items are prepared using standardized processes for consistent quality.

What space is required for this franchise?

The required space ranges from 300 to 1500 sq. ft., allowing flexibility in outlet formats depending on location and business scale.

How long does it take to recover the investment?

The expected payback period is approximately 10 to 11 years, depending on revenue generation and operational efficiency.

How can investors apply for the franchise?

Interested investors can connect with the brand through its official franchise channels to initiate the application and onboarding process.