I believe you might have heard about Chai Sutta Bar, hence, it does not need to say that it has become a brand nowadays, But do you know it was started on a very small base in Indore, in 2016 with the investment of Rs. 3 lakhs.
Running a Business is not a big deal, but initiating a business is big deal, and business isn’t successful in itself, but the business idea makes the business great.
Who can believe that tea selling a business can make a person a millionaire in just 5 years, is that a miracle?
No, it isn’t a miracle, it’s the greatest combination of hard work and smart work with executing the existing business with new ideas.
Chai Sutta Bar Turn Over
As I mentioned at the starting of the blog that Anubhav Dubey who is the owner of chai sutta bar, has started the kulhad chai business in 2016 with the investment of Rs. 3 lakhs in Indore.
The turnover of the chai sutta bar business is moving between the range of 1 cr to 100 cr for the ending of the financial year 2020, 31st March.
EBITDA has declared growth of 811.55% in comparison to the previous year, this business was being run as an unregistered business till January 2017, and then it was registered as the Private Limited Company.
After registration as a Private Limited Company, the business has the 3 Directors.
- Anubhav Dubey
- Anand Nayak
- Rahul Gothi
The MCA details stats that the Authorized Share Capital of CSB is 10 Lac INR and the Total Paid-up Captial is Rs. 10 Lac.
Currently, Chai Suttabar has 135+ outlets over India and globally it has 150+ outlets in 3 countries.
Is smoking allowed in Chai Sutta Bar?
The name likely includes “Sutta Bar”, but genuinely, Smoking activities are strictly prohibited inside the premises of the shop or outlet.
How many Chai Sutta bars are there in India?
Chai Sutta Bar is holding more than 135 outlets over India, and the latest outlet launched in the Andheri suburb of Mumbai, and the number of franchises of chai sutta bar in the city has reached 15.
Chai Sutta Bar Franchise Cost And How to Get Chai Sutta Bar Franchise
The Chai Sutta Bar Franchise asks for a huge investment and strong backup to avail it, the total investment to get the complete franchise of chai sutta bar is Rs. 16 Lakhs INR.
CSB is very serious to enhance and grow its business as it provides special training and constant support as well.
If we talk about the experience, then you should have considerable minimum experience in the food sector, as it’s the brand which will never compromise in the quality.
The CSB Franchise provides you the complete breakdown of the investment i.e. 16 lakhs, which is as mentioned below.
- Machinery & Equipment : 3 Lakhs
- Interior & Furniture: 5 Lakhs
- Initial Raw Materials: 2 Lakhs
- Franchise Fee: 6 Lakhs
- ROI: 14-18 Months
- Royalty: 2%
The Minimum Area Required to Have Chai Suttabar Franchise
As a popular brand, the CSB asks for the minimum area that you must have it 80 sq. ft. to 2000 sq. ft.
Only the space area does not fulfill the requirements, the location must be proper where you can grab the maximum walk-in customers because your revenue will be generated most from them.
You can choose the preferred location near any big college, Hig Street, any multinational company, the huge commercial hub.
The reason behind selecting this location is that these locations contain the massive public always, and the consumption of the massive public boosts the revenue of the retailed business.
By acquiring the Chai Sutta Bar Franchise, you will be provided the agreement of 5 years, with an average ROI of 108%, and with the Payback Time of 1 Year and 3 Months.
The Raw Material will be provided from the brand, you are not allowed to use your own materials and strategy to make a tea in regards to serving the customers.
After having the successful tie-up of the franchise of Chai Sutta Bar, you will be requiring the manpower of 3-4 employees as a staff, and you are also free to tie up with the online food delivery partners.
If you want to open the chai sutta bar franchise, you have to just interact on the official website of chai sutta bar, and put a request, their executive will call you and after determining all the parameters, you would be able to have the franchise of chai sutta bar.
How Anubhav Dubey Converted People’s Habbit Into The Great Business Idea
The Owner of CSB had a dream to become IAS Officer, and was doing the preparation of UPSC, but wanted to build a long-lasting and scalable business.
He thought that he should that business which never sees the face of recession and can grab growth in every season.
He made up his mind to start a business of Tea, but tea is being sold everywhere in every street of India for just Rs. 10 to 20 according to quality, he identified the potential of this business and decided to start the tea business in Indore.
However, the competition was very tough in this business, so he thought that he can do top in this business, but the way to run this business must be different.
Here is the point that differentiates the common thinking people and extraordinary thinking people, because today also there are a lot of people who are selling the tea for the whole day and earning up to 1,000 rupees per day.
This guy adopted a different approach to serving the tea to the people, he was also selling a cup of tea for just Rs. 10, but in a different way.
He was serving the tea in the Kulhad which was making the people a good feeling of the village and original taste of the tea, and this idea became the key point of success of the chai sutta bar business in India.
How Anubhav Dubey Collected Money For Investment?
Any huge business requires huge capital, and well, Anubhav also wanted to start a small business with a great Idea.
He did not have any experience of doing business, he was not firmly sure how much investment he would need to start a chai business.
His friend named “Anand Nayak” received Rs. 3 Lakhs after withdrawing his old business, and they started chai business with that amount, which was a calculated risk.
He did not have any experience or idea of how much money should be invested in which module and strategy, and after arranging all the business modules, he did not have the money for the display board.
As a solution, he painted the name on the wooden ply and displayed it.
He borrowed the hardware equipment from his old friends and arrange the shop’s rest interior.
How Anubhad Dubey Convienced His Parents For Tea Business?
Almost like all other parents, Anubhav’s parents also wanted to see his son living a safe zone life by doing a government job and for that, he also made Anubhav the preparation of UPSC.
When Anubhav Dubey started a chai sutta bar shop, his father was not aware of that and he did not inform his father that his son is running a tea shop in Indore.
He came to know about his relative when Anubhav went live on Facebook after enhancing his business with 3 shops.
At the first moment, his father was a little bit angry to know that his son is selling the tea in the street, but when he saw that his son is running a good business by selling tea, then he was satisfied.
Contribution of First Employee of Chai Sutta Bar
As per Anubhav Dubey, they did not have the rest money to hire an employee for the shop and pay him a salary every month.
They were doing all stuff themselves as cleaning, making tea, serving tea to the customers and all other tasks.
A person who wanted a job who was belonging from the financially lower middle class[Source] his name was Manoj, but these guys were not able to pay anything.
They confessed that they would not be able to pay anything in rewards of the work initially i.e. almost for the first two months, but as long the business would grow, they will start to pay the salary with arrears.
Manoj got agreed and started to work for them, and now he is in good financial condition.
How Chai Sutta Bar Gave Employement To Poor People
Currently, the chai sutta bar is selling 3,00,000+ kulhad tea per day, and all the kulhad are hand-made which are made by the people at home, and the chai sutta bar pays them for per kulhad.
So, chai sutta bar is spreading the social employments along with the business, if they wanted, they would start to sell the chai in the thermocouple cup as well which are cheaper than kulhad.
First Outlet And The Free Marketing Strategy
Almost in my every blog, I state that a great idea becomes the business great and a low-cost best marketing strategy converts your business into the brand.
The business strategy and the marketing idea of the chai sutta bar are quite interesting and strange, and it’s great learning for those people who think business must require a huge investment.
Chai Sutta Bar owners opened their first outlet besides the girl’s hostel, the reason is very logical that wherever the presence of girls, boys will be there.
Now, grabbing the customer was a big challenge because no one was knowing about chai sutta bar, here they applied a good strategy.
They offered their many friends the tea free of cost and that’s why they were coming there and looked like the customers, and it started to be a crowd at the outlet, which made the people curious that what is being sold there, and why too many people are there.
In this way, they started to grab customers which was a great strategy, now the second point was doing the marketing, but they did not have enough funds for the marketing, so they invented a new way to market their business without money.
They were doing such strange stuff, they and their other friends were going to the crowded space, like outside of the temple, in the mall, and sharing the complements with each other for chai sutta bar that chai sutta bar is one of the best tea centers and all.
They were doing this task again and again so that the traffic of people around them can listen again and again and make the thought registered in their mind.
Surprisingly, this strategy worked very nicely and their customer base started hiking with ultimate speed.
Chai Sutta Bar Profit Margin
You are going to invest around 16 lakhs to 20 lakhs rupees to acquire the franchise of Chai Sutta Bar in your area, so the profit margin must be accordingly, right?
Yes, and hopefully, the chai sutta bar profit margin is around 90K per month, and there are rarely other franchisors who are offering this amount of revenue in reward of 16 lakhs to 20 lakhs.
This business model is the best inspiration for the youth because the tea selling business is considered a low-quality business in India, but as I tell every business doesn’t have quality, the business idea makes the business either high qualitative or low qualitative business.
Having a great investment, one can open a jewelry shop or showroom also, but if he would not be dedicated and surrender to the business, he could not earn much more about, apart from earning, he would not be able to run the business at least for survival as well.
You have the live example, how a product of just 10 rupees made a person a millionaire in just five years, and there is a lot of sacrifices, dedication, hurdles to get this massive success.
Business is done by the Mind, Strategies, and Teamwork, only money can not enhance your business, A money can only establish the business, but other ingredients are mandatory to walk till endless journey.