How to Start a Tea Shop Business in India – Best Step-By-Step Guide 2022

How to Start a Tea Shop Business in India 2022

One Idea to start a tea shop business made one person a millionaire, and you know him named Anubhav Dubey whose company’s turnover is around 100 Crores, do you believe that?

Not only Anubhav Dubey but there are also several people who have transformed their life by starting those businesses which are not preferred by the people to start as a startup.

I always repeat myself in my several blogs that you are that magician who converts the small business ideas into huge and profitable business ideas, the business does not have its own senses, you add the same in each business.

When someone suggests starting a small business to anyone, he denies by reasoning about the profit margin, return period, sustainability, and other reasons.

But we should remember one thing that business can never define its potential, we have made it potential by adding our creativity to it.

By continuing this methodology, I am going to suggest one more millionaire-making Business Idea in this article that is the business idea of a tea shop.

Starting a Tea Shop is not an end, it’s just the beginning, the ending is beyond your thought and imagination, so without wasting time, let’s explore!

Does the Business Idea to Start a Tea Shop in India Work?

Start a Tea Shop Business

I think I don’t need to justify the consumption of tea per day in India, tea is the drunkest beverage in India, right?

In this trend, the Tea Shop Business plan works as one of the most profitable business models amongst all others.

It’s a surprising truth that India is the second-largest tea producer in the world after China, and more than 70% of the production of tea is utilized within India and only 30% is exported to the outside countries.

The business idea execution matters a lot, you can run a tea business by starting a cabin of 5 X 5, else you can open a tea shop, or else you can also start a Tea Franchise business.

In conclusion, the tea shop business is one of the most profitable business plans with low investment.

Tea Shop Business Plan in India

As you know any business anywhere asks for a proper plan from beginning to end, initiating any business without plans means jumping from the sky without a parachute.

Before starting a business of tea, you are supposed to create a certain targeted plan, where you will start a tea shop, who will be your targeted audience, what you will be providing new than others, how many kinds of flavors of tea you will be serving, and many more aspects.

You must choose the location of the tea by keeping yourself in the place of the customer, be a customer and then think if you were the customer, what would you prefer.

Choose the location around the colleges, or crowded residence area, or near multiple multinational companies which hold many numbers of employees.

These are the most preferred locations for the tea business, and you are supposed to sell the supplements of tea as well like toasts, biscuits, coffee, all varieties of coffee and tea.

While making a tea business plan, you need to consider the one-time investment, recurring investment, your profit, location, products, prices, and many other aspects.

Registering Your Business

Is it necessary to register a business, when we are getting nothing from it in the starting phase?

The answer is: Yes, it’s not necessary, it’s Mandatory!

Well, one very good saying I always remember is ” Always Keep Your Shocks Pulled, Opportunity can come anytime”.

Start a Tea Shop Business- Business Registration Icon where a person is standing with a bag

Many people don’t get their business registered until they earn a massive profit, but it’s quite the wrong approach.

Suppose, after 1.5 years, your business goes up a lot, and you have a golden opportunity to grow your business more, and you applied for the business loan, but your loan gets rejected.

Reason? You do not have any registration with the government, there is no tax proof, no GST return, because registration is not done yet.

As long as you start your business, do not forget or avoid registering your business with the government, which will be beneficial for you in the future at any time.

Proper Market Research

You would have come to know about many ways of market research by some trusted source, but I am going to show one very easy and the best market research methodology by which you will have very accurate data about your tea selling business plan in India.

This research starts with your competitors, yes, your competitors!

Visit some tea bars, tea shops, and coffee shops by being a customer, observe all things about it, how they run a business, how is their service, what about their prices and products, how they treat customers.

Note down everything in your mind or mobile or notepad, and then find the missing part of them, which will be your strong point.

This is the first aspect of market research, you have to have the data of choice of people around your location, how much price you should keep in a starting phase while you are new, and other aspects you need to research as well.

As another great way, you can take the opinion and advice of experts of this business, you can meet the people who already have or had this business, they can give you the best tips and strategies.

Investment to Execute Tea Shop Business Model in India

Like other businesses, the tea shop business model also requires the capital investment amount to execute, hence it depends upon you on which scale of business you want to start.

It’s not recommended to invest in the shop, you should rent a shop, and when you get confidence about the sustainability of the business, then you should think about owning the shop.

  • Rent of Shop – Monthly
  • Cups of Tea – Daily
  • Milk – Daily
  • Cleaning – Daily
  • Electricity – By Monthly
  • Tables & Chairs – One Time
  • Decoration of Shop – One Time
  • Gas or Stove – Depends on Frequency
  • Employee Salary – Monthly
  • Marketing Cost – For a certain time
  • Business Registration – According to Expert Advice
  • Tax, GST

The tea shop business model has a good plus point that it does not require a huge investment like a huge scale business, you can also start with your saving amount.

Profit Margin of Tea Shop Business Model

Start a Tea Shop Business - Graphical explanation of profit growth by vectors

Hence, you will be providing various products like normal tea, flavor tea, coffee, varieties of Coffee, Biscuits, and other products, you will be gaining a good profit margin from each product, multiple products generate multiple profit margins.

Generally, a small cup of tea returns you a profit of a maximum of 2 rupees, including all costs, you can also implement your own strategy to increase the profit without compromising on quality.

I suggest you keep one thing in your mind that the quality and service are the two legs of your business on which it is standing, walking, and will run.

Interior Decoration of Your Shop

Do you know that the interior decoration of your shop matters a lot to attract the customers in your shop?

Tea is one of the oldest beverages in India, and hence, the people want to feel like the old-time, your shop theme should make the customers feel that they are having tea in a village area, in a cold atmosphere.

You should use the yellow low lights inside your shop around the customers’ sitting area, the posters should be full of greenery, and you can fix the AC, if AC is out of budget, the air cooler is the best option.

While traveling I have noticed this theme in many tea shops and they were consuming a lot of customers, so this is my observation that people like this kind of theme-based interiors.

Marketing Strategy

Of course, you are supposed to run a paid marketing campaign, but for the tea business model, your quality is the base of the marketing strategy.

The Tea business is one of those businesses that is marketed by mouth to mouth publicity, if you are providing good quality and service, people will promote your business unknowingly.

On the other end, you are supposed to market your business by traditional and trending marketing methodology, i.e offline marketing and online marketing or digital marketing.

Carry Your Tea Shop Business Online

About 14-15 days ago, my neighbor ordered Panipuri online from Zomato, could you believe it? Even though I could not, there were only 6 pieces of panipuri for Rs. 90, isn’t it strange?

If you are thinking about how you could sell tea online, the answer is already given on the above line.

Register your business with Zomato, and Swiggy, you will be covering the customers who are out of your local territory, which will make more profit for your business of tea selling.

Carrying your business spreads awareness about your business, you are supposed to promote your business on Google, Facebook, and other social media and online platforms.

You might have noticed that while playing any YouTube video, you would be seeing the ads of Zomato, Swiggy, or Licious, or Fresh to Home, right?

What do you think, with which purpose they are serving multiple ads, again and again, are those ads to sell their product?

Of course not!

They are registering their brands in your (customer’s) mind so that whenever you want to have that, your finger will type their brand name in mobile to order the item.

Similarly, you are supposed to carry your business online with multipurpose branding, selling, and increasing your customer base.

Future Growth of Tea Shop Business Plan

Where are you seeing your Tea Business Model after 5 years? You have no idea, right?

This is the thought point where many people drop the plan to start a tea shop business in India because they can not see the scope of enhancing the business model of tea in India.

At the beginning of this article, I announced the name of the person; Anubhav Dubey, who started a small outlet of tea in his city in 2016, today his tea business’ turnover is around 100 Cr. INR.

Opportunity and expansion are created in our mind, not in the business, the business model of tea holds many great opportunities in the future in terms of expansion.

After establishing the brand, trustworthiness, fame, and authenticity, you can offer a franchise to people in different cities across India.

You can also start the multiple shops of the tea within your cities from where you will be generating the revenue from multiple sources.

Customer Base of The Tea Business Strategy

None of the businesses in the world gets hundreds of customers from the first day, the first week, or the first month of the business, right?

The same agenda is applied in this business model also, you would not be getting several customers from the beginning of the tea business in India.

But you do have various strategies to build a strong and wide customer base for your tea shop business.

It’s not necessary that you serve your products only to other walk-in customers, you will have to jump outside of your shop.

Deal with the multinational or big companies who are providing the tea and snack facility to their employees.

Another option is to tie up with marriage halls and banquet halls that organize the function with a low frequency of time. You can make deals with them, whenever they will get an order of party, marriage or any occasion, you will be serving the tea, coffee, and other attributes.

Summary on Starting a Tea Business in India

Taking action is the hardest point in the business world because many virtual questions confuse the person about the business before starting.

When Amazon started online bookselling, he would not have any idea about being a Billionaire person in the world, he just started and kept working with honesty, consistency, and dedication.

Today, you can see that he is selling Indian products within India and earning a profit, it is the business model which he introduced by his creativity.

So, if you are willing to start a tea shop business in India, I believe this article would help you to do so. 

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