The food and beverage industry is one of India’s most successful sectors. Tea holds a special place due to its widespread popularity, refreshing taste, and many health benefits.
Tea Time, one of India’s fastest-growing tea café brands, has capitalized on this trend by offering a wide variety of teas, snacks, and beverages in a comfortable, welcoming atmosphere. With over 4,000 outlets across India, Tea Time has become a trusted name among tea lovers and has established a strong franchise model ideal for aspiring entrepreneurs.
The brand’s franchise opportunity is designed for easy entry, requiring as little as ₹5 lakh to start a unit franchise, with high profit margins of 40%–80% and a fast payback period of 5–10 months. Tea Time outlets are small and efficient, needing only 100–150 sq. ft. of space and minimal staff, making it perfect for beginners who want to tap into the growing tea market.
In this guide, we’ll take a closer look at Tea Time franchise cost, setup requirements, and profitability, helping you decide if starting a Tea Time outlet is the right business opportunity for you in 2026.
Tea Time Brand Background
A man by the name Mr. Uday Srinivas Tangella was the founder of Tea Time. He started this company in 2016. He began with a small outlet in Rajahmundry, Andhra Pradesh.
His vision was clear, which was to offer good quality tea but at a reasonable cost to the ordinary man.
He did not desire to sell high priced tea that is consumed by the wealthy. He wanted everyone to sell tea. This idea became a super hit!
Number of Outlets
Nowadays, Tea Time is considered to be one of the biggest tea chains in India.
- Started: 2016
- Number of outlets: More than 3,500+ (and increasing daily)
- Presence: More than 20 states in India.
Tea Time stores are available in such large cities as Hyderabad and Bangalore, as well as in small towns and villages.
Business Model
Tea Time is based on either a small cafe model or kiosk model.
- Space Required: very small only 100-150 square feet.
- Personnel Requirement: Two individuals will be enough to operate the shop.
- Type: Primarily a take‑away. Customers purchase tea and drink it standing or take it with them. Nor was there a need for costly sofas or big tables.
Target Customers
Who drinks at Tea Time? Everyone!
- College students.
- Office workers on break.
- Families out for a walk.
- Daily wage workers.
What is Tea Time Franchise?
Tea Time is a chain of tea café that provide good quality tea, snacks, and baked-in products in the United Kingdom. The brand is famous for its quality, comfort, educational programs, outstanding tea selection, and highly professional staff, focusing on consumers’ need for the tea-drinking experience.
Tea Time franchise system refers to when a competent person wants to open a Tea Time outlet and run it under the company’s brand name where he or she would enjoy the various services and products offered by Tea Time including the different menus, support systems and marketing tools. The franchisee has the advantage of having the brand and the steadily increasing culture of tea drinking particularly with the new focus on quality teas together with nice snacks.
Franchise Models of Tea Time
| Feature | Unit Franchise | Master Franchise |
|---|---|---|
| Outlets | 1 shop | Multiple shops + sub-franchise rights |
| Investment | ₹4–10 lakh | Higher, varies by region |
| Earnings | Sales profit from your outlet | Own outlet profit + royalties from sub-franchisees |
| Operations | Manage one shop | Manage multiple outlets and franchisees |
| Best For | First-time entrepreneurs | Experienced investors with capital |
Why Tea Time is as popular as a Low-Cost Franchise in 2026
But let us address what franchise costs are before ultimately focusing on why starting a Tea Time franchise could be one of the most financially rewarding business opportunities to pursue. Here are several reasons why this opportunity is special for upcoming business persons in the food and beverages sector.
- Low investment, easy to start: The Tea Time franchise can be started with a low cost (around ₹4–10 lakh) compared to other food franchises. This makes it a good option for first-time business owners and small investors.
- Strong brand with many outlets: Tea Time already has 3,500+ outlets across India. Because people already know the brand, new shops get customers easily without spending much on marketing.
- High daily tea demand: Tea is an everyday drink in India. The domestic tea market was valued at roughly USD 11.86 billion in 2025. People drink tea in the morning, evening, and even at night. This regular demand helps Tea Time outlets get steady daily sales.
- Good profit margins & fast returns: Tea and snacks have low raw-material costs, so their profit margins are high. Many owners recover their investment in 6–12 months, which is very fast for a franchise business.
- Simple operations, beginner-friendly: The menu is simple, staff requirements are low, and Tea Time provides training and support. Even people with no food business experience can manage it easily.
This makes the Tea Time franchise a perfect business opportunity in the Food and beverage industries particularly of the high demand for tea, Café business, brand appeal and support services offered.
Is the Tea Time Franchise Really a Low-Cost Franchise?
Yes, it is!
When individuals consider opening a cafe or a restaurant, they become afraid. They believe, Oh no , I require 20 or 30 lakhs! But Tea Time is different. It is referred to as a Middle-Class Franchise since it is aimed at ordinary individuals.
The start-up cost of the Tea Time outlet is approximately 5 Lakhs.
This is compared to other large brands:
- Starbucks: crores of rupees required.
- Other Big Cafes: 1-20 lakhs to 30 lakhs.
- Tea Time: Only ₹5 lakhs (approx).
This is a very safe price to the new businessmen. You do not need to borrow a large sum which leaves you up at night. The cost is minimal hence you recover your money within a shorter time. It is referred to as ROI (Return on Investment). In Tea Time, the break even period of many owners of their shops is as short as 5 to 10 months. That is very fast!
Tea Time Franchise Cost Breakdown 2026
Franchise Fee
The franchise fee is the amount of money that the franchisee pays the franchisor for the license to use the Tea Time company name and business formula. This fee generally includes the price of the contract, training, and early assistance signing up for the franchise.
Average Franchise Fee: ₹2.25 – ₹5 lakh (varies by location and format). This is a one-time cost that allows you to use the brand name, logo, and includes operational support.
Security Deposit
A security deposit is usually required and is normally recoverable when the franchise agreement expires as long as there are no balances or disputes.
Average Security Deposit: ₹1 – ₹2 lakh, depending on outlet size and location.
Interior Setup and Design
This cost covers the appearance and construction of the store to create the right customer experience. Tea Time outlets are designed to be comfortable and attractive, meeting brand standards.
Interior Setup Cost: ₹1 – ₹5 lakh depending on outlet size and design specifications.
Equipment Costs
Necessary equipment includes tea-brewing machines, refrigeration, display fridges, counters, kitchen utensils, ovens, etc., required for smooth daily operations.
Estimated Equipment Costs: ₹0.5 – ₹2 lakh depending on store size.
Raw Materials and Inventory
Opening a Tea Time franchise requires initial stock of teas, snacks, pastries, and beverages.
Estimated Initial Inventory: ₹0.5 – ₹2 lakh for the first few months.
Royalty Fees
Franchisees pay royalty fees for brand usage and support.
Royalty Fees: ~3% of gross monthly sales (usually capped at ₹9,000/month).
Marketing Fees
To promote the brand and maintain customer traffic, franchisees may contribute to a marketing fund.
Marketing Contribution: ~1% of monthly sales.
Working Capital
Working capital is needed for salaries, utilities, rent, and replenishing inventory during the first few months.
Estimated Working Capital: ₹1 – ₹2 lakh.
Total Estimated Investment
Considering all costs, the total investment to open a Tea Time franchise is ₹4.25 – ₹10 lakh, depending on location, store size, and format (kiosk or small café).
| Cost Component | Estimated Range (₹) |
|---|---|
| Franchise Fee | 2,25,000 – 5,00,000 |
| Store Setup & Interiors | 1,00,000 – 5,00,000 |
| Equipment & Initial Inventory | 50,000 – 2,00,000 |
| Licenses & Miscellaneous | 50,000 – 1,00,000 |
| Working Capital | 1,00,000 – 2,00,000 |
| Total Investment | 4,25,000 – 10,00,000 |
Tea Time Franchise Profit Margin & ROI
The Tea Time franchise idea can be categorized as a low-cost business model since the operating expenses are low, coupled with relatively high operating profit margins; and the augmented Indian population’s interest in tea products. Here’s a detailed analysis of profitability and return on investment (ROI):
Profitability Analysis
- Average daily sales: ₹5,000 to ₹10,000.
- Sales average: 1.5 to 3 Lakhs per month.
- Profit margin: 40% to 80%.
Return on Investment (ROI):
Assuming you invest 5 lakhs at the start and earn a monthly profit of 50,000, you will recover your money in 10 months. Then, it is all profit after that!
Break-Even Point:
This is mainly because most Tea Time franchisees claim to reach the break-even point in 5 to 10 months, depending on the location and sales volume.
Revenue Streams:
A Tea Time outlet generates revenue primarily through:
- Tea Sales: Tea is a daily beverage and, therefore consumers always need it, which helps stimulate its consumption.
- Milkshakes, Coolers, and Snacks: These increase the number of food items and improve the average order value to customers.
- Seasonal and Specialty Items: Temporarily increased prices, new special goods and services can increase sales considerably.
Operating Costs:
Operating costs for a Tea Time outlet are relatively low:
- Rent: Ideally, a small area is expected (100-200 sq ft) in terms of rental, thus giving relatively cheap rents.
- Staff Salaries: A small number of employees is required, resulting in low employee expenses.
- Utilities: Utility costs comprise both electricity and water which are reasonable because of the type of enterprise.
How to Apply for a Tea Time Franchise (2026)
- Go to the website – Visit teatimegroup.com/unit-franchise and open the franchise page.
- Fill your details – Enter your name, phone number, city, and outlet type in the form.
- Wait for a call – The Tea Time team will contact you to discuss location, costs, and next steps.
- Sign & pay – If approved, sign the franchise agreement and pay the franchise fee.
- Get help to start – Tea Time will train you, help set up the outlet, and provide equipment.
- Open your shop – Start serving tea, snacks, and drinks to your customers!
Is Tea Time Franchise Profitable in 2026?
Yes — Tea Time can be profitable in 2026 if you pick the right location, manage costs well, and attract regular customers. Its low setup cost, high margins, and quick break‑even make it one of the more beginner‑friendly food franchise options in India’s tea café segment.
Menu and Product Offerings of Tea Time
The Tea Time franchise offers a range of products that may interest different customers. They were offering teas, coolers, milky products and luxurious snacks. Here’s a detailed look at their product offerings:
1. Tea Varieties
Tea Time’s core offering is its wide range of teas, catering to both traditional and modern tastes:
Classic Teas:
- Regular Chai
- Masala Chai
- Ginger Chai
- Cardamom (Elaichi) Chai
- Sulaimani Tea
Speciality Teas:
- Lemon Tea
- Green Tea
- Black Tea
- Herbal Tea
- Kashmiri Kahwa
Flavoured Teas:
- Chocolate Tea
- Rose Tea
- Tulsi Tea
2. Milk-Based Beverages
These creamy and rich beverages are popular with all age groups:
- Badam Milk
- Kesar Milk
- Turmeric Milk
- Rose Milk
3. Coolers and Refreshing Drinks
Perfect for summer or customers seeking cold beverages:
- Lemon Cooler
- Watermelon Cooler
- Blueberry Cooler
- Strawberry Cooler
4. Milkshakes
A range of thick and creamy milkshakes in various flavors:
- Chocolate Milkshake
- Vanilla Milkshake
- Mango Milkshake
- Butterscotch Milkshake
- Oreo Milkshake
5. Snacks and Light Bites
Tea Time pairs its beverages with a selection of snacks that complement its offerings:
- Samosas
- Puffs (Veg, Egg, Chicken)
- Cardinal sandwiches include grilled, veg, egg, and cheese meals.
- Cookies and Biscuits
- Burgers
6. Desserts and Sweet Treats
- Cupcakes
- Brownies
- Muffins
- Pastries
Key Features of the Menu:
- Affordability: Tea Time’s priority is to ensure that all the products it sells are affordable to the intended customers.
- Customizable Options: Customers can order changes in terms of sweetness, spiciness or additional flavors.
- Health-Conscious Choices: Locally made, combined traditional tea and light meals for the health-conscious consumers, such as green tea, herbal tea, among others, are served.
With a diversified offer of meals, the tea café offers a constant return, and people of different ages and different preferences go to Tea Time again and again, becoming one of the leaders in the busy tea café market.
Tea Time vs. Other Tea Franchises
| Brand | Investment Range | Royalty / Fees | Approx Profit Margin | Break-Even / ROI | Outlets / Scale |
|---|---|---|---|---|---|
| Tea Time | ~₹5–7 lakh | ~3% royalty / capped fee | ~40–80% gross | ~5–10 months | 4,000+ outlets |
| Chai Sutta Bar | ~₹16–25 lakh | ~4% royalty | ~35–40% net | ~12–18 months | ~550+ outlets |
| MBA Chai Wala | ~₹10–20 lakh | ~5–6% royalty | ~40–50% | ~12–15 months | ~100+ outlets |
| Chai Garam | ~₹8–12 lakh | ~2–3% royalty | ~35–45% | ~8–10 months | ~200+ outlets |
| Chai Point | ~₹20–30 lakh | ~5–7% royalty | ~25–35% | ~24–36+ months | ~200+ outlets |
| Chaayos | ~₹25–40 lakh | ~5–8% royalty | ~20–30% | ~24–36+ months | ~100+ outlets |
Conclusion
Investing in the franchise of Tea Time is very viable for people who want to start a business in the food and beverage sectors. Tea Time has the right business concept because it already enjoys brand recall, menu versatility and a well-refined business model. You get a full training program, operational, and a strong backup plan to market their outlets so that you can properly manage the outlets.
The business model focuses on the high profit margins and guaranteed fast money return which everybody loves thus making it attractive to even the most experienced businesspersons. Tea Time products have good quality beverages, the right locations and good prices that would ensure there are always customers and future perceived growth.
When joining a franchise, the parties can benefit from the desire for tea and other related products that are growing in the Indian market. When you invest in Tea Time, you’re not merely establishing a business, but you belong to a team vested in providing service, quality, and customer happiness across the Philippines.
FAQs
How much will it cost to open a Tea Time franchise?
The total initial investment is to the tune of ₹5 lakhs only. This amount includes the actual cost of the franchise, equipment and facilities, initial stocks and other incidental expenses.
What is the cost of the franchise fee?
The franchise fee is approximately 2,25,000–5,00,000, based on factors such as the store’s location and size.
Are there any royalty fees?
Yes, franchisees need to pay a royalty of 3% of the gross sales of the business done every month, but the maximum amount to be paid is ₹9000 per month.
What is the space and location specification a Tea Time outlet should have?
Signed in areas that have massive traffic, such as near bus stands, railway stations, hospitals, markets, or schools, colleges, etc. The minimum area required should be 100 to 200 sqft.
What do people expect to earn in terms of profit margin for a Tea Time franchise?
This varies from 40% to 80%, although this depends on such factors as area of establishment, number of sales, and level of productivity.
What is your break-even period on your initial capital?
It takes an average of 5-10 months to recover their cost but it depends on the location and performance of the business.
What kind of support does Tea Time continue to offer to the franchisees?
Web support provided by Tea Time means help in the choice of the place, stock equipment issued in the start-up package, help in the creation of the menu, cooperation in further work and training of the managers, and constant fundamental research.
What other fees do the franchise owners incur apart from the fee charged for franchising?
Additional expenses are interior work, furniture and equipment, initial stock, licenses and permits, and working capital.
Is prior experience, especially in the food and beverage industry, a prerequisite to opening a Tea Time franchise?
However, experience is advantageous, but not necessary. To avoid making mistakes in the operation of the outlet, Tea Time offers its franchisees and their staff special training.
What do I need to do to be franchised for Tea Time?
To participate, interested people may go to the Tea Time website and complete the franchise application form. After the application has been received, the Tea Time team will study it and proceed to contact the shortlisted persons for an interview.
Does it have a monthly franchise fee?
No. No monthly “franchise fee” exists. You only pay the franchise fee upon starting. You, though, do pay a small royalty to your sales each month.
Is royalty fixed or percentage-based?
It is generally percentage-based. 3 percent of the entire monthly sales.
Any renewal fee?
The usual duration of the franchise is 5 years. The license may have to be renewed after 5 years.
Is there a cost? Yes, but it is only a pennyworth, not the whole fee over again. The particular agreement paper will show the exact renewal amount.
