Tea & Coffee Shop Business in India

Investment

₹2 - 5 Lakhs

Profit Margin

35-50%

Location Type

Commercial Area

Business Description

Starting a Tea & Coffee Shop business in India is one of the most profitable and evergreen food business ideas. With India being one of the largest consumers of tea and a fast-growing coffee market, opening a modern chai & café outlet in a commercial area can generate high daily footfall, stable income, and excellent profit margins.

Whether you want to open a small roadside tea stall, a premium café, or a branded tea & coffee lounge, this business offers low investment, fast break-even, and scalable growth.


📊 Tea & Coffee Shop Business Overview

Parameter Details
Business Name Tea & Coffee Shop
Category Food & Beverage
Type Service
Initial Investment ₹2 – ₹5 Lakhs
Profit Margin 35% – 50%
Skills Required Cooking, Beverage Preparation, Customer Service
Market Demand High
Location Type Commercial Area, Market, Office Hubs
Licenses Required FSSAI, GST (Optional), Local Trade License

📈 Why Start a Tea & Coffee Shop Business in India?

India consumes over 1 billion cups of tea daily, and the café culture is growing rapidly among youth, professionals, and students. This makes tea & coffee shops a high-demand, low-risk business.

Key Benefits:

  • Low startup investment

  • High daily sales volume

  • Quick break-even (3–6 months)

  • Repeat customers

  • Easy scalability

  • Franchise expansion opportunity


💰 Tea & Coffee Shop Business Investment Breakdown (₹2–5 Lakhs)

Expense Head Estimated Cost
Shop Rent & Deposit ₹40,000 – ₹80,000
Interior & Furniture ₹50,000 – ₹1,00,000
Tea & Coffee Machines ₹40,000 – ₹80,000
Utensils & Equipment ₹20,000 – ₹40,000
Raw Material (Initial Stock) ₹15,000 – ₹30,000
Branding & Marketing ₹10,000 – ₹30,000
Licenses & Registration ₹5,000 – ₹15,000

👉 Total Investment: ₹2 – ₹5 Lakhs


📍 Best Location for Tea & Coffee Shop Business

Choosing the right location plays a critical role in success.

Best Locations:

  • Near offices & IT parks

  • College & coaching centers

  • Railway stations & bus stands

  • Hospitals

  • Marketplaces

  • High street commercial zones


📜 Licenses & Registrations Required

Mandatory:

  • FSSAI License – Food safety compliance

Optional (Based on Turnover):

  • GST Registration

  • Local Municipal Trade License

  • Fire Safety Certificate

  • Shop Act Registration


🛠 Equipment Required for Tea & Coffee Shop

  • Tea brewing machine

  • Coffee vending machine

  • Gas stove / induction

  • Electric kettle

  • Refrigerator

  • Storage containers

  • POS billing system

  • Disposable cups, glasses & plates


🥤 Menu Planning for Maximum Profit

High-Profit Tea Varieties:

  • Masala Chai

  • Ginger Tea

  • Lemon Tea

  • Green Tea

  • Tulsi Tea

  • Special Cutting Chai

Coffee Options:

  • Espresso

  • Cappuccino

  • Latte

  • Cold Coffee

  • Iced Coffee

Add-on Snacks:

  • Sandwich

  • Samosa

  • Patties

  • Cookies

  • Maggi

  • French Fries


📊 Profit Margin & Monthly Earnings

Average Daily Sales:

  • 200 cups × ₹15 = ₹3,000/day

Monthly Revenue:

₹3,000 × 30 = ₹90,000

Monthly Net Profit (35% – 50%):

👉 ₹31,500 – ₹45,000 per month

With higher footfall, profits can exceed ₹80,000 – ₹1.5 Lakhs/month.


📢 Marketing Strategies for Tea & Coffee Shop

  • Google My Business listing

  • WhatsApp promotions

  • Instagram reels

  • Zomato & Swiggy onboarding

  • Combo offers & happy hours

  • Loyalty cards

  • Office bulk supply


🚀 Growth & Expansion Opportunities

  • Franchise model

  • Mobile tea van

  • Corporate catering

  • Packaged tea brand

  • Online delivery


📉 Risk Factors & Solutions

Risk Solution
Low Footfall Better location + promotions
High Competition Unique flavors + combo offers
High Rent Smaller outlet + takeaway model
Staff Turnover Simple operations + training

📝 Step-by-Step Guide to Start Tea & Coffee Shop Business

  1. Market Research

  2. Select Location

  3. Register Business

  4. Obtain FSSAI License

  5. Buy Equipment

  6. Setup Interior

  7. Hire Staff

  8. Launch Marketing Campaign

  9. Grand Opening


📌 Tea & Coffee Shop Business SEO Keywords

  • Tea shop business in India

  • Coffee shop startup cost in India

  • Chai cafe business plan

  • Tea stall business profit

  • How to open tea shop in India

  • Small cafe business ideas


🔥 Final Conclusion

Starting a Tea & Coffee Shop Business in India is a high-demand, low-investment, fast-growing opportunity. With smart planning, quality products, and aggressive marketing, this business can generate consistent monthly profits and long-term brand value.

Business Details

Business Id: 22947
Investment: ₹2 - 5 Lakhs
Location Type: Commercial Area
Profit Margin: 35-50%
Manpower: 2 - 5 staff
Skills Required: Cooking
Market Demand: High
Licence: FSSAI

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