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
Market Research
Select Location
Register Business
Obtain FSSAI License
Buy Equipment
Setup Interior
Hire Staff
Launch Marketing Campaign
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.