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Tea Shop Business Plan – Know How To Start Tea Business in India?

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tea shop business plan

Tea Shop Business Plan in India: Tea is one of the most traditional beverages in India. According to sources, 82% of Indians cannot imagine their lives without tea. Starting a tea business is not a really bad idea in countries like India, where tea is one of the most sold beverages. Thus, if you are thinking of getting started with a tea business plan but are not sure where to start, then here is a detailed page that explains everything about how to start a tea business. Read further to find out more.

Table of Contents

Tea Shop Business Plan in India

Starting a tea business is a really good idea if you are looking for small business ideas. Also, the tea business is the most profit-making business which requires a one-time investment with profits. Since tea is consumed at any part of the day, the demand for the same will stand tall, and you can make huge money through your tea selling business.

Cost of Opening a Tea Shop in India

However, before getting into the detailed business plan, one must be aware of budget analysis or must know how much they would require to start the tea business plan. And to help you with the budget requirements for starting a tea business plan in India, here is a detailed section.

Basically, to start a tea shop, there is no fixed investment. Based on the business scale, you can even start a tea stall with just ten thousand rupees. However, here is a rough budget analysis to start a tea shop.

SL NO. Items Cost in INR
1 Rent Per Month 10,000
2 Deposit – Optional 50000
3 Gas stove and cylinder 5,000
4 Raw Ingredients 7,000
5 Electricity 1,500
Total 73,500

Also, if you are planning to hire an employee for your tea shop business, then you can add those expenses as well to your budget analysis.

How to Start a Tea Shop Business in India?

Here is a detailed step-by-step process that you must follow while starting the tea business in India.

1. Deciding on the Tea Shop Business Model

Based on your investment capacity, the tea shop business plan must be devised. Depending upon your tea business model, the tea shop should be set up. While devising the tea shop business plan, you must not limit your shop to selling only tea. Along with selling the tea, you must also sell a few other snacks that people would have with tea.

Some of the important points that you have to include while creating a tea shop business plan are as follows:

  1. Make sure to sell other snacks apart from tea, such as bread toasts, butter biscuits, omelets, noodles, tobacco, and cigarettes.
  2. Select the material with which you will supply your tea. Ideally, most people sell their teas in paper cups, kulhads, and steel glasses. Choose the material that fits into your budget.
  3. Depending upon the city or place where you are selling the tea, the prices should be fixed. Usually, the cost of the tea ranges between 5 rupees and 10 rupees. If you have a tea bar, you can sell the tea at much higher rates.
  4. Make sure your plan includes a budget for seating arrangements such as chairs, tables, and so on.
  5. There are also different types of tea, such as regular tea, masala tea, black tea, green tea, white tea, yellow tea, ginger tea, masala tea, elachi tea, and so on, and you can set the price based on the flavor of the tea.

2. Choosing the Location and Finalising

Location dictates the success of a business—whether a tea stall or franchise operation. It’s key in almost every kind of business, so it is important for business owners to hunt for a location that is extremely suitable for their business. When it comes to choosing the location, one can choose the tea business shop locality that can be accessed by the public.

A small area can be sufficient enough for the initial setup when beginning a tea stall business. However, a tea bar of about 500 sq. ft. is needed for installation and operation equipment, utensils, and raw materials. Seating should also be arranged according to the space available or at the location site. But it’s important to make sure that your customers have a nice place to sit as well.

Once you have chosen the location, you can simply finalise the same and start selling the tea business.

3. Organizing Tea Shop Business Requirements

To get started with a tea business, you will have to arrange all the requirements that are required to run a successful business. Some of the important requirements that are required to sell tea are as follows:

  • Utensil for Making Tea,
  • LPG Cylinder, Kettle
  • Stove
  • Serving Glasses,
  • Glass Holder,
  • Milk,
  • Sugar,
  • Water,
  • Tea Powder/Masala and other related ingredients.

Apart from the ingredients, you will also arrange for other needs such as seating arrangements, hygiene materials, utilities, food items, and other supplements.

4. Tea Shop Business Registration

Most of the tea stall owners run their businesses as proprietorship firms. This means that they operate under their own PAN card. Additionally, to run as a proprietorship firm, you will need to obtain a trade licence from the municipal authority in which you operate your business.

However, if you are opening a tea bar, you will have to go through your city’s laws for food safety regulations and obtain an FSSAI (Food Safety and Standards Authority of India) registration. Another thing you must do is get yourself a fire license, which will make sure that you stay in compliance with local fire code regulations if such things are applicable in your area.

5. Opening the Tea Shop

You need a good location and a floor plan for running a stall. Find out specific requirements for your location, like permission for an outdoor cafe, or the size of the seating area within your stall. Consider investing in movable furniture so that you can sell tea outside during festivals and fairs, etc. Make sure your corporate identity (name-brand logo, colour scheme) is visible from a far distance.

Also, you can consider opening the stall on a movable van. In this case, you can change your location as per season if you want to attract more customers or if you want to convert the same extra-ordinary winter market into a summer one with a few changes in the loading perspective.

6. Promote Your Tea Shop

Now that you have set up your tea business, you must create awareness about it as well. How do people learn about your new business? Well, that’s mainly through the quality of the products you make. What many people fail to do is to first build a stable customer base by sending out promotions and flyers in order to inform people about the services or products you are offering.

A good move to make sure that more people learn about your business would be to give out discounts so as to encourage customers to buy more than they ordinarily might.

That’s it. Your tea shop business has started. With the above-presented business idea, you will definitely have an idea about how much budget you will require to start a tea business.

If you are thinking that your budget to start the tea business in India is falling short, then you can simply apply for business loans.

Loans for Tea Businesses in India

There are many government and private banks that offer business loans to vendors. So, with the right plan, you can approach any nearby bank that offers business loans and start applying for the same.

Arranging funds is one of the most essential steps when it comes to starting up a business. Hence, you can refer to the following links to learn how to get business loans from private banks and government banks.

How To Start a Business?
How To Raise Startup Capital for Your Business?
How To Get a Business Loan from a Bank?
How To Get a Loan to Start a Business from the Government?

Our in-depth guide on how to start a tea stall was meant to help inspire you. Starting a tea stall business in India is certainly worth a shot, as drinking tea is never going out of fashion in the country. It’s always a smart idea to run with what’s trending, but many new tea shop owners don’t consider the needs of their customers. They don’t understand that the taste of their chai has the power to either turn customers away or keep them coming back for more. Thus, it takes plenty of planning to make your new tea shop business a huge success.

Final Words on the Tea Business in India

We hope the information we presented in this blog post on starting a tea business in India was helpful to you. There is always interest in the Indian marketplace in providing a cup of tea, which makes it profitable and advantageous to start up a small chai shop. However, there are some important factors that one has to consider prior to jumping into opening up their own Chai Parlor, including specific environmental elements, public services, online reviews, and more than anything else available to the competition.

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