Note: The information provided in this blog is only for the use of providing brand-related and franchise-related guidance and knowledge to the user. Khatabook does not claim the ownership of any brand-related word in this blog or any other blog on the website.
Franchising is a business model where one successful business licenses rights and authority to another party. It is a well-known marketing strategy for business expansion. India is a fast developing nation with a lot of franchise opportunities. If you are creative enough, you can be successful pretty quickly. Speaking of creativity, the MBA Chai Wala is a good starting point for your entrepreneurial dreams. The startup cost is comparatively less than any other franchise business, and it requires a small space to get started. Tea is a flourishing business in India mainly because Indians love having chai. The popularity of tea has resulted in numerous small and large businesses such as Chai Thela, Cafe Coffee Day, Chai Theka Franchise and Chai King. Similarly, MBA Chai Wala Franchise is the ideal brand to go with if you want to enter the tea market in India. In this blog, know about obtaining an MBA Chai wala Franchise, the total cost involved, profit margins, terms and conditions, and other critical information.
Did you know? India’s tea industry is 172 years old, and it is the second-largest producer after China.
Emergence of Franchises in India
Franchises have grown in popularity in India during the last few years. Compared to startups and regular enterprises, franchises have numerous advantages. As a result, business usage as a Franchise model is increasing at a rapid pace from medical to food and beverage. When compared to start-up enterprises, franchises have a greater success rate. Buying a franchise may be less expensive than starting your own company.
Starting a business has various restrictions and obstacles, such as competition, branding, etc. Franchises have a positive reputation in the marketplace. They have proven themselves to be effective in this competitive society. You can be a successful businessman with the help of their experience and knowledge. In the last 3-4 years, the number of franchises has drastically increased in a lot of sectors in India.
Chai: A favourite among Indians
For Indians, tea, or chai, has become a way of life. It has now been ingrained in Indian culture. India is the world's second-largest tea producer.
In the financial year 2021, India's tea consumption was estimated to be around 1.1 kg. Significant expansion in the food and beverage industry is one of the key drivers of the market's positive outlook. India is one of the world's top producers and consumers of tea, growing into one of the most cost-effective and nutritious beverages.
Also read: Which Are The Most Profitable Franchises in India?
According to the analysis, the Indian tea market would increase in terms of a CAGR of 6.6% from 2020 to 2027. Additionally, increased customer demand for premium and packaged tea brands is driving the market growth. Tea is stored and delivered in multi-layered packaging, which reduces the possibility of adulteration spoilage, and preserves the fragrance and freshness of the leaves. Consumer knowledge of the health and therapeutic benefits of organic and green tea varieties also assists in the market's growth. Tea has been a popular investment opportunity due to its popularity and usage.
What is MBA Chai Wala in India?
MBA Chai Wala is a well-known tea-selling franchise in India thanks to its distinctive name and excellent taste. Ahmedabad, Bhopal, Chandigarh, and Kolkata are among the cities where they can be found. MBA Chai Wala now has over 50 different locations around the country. It is the fastest-growing franchise, with plans to expand in various corners of India. It is commendable that the company has grown rapidly in only four years.
Who is the Owner of MBA Chai Wala?
MBA Chai Wala Franchise is owned by Prafull Billore, born in Madhya Pradesh in January 1996. He decided to pursue an MBA at IIM Ahmedabad after obtaining his graduation. Regrettably, he was unsuccessful in cracking the Common Admission Test (CAT). When he was going through a tough time, he would always rely on a cup of tea for refreshment. He found that in Ahmedabad, there was a lack of different flavours of chais he was craving.
That’s when the idea of starting a chai shop struck his mind. He opened MBA Chai Wala, a tea kiosk, in July 2017 with an investment of ₹8000. With diverse tastes and flavours, his chai shop quickly rose up to fame, making him the second most famous chaiwala in the world. His current net worth is estimated to be around three crores.
MBA Chai Wala menu
MBA Chai Wala is a Tea Stall, as the name implies. There are five different flavours of chai on the MBA Chai Wala menu.
The following is a list of them.
- Regular Chai
- Tulsi chai
- Chocolate Chai
- Masala Chai
- Ilaichi Chai
They don't restrict themselves to only Tea. Along with these, they also serve Green tea, Coffee, etc. For breakfast, they have a sandwich, Maggie, French Fries, Puff, etc.
Why should you go for MBA Chai Wala Franchise?
- A cost-effective business model with decreased operational expenses.
- You’ll get a good profit margin in selling its products.
- Your customers will have several options to choose from.
- You can provide tea and snacks at an affordable price.
- You will be able to get your return on investment pretty quickly.
Also read: Domino's Franchise in India: Requirements, Responsibilities and Profits
What is the business model of MBA Chai Wala Franchise?
MBA Chai Wala Franchise uses the Kiosk Model to prepare their chai cups using machines. This helps in keeping the cups sanitised making the overall process smooth. Furthermore, this technology allows for maintaining food hygiene while minimising operational costs. As a result, the franchise gets a high-profit margin on product sales, and the products become more affordable. In their campaigns, the MBA Chai Wala marketing team always employs word-of-mouth and public relations strategies, as well as digital marketing, continuing trends, and meme marketing.
MBA Chai Wala outlet location
- MBA Chai Wala franchise outlets are easy to locate. You do not need to have a precise location. Instead, you can begin in a residential area, a rural area, a wayside site, a bazaar, and so on.
- Any of the above sites are a good place to start because the tea can be consumed at any time and in any location.
- Make sure that you keep your branch 100/200 feet away from competitors' stores to ensure your business is able to attract potential customers on a rapid scale.
MBA Chai Wala is still expanding, with plans to open locations across India in the upcoming years.
Required Experience for MBA Chai Wala Franchise
MBA Chai Wala Franchise might be an excellent place to start if you are new to the industry. It is not necessary to have a specific degree or qualification to start this business. All you need is a sharp business mind and a strong desire to succeed. Even if you are a new franchisee, the MBA Chai Wala franchise is adaptable. They provide you with suitable coaching and training, allowing you to advance in your business quickly.
What is the MBA Chai Wala Franchise Cost?
The costs and investments required to create an MBA Chai Wala Franchise can be divided into three categories.
- MBA Chai Wala charges a franchise fee of ₹3 lakhs.
- The cost of a shop ranges from ₹2-5 lakhs, depending on its size and location.
- Other costs, such as personnel and chairs, can range from roughly ₹1-2 lakhs. This can vary depending on the locality, maintenance costs, bills, and other factors. So, MBA Chai Wala's cost is roughly ₹10 lakhs.
Also read: Smart Franchise business opportunities in India
Terms and Conditions of Opening an MBA Chai Wala Franchise
There are some terms and conditions involved for every franchisee and franchiser for every franchise. In short, Both of them have some agreement with each other. The terms and conditions of the MBA Chai Wala franchise is mentioned below-
- MBA Chai Wala Agreement tenure is 3 Years. But it prefers 5 Years agreement.
- Franchise fees are ₹3 lakhs.
- Maintenance and other cost are ₹1-2 lakhs.
- They require the space cost of ₹2-5 lakhs.
- The total Franchise cost will be around ₹7-10 lakhs.
- Also, at least 1 employee is required. 3 employees would be sufficient initially, and later, it depends on customers.
- The franchise requires an area of at least 100 sq. ft.
The terms and conditions of MBA Chai Wala are smooth and flexible, unlike many other Franchises with complex terms and conditions.
Return on Investment in MBA Chai Wala
In MBA Chai Wala, there is no precise information about profit margins. You will, however, receive all of your invested funds within 12-18 months if you become an MBA Chai Wala Franchise. Use word of mouth publicity. This is the cheapest way to market your franchise. If your budget permits, you can go for advertising commercials, digital advertising and so on. There are endless options available. With MBA Chai Wala’s popularity across India, you don’t feel customer shortage as tea enthusiasts are abound!
How to apply for MBA Chai Wala Franchise?
It is very easy to apply for MBA Chai Wala Franchise. The steps to apply are:
- You just need to visit their website (https://mbachaiwala.com/story/not_cat_person.html#popup1) and fill in some basic information about you such as name, contact information, which city you will establish the franchise, etc.
- Agents from MBA Chai Wala will contact you and discuss the details.
- After document verification and agreement you need to pay the franchise registration fees.
- After the successful payment, MBA Chai Wala will guide you about establishing your franchise.
Is MBA Chai Wala Franchise profitable?
MBA Chai Wala Franchise is profitable without a doubt. You just have to be firm and confident in your business. You will get customers everywhere because of the popularity of tea. Also, the brand of MBA Chai Wala Franchise has become famous. Hence there's a high probability of profit. There are a lot of outlets that are famous today.
MBA Chai Wala Contact details
You can contact MBA Chai Wala in different ways, via email, phone call, and their website.
Email- franchise@mbachaiwala.com
Phone no- 7222905222
Website- mbaichaiwala.com
Conclusion
With all the information given in this guide, you can safely say that this is one of the best Franchise business models you can get started within India. MBA Chai Wala is one of India's most well-known franchises today. It has risen exponentially during the previous 3-4 years. It is well-known throughout India for its flavour and quality. The MBA Chai Wala team is enthusiastic and confident in building their business across India. Tea is well-known and well-liked in India; thus, the tea industry will undoubtedly continue to develop and prosper. We hope that the information provided has given you a better understanding of the franchise business model and the aspects of the MBA Chai Wala franchise.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
