How to start a Tea shop business (Plan, Profit, Investment)

Published by inzamam on

tea shop business

The tea shop business is very easy to Start.

I personally interviewed tea ( chaiwala) vendors. After so much research on this business, I come to know various interesting things about this business.

If you are looking for following things then you are in the right place:

  • How much investment this business requires?
  • profit margin in the tea business in India.
  • How to start a tea business?
  • Tea shop business plan in India (chai business plan.

There are two kinds of business in Tea.

  1. Tea shop business
  2. Tea leaf business

1. Tea shop business

  • Investment~ Rs 30,000 to Rs 35,000
  • Profit~ Rs 40,000 per month ( selling 400 cups daily)

Yes, you can earn more than 1 lakh per month by selling tea-cup only. 

I will show you a Mathematics calculation that will believe you believe.
  The Cost of making one cup of tea is around Rs can sell 1 cup of tea at a price of Rs 5 to Rs 10 easily. You can get a profit margin in tea business per cup tea around 3 to 5 rupees. You can earn Rs 40,000 per month if you are able to sell more than 400 Teacup each day at a price of Rs 6. 

  • Tea business profit margin: Rs 3 to 5 per cup

Related article: Earning potential 1 lakh 20 thousand per month


REQUIREMENTS Where to purchase
All tea-making ingredients ( Tea leaf, milk, sugar)  Retailers, wholesaler
Kettle Rs 400 ( Utensil shop)
Tea making pan  Rs 700
Teacup 100 pieces Grocery store
Stove  Utensil shop
Chair and Table 24 chair and 6 Table (Rs25,000)


 I highly recommend an automatic Tea making machine. So that if you open multiple stores at the different location all the tea taste the same

This same trick is used by all the big companies like Starbucks, Chaaiyos, etc.

Here is the one best machine used by so many users and they have rated it 4.7 out of 5.

Steps for starting the Tea Shop business in India:

tea shop business plan


  • NEED OF MARKET: check out all the places in your cities. see where is more rush like a railway junction, hospital, main market, etc.
  • COMPETITON: visit the tea stall business (chaiwala) and see how many teacups he is selling in 1 hour (morning, afternoon, evening). It will help you in getting good knowledge about tea (chai) shop business in your area.
  • SURVEY: Ask a question to the people of tea shop after they moved out of tea stall. (Question like how much you like the tea here, what improvements you want in the Tea stall).


  • choose which products you want to sell like Tea, coffee, biscuits, etc
  • decide how much you the money you will charge for 1 cup of tea and various other products.
  • check out where to buy tea leaf, milk because you needed these regularly. Always buy from one shop it will help you in getting items on credit if you needed.


startup cost for tea shop

  • before selling tea first make the tea and get the reviews from all of your relatives and get the feedback and improve it if needed.
  • sell a different kind of tea. It will help in getting identified in a busy market. people will know you because of the availability of the different type of tea.

#different kind of tea is:

  • Black tea
  • green tea (This tea will help you in getting that customer who are more health cautious)
  • white tea
  • Yellow tea


  • you can get it online and offline both.


  • get all the things in your tea shop. 
  • Focus on hygiene. It will help you in getting an elite customer.

Reason for starting tea stall business:

tea business profit margin

  • Tea is the most common drink in India. Almost every Indian take it twice a day.
  • Very low investment required.
  • No complex skill needed. you can easily learn it from your mother, sister or wife. 
  • on the other hand For another kind of tea like black tea, green tea, white tea etc. you can learn from Youtube. It’s free.

How to prepare Green tea:

Black tea:

white Tea:

#Note: You can learn how to make a normal tea from your mother, sister, or wife as I mentioned above.

Success stories of the Tea business:

chai business plan


you must have heard the name of Starbucks. In 2018 Starbucks’ total revenue was $6.8 billion dollars. 


Chaayos it’s an Indian brand which has the various outlet in major location (Delhi, Gurgaon, Noida, and Mumbai). Its total revenue between 2016-2017 was Rs 27 crores. They are growing very rapidly. Their profit is touching the sky. 

Chai Point

It is also an Indian brand. Revenue of the chai point is around 56 crores in 2016-2017. This company was found in 2010.

Conclusion: This business has a huge opportunity. The demand for a good tea cafe very high. Even if you want to start just a small tea stall as you see in most places is also great. You just start it. Once you get success then you can scale it and also start offering your own franchise to another.

NOW I would like to hear from you.

Do you have any doubt let me know in the comment?

I always respond to every comment.

If you like my article please do share it on your social media account.



I am successfully running a business website, where I do the estimation of various business and also do case studies and business model analysis.


Swati · at 2:47 pm

I want to start a tea business in Bangalore

Vrinda · at 7:55 am

I’m looking to start a tea cafe. I was looking for ideas for my project on the web. I found your article, which is really helpful for me. Thank you.

Alka · at 3:18 am

Very good information

11 Business ideas in Pune with low investment Earn 3500 daily · at 5:35 am

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