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

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 these 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

In this article, I will discuss the tea shop business only.

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 the tea business per cup of 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


Tea vending machine amazon
All tea-making ingredients ( Tea leaf, milk, sugar)  amazon
Kettle Rs 400 ( amazon)
Tea making pan  Rs 700
Teacup 100 pieces amazon
Stove  Buy
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 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.

5 Steps to easily start 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 the tea shop after they moved out of the 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 both online and offline both.


  • get all the things in your tea shop. 
  • Focus on hygiene. It will help you in getting an elite customer.
 Important Advice for my readers 
  • Starting a business is a little difficult task if this is your first business.
  • You should not rely on any random friends and relative advice.
  • This is your business and uses your best judgement.
  • When you are starting a business, you have like 1000 questions and there is no one to answer that. Not even this article can help you with that.

Here is one course that I find perfect for new players to become millionaires (Crorepati) very quickly. If you are really serious about your business then enrol yourself in this course. So that you can know all the upcoming difficulties and have a solution to fight back strong.

The course is only 8.5 hr long and has everything that new players need to dive into the business world.

COURSE: Entrepreneurship: How To Start A Business From Business Idea

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4 amazing reasons 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.

82 thoughts on “How to start a Tea shop business (Plan, Profit, Investment)”

  1. Sandhya

    Very useful information I want to start tandoori chai business in mysuru

  2. I have a budget in 250000 planning a tea cafe in khammam so please help startup business idea

  3. Cj avinash

    I wanted to start a tea buissness in my hometown it’s a small town but tea shops are so many one good thing is I want to introduce Hyderabadi chai which is not available in my hometown so just I need to know it works or not

  4. Opening a tea cafe has been my dream for a very long time. Thank you for sharing this insight. However, with my research, I found that you need to have a place on rent for people to sit and enjoy their tea. That itself comes to 1 to 2 lakhs as a deposit and then around 15 to 20K as monthly rent. Then we have chairs, tables, cups, equipment, plat,e and then electricity and water bill then we have registration fees, cops fees, and coming to interiors and then spending on marketing activities as well. It totally comes up to around 5 to 6 Lakhs of investment already.
    Can you guide us as to how we can work with these?

  5. Hey there,
    Is there still anyone who want to start a tea/coffee business? if yes then let’s collaborate even I’m planning to open my own franchise.
    we can discuss everything about business and I’m sure till the time we are positive we will rock and roll.
    Thank you 🙂

  6. Dawnella

    Hi. I would like to start a Tea business , your ideas were very helpful.

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