Written By: Payal Das

The Indian café culture has seen an explosive rise in the past decade, with global chains and specialty coffee brands making their mark. Among them, The Coffee Bean & Tea Leaf (CBTL) stands out as a premium coffee business franchise chain known for its high-quality products and sophisticated ambiance. If you're considering opening The Coffee Bean & Tea franchise India in 2025, this guide will walk you through the process, costs, requirements, and potential challenges.

Profitability of a Coffee Business Franchise

A coffee shop franchise, especially a premium one like Coffee Bean and Tea Leaf India, can be highly profitable if managed well. Several factors contribute to the profitability of a coffee business, including location, footfall, pricing, operational efficiency, and marketing strategies.

Key Factors That Impact Profitability

1. Location – A high-footfall area like shopping malls, business districts, airports, or university campuses ensures consistent customer flow.
2. Brand Recognition – Being associated with a global brand like Coffee Bean and Tea Leaf India attracts customers, reducing marketing efforts.
3. Menu Pricing & Profit Margins – Premium coffee and tea products typically have high profit margins, especially on specialty beverages.
4. Operational Efficiency – Controlling costs related to ingredients, rent, and staffing directly impacts profitability.
5. Customer Loyalty & Repeat Business – Offering loyalty programs and exceptional service helps retain customers.

A well-run coffee franchise can expect a net profit margin of 12-20%, depending on factors like rent and overhead costs.

About The Coffee Bean & Tea Leaf

The Coffee Bean & Tea Leaf (CBTL) is a globally recognized premium coffee and tea brand founded in 1963 in Southern California. Over the years, CBTL has built a reputation for its high-quality, handcrafted coffee and tea beverages sourced from the finest estates around the world. With a presence in over 30+ countries and 1,200+ outlets worldwide, the brand is known for its specialty coffee blends, signature Ice Blended® drinks, premium teas, and gourmet food offerings.

Coffee Bean and Tea Leaf India is one of the best coffee franchises. It focuses on delivering a premium café experience, appealing to professionals, students, and coffee lovers who seek quality over quantity. Unlike other coffee chains that focus primarily on espresso-based beverages, Coffee Bean and Tea Leaf India is equally renowned for its tea offerings, making it a strong competitor in both segments.

The Coffee Bean & Tea Franchise Cost

If you have the required capital and a passion for the coffee business, The Coffee Bean & Tea Leaf franchise in India in 2025 can be a highly profitable and rewarding investment.

• Franchise Fee: ₹20 - ₹35 lakh
• Setup & Interiors: ₹75 lakh - ₹1.5 crore
• Equipment & Inventory: ₹30 - ₹50 lakh
• Working Capital: ₹15 - ₹25 lakh
• Royalty Fees: 4-6% of gross revenue
• Marketing Expenses: 2-5% of gross revenue

Total Investment: ₹2 - ₹2.5 crore

Why Choose The Coffee Bean & Tea Leaf Franchise?

Before diving into the process, it's important to understand why Coffee Bean and Tea Leaf franchise India is an excellent investment.

1. Strong Brand Recognition: CBTL is a globally recognized brand with a rich legacy since 1963. Its premium coffee and tea offerings attract a loyal customer base, ensuring high footfall and repeat business.

2. High Demand for Specialty Coffee & Tea in India: India’s coffee culture has matured significantly, especially in metropolitan cities. With an increasing number of young professionals, students, and digital nomads looking for premium café experiences, CBTL has strong market potential.

3. Proven Business Model: CBTL offers a well-established franchise model with extensive support in training, supply chain management, marketing, and operations.

4. Premium Product Offerings: Unlike other coffee store franchise chains that focus only on coffee, CBTL also has an extensive tea selection, catering to India’s tea-loving population.

Market Potential in India (2025 & Beyond)

The Indian café industry is expected to grow at a CAGR of 12-15%, with the specialty coffee and tea segment expanding even faster. Cities like Mumbai, Delhi, Bangalore, Hyderabad, Pune, and Chennai present prime locations for a CBTL outlet. Additionally, with the rise of Tier-2 cities and premium café culture, there’s ample opportunity for growth.

Step-by-Step Guide to Opening a Coffee Bean and Tea Leaf Franchise in India

Step 1: Research & Business Planning

Starting any franchise requires thorough research. Consider the following:

• Market Demand: Study local consumer preferences, competition, and foot traffic in potential locations.
• Investment Costs: Understand the financial requirements, including franchise fees, setup costs, and operational expenses.
• Legal Regulations: Learn about the necessary licenses and approvals required to operate a café business in India.

Pro Tip: Visit existing CBTL outlets in other countries or major cities to understand the brand's customer experience.

Step 2: Meet the Franchise Requirements

To become a franchisee of The Coffee Bean & Tea Leaf in India, you must meet certain financial and operational criteria set by the brand.

Financial Investment

• Franchise Fee: $25,000 – $40,000 (approx. ₹20-35 lakh)
• Total Investment: ₹1.5 - ₹3 crore (includes infrastructure, interiors, equipment, licenses, and initial inventory)
• Royalty Fees: Typically 4-6% of gross sales

Location Requirements

• Ideal Store Size: 800-2,000 sq. ft.
• High Footfall Areas: Malls, IT hubs, business districts, and university campuses
• Outdoor & Indoor Seating: Recommended for premium café experience

Step 3: Apply for the Franchise

To apply for a Coffee Bean and Tea Leaf franchise in India, follow these steps:

1. Visit the Official Website: Check CBTL’s franchise page to submit an inquiry.
2. Contact the Master Franchisee: In India, global brands often operate through master franchisees. Identify the company holding Coffee Bean and Tea Leaf franchise India rights.
3. Submit a Franchise Proposal: Provide a business plan, financial details, and proposed locations.
4. Attend an Interview: If shortlisted, you will have a meeting with CBTL’s franchise development team.
5. Approval & Agreement Signing: Once approved, you’ll sign the franchise agreement and receive operational guidelines.

Step 4: Secure the Location & Setup the Store

Finding the right location is crucial for a successful coffee store franchise business. Once approved:

• Lease Negotiation: Secure a prime spot with favorable lease terms.
• Store Design & Interiors: CBTL provides standardized store layouts and branding guidelines.
• Equipment & Inventory Setup: Source coffee machines, tea brewing equipment, and furniture.
• Hiring & Training: CBTL offers staff training on coffee brewing, customer service, and operations.

Step 5: Obtain Licenses & Permits

To legally operate a Coffee Bean and Tea Leaf franchise in India, you need the following:

• GST Registration
• Shop & Establishment Act License
• Fire Safety & Health Permits
• Trademark Agreement with CBTL

Step 6: Marketing & Grand Opening

Pre-Launch Marketing

• Social Media Campaigns: Announce your store on Instagram, Facebook, and LinkedIn.
• Influencer Collaborations: Partner with local influencers to build hype.
• Discounts & Membership Programs: Offer launch-day promotions and loyalty rewards.

Grand Opening Strategies

• Live Events & Music
• Free Coffee Sampling
• VIP Invitations (Local celebrities, business leaders)

Challenges & How to Overcome Them

• High Initial Investment: Consider bank loans, investors, or partnerships to share the financial burden.
• Intense Competition: Differentiate through premium customer service, unique menu items, and strong branding.
• Maintaining Quality Standards: Regular staff training and quality audits ensure consistency in product and service.
• Location Challenges: Conduct thorough market research before finalizing a spot.

The Coffee Bean & Tea Leaf Profit Margin, ROI, Turnover & More

1. Profit Margin

The profit margin in a Coffee Bean and Tea Leaf franchise varies based on location and operational efficiency.

• Gross Profit Margin: 50-70% (on beverages and food items)
• Net Profit Margin: 12-20% (after deducting rent, salaries, and other expenses)

Since CBTL operates in the premium café segment, its higher pricing allows for better profit margins compared to local coffee shops.

2. Return on Investment (ROI)

The ROI on a Coffee Bean and Tea Leaf franchise depends on the initial investment, sales, and profit margins.

• Total Investment Required: ₹1.5 - ₹3 crore
• Expected Annual Revenue: ₹3 - ₹6 crore
• Net Annual Profit: ₹40 - ₹80 lakh
• Estimated ROI Timeline: 3 - 5 years

A well-performing CBTL outlet can recover the initial investment within 3-5 years, making it a lucrative long-term investment.

3. Turnover & Revenue Potential

The turnover of a Coffee Bean and Tea Leaf franchise depends on factors like daily footfall, average order value (AOV), and location.

Average Sales Calculation

• Daily Customers: 150 - 400
• Average Spend per Customer: ₹300 - ₹600
• Daily Sales Revenue: ₹45,000 - ₹2.4 lakh
• Monthly Revenue Estimate: ₹15 - ₹50 lakh
• Annual Turnover: ₹3 - ₹6 crore

Prime locations like malls, airports, IT parks, and high-street areas will see higher daily sales and revenue, ensuring a faster break-even period.

Conclusion

If you’re passionate about premium coffee and tea, The Coffee Bean & Tea franchise in India presents an exciting and profitable opportunity. With the right location, strong management, and effective marketing, your CBTL outlet can become a go-to destination for coffee lovers.

By following this step-by-step guide, you’ll be well on your way to owning a successful The Coffee Bean and Tea franchise in India in 2025.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.