Written By: Gouri Ghosh

Franchises fuse the rustic appeal of chai with modern-day café convenience, winning the hearts of consumers from all walks of life. Tea franchise is very attractive for entrepreneurs as they have a low entry point and high-profit margins. However, selecting a profitable and sustainable tea franchise is one among the many components of success. A reputed brand well-equipped with a sound supporting system can help the entrepreneurs minimize risks and maximize returns in this evolving industry. 

Why invest in a tea franchise in India?

The tea market in India is expected to grow at a 6.5% CAGR, making it an estimated ₹43,000 crores by 2027.

Tea is loved throughout India, making it one of the most rewarding businesses in the present era. Here's why investing in a tea franchise in India makes sense:

1. Rising Tea Consumption

• The tea industry is growing steadily at the rate of 6.5% CAGR.
• Tea is cheap, and this helps it maintain a constant demand, being affordable for all categories.

2. Tea Culture Momentum

• Teens and young adults alike are preferring tea in modern cafés over fresh tea from traditional roadside stalls.
• Urban areas show a growing trend of tea caf?-type of spots in which people can socialize.
• Fusion teas like bubble tea and tandoori chai woo the adventurous patron.

3. Market Potential in Different City Tiers

• Tier I cities - there is a high demand for the more premium and fusion tea experiences amongst the metros.
• Tier II cities - tea cafés become great businesses in a compromise between affordability and ambience.
• Tier III cities - leading or low-cost franchises meet the requirements of the ever-growing middle-class population.

Top 10 Most Profitable Tea Franchises in India, 2025

The tea franchise business in India is booming with its love for tea and the nation's booming café culture. With more than 837,000 tons consumed annually and reaching ₹43,000 crores by 2027, this is a treasure trove of opportunities for many aspiring entrepreneurs to venture into a tea franchise business. Being a ready-to-use model that comes with existing branding, it offers more rapid returns as well as risk reduction. 

Here are the top 10 tea franchises in India for 2025:

1. Tea Time

Tea Time is India's largest and fastest-growing tea franchises promising to make tea affordable and accessible to all customers. The brand set out on this tangled journey of establishing a kiosk and outlet network in some of the busiest footfall areas. Focused on quality ingredients, speedy service, and affordable prices, Tea Time has become a household name among tea lovers. For example, its wide range of products, classic chai, green tea, and snacks, is likely to attach customers to it.

Why invest in Tea Time?

• Affordable investment hence becomes easier for molding first-timers.
• High offer throughout stir-ups in towns and semi-urban places.
• Quick Returns on Investment with a break-even of just six months to nine months.
• Smoothened Operations with a Quick Supply Chain.
• There are flexible models available that are suitable for kiosks, carts, and small outlets to maximize space and efficiency.

2. Chai Point

Founded in 2010, Chai Point has emerged as a pioneer in the organized tea-café industry in India. It caters to the urban professionals with its signature teas, served along with other snacks and light meals. This Chai Point is also known for its eco-friendly approach, such as using biodegradable packages and other technology-driven solutions like app-based ordering. For those who prefer the 'premium' experience, there are its high-end outlets located in metros and corporate hubs, making this a household name in the tea franchise industry.

Why Invest in Chai Point?

• A practice that hails well with environmentally conscious customers.
• It integrates technology with operations and delivery services facilitation.
• Mechine support is dedicated to outlet design, marketing, and training.

3. Chai Sutta Bar

Incepted in 2016, Chai Sutta Bar came to be an instant household name due to its very innovative concept of serving tea in eco-friendly kulhads (clay cups). The brand blends that nostalgic feeling of old-school chai with modern branding that hits youth. Chai Sutta Bar, while designing space, is able to capture a very friendly and casual atmosphere, which is almost by default a popular destination for students and the working class. The affordability and unique concept have been the path for its fast expansion across the Indian territory and the outside world.

Why Investment in Chai Sutta Bar?

• Low investment again with high returns and very quick break-even.
• A wide range of products benefits from flavored teas to snacks.
• Aggressive marketing strategies carried by the franchisor boost visibility.

4. Chaayos

Chaayos Established in 2012, has developed into a premium tea lounge chain that has redefined tea consumption. The brand has highly selectable menus, making it possible for customers to choose one of over 12,000 combinations of beverages. Focused on creating a soothing ambiance inside style interiors, rather, Chaayos serves complementary and assorted snack ranges with its premium teas. Chaayos outlets are high-end locale-specific places, unlike the urban young professionals and families.

Why Invest in Chaayos?

• Strong presence in metro cities and high-end shopping zones.
• High margins from the premium pricing of teas and snacks.
• Engaging loyalty programs drives customer retention.
• Support from the franchisor in branding, marketing, and operations is excellent.

5. MBA Chaiwala 

Founded in 2017, MBA Chaiwala is a famous tea brand that has gained recognition owing to its motivational story of how an MBA graduate turned his love for tea into a thriving business. The brand is all about skinny tea with quirky branding focused on today's youth. Laidback outlets designed with a creative theme are popular hangout spots for college students and budding professionals alike.

Why choose to invest in MBA Chaiwala?

• One of the strongest points for MBA Chaiwala is its brand identity with its vibrant marketing campaigns targeted at the youth.
• Setup costs are low but can reap high profit margins of 40-50%.
• Differentiated from others by themes and branding, it provides customer experience.
• Fulfilling demand in urban and semi-urban markets.
• Flexible franchise option of kiosk, cafe, or carts.

6. Bubble Tea Franchise India

Bubble Tea Franchise India has become a stronghold in trendy bubble tea which is slowly gaining momentum with respect to the urban youth. Their colorfully-populated menu flaunts different flavors and toppings such as tapioca pearls to lure the variety-seeking and adventurous customers. The brand's small kiosks and outlets are pitched in high-footfall places such as malls, universities, and metro stations.

Why to invest:

• It taps the ever-increasing demand for the bubble tea trend in the youth.
• Being a niche market with little competition, it can guarantee a steady demand.
• Compact models are easier to run and expand.
• Unique product offerings can encourage more clients to come again.
• Support as a Franchisor in ingredient procurement and training.

7. Chai Thela 

Chai Thela is famous because of its kiosk-based model that serves adorably cheap and fresh brewed tea in busy spots. So, the focus is very much on quick service at very low overheads. Mostly students and office-goers use it. Such outlets are commonly visible when approaching university campuses, railway stations, and marketplaces.

Why Invest in Chai Thela?

• Investment required is low, payback period is fast.
• Proper for locations with heavy foot traffic, such as markets and campuses.
• Spanning several products from flavored tea to snacks.
• This makes it easy to add additional kiosks with the scalable kiosk model.
• Process flow runs smoothly owing to a strong support system.

8. Tea Trails:

Launched in 2013, Tea Trail is a premium tea lounge that offers a wide variety of international teas, including oolong and white tea and herbal infusions. It's all about tea education and providing guests with the finest experience in drinking tea. It is a place for tea lovers who appreciate enjoying both exotic and traditional blends with a well-thought-out food menu. The brand draws metro and Tier-I cities with a strong presence for upscale clientele.

Why to invest :

• It offers an experience in tea that is premium-level, attracting affluent customers.
• It has a brand that is competitive in offering unique varieties of global teas.
• Unequivocally lures customers due to niche positioning. 
• Ideal metro locations, educated and health-conscious population. 
• The franchisor supports menu development and trains staff. 

9. Chai Kings

Chai Kings, which was put up in Chennai in 2016, has set its niche in the tea franchise market as it has operations focused on takeaway and delivery. They assure to provide hygienic ready-to-drink tea packed spill-proof. Chai Kings provides a quick and affordable tea solution to office-goers, students, and families, which is why the brand has become popular in Tier I and II cities across South India. 

Why to invest?

• Demand for hygienic takeaway as well as delivery services is on the rise.
• Daily sales remain constant in terms of affordability.
• Compact outlet models have very low operational costs. 
• Good history in Tier II cities with pan-India potential. 
• Franchisor support logistics, training, as well as marketing.

10. Tea Coffee Corner

Tea Coffee Corner is a blend of tea and coffee under one roof, which satisfies the two warring factions of drinkers. The franchise models are compact and flexible, integrating into space-starved locations like malls or high streets and campuses. Tea Coffee Corner is affordable and quality, thus warming its way in the hearts of cuppers, both tea and coffee.

Why Invest in Tea Coffee Corner? 

• Two beverages increase customers from both ends. 
• Low investments and flexible setup models to small or big spaces. 
• Scaling up is very high, with the potential to multi-outlet it. 
• The franchisor takes care of sourcing raw materials and developing the menu.

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.