Written By: Khushboo Verma

Starting a tea business in India seems like a smart idea when you look at the numbers. The tea market in India is worth a lot of money and keeps growing every year. If you are interested in owning a franchise, you have probably heard of Tea Time, Chai Sutta Bar, and Tealogy. But which one should you actually invest in? That is what this tea franchise comparison India 2026 will help you figure out.

India's tea market was valued at USD 11.50 billion in 2024 and is projected to reach USD 15.0 billion by 2033, growing at 3.10% annually. What makes this market even more interesting is that nearly 88% of Indian families drink tea regularly. This means you have a huge customer base right from day one.

Why Tea Franchises Are Popular Right Now

The tea cafe business is growing fast for clear reasons. Young people want nice places to hang out that are not too expensive. More people are choosing tea over cold drinks because they think it is healthier. Serving tea in kulhads (clay cups) has become trendy, especially among college students and office workers.

What makes tea franchises different is affordability. Unlike coffee shops where a cup can cost Rs 200 or more, tea is something everyone can buy. This makes it a safer business because you are not depending only on rich customers.

Tea Time: The Biggest Network

Tea Time started in 2016 when Uday Srinivas Tangella opened one outlet in Rajahmundry, Andhra Pradesh, with just Rs 5 lakh. Today, the brand has grown to over 4,000 outlets across 19 states. That makes it India's largest tea franchise by number of outlets.

What It Costs

The initial investment is Rs 5 to 7 lakhs, which is low compared to other franchises. The franchise fee is Rs 4.25 lakhs and includes equipment like refrigerators, stoves, deep freezers, utensils, and your first stock of tea leaves. You pay a 5% royalty on monthly sales, but they waive this for the entire first year.

You only need 100 to 150 square feet of space. This works well near colleges, bus stops, railway stations, or busy markets. You will need 2 to 3 employees, and the company trains them in just 3 days.

How Much Money Can You Make

The profit margin ranges from 40% to 80% depending on location and how busy it gets. Monthly net profit can be Rs 1 to 2 lakhs. The break-even period is just 5 to 10 months. Daily sales usually hit Rs 5,000 to Rs 10,000 with about 100 to 200 customers.

What Makes Tea Time Different

Tea Time sources its tea directly from Assam farms. This means they control the quality from the beginning and ensure freshness. The centralized supply chain is helpful because you do not need to spend time finding different vendors or worrying about stock running out. Everything arrives at your outlet on schedule.

The menu is priced under Rs 100 for most items, which attracts customers from all income groups. They also sell milkshakes, soft drinks, and snacks like samosas, so you have multiple ways to earn money.

However, when doing a tea franchise comparison India 2026, you should know that Tea Time focuses more on serving lots of customers at low prices rather than being a premium brand. It works best in tier-2 and tier-3 cities where people want good tea at affordable rates.

Chai Sutta Bar: The Trendy Choice

Chai Sutta Bar was started in 2016 by two friends, Anubhav Dubey and Anand Nayak, in Indore. They began with one small stall and now have over 600 outlets in 370+ cities across India. They even have outlets in Dubai and Oman. In 2025, the brand hit Rs 150 crores in revenue and serves 4.5 lakh kulhads of tea every single day.

Investment Details

The investment is Rs 16 to 25 lakhs. This includes franchise fee (Rs 6 to 8 lakhs), setup and interior costs (Rs 5 to 7 lakhs), equipment (Rs 3 to 5 lakhs), and working capital (Rs 5 lakhs). The royalty fee is 4% of monthly revenue, and the agreement lasts 5 years with renewal options.

Chai Sutta Bar offers three outlet types: Kiosk (200 to 400 sq ft), Medium Stall (400 to 600 sq ft), and Mega Cafe (600 to 2,000 sq ft). This gives flexibility based on your budget and location.

Earnings Potential

The gross profit margin is 60% to 70%, and net profit margin is 35% to 40%. Monthly revenue usually falls between Rs 2 to 4 lakhs, giving net profit of Rs 70,000 to Rs 1.6 lakhs per month. The average return on investment is 108%, and you typically recover your investment in 14 to 18 months.

What Makes Chai Sutta Bar Stand Out

Chai Sutta Bar is not just a place to buy tea. It is designed as a hangout spot for young people. The brand creates comfortable, trendy spaces where students and working professionals actually want to spend time. They serve tea in eco-friendly kulhads, which has become their signature style.

The brand has a strong presence on social media and runs marketing campaigns that keep bringing in customers. Around 80% of their customers come back regularly, which shows strong loyalty.

When looking at this tea franchise comparison India 2026, Chai Sutta Bar clearly wins on brand positioning and margins. But the higher investment and longer break-even period make it suitable only if you have adequate capital and are targeting urban areas with lots of young people.

Tealogy: The Newer Option

Tealogy was founded in 2018 by Shubham Patidar and Ajay Patidar, also in Indore. The brand has grown to 500+ outlets across 15 states and 100+ cities. Their net worth is reported at Rs 135+ crore.

Investment Requirements

Investment ranges from Rs 15 to 20 lakhs. The franchise fee is Rs 5 to 5.5 lakhs (varies by location). Tealogy charges a fixed royalty of Rs 10,000 per month from the second month, not a percentage of sales. The agreement lasts 5 years and is renewable.

Investment includes franchise fee, setup costs (Rs 5 to 6 lakhs), initial inventory (Rs 2 lakhs), machinery (Rs 3 lakhs), and working capital (Rs 5 lakhs). They offer a kiosk model (100 sq ft minimum) and dine-in cafe model (300 to 500 sq ft).

Profit Expectations

The profit margin is around 10% for monthly sales of Rs 3 lakhs. With good marketing, this can increase to 20% for Rs 5 lakhs in sales. However, the return on investment period is 2 to 3 years, much longer than Tea Time (5 to 10 months) and Chai Sutta Bar (14 to 18 months).

What Tealogy Offers

Tealogy focuses on providing quality kulhad tea and coffee in comfortable spaces. They serve chai, ice tea, hot coffee, shakes, Maggi, sandwiches, and burgers, so there is variety on the menu. The kulhads have the Tealogy name engraved on them, which is a nice branding touch. The company is FSSAI certified.

In this tea franchise comparison India 2026, Tealogy faces tough competition from the other two brands. The longer payback period and lower profit margins are real concerns. Also, their tea is priced at Rs 12 while competitors offer it at Rs 10, which can affect sales. The brand recognition is also weaker compared to Tea Time and Chai Sutta Bar.

Side-by-Side Comparison

Which One Should You Pick

The right choice depends entirely on your situation. Here is how to think about it.

Go With Tea Time If

• You have limited capital (Rs 5 to 7 lakhs). 
• want fast recovery (5 to 10 months). 
• are opening in tier-2 or tier-3 cities. 
• want simple operations with strong supply support. 
• are okay with volume-based business. You want to join India's largest tea network.

Go With Chai Sutta Bar If

• Are having Rs 16 to 25 lakhs and can manage expenses for 14 to 18 months. 
• Or, You are targeting areas near colleges or IT parks. 
• You want premium branding with excellent marketing. 
• value eco-friendly kulhad concept. 
• You want higher margins and can wait longer for returns. 
• focus on creating social experiences.

Or Also, Go With Tealogy If

• You have moderate capital (Rs 15 to 20 lakhs) and can commit to a longer timeline. 
• can sustain business for 2 to 3 years before breaking even. 
• are entering markets where Tea Time and Chai Sutta Bar have limited presence. 
• prefer fixed monthly royalty over percentage fees. 
• have a location where good ambiance helps you stand out. 
• are willing to invest effort in local marketing.

My Final Thoughts

After looking at all the information for this tea franchise comparison India 2026, Tea Time seems like the safest choice for most first-time entrepreneurs. The low investment, fast returns, and massive network make it less risky. You can test the franchise model without putting too much money at risk.

If you have more capital and are targeting urban markets, Chai Sutta Bar offers better long-term potential. The brand positioning, higher margins, and strong marketing justify the higher investment.

Tealogy might work in specific situations, but the 2 to 3 year payback period makes it riskier. Unless you have a really good location where other brands are absent, you might be better off with Tea Time or Chai Sutta Bar.

Success depends on choosing a location with high footfall, keeping quality consistent, providing good service, and managing costs carefully. Visit existing outlets, talk to current franchise owners, and understand your local market before deciding.

The Indian tea market is projected to reach USD 15.0 billion by 2033. This comparison gives you the facts, but only you can make the final decision based on your money, goals, and plans.

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.