The market size of the Tea Franchise Opportunity
India is placed tenth on the list of the fastest-growing markets for specialist tea (popularly called ‘Chai’ anywhere in India) and coffee retail chains. The market value is estimated at INR 2750 crore in 2018, as per a study by Euromonitor International, a market research firm. Two of the biggest players in the café chain market in India include Tata Starbucks and Café Coffee Day, and this niche market is showing a high growth rate in the consumer food service industry, slated to increase by 6.9 percent a year to INR 4540 crore by 2023 in value sales without adjusting for inflation.
Specialist coffee shops can easily attract the millennials category, particularly in metropolitan cities, as their offerings are not only about high-quality beverages, but also total experience including Wi-Fi, music, recreation, and a casual or business-friendly ambiance. Consumers who frequent cafes in India mainly fall under the 18-35 years old category which is the primary working segment characterized by fast-paced lives and greater disposable income. We, at Strategizer, offer a range of franchise business in Chennai & in and around Tamilnadu for enterprising business owners and aspiring small entrepreneurs.
The study by Euromonitor further reports that both chained and independent specialist tea and coffee shops stayed strong on the background of continuous innovation and a wide range of offerings that are also experiential in nature. The tea business also exhibits robust long-term growth prospects due to the fact that it is a common beverage consumed at home, and is gaining traction as a popular franchise business. If you’re looking to start a tea franchise business in Chennai or searching for tea franchise opportunities in Chennai and Tamilnadu, simply talk to Iyyappan Rajendran, Founder, Franchise Landmark for a ONE-ON-ONE connect today.
Why running a tea business can prove profitable?
The first reason is obviously natural: drinking tea in India is almost a ritual and a practice whose roots go back to several thousands of years. Tea ceremonies and parties have become part and parcel of our culture such that their use has become increasingly complex and nuanced with the day. Second, running a tea business can be a highly profitable idea, and the best part about it is that you can run the business as per your investment and budget in hand and still generate a decent ROI at the end of the day. Third, the tea franchise business is something that is not area-specific; you can enjoy the same success rate in a small town as in an urban suburb. There are many small-time housewives, college freshmen, and even differentially-abled individuals who went on to make big names for themselves by starting tea businesses with a moderate investment in infrastructure. When you consider the popularity of the tea, it is almost guaranteed that you can be a successful franchisor or franchisee if you take up tea franchises of trusted brands.
Why start a tea shop franchise? Different tea varieties & flavors:
The demand for different varieties in flavors of tea including White tea, Green tea, Yellow tea, Oolong tea, Black tea, Dark tea, and many more have been very consistent over the years, and will only grow in the future. Tea shops that offer popular local side snacks with tea-like Muthiya, Ganthiya, Dhokla, Vada, Puttu, Vada Pav, Samosa, Pakoda, Chana, and global snacks such as French Fries, Cakes, Sandwiches, Garlic Bread, etc. are now popular among tea lovers.
Market advantage:
In the F&B industry, the market for tea business, as discussed earlier, is huge, and above everything else, the love for tea by Indians is the driving force behind the success of the tea business.
Investment: Tea is F&B retail that features a routine demand, stall-based set-up, and therefore involves low-capital costs for set-up and operation.
Minimal requirements: The fact that the tea franchise opportunity requires minimal expertise, minimal staff, and reduced operational and management process of brewing and serving tea only comes as another advantage.
USP: The price range of tea product generally fall from INR 10–to INR 100, and therefore every customer is a target consumer, and that, to us, is the USP of any tea business.
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