It can’t be denied that tea is an essential everyday part of everyone’s life, making the tea franchise a good business choice for people who want to venture into the food and beverage industry. Patna, the capital of Bihar, is inhabited by many students, professionals, government workers, shoppers, and local inhabitants, who will provide a market for a cheap and convenient tea franchise business.
If you plan to start a Tea Franchise in Patna, then a franchisee setup will enable you to handle a few challenges when you start your own business. But you must be aware of the amount of investment, licensing requirements, and a number of other things.
This article provides details about the costs, licenses, and other things that are involved in establishing a Tea Franchise in Patna.
Why Consider Establishing a Tea Franchise in Patna
The customer profile in Patna includes a wide range of people like students, office-going professionals, government officials, businessmen, shopaholics, tourists, locals, and many others. This may lead to a requirement of tea at affordable prices by all of these customers.
A branded tea store would also attract those customers who would prefer an organised and clean environment in comparison with the roadside tea stall, which is not branded.
Some potential benefits of having a tea franchise in Patna include:
- Simple product preparation
- Repeat purchase benefit
- Various types of outlets like kiosk and café
- Chance to sell snacks and related products
- Branding because of the franchisee
- Targeting of students and office-going people
- Expanding into other nearby areas after opening up the first outlet
There is no certainty of profitability. The sales would be greatly dependent upon location, cost, rent, quality of the product, retaining the customers, operational costs, and the terms of the franchise.
Costs Involved in the Establishment of a Tea Franchise in Patna
The cost will be based on the brand, size of shop, location, interiors, equipment, franchise fee, and working capital.
Taking a rough estimate, the cost involved in establishing a small tea kiosk will be in the range of ₹3 lakhs to ₹8 lakhs, while a large tea café would cost between ₹8 lakhs to ₹20 lakhs or even more.
Some sample costs may be as follows:
| Cost Category | Estimated Cost |
| Franchise fee | ₹1 lakh-₹3 lakh + |
| Interior + Branding | ₹1 lakh-₹3 lakh + |
| Equipment | ₹75,000-₹2 lakh + |
| Furniture and Fixtures | ₹50,000-₹2 lakh + |
| Initial Stock | ₹30,000-₹75,000 + |
| Marketing | ₹15,000-₹50,000 + |
| Rent /Security Deposit | Location Dependent |
| Working Capital | ₹50,000-₹2 lakh + |
The above costs are planning estimates only; these are not guaranteed franchise prices.
Licenses Needed for Setting up a Tea Franchise in Patna
FSSAI Registration or License
Since a tea shop falls under the category of a food business, FSSAI becomes relevant in this case.
Under FSSAI guidelines, petty food businesses having a yearly turnover below ₹12 lakhs usually fall under FSSAI registration, whereas those that have exceeded this level fall under the category of mandatory license.
GST Registration
It is not compulsorily required to register under GST for any tea shop. There are many things that influence this necessity.
Before beginning your business, you should find out if you need GST registration.
Municipal Permits
It is not necessary, but it can be relevant depending upon the kind of activity, advertisements, waste collection, and other municipal matters.
It depends on the place where your business is located.
Tea Franchise Start-Up in Patna
Step 1: Make a Budget Plan
You need to figure out how much money you have to spend without being stressed financially. You must have separate budgets for the costs of setting up and operational requirements.
It includes:
Franchise fee + interior + equipment + deposit + licenses + stock + marketing + operational capital.
Step 2: Select a Location
Location is the most important factor in opening up a tea franchise business.
Good locations may be: Colleges & Coaching zones, office zones, marketplaces, hospitals, transport hubs, or any other commercial & residential zone.
Never settle for low rent just for the sake of low rent itself.
Step 3: Decide on which franchise brand to choose
Consider all tea franchises before signing up for one. Check for their brand value, product quality, franchise fee, supply chain, marketing help, etc.
Step 4: Undertake All Applicable Registrations
After deciding on the premises and forming your business, undertake all applicable registrations and clearances.
FSSAI clearance is necessary as tea preparation and food business come under the scope of the food business.
Step 5: Set Up Your Outlet
The key considerations in setting up your outlet are cleanliness, speed, and visibility.
In case you decide to go with the franchise model, you need to follow the approved franchise guidelines.
Step 6: Market Your Tea Outlet
Once the outlet opens, it needs to work on gaining recurring customers. Effective marketing methods include:
- Google business listing
- Instagram and Facebook
- WhatsApp marketing
- Opening discounts
- Loyalty programme
- Student discounts
- Combo offers
- Local marketing
- Co-operation with nearby office premises or coaching institutes
Reasons for Choosing Alexa Tea
Alexa Tea is one such reputable Indian tea franchise that offers franchises in various areas, including Bihar.
We have been in the tea business since 1993 and provide various types of tea brands, including Assam, Darjeeling, and Himalayan tea brands.
Hence, an entrepreneur looking for a Tea Franchise in Patna is welcome to partner with Alexa Tea, as here you will get quality products at an affordable range.
Profitability of Tea Franchise in Patna
It could be profitable. However, there is never any guarantee of profit. The important parameters that would decide profitability are:
- Volume of customers every day
- Bill size of customers
- Rent
- Cost of ingredients
- Staff cost
- Cost of products
- Wastage
- Franchise cost
- Retention of customers
Conclusion
Being the owner of a Tea Franchise in Patna is potentially a profitable venture if entrepreneurs conduct proper planning regarding investment and location. Though a franchise offers the benefits of an established brand, products, training, and business assistance, the franchisee still has the responsibility to execute the business operation.
If you are looking for a partnership that will provide you with a continuous supply of quality products with market support, then Alexa Tea is the best option you can opt for.
FAQs
What will be the cost of starting a tea franchise in Patna?
The cost of starting a tea franchise could vary from ₹3-8 lakhs for small ones to ₹8-20 lakhs and more for bigger and cafés-like ones.
Do you require FSSAI for tea shops?
Yes, being a food-based business, you have to register your tea shop based on the rules of FSSAI.
Can we start an Alexa Tea Franchise in Patna?
Yes, Alexa Tea does provide franchising facilities in Patna, which lies under the jurisdiction of Bihar.
What will be the most important thing in tea franchises?
The location will be one of the most important things. Visibility, proper footfalls, rent, and customers’ demographics are some other important factors in tea franchises.
Do all tea franchises require to have GST registration?
No, not all tea franchises require GST registration. It is generally required when annual turnover exceeds 40 lakh rupees.
