How Much Does It Cost to Open a Chaiiwala

Embarking on the journey of opening a Chaiiwala, the beloved hub for chai enthusiasts, involves careful financial planning. In this guide, we'll break down the costs associated with launching your very own Chaiiwala franchise, providing insights into franchise fees, interior fit-out, equipment, and ongoing expenses.

1. Franchise Fees

Franchise fees are a crucial upfront cost and can range from £20,000 to £50,000, depending on the Chaiiwala brand and level of support.

2. Interior Fit-Out

Creating an inviting atmosphere is key. Budget around £30,000 to £50,000 for interior design, furniture, and decor.

3. Kitchen Equipment

Equipping your kitchen with essential tools and appliances may cost between £20,000 to £40,000, including commercial chai makers, ovens, and refrigerators.

4. Rent

Location plays a significant role. Rental costs can vary, but budget £2,000 to £5,000 per month for a prime spot.

5. Ongoing Monthly Costs

Monthly expenses include utilities, insurance, and maintenance, averaging around £1,000 to £2,000.

6. Staff Costs

Allocate funds for salaries, training, and uniforms. Staff costs may range from £2,000 to £5,000 per month, depending on the size of your team.

7. Expected Profit by Product

Chai, snacks, and other offerings contribute to profits. Aim for a gross profit margin of 60-70%, with chai being a high-margin item.

Chai £1.50 to £3.00 per cup

Snacks  £2.00 to £5.00 per item

8. Monthly Earnings

Projecting monthly earnings depends on factors like foot traffic and marketing efforts. A successful Chaiiwala can generate £10,000 to £30,000 in sales.

Launching a Chaiiwala requires a thoughtful financial approach. Consider exploring cost-effective solutions for kitchen equipment and interior design at EasyEquipment. While costs may vary, careful planning and efficient operations can pave the way for a successful Chaiiwala venture.