How to Start a Profitable Tea Stall Business in India: Step-by-Step Guide to Earn ₹1,000/Day
📖 Learning
India’s tea industry has a rich heritage and flavour, and this business is continually booming. India is the second-largest tea producer in the world. Whether it is the morning energy booster, a mid-day stress reliever, or the ultimate conversation starter with friends, tea has unmatched popularity across urban, semi-urban, and rural regions.
So, if you want to start a business with low investment, daily returns, and strong growth potential, launching a tea stall in 2025 could be your perfect start. This article will guide you through a complete tea stall business plan, from setup costs and menu ideas to earning strategies and legal formalities, so you can start small and grow big.
Why You Should Start a Tea Stall in 2025?
- Massive Consumer Base: India is home to over 1.43 billion people, and tea is the go-to beverage for most. In fact, about 88% of Indian households consume tea daily, making it one of the most widely consumed drinks in the country.
- Consistent Market Growth: The Indian tea industry is on a steady rise, expected to grow at a CAGR of 7.06% between 2021 and 2026, driven by rising demand, changing preferences, and new product innovations.
- Low Investment, High Demand: Compared to other food and beverage ventures, starting a tea stall or shop requires relatively lower capital, minimal equipment, and faster break-even potential, making it ideal for first-time entrepreneurs.
- Promising Market Value: As of 2024, the Indian tea market was valued at USD 11,702.3 million and is projected to hit USD 17,934.1 million by 2033, growing at a CAGR of 4.19% during this period. The opportunity is brewing, quite literally!
Nitin Konde
10 Simple Steps to Start Your Profitable Tea Stall Business
Do Your Market Research
The first step to starting a coffee business is to get an in-depth idea of the market you are entering. This will help you serve the right tea to the right people and stand out from the crowd.
- Know Your Audience: Are you targeting busy office workers, college students, daily commuters, or the neighbourhood crowd? Knowing your audience will shape everything, from your pricing to the tea varieties you offer.
- Identify Tea Preferences: What kind of tea do people in your area enjoy most? Some love strong masala chai, while others prefer health-conscious options like green tea, herbal blends, or trendy iced teas.
- Study the Competition: Scout your area. How many tea stalls or cafes are already operating nearby? What are they doing well, and what gaps can you fill?
Choose the Right Location & Potential Customers
Your stall’s location will make or break your business. Look for high-footfall areas like:
Choose The Business Model
- Roadside Tea Stall: The most traditional and budget-friendly option. Set up on a busy street corner or near a market, this stall usually serves hot chai, biscuits, and light snacks. It’s perfect for beginners looking to start small and earn a daily income.
- Tea Kiosk: Ideal for high-footfall areas like malls, railway stations, bus terminals, or office complexes. This compact, quick-serve model focuses on speed and convenience while maintaining hygiene and consistency.
- Tea Café: A more upscale version of a tea stall, offering a wider variety of teas such as green tea, herbal infusions, bubble tea, and snacks in a comfortable seating environment. This model requires more investment but also attracts premium customers and larger orders.
Build a Solid Business Plan
Every successful tea stall starts with a strong foundation, and that begins with a clear business plan.
- Executive Summary: A quick snapshot of your tea business, what it is, where it will be located, and what makes it unique.
- Marketing Strategy: Outline how you plan to attract daily customers through branding, word of mouth, local promotions, or even delivery tie-ups.
- Financial Plan: Break down your startup costs, daily expenses, pricing strategy, and income projections. This will help you estimate how long it will take to hit your goal of INR 1,000/day or more in profit.
Budget Planning
Create a Simple Yet Profitable Menu
Daily Sales Example: If you sell 100 cups of chai at INR 10, that’s INR 1,000. With an INR 500 profit margin, add snacks or premium teas to earn INR 1,000/day profit.
Legal and Licensing Requirements
Before serving your first cup of chai, make sure your tea business is legally compliant. Getting the right licenses protects your business from penalties.
- FSSAI License
- GST Registration
- Shop and Establishment License, Fire Safety Certificate
- NOC from Local Authorities
Setting Up Your Stall
Make your tea stall visually appealing and hygienic because hygiene and presentation will help you stand out from other stalls.
- Use clean counters and stainless steel utensils
- Display your menu clearly
- Offer tissues, dustbins, and cups with lids (if needed)
- Provide standing tables or benches for comfort
Hiring Staff
Tea Stall:
You may only need one helper to assist with a small setup.
Tea Café:
A café setup will require servers, a tea maker/chef, and cleaning staff to manage daily operations smoothly.
Branding, Packaging & Marketing
Build a Memorable Brand
Your tea business needs more than great taste; it needs identity. Invest in professional branding (logo, colours, signage) and attractive, eco-friendly packaging that reflects your tea's quality and values.
Arbaz Sayed
Smart Marketing Strategies
- Social Media Marketing: Leverage Instagram, Facebook, and WhatsApp to showcase your teas, offers, and behind-the-scenes content.
- Local Promotions: Use flyers, banners, and local newspaper ads to create visibility in your area.
- Intro Offers & Discounts: Attract first-time customers with opening deals or “Buy 1 Get 1 Free” offers.
Supplier & Raw Materials Management
You will need a daily/weekly supplier for:
- Tea leaves
- Milk (packaged or local)
- Sugar, masalas (ginger, cardamom, etc.)
- Disposable cups
- Snacks (biscuits, rusks, or homemade snacks)
Pro Tip: Buying in bulk can reduce costs by 10–15%.
Estimated Profit Margin
Tea Stall Earnings (Budget Setup):
A small roadside tea stall in a busy area can earn between INR 3,000 to INR 5,000 per day, depending on footfall and pricing. It adds up to approximately INR 90,000 to INR 1.5 lakhs per month.
Tea Café Earnings (Premium Setup):
If you open a café-style tea outlet in a prime location like a mall, tech park, or high street, daily revenues can reach INR 10,000 to INR 20,000 or more.
That’s a monthly earning potential of INR 3 lakhs to INR 6 lakhs, especially if you include snacks, combos, and delivery orders.
Conclusion
Starting a tea business is not only profitable but also an enjoyable venture. With the right planning, strategic location, and smart marketing techniques, you can build a thriving tea brand that appeals to different customers.
Whether you are launching a modest roadside stall or envisioning a premium tea café, there’s room to grow at every level of this ever-expanding market.
Vibhavari Madki
FAQs
Is opening a tea stall profitable in India in 2025?
Yes, starting a tea stall in India in 2025 is highly profitable due to the country’s massive tea-drinking population. With daily profits ranging from ₹3,000–₹5,000 for roadside stalls and up to ₹20,000 for tea cafés, the return on investment is promising even with low initial investment.
How much investment is required to start a tea stall in India?
A basic roadside tea stall can be started with ₹30,000 to ₹1 lakh, depending on location, stall design, and equipment. A more upscale tea café may need ₹3 lakhs to ₹7 lakhs for interiors, seating, and branding.
What are the daily requirements or raw materials for a tea stall?
You’ll need:
- Tea leaves
- Milk and sugar
- Spices (ginger, cardamom, etc.)
- Disposable cups and napkins
- Snacks (biscuits, rusks, or homemade items)
Which location is best for a tea stall business?
The ideal location includes areas with high foot traffic such as:
- Office complexes
- College and school zones
- Bus stands, railway stations
- Marketplaces and residential neighborhoods
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