Tea is part of daily life in India. It’s affordable, familiar, and connects people across age groups and regions. But turning that popularity into a successful business isn’t as simple as it seems. 

Many aspiring entrepreneurs find themselves stuck at this exact point. They want to open a tea business but face a list of uncertainties—How much should I invest? What if the location doesn’t work? How do I compete with established outlets? These doubts often lead to inaction or poorly planned setups that struggle to survive beyond the first year.

Franchising offers a practical solution. You work under an established name, follow a tested model, and receive support in setup, training, and marketing. This not only lowers the risk but also helps the business grow faster.

This blog will guide you through the process of starting a tea and snacks franchise. We’ll also take a closer look at Karupatti Kudil, a brand blending tradition with strong business fundamentals.

Why the Tea and Snacks Franchise Industry is Booming

Tea is deeply rooted in Indian culture, but how it’s being consumed is changing fast. This shift has opened the door for organised franchise models. According to Businesswire, the Indian tea sector was valued at ₹1.00 trillion in 2024 and is projected to reach ₹1.47 trillion by 2029, growing at a CAGR of 6.98%. This steady growth shows strong demand, not just in urban areas, but also in smaller cities and towns.

Here’s why this market is attracting first-time entrepreneurs and franchise investors:

Shift Towards Branded Outlets: Consumers are transitioning away from informal kiosks towards formal branded tea cafés. Cleanliness, consistency and ambience are more important.

Growing Health Consciousness: People are seeking out healthier alternatives like drinks with jaggery, snacks with millet/similar natural sweeteners, indicating more health-conscious preferences. 

High Demand in Smaller Cities: Tier-2 and Tier-3 cities are untapped. People are drinking more tea now than before, and branded outlets are limited.

Low Start-Up Costs Compared to Restaurants: Tea and snack outlets typically need smaller spaces and fewer staff, which means lower initial investment and easier daily management.

Franchise Support Reduces Risk: With a franchise, you get tested processes, training, marketing support, and a reliable supply chain, making it easier to focus on running the outlet.

Types of Tea and Snack Franchise Business Models

Before investing in a tea franchise in Chennai, it’s important to understand the different formats available. Here are the common formats used by most tea and snack franchises:

• Kiosk Model
  Ideal for high-footfall areas like markets, railway stations, malls, or office complexes. It requires minimal space and staff. This model works well for quick service and grab-and-go customers. Initial investment is usually low.
  
• Café-Style Outlet
  This setup offers seating, a broader menu, and a stronger brand presence. It fits best in urban or semi-urban locations where customers prefer to sit and spend more time. Investment and operational costs are higher, but so are the margins.
  
• Hybrid Format
  Combining takeaway with limited seating. It offers flexibility in space and is suitable for busy localities where full cafés may not be practical.

7 Steps to Start a Tea and Snacks Franchise

Starting a tea and snacks franchise involves more than just picking a brand and setting up shop. It’s a step-by-step process that requires planning, research, and coordination. Here are some simple, practical steps that you can start working on right away.

Step 1: Market Research

Before anything else, understand where and to whom you’re planning to sell. A successful franchise thrives not just on brand strength but also on how well it fits the local demand. Studying your target area can prevent costly mistakes down the line.

Actionable steps:

• Visit potential localities and observe peak customer traffic times.
• Identify the age group, income level, and preferences of people in the area.
• List out competing outlets nearby and assess their pricing, service, and menu.

Step 2: Selecting the Right Franchise

Not all franchises are the same. Some provide better training, while others focus on unique offerings or lower investments. Choose one that aligns with your budget, location, and long-term goals.

Actionable steps:

• Shortlist 3–5 franchises based on their reputation, support, and format options.
• Request brochures or have a consultation with their franchise team.
• Read reviews from existing franchisees or visit a few outlets to observe operations.

Step 3: Investment and Financial Planning

Once you’ve picked a franchise, it’s time to work out the costs. This includes more than just the franchise fee—it covers setup, inventory, marketing, and working capital for the first few months.

Actionable steps:

• Ask the brand for a detailed cost estimate across different outlet types.
• Explore small business loans or government-backed financing schemes if needed.
• Prepare a simple cash flow forecast for the first 6–12 months of operation.

Step 4: Legal and Regulatory Compliance

Even for a franchise, you’re legally responsible for running a compliant food business. These approvals are mandatory and should be sorted before the outlet opens.

Actionable steps:

• Apply for an FSSAI licence under your business name.
• Register for GST and obtain a trade licence from your municipality.
• Check with your franchisor if they assist with these or provide documentation templates.

Step 5: Location and Infrastructure

Location is often the biggest factor in footfall and profitability. Once finalised, plan your outlet layout to balance visibility, efficiency, and customer comfort.

Actionable steps:

• Choose a site that has consistent daily footfall (e.g. near colleges, offices, or markets).
• Take exact measurements of the space and map out the layout with the franchisor’s help.
• Get quotes for interiors, furniture, kitchen setup, and signage as per brand guidelines.

Step 6: Staffing and Training

Reliable staff can make or break the customer experience. Many franchises, including Karupatti Kudil, offer initial training to ensure consistency across locations.

Actionable steps:

• Hire based on outlet type—kiosk models need 1–2 staff, cafés need more.
• Ensure all hires go through training offered by the franchisor.
• Create a weekly shift plan that covers peak hours and cleaning schedules.

Step 7: Marketing and Promotion

Even a well-set-up outlet needs visibility. Initial promotions help attract attention, and ongoing marketing builds loyalty. Franchises often handle brand-level marketing, but local promotion is your responsibility.

Actionable steps:

• Plan a launch event with sampling and limited-time offers.
• Distribute flyers and post in local community groups online.
• Set up your outlet on Google Maps, Zomato, and Swiggy, and encourage early reviews.

Also Read: Karupatti Coffee Franchise in Chennai 

Franchise Spotlight: Why Karupatti Kudil Stands Out

Among the many tea and snacks franchises, Karupatti Kudil offers something unique—a focus on tradition, health, and simplicity. Instead of just selling tea, the brand has built its identity around natural, unrefined ingredients like karupatti (palm jaggery) and millet-based snacks, appealing to customers who are actively seeking healthier and more authentic food choices.

Karupatti Kudil Franchise Models

Franchise Support Includes:

• End-to-end setup and design
• Marketing and social media promotions
• Staff training and menu standardisation
• Exclusive territory allocation
• Operational guidance and supply chain access

Karupatti Kudil combines the appeal of tradition with the structure of a modern food business, making it an ideal choice for franchisees looking to build something unique yet reliable. Know more about the franchise here. 

If you are ready to start your own Katrupatti kudil franchise, contact us now!

Common Challenges and How to Overcome Them

Even with a strong brand and support system, running a tea and snacks franchise isn’t without its challenges. Being prepared for them can make a major difference in long-term success.

1. Competition

With more players entering the organised tea market, standing out can be tough. Many areas have multiple outlets selling similar products at similar prices.

How to handle it:

• Focus on what makes your brand unique.
• Build a strong local presence through community events, sampling, and consistent customer service.
• Keep your service fast, clean, and friendly. Consistency often matters more than variety.

2. Operational Hurdles

Delays in supplies, equipment issues, or untrained staff can quickly affect day-to-day operations and hurt customer experience.

How to handle it:

• Work closely with your franchisor to maintain a reliable inventory and vendor network.
• Maintain a small buffer stock of key items to avoid stockouts.
• Train backup staff and create simple operating procedures to reduce errors and delays.

3. Financial Management

It’s easy to underestimate running costs or overestimate early earnings. Cash flow problems can surface if you don’t plan carefully.

How to handle it:

• Track your daily sales and expenses in a simple spreadsheet or POS system.
• Avoid overstaffing or stocking too much in the early weeks.
• Set aside 3–6 months of working capital during the planning stage to manage slow periods.

Final Thoughts: Should You Start a Tea and Snacks Franchise?

Starting a tea and snacks franchise might seem like a big step, but it’s more accessible than many people think. If you’ve ever stood at a busy tea stall and thought, “I could run something like this, but better,” you’re already halfway there. With a franchise, you don’t have to build everything from scratch. You receive the brand, the systems, the support, and most importantly, a proven, functional model.

Brands like Karupatti Kudil provide great examples of how traditional businesses work well alongside contemporary businesses, in a way that resonates with the customer.

If you aren’t sure where to start, that’s ok. Start with questions, consider comparisons and look for something that aligns with your goals. Bharat Franchise can help you explore the right options and guide you through the first steps. 

Contact us now and become a franchise owner today!