Tea and Coffee Business- A Complete Roadmap

☕ Tea and Coffee Business- A Complete Roadmap

The Tea and Coffee Stall Business is one of the most popular and affordable small business ideas in India and many other countries. It caters to a wide audience including office workers, students, travelers, and local residents. With minimal startup costs and the right location, a tea and coffee stall can generate consistent daily income. You can serve a variety of teas such as masala chai, ginger tea, and kulhad chai, along with instant or filter coffee. By maintaining hygiene, offering good taste, and quick service, you can turn a humble tea stall into a successful and scalable venture. The business also offers opportunities for growth through multiple outlets, takeaway models, and even franchising in the future.

 

🧭 1. Decide the Type of Tea/Coffee Business

The first step is to choose which format suits your budget, goals, and location. Here are three popular models:

A. Tea/Coffee Stall

• Location: Roadside, near bus stands, railway stations, colleges, or offices.
• Setup: Small cart or kiosk.
• Seating: Not required.
• Investment: ₹20,000 – ₹50,000
• Ideal for: Low investment, quick returns.

B. Takeaway Outlet

• Location: Commercial area or mall.
• Setup: Small shop (80–150 sq. ft.)
• Seating: Optional (1–2 chairs)
• Investment: ₹1 – ₹2 lakhs
• Ideal for: Young entrepreneurs, franchise models.

C. Café (Tea/Coffee Lounge)

• Location: Upscale markets, near colleges or tech parks.
• Setup: Full interior setup, tables, ambiance, branding.
• Seating: Yes, 10–40 customers.
• Investment: ₹5 – ₹15 lakhs
• Ideal for: Long-term vision, premium branding.

📊 2. Market Research

Study the Market:

• Visit 5–10 existing tea/coffee outlets nearby.
• Identify popular products and prices.
• Ask locals or students what they want (flavored tea, snacks, coffee types, etc.).

Choose the Right Location:

• High footfall: near bus stands, office complexes, hospitals, railway stations, colleges.
• Avoid: Isolated or overly competitive zones.

📋 3. Business Planning

A. Menu Creation

Offer a mix of classic and unique items:

Tea Options:

• Masala Chai
• Elaichi (Cardamom) Chai
• Adrak (Ginger) Chai
• Tulsi Green Tea
• Lemon Tea
• Kulhad Chai

Coffee Options:

• Instant Coffee
• Filter Coffee
• Cold Coffee
• Cappuccino / Espresso (for café setup)

Add-ons:

• Biscuits, bun maska
• Maggi, sandwiches, samosas, cookies

B. Pricing Strategy

Business                                             TypeAverage Price (per cup)

• Stall                                                     ₹10 – ₹30
• Takeaway                                            ₹20 – ₹60
• Café                                                     ₹50 – ₹200

🏗️ 4. Infrastructure & Equipment

For Tea Stall:

• Steel or wooden cart / small booth
• Gas stove or induction
• Kettles and tea flasks
• Containers for milk, sugar, tea leaves
• Disposable cups / Kulhads
• Dustbin, napkins, apron

For Takeaway Shop:

• Counter and branding boards
• Water purifier
• Refrigerator
• Tea/Coffee machine
• Billing counter or simple POS

• For Café:

• Espresso/coffee machine
• Blenders (for cold coffee)
• Furniture (tables, chairs)
• Interior decor (lighting, paint, branding)
• Air conditioning or fans

📑 5. Required Licenses & Documents (India)

Here are the documents you must obtain legally:
            Document                                  Why It's Needed                                       Where to Get It

• ✅ FSSAI License            For selling food/drinks legally                     https://foscos.fssai.gov.in/
• ✅ GST Registration        Required if turnover exceeds ₹20 lakh         https://www.gst.gov.in/
• ✅ Shop Act License        Permission to open a commercial shop        Local Municipal Office
• ✅ Trade License              To operate in a specific locality                    Municipality / Panchayat
• ✅ Fire Safety NOC         For café setups                                              Fire Department (local)
• ✅ NOC from Owner       If renting a shop                                            Rental Agreement
• ✅ Udyam Registration    For MSME benefits                               https://udyamregistration.gov.in
• ✅ Business Bank A/c      For separating personal 

                                                    & business transactions                                 Any Bank

🛍️ 6. Raw Material & Supplier Planning

You need a reliable supplier for daily ingredients:

Daily Essentials:

• Fresh milk (from local dairies)
• Sugar
• Tea leaves or tea premix
• Instant/Filter coffee powder
• Spices (ginger, elaichi, tulsi, etc.)
• Paper/Plastic Cups or Clay Kulhads
• Water (filtered/RO)

Vendors:

• Local wholesalers
• Online bulk suppliers: Udaan, Indiamart, Amazon B2B

👨‍🍳 7. Staffing (If Needed)

Tea Stall:

• 1–2 people max
• Can manage on your own initially

Takeaway Shop / Café:

• 1 cook / tea master
• 1 cashier/helper
• 1 cleaner (optional)
• Train them in hygiene, polite communication, and speed.

📢 8. Branding & Promotion

Start small, but build a unique identity:

Name Ideas:

• Chai Junction
• Kulhad Nation
• BrewBuddy
• Chaiwala & Co.
• The Tandoor Cup
• FilterFresh

Promotions:

• Opening day discount (Buy 1 Get 1 Free)
• Local flyers & posters
• Social Media: Instagram, Google Business
• Loyalty cards (Buy 5, Get 1 Free)
• Influencer shout-outs (local food bloggers)

📅 9. Daily Operations & Maintenance

• Start early morning (7–8 AM)
• Cleanliness is non-negotiable
• Maintain stock log (milk, tea leaves, cups)
• Count daily sales and expenses
• Collect feedback and improve

🚀 10. Expansion & Growth

• Once stable, you can:
• Add snacks (sandwiches, pakoras, etc.)
• Open a second stall/outlet
• Join food delivery apps (Zomato, Swiggy)
• Offer corporate office tea supply
• Franchise your brand

💰 Sample Budget Breakdown (Tea Stall)
            Item                                            Estimated Cost

Cart/Kiosk                                                     ₹15,000
Stove & Vessels                                             ₹5,000
Raw Materials (1 week)                                 ₹3,000
Cups/Kulhads                                                 ₹2,000
FSSAI License                                                ₹1,000
Branding Boards                                             ₹2,000
Cleaning Supplies                                           ₹1,000
Miscellaneous                                                 ₹3,000
Total                                                                ₹30,000 – ₹40,000

📝 Final Notes:

• Start small → learn → then grow.
• Your biggest success factor is taste + hygiene + service.
• Keep your tea hot, your area clean, and your smile wide—customers will keep coming back!

✅ Frequently Asked Questions (FAQ)

❓ Q1: How much does it cost to start a tea and coffee stall business?
A: You can start with as little as ₹30,000 to ₹50,000. The cost includes a cart or stall setup, equipment, ingredients, and basic licenses.

❓ Q2: What licenses are required to start this business?
A: You will need an FSSAI license, a trade license from the local municipality, and optionally a Shop Act license if you operate from a permanent shop.

❓ Q3: What are the most in-demand items to sell?
A: Popular items include masala chai, adrak (ginger) chai, elaichi (cardamom) chai, kulhad chai, instant coffee, filter coffee, and quick snacks like biscuits, bun maska, Maggi, or sandwiches.

❓ Q4: Where should I set up my tea and coffee stall?
A: Ideal locations include near office areas, colleges, railway stations, bus stops, hospitals, and markets—anywhere with high daily foot traffic.

❓ Q5: Can this business be scaled or franchised?
A: Yes. Once you establish a strong customer base and consistent quality, you can open multiple stalls, offer delivery, or even franchise your brand to grow the business