Tea Franchise Vs Coffee Franchise in India: Which Is More Profitable?

Why Tea and Coffee Franchises Are So Popular?

Tea and coffee are not luxury items—they are daily habits. This makes both tea franchise and coffee franchise models recession-resistant and scalable.

• Daily repeat customers
• Strong brand recall
• Low product wastage
• High demand across age groups

Yet, the profit structure of both is very different.

Understanding the Market Demand

“Tea Wins in Volume, Coffee Wins in Premium Appeal”

Tea (Chai) is consumed daily by millions of people in India. However, coffee has been gaining popularity, particularly in urban areas and younger demographics. According to a survey, tea consumption in India remains high, with over 80% of households preferring tea over coffee. On the other hand, coffee is consumed by a smaller audience but enjoys a premium perception and has grown steadily at about 5% annually.

Tea Franchise: A Low-Investment, High-Volume Model

A tea franchise works on mass consumption. In India especially, tea is an emotional beverage consumed multiple times a day.

Key Advantages of a Tea Franchise

• Lower franchise cost compared to coffee brands
• Raw material cost is minimal
• Faster customer turnover
• Suitable for small locations and kiosks
• Easy operations with limited staff

Franchise Profits in Tea Business

• High margins due to low ingredient cost
• Break-even is usually quicker
• Works well in high-footfall areas like markets, offices, and highways

Coffee Franchise: Premium Pricing, Brand-Driven Profits

A coffee franchise relies heavily on experience, branding, and ambience. Customers don’t just buy coffee—they buy the vibe.

Key Advantages of a Coffee Franchise

• Higher per-order value
• Strong brand loyalty
• Upselling opportunities (snacks, desserts, combos)
• Popular among youth and working professionals

Franchise Profits in Coffee Business

• Higher margins per cup
• Profits depend on location and brand strength
• Operational costs are higher (rent, equipment, skilled staff)

A coffee business franchise can be extremely profitable, but only when executed with the right brand, location, and operational knowledge.

Tea Franchise Vs Coffee Franchise: Profit Comparison

Factor	Tea Franchise	Coffee Franchise
Investment	Low	Medium to High
Product Cost	Very Low	Moderate
Customer Frequency	Very High	Medium
Profit Per Sale	Low–Medium	High
Break-even Period	Faster	Slower
Risk Level	Lower	Higher
Target Audience	Mass market	Premium / youth

Which Franchise Is More Profitable?

The answer depends on your budget, location, and business goals.

• If you want stable profits, low risk, and quick returns, a tea franchise is more suitable.
• If you can invest more and focus on branding and experience, a coffee franchise can generate higher long-term profits.

Both franchise models are profitable—but only when managed by someone who understands food operations, costing, hygiene, and customer service. Therefore, it is important to have proper knowledge about it.

The Skill Factor Most People Ignore

Many franchise owners fail not because the brand is weak, but because they lack practical knowledge about food business. It is very important to understand the following things:

• food costing
• menu planning
• operations
• customer handling
• hygiene standards

All the above points play a huge role in determining actual franchise profits.

Conclusion

If you are planning to open a franchise business, then you must first learn about them properly. Your franchise idea deserves the right skills behind it. This is where NFCI (National Finishing and Cookery Institute) steps in. NFCI is a leading hotel management and culinary institute in India offering skill-based cooking and hospitality courses designed for real-world business success.

Whether you’re planning a tea franchise, coffee franchise, bakery franchise or any other food business, NFCI helps you become business-ready from day one. Apply today! 

Visit: www.nfcihospitality.com
Call: 98880-11222 to book your free counselling session and get expert career guidance.