Best Low-Investment Tea Franchises for Tier 2 & Tier 3 Cities

India’s smaller towns and cities are becoming hot spots for food and beverage businesses. For aspiring entrepreneurs in Tier 2 and Tier 3 cities, low-investment tea franchises offer a perfect blend of affordability and profit potential.

Here are some of the best options in 2025:

1. Tea Time
With over 3000 outlets and investment starting from ₹4.5 lakhs, it’s ideal for semi-urban markets. Simple operations, strong brand recall, and quick ROI make it a top choice.

2. Chai Sutta Bar (Mini Model)
Their smaller formats work well in compact towns. Known for kulhad chai and youthful branding.

3. MBA Chai Wala – Micro Franchise
Their budget formats (under ₹8 lakh) target railway stations, market streets, and educational hubs.

4. Local Micro-Franchises
Several new regional brands offer setups under ₹1.5 lakh, with training kits and low royalty.

Why Tier 2/3 Cities Work Well:

Lower rents and operating costs

High tea consumption

Strong word-of-mouth marketing

Less branded competition

Entrepreneurs with a small capital and big dreams can thrive by choosing the right tea franchise model suited to their town’s footfall and tastes.