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Quick answer: A tea stall costs ₹15,000 to ₹1 lakh to start. One cup of cutting chai costs about ₹4 to ₹6 to make in a paper cup, or ₹6 to ₹8 in a kulhad, and sells for ₹10 to ₹20. A stall selling 400 cups a day can earn ₹40,000 to ₹70,000 a month after costs. Location matters more than anything else.
Chai is bought several times a day by office workers, students, drivers and shopkeepers. The business is simple, but margins are thin per cup, so profit comes from volume, a good spot and add-ons like biscuits, bun maska, samosa or poha.
Prices below are approximate 2026 market ranges. Milk and gas prices change often, so check your local rates.
Investment breakdown
| Item | Low (₹) | High (₹) |
|---|---|---|
| Cart, counter or kiosk | 8,000 | 50,000 |
| Commercial burner and LPG cylinder | 3,500 | 8,000 |
| Tea pots, strainers, kettle, utensils | 1,500 | 5,000 |
| Thermos flasks for ready tea | 1,000 | 4,000 |
| Glasses, kulhads or paper cups (first stock) | 500 | 3,000 |
| First stock (milk, tea leaves, sugar, spices, snacks) | 1,500 | 6,000 |
| Licences | 100 | 3,000 |
| Signboard and branding | 500 | 8,000 |
| Working capital | 2,000 | 10,000 |
| Total | ≈ 18,600 | ≈ 97,000 |
Step-by-step setup
- Find a spot with steady footfall
Near offices, colleges, bus stands, hospitals or markets. Count people passing between 7 and 10 am for two mornings.
- Get permission to sell there
A vending certificate for a public road, or the owner’s written permission on private land.
- Register with FSSAI
Basic Registration online. It’s cheap and needed by law.
- Fix a short menu
Cutting chai, masala or ginger chai, one special (kulhad or elaichi), and two or three snacks.
- Set up a milk supply
Fix a daily delivery from one dairy or milkman, so quality and price stay the same.
- Open early and stay consistent
Same taste, same hours, every day. Regulars are what make a chai stall profitable.
Licences
A tea stall needs FSSAI Basic Registration, which costs ₹100 a year for turnover up to ₹1.5 crore. Selling on a public road also needs a vending certificate from your Town Vending Committee, and some cities ask for a trade licence. See the full licences checklist and the FSSAI registration guide.
Per-cup costing
Cost per cup
- Milk (about 50 ml)
- ₹3.00
- Tea leaves
- ₹0.60
- Sugar
- ₹0.40
- Ginger, elaichi, masala
- ₹0.40
- Gas share
- ₹0.60
- Kulhad
- ₹2.00
In a paper cup (about ₹0.80) the cost drops to about ₹5.80. Selling kulhad chai at ₹20 gives a food cost of 35%. A ₹10 cutting chai in a paper cup still leaves about ₹4 a cup. Use how to price your menu to set your own prices.
Daily profit example
| Per day | |
|---|---|
| 400 cups × ₹12 average | ₹4,800 |
| Snacks (biscuits, bun maska, samosa): 80 × ₹15 | ₹1,200 |
| Cost of tea (400 × ₹6 average) | ₹2,400 |
| Cost of snacks | ₹600 |
| Helper and space fee | ₹600 |
| Profit | ≈ ₹2,400 |
Over 28 days that’s about ₹67,000. A new stall selling 150 cups a day earns closer to ₹20,000 to ₹25,000 a month, so pick the location carefully.
Money tip
Recommended equipment
- Commercial single-burner LPG stove
- Stainless steel tea strainer and saucepan set
- Insulated thermos flask, 5 litre for ready tea during rush hours
- Kulhads or paper cups, bulk pack
FAQ
How much does it cost to open a tea stall? About ₹15,000 for a simple cart and up to ₹1 lakh for a branded kiosk with seating.
How many cups does a tea stall sell in a day? A new stall sells 100 to 200 cups. A well-placed stall near offices, colleges or transport sells 400 to 1,000.
Kulhad or paper cup: which is better? Kulhad chai sells at a higher price and feels special, but each cup costs more and breaks easily. Many stalls offer both: paper cups for the ₹10 chai, kulhads for a ₹20 special.
Is a tea stall business profitable? Yes, with a good location. Food cost is low, but each cup earns little, so you need volume and snacks to make a good monthly profit.
What else can a chai stall sell? Bun maska, biscuits, rusk, samosa, poha or kachori in the morning. Snacks often earn more per sale than the tea.
Related: How to start a kachori stall · How to start a momo stall · Licences checklist
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