Discover the best locations to start a tea franchise in India in 2025. Tier 2 & Tier 3 city insights, high-footfall zones, ROI analysis & expert tips.

Introduction: Location Is the Biggest Profit Multiplier in a Tea Franchise

In the tea business, location decides success faster than branding. Even the best tea franchise can underperform in the wrong area, while a modest outlet can generate strong profits in the right location.

In 2025, market data and franchise performance trends clearly show that Tier 2 and Tier 3 cities are outperforming metros in terms of:

Faster ROI

Lower rental costs

Strong repeat customers

Higher brand loyalty

This is why leading brands like Saiba Amruttulya are aggressively expanding beyond metro cities.

Why Tier 2 & Tier 3 Cities Are the Real Growth Engines in 2025

Market Reality

Metro cities are saturated with cafés and QSR chains

Customer acquisition cost is very high

Rent eats into margins

Meanwhile, Tier 2 & Tier 3 cities offer:

Limited branded competition

Strong daily tea consumption

Affordable real estate

Faster word-of-mouth growth

 Key Insight

Over 65% of new profitable tea franchises in 2024–2025 opened in Tier 2 & Tier 3 locations.

Top Tier 2 Cities for Tea Franchise Success (2025)

These cities combine population growth, disposable income, and high chai consumption.

✅ Nagpur

Major transport and education hub

Strong Amruttulya culture

Excellent footfall near colleges and offices

✅ Indore

Business-friendly environment

High youth population

Growing café culture with love for traditional chai

✅ Nashik

Affordable rents

Consistent customer base

Ideal for glass cup and kulhad chai concepts

✅ Aurangabad

Industrial + tourism-driven footfall

Strong evening chai culture

✅ Ranchi

Low competition

High demand for organized tea brands

Ideal for master franchise expansion

High-Potential Tier 3 Cities You Should Not Ignore

Tier 3 cities offer the highest ROI potential due to minimal competition.

⭐ Examples:

Latur

Sangli

Kolhapur

Satara

Jalgaon

Akola

Nanded

Amravati

Bilaspur

Ujjain

Why These Cities Work:

Lower setup cost

Strong daily repeat customers

Tea is a habit, not a luxury

Faster brand acceptance

Best Micro-Locations Within Any City (Critical for Success)

Even within a good city, micro-location selection is crucial.

 1. Near Colleges & Coaching Classes

Students drink tea 2–3 times daily

High demand for affordable pricing

Strong evening rush

 2. Office & Industrial Areas

Predictable daily footfall

Morning and evening peaks

Ideal for takeaway paper cups

3. Bus Stands, Railway Stations & Highways

Continuous footfall

Quick-service model works best

Ideal for kulhad chai branding

 4. Residential + Market Road Combination

Strong local loyalty

High repeat customers

Best for glass cup Amruttulya outlets

Locations to Avoid (Common Franchise Mistakes)

❌ Very high-rent premium malls
❌ Isolated interior lanes with no visibility
❌ Oversaturated café clusters
❌ Locations with parking issues
❌ Areas dependent only on weekend traffic

A tea franchise is a daily-consumption business, not an occasional visit outlet.

Why Saiba Amruttulya Performs Exceptionally Well in Tier 2 & Tier 3 Cities

Saiba’s business model is specifically optimized for:

High-volume daily sales

Affordable pricing

Traditional taste preference

Lower operating costs

Key Strengths:

Works in small 150–250 sq ft spaces

Strong acceptance in local markets

Glass cup & kulhad serving matches local taste

Faster breakeven compared to metro-focused brands

This is why many of Saiba’s highest-performing outlets are in non-metro cities.

Rental Cost vs Revenue: Tier Comparison (2025)

City Type       Avg Monthly Rent        Avg Monthly Revenue        Profit Margin

Metro               ₹60k–₹1.2L                          ₹5–7L                              Low

Tier 2               ₹25k–₹50k                           ₹4–6L                               High

Tier 3               ₹10k–₹25k                           ₹3–5L                          Very High

Lower fixed costs = faster ROI.

Expert Tips for Selecting the Right Location

✔ Ensure road-facing visibility
✔ Observe tea footfall between 7–11 AM & 4–9 PM
✔ Choose areas with daily repeat customers
✔ Check nearby competition and pricing
✔ Ensure water and electricity reliability
✔ Prefer ground-floor outlets

Final Verdict: Where Should You Open a Tea Franchise in 2025?

If your goal is:

Faster ROI

Lower risk

Sustainable profits

 Tier 2 & Tier 3 cities are the smartest choice.

And if you choose a brand designed for these markets, like Saiba Amruttulya, your chances of success multiply significantly.

  Start Your Tea Franchise at the Right Location

Get expert guidance on:

City selection

Micro-location analysis

Franchise feasibility

ROI forecasting

 Visit: www.saibaamruttulya.com
 Call/WhatsApp: +91-8483974666
 Email: franchise@saibaamruttulya.com

Saiba Amruttulya — Brewing Success Where Demand Truly Exists.