Tea is more than just a drink in Pakistan and India — it’s a daily ritual. From busy office workers to students, almost everyone enjoys a cup of chai multiple times a day. That’s why opening a tea stall or café can be one of the most profitable small business ideas, even with a small budget.
In this detailed guide, we’ll explain everything you need to know about starting your own tea stall or café — from choosing the right location to managing costs and attracting loyal customers.
1. Why Start a Tea Stall Business?
Starting a tea stall doesn’t need a big investment, but it can generate consistent income. Tea is affordable, easy to prepare, and loved by all age groups.
Main reasons why it’s a good business idea:
- Low startup cost (can begin under 50,000 PKR)
- High daily demand throughout the year
- Easy to manage with minimal staff
- Flexible – can start small and expand later into a café
- Excellent for busy areas, markets, schools, or offices
Tea never goes out of trend. Even in tough times, people still buy a cup of chai.
2. Decide the Type of Setup
Before starting, decide what type of tea business you want.
(a) Roadside Tea Stall:
- Small setup using a cart, kiosk, or stall
- Low investment
- Great for beginners or small towns
- Focused on daily workers, students, and office staff
(b) Tea Café or Tea Bar:
- Requires more space and seating
- Higher investment but better profits
- Targets middle-class and urban customers
- Can include snacks and a comfortable ambiance
Choose according to your budget and location.
3. Calculate Investment & Budget Plan
Let’s break down the estimated costs to start a small to medium tea stall:
| Item | Estimated Cost (PKR) |
|---|---|
| Tea setup (stove, utensils, kettle) | 8,000 – 12,000 |
| Basic furniture or stall | 10,000 – 15,000 |
| Initial stock (tea leaves, milk, sugar, cups) | 5,000 – 8,000 |
| Branding & signboard | 3,000 – 5,000 |
| Rent (if any, for small space) | 8,000 – 15,000 |
| Miscellaneous & licenses | 3,000 – 5,000 |
Total Investment: 40,000 – 60,000 PKR (for a small stall)
💡 Tip: You can start even cheaper if you already have space or reuse equipment.
4. Choose a Profitable Location
Location is the heart of your business. The more foot traffic, the better your sales.
Best locations for tea stalls or cafés:
- Near offices and business centers
- University or college gates
- Markets and bus stands
- Inside residential areas with high activity
- Near workshops or hospitals
Spend a few days observing which spots get consistent people flow during morning and evening hours.
5. Licenses and Permissions
Though small stalls often start informally, it’s better to stay legal and professional as your business grows.
Basic requirements:
- Local area trade license (from municipal authority)
- Food handling or hygiene permit (if applicable)
- Rent or space agreement (for café setup)
These licenses make it easier to expand later without facing legal trouble.
6. Choose Your Menu
Don’t limit yourself to only one type of tea. Offering variety helps attract more customers.
Popular items to include:
- Regular Chai (Doodh Patti)
- Green Tea
- Kashmiri Chai
- Masala Tea
- Lemon Tea
- Coffee (optional)
- Small snacks: biscuits, samosas, sandwiches, or parathas
Keep your menu short but tasty. Focus on quality, aroma, and consistency.
💡 Pro Tip: Try introducing a special signature tea — something unique like “Ginger Mint Chai” or “Spicy Masala Blend.” It creates brand recall.
7. Setting Up Your Stall or Café
A clean, well-arranged stall always attracts more people.
For Tea Stall:
- Use a small cart or wooden counter with a signboard
- Keep utensils shiny and clean
- Use disposable or clay cups (customers love the desi touch)
- Maintain hygiene and pleasant smell
For Tea Café:
- Create cozy seating (wooden tables, soft lighting)
- Add a creative name and logo
- Offer Wi-Fi and calm music
- Display menu clearly near counter
Remember, ambiance matters — even a small café can feel premium if it’s clean and comfortable.
8. Marketing and Branding Tips
You don’t need expensive advertising — small, creative marketing works wonders.
Simple marketing ideas:
- Choose a catchy name like “Chai Point,” “Garam Cup,” or “Tea Time Café.”
- Use WhatsApp groups to promote your stall locally.
- Offer a “Buy 5, Get 1 Free” loyalty card.
- Post pictures of your stall and drinks on Facebook or Instagram.
- Give free small samples to first-time customers.
💡 Pro Tip: Encourage customers to share photos or reviews online. Word of mouth is your best advertisement.
9. Manage Daily Operations
Success depends on discipline and consistency.
Daily routine checklist:
- Prepare ingredients fresh every morning.
- Maintain inventory — never run out of milk or tea.
- Keep your space clean and inviting.
- Be polite and friendly with every customer.
- Track daily sales and expenses.
Even small improvements like better cups, fresh aroma, or quick service make a big difference.
10. Profit Margin and Growth
A well-run tea stall can earn excellent daily profit.
Average Daily Sale Example:
- Cups sold: 150 per day
- Price per cup: Rs. 50
- Daily sales: Rs. 7,500
- Approx. profit margin: 40–50%
That means Rs. 3,000–3,500 profit per day, and much more for a café setup.
Once your business becomes stable, you can expand by:
- Opening another stall in a new area
- Turning your stall into a small café
- Offering home delivery through Foodpanda or Careem
11. Common Mistakes to Avoid
- Choosing a weak location with low traffic
- Ignoring hygiene and cleanliness
- Using low-quality ingredients to cut cost
- Poor customer service or rude attitude
- Not maintaining consistent taste
Remember, customers return for taste, trust, and behavior — not just cheap prices.
12. Future Opportunities
Once your tea stall is successful, you can scale it further:
- Start a branded tea chain under your own name
- Sell packaged tea blends or branded cups
- Introduce takeaway boxes or snacks menu
- Partner with event caterers for tea booths
With smart branding, even a simple stall can become a local brand that people love.
Final Thoughts
Starting a tea stall or café is one of the simplest yet most rewarding small businesses. You don’t need a fancy shop — just passion, cleanliness, good taste, and customer service.
Start small, stay consistent, and build your reputation cup by cup. A friendly smile, hot chai, and a clean setup can make your stall the favorite spot in town.
