Everyone in the world is familiar with India and Indians because of their passion for tea. Tea may also be regarded as one of the most popular beverages sold in India for the same reason. Therefore, one can say that pairing a tasty tea with a nice location and some snacks can now be transformed into a profitable business concept. This is the main theme of Prafull Billore’s story. In an endeavor to realize his dream of being a ‘big businessman’, Prafull Billore established MBA Chai Wala in 2017. In this article, we will cover MBA Chai Wala Net Worth including MBA Chai Wala franchise cost.
MBA Chai Wala Net Worth, Franchise Cost, Business
Praful didn’t much enjoy drinking tea, yet he nevertheless succeeded in creating a successful business with Rs. 4 Cr. annual income. He is an inspiration to many who want a start a simple business. Let us learn more about him.
Who is Praful Billore?
He is the franchise owner of MBA Chai Wala, a three-crore dollar enterprise he created on his goals and chai. Prafull, a B.Com. graduate and native of Madhya Pradesh was raised in a middle-class home. He refers to himself as “Mr. Billore Ahmedabad Chai Wala,” even though many of us think that MBA stands for Master of Business Administration.
Prafull had previously worked at McDonald’s, first as a maid and then as a cashier. Despite his outstanding achievements, he detested the idea of working for someone else and yearned to develop his own identity. As a result, the MBA Chai Wala Company was started. Read on to know more MBA Chai Wala income.
He initially got Rs. 8,000 from his father by pretending to be enrolled in a short-term course. He was unable to be honest with his parents because he believed they would be appalled and outraged by his choice to sell tea. However, when Prafull put up a temporary tea station, things didn’t go as planned since not even one client showed up to his stall on the first day. He decided to keep trying, so he devised a fresh strategy.
On the second day, he started speaking English with his clients, and they were attracted by the English-speaking Chai Wala and began approaching him to drink his tea. As the chai business began to take off, he gave it more of his time and attention. Read on to know more about MBA Chai Wala net worth.
How did he succeed?
Prafull used a variety of marketing strategies to develop his tea company. Indians like tea, and when someone sells it in a distinctive style while speaking softly in English, it draws in even more admirers of the tea cafe.
The frosting on the cake is the toast, clay teacups, and tissue that come with the tea. Prafull set up his tea store at political events, weddings, and other gatherings so that it could build a stronger brand and attract more customers.
Another contemporary marketing strategy that was essential in popularizing his tea company is social media marketing. Prafull maintains a consistent online presence on social media to engage with customers.
He also organizes book drives and open mic evenings at his store to engage and attract customers. These strategies greatly contribute to the national recognition of his tea business. Read on to know more about MBA Chai Wala business model.
People from all walks of life started to take note of the chai business as it grew in popularity. They said that Praful’s chai firm was harming other owners of small businesses and street sellers, which made it difficult for his business to expand.
He had to put his tea concept on hold for a while after receiving threats from neighborhood gangs and the local police to shut down the chai business. Read on to know more about MBA Chai Wala franchise cost.
What is MBA Chai Wala Business Model?
The business strategy for the MBA Chai Wala is quite simple. MBA Chai Wala assists with marketing, and the franchise is responsible for establishing and managing the shop. Because MBA Chai Wala is in charge of branding and marketing, the franchisee is free to focus on running the business.
MBA Chai Wala also offers support and training to help its franchisees get off to a quick and simple start. Here are some of the features of the MBA Chai Wala business model that makes it stand out among other entrepreneurial ideas:
- A distinctive business approach that is compelling and profitable.
- An opportunity to open your own chai business where you can provide customers with excellent Indian tea and increase interest in Indian food and brand exposure.
- Low-cost business activities.
- A mindful investment approach that provides affordable, premium tea, snacks, and coffee.
- Favorable profit margins economic infrastructure.
MBA Chai Wala Net Worth
Over the last five years, MBA Chai Wala net worth has increased by around $500 every year. MBA Chai Wala net worth was around $1 million in 2018 and rose to $3 million in 2022.
MBA Chai Wala Income
His combined earnings from YouTube and sponsorships are more than $4000. His monthly wage is about $30,000, and MBA Chai Wala income every year is close to $4,00,000. He is a successful businessman and makes a solid living from YouTube commercials.
Additionally, he is earning a sizable sum of money by also providing the MBA Chai Wala franchise. The fact that Prafull Billore is supported by various businesses, like Hirect, JUMP.TRADE, etc., has added to his earnings as well.
MBA Chai Wala Franchise
Prafull Billore’s MBA Chai Wala has 11 franchisees spread throughout several cities. An MBA Chai Wala franchise can provide a large return on investment for business owners. MBA Chai Wala franchise cost is quite low and high potential for returns. With the right marketing and managerial abilities, an MBA Chai Wala franchise can succeed greatly in the rapidly growing chai and cafe sector.
When one takes a franchise for the MBA Chai Wala, one can choose from three café models.
- Lounge Model: This is the largest cafe model under the franchise strategy. For taking up the lounge model for the franchise one should have a space of more than 500 sq. ft. to up to 800 sq. ft.
- Dine-In model: This is the medium-sized cafe model under the franchise strategy. For taking up the Dine-in model for the franchise one should have a space of more than 300 sq. ft. to up to 500 sq. ft.
- Kiosk Model: This is the smallest cafe model under the franchise strategy. For taking up the kiosk model for the franchise having a small space of around 150 sq. ft. is enough.
The kiosk model is a very successful business strategy for those who are unable to open a large-scale store, even though all three models are successful for aspiring company owners. For ambitious entrepreneurs who want to start their firm with the least amount of cash, this is the best option. It offers newbies a profitable chance.
Also Read: Aman Dhattarwal Earnings, Age, Biography
Cost of franchise
Now that you know what all types of franchises you can pick for MBA Chai Wala, now is the time to understand what the cost of taking up the franchise is. This will help one decide the overall cost and whether it is in tandem with the returns expected from this business model.
The majority of the cost of a franchise is made up of the rent for the space and the cost of creating the cafe. Also, the duration of the franchise agreement is of 3 years after which one will have to renew the agreement.
One of the major costs of the franchise is the shop cost and the equipment cost which are 2 to 5 lakh and 1 to 2 lakh respectively. Along with the franchise agreement cost, one will have to invest somewhere around 10 to 15 lakh rupees. One can pay in three installments the entire MBA Chai Wala franchise cost:
- First Installment: One will have to pay the booking amount which is 1.8 lakhs.
- Second Installment: The second installment is to be paid after finalizing the agreement and shop. This installment is around 10 lakh. This has to be paid within 10 days of the first installment.
- Third Installment: Third and last installment is the balance payment of whatever amount is left after the second installment. This has to be paid within 30 days of booking the franchise.
Here is a projected profit per year for taking up a franchise based on the sale.
1. Break-even Sale
- Per day sale: Rs. 10,000
- Per month sale: Rs. 3,00,000
- Fixed cost: Rs. 1,15,000
- Variable cost: Rs. 1,08,000
- Profit per month: Rs. 77,000
- Profit per year: Rs. 9,24,000
2. Average Sale
- Per day sale: Rs. 15,000
- Per month sale: Rs. 4,50,000
- Fixed cost: Rs. 1,15,000
- Variable cost: Rs. 1,62,000
- Profit per month: Rs. 1,73,000
- Profit per year: Rs. 20,76,000
3. Maximum Sale
- Per day sale: Rs. 20,000
- Per month sale: Rs. 6,00,000
- Fixed cost: Rs. 1,15,000
- Variable cost: Rs. 2,16,000
- Profit per month: Rs. 2,69,000
- Profit per year: Rs. 32,28,000
MBA Chai Wala has shown that ideas when backed with dedication and hard work can never fail. Billore set up a chai kiosk and created better marketing strategies to bring on more customers over time. MBA Chai Wala net worth has grown significantly, along with his workforce, franchises, and overall success in the Indian market.