From Street Sip to Franchise Fame: Is Chhaswala the Coolest Dairy Startup in India?

Chhaswala – the name that turned a humble glass of chaas into a full-blown dairy revolution. If you’re exploring franchise options that feel homegrown, taste amazing, and ride on a booming beverage trend, this one’s worth a deep dive.

What’s Behind the Chhaswala Craze?

Started in 2015, Chhaswala emerged from Gujarat with a mission: serve authentic Indian drinks—minus the preservatives and plus the nostalgia. From lassi to buttermilk, kulfi to rose milk, the brand has crafted a loyal fan base, especially in western India.

But here’s the twist: Chhaswala isn’t just about dairy. It’s about building a brand empire rooted in India’s culinary soul. And it’s opening doors for franchisees who want to ride that wave.

Want full details on how to apply?
Read the complete Chhaswala Franchise Guide here

What Does It Take to Own a Chhaswala?

1. FOFO Model (Franchisee Owned, Franchisee Operated)

  • Franchise Fee: ₹2.5–₹5 lakhs
  • Setup + Equipment: ₹10–₹13 lakhs
  • Total Investment: ₹15–₹16 lakhs
  • Space Required: 250–300 sq. ft.
  • Royalty: None
  • Agreement Term: 7 years
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2. FICO Model (Franchisee Invested, Company Operated)

  • Total Investment: ₹70–₹90 lakhs (for 4–5 outlets)
  • Outlet Size: ~300 sq. ft. per unit
  • Revenue Share: 90–100%
  • Agreement Term: 4 years

Setup costs include branding, interiors, POS systems, kitchen equipment. GST applicable.

Can You Really Make Money With Chhaswala?

Short answer: Yes – with the right location and hustle.

FOFO Model Earnings:

  • Monthly Sales: ₹4–₹6 lakhs
  • Profit Margin: ~11–12%
  • Net Profit: ₹50,000+ per month
  • Break-even: 18–24 months

FICO Model Earnings:

  • Designed for investors with multi-outlet goals
  • Profit Margins: 15–20%
  • Revenue split managed by company

Profitability depends on footfall, local demand, and your management efficiency.

The Real Pros & Cons of a Chhaswala Outlet

Pros:

  • Recognizable, growing Indian brand
  • High-quality, health-oriented product range
  • Great margins and zero royalty (FOFO model)
  • Backed by full training, tech, and marketing

Cons:

  • Seasonal variation (peak in summer)
  • Location is everything
  • Higher setup cost for FICO model
  • Margins are modest, especially in early months
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Insider Myths vs. Reality: Franchise Edition

MythReality
“Chhaswala is just a chaas shop.”It’s a full-fledged beverage brand with 90+ SKUs.
“Low investment means instant profit.”Like any business, returns take time and effort.
“Summer sales make it an easy win.”Winter months are slower, requiring smart marketing.
“You don’t need business knowledge.”Chhaswala offers training, but owner involvement still matters.

Common Pitfalls & How to Dodge Them

  1. Undervaluing Location: A Chhaswala in a busy college zone ≠ one tucked in a quiet street. Prioritize footfall.
  2. Going FICO Without Scale: FICO is great—but only if you’re ready for multi-unit management and higher capital.
  3. Ignoring Community Marketing: Don’t rely solely on the brand. Host local events, tastings, and engage in hyper-local campaigns.
  4. Skipping SOPs: Inconsistent taste = lost customers. Stick to Chhaswala’s standard operating procedures.

Final Word: Should You Join the Chhaswala Movement?

If you’re someone who values authenticity, sustainability, and customer loyalty, Chhaswala offers one of the most refreshing opportunities in India’s booming dairy beverage scene.

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It’s not just about selling chaas—it’s about owning a brand that feels like home to millions. Whether you’re a first-time entrepreneur or a seasoned F&B investor, this might be your next smart sip into franchising.

Click here to read the complete Chhaswala Franchise Guide

Rutvik
Rutvik

Hi, I’m Rutvik. I write about starting franchise businesses in India. My goal is to help new business owners learn how franchising works and find the best opportunities. I share simple tips and honest advice to help you make smart choices. When I’m not writing, I enjoy discovering new brands and talking to people who want to start their own business.

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