§1What this business is
A small stall makes tea and coffee on a traditional stove and serves them with local snacks to shoppers, workers and travellers. It needs little infrastructure — a stove, utensils, glasses, a bench and some furniture. The profile says any unemployed youth in a village or small town can run one.
§2Is it right for you?
Who it is for
A young person in a village or small town who can get a busy spot near a market, bus stand or workplace.
Who it is not for
Someone who cannot keep the stall clean and open every day — regulars go elsewhere.
Advantages
- Very small investment
- Tea is drunk all day, every day
- Cash sale — no credit to customers
Drawbacks
- Profit depends on footfall at the spot
- Long hours, from early morning
- Many stalls nearby compete on price
Skills you need
- Making tea and snacks of steady taste
- Choosing a busy spot
- Hygiene and cleanliness
- Daily cash handling
Why difficulty 1/5: Tiny investment and a simple, well-known trade; success rests on the spot.
§3Market
Who buys
- Local people in village and small-town markets
- Shopkeepers, workers and travellers
How it sells
- Walk-in sales at the stall
- Tea delivered to nearby shops and offices
Good to know
- The profile puts monthly sales at ₹27,500.
- It says tea stalls have very good potential in rural areas.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Traditional stove (furnace), utensils, glass tumblers, bench and furniture | set | ₹22,000 |
From: MSME-DI Hyderabad project profile — Tea Shop / Stall
- Milk, tea leaves, sugar and coffeebought daily from local dairies and shops
- Traditional snacksmade at the stall or bought from local makers
From: MSME-DI Hyderabad project profile — Tea Shop / Stall
In our raw material database
§5Licences & registration
- FSSAI basic registration
- Street-vending certificate from the town vending committee (if on the street) or a trade licence
- Udyam registration (optional)
§6Schemes & subsidies
A MUDRA Shishu loan covers the ₹27,500 cost; PMEGP also funds small service units.
§7Money
How the investment is worked out: Traditional stove (furnace), utensils, glass tumblers, bench and furniture ₹22,000 + working capital ₹5,500 = ₹27,500. Place own or rented (not costed).
Working capital: ₹5,500 for milk, tea, sugar, coffee and snacks.
Year not printed on the MSME-DI Hyderabad profile; the prices are old — check current machinery and material prices.
§8Export potential
This is a local service business; there is no goods export.
§9Risks — where people fail
- Losing the spot (eviction or road widening)
- Milk and sugar price rises
- Rain and off-season dips
- Food-safety complaints
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working tea stall unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI basic registration, Street-vending certificate from the town vending committee (if on the street) or a trade licence), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Tea Stall?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.