Setting Up A Teashop in Karachi, Lahore or Islamabad

The trend of establishing teashops with alfresco dining facilities – popularly known as dhaabas or chai khaanas – has gained traction in Pakistan over the last two years due to an increased
demand for outdoor, casual dining venues. Evidence of their increasing popularity includes the trending hashtag on social media, #DhabaForWomen, which encourages women to visit dhaabas on their own, as well as establish them.

If you are thinking about setting up a teashop, factor in the following:

1. Ideal plot sizes range between 400 and 500 square feet; the seating area should constitute at least 50 to 60% of the covered area. Several teashop owners usually opt for spaces which have
adjacent vacant plots (measuring a minimum of 300 square yards) and use them for outdoor seating after obtaining written permission from the relevant authorities, such as CDA, DHA,KDA and LDA.

2. The average cost of establishing a full-fledged teashop varies between 500,000 and one million rupees. The expected Return on Investment (ROI) ranges between 10 to 15% over a period of two to three years.

3. Popular decor themes include pop art,truck art and Urdu poetry.

4. Bylaws for establishing a teashop vary according to the area it is located In. However, bylaws which apply to all restaurants include the provision of a fire alarm system, which includes extinguishers and it least two emergency exits.

5 Popular areas where teashops are being established Include:
a. Karachi: Bukhari Commercial Arefl, Ittehad Commercial Area, Blocks 2 and 3, Clifton, KDA Scheme I and Mohammad Ati Housing Society.
b. Lahore: Block Y (DHA), Gulberg, Liberty Market and M.M. Alam Road.
c. Islamabad: Sectors E-11 and F-11.

By Uzma Nawaz. Information provided by Karachi Estates.

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