๐ ๐๐ ๐๐ต๐ฎ๐ถ๐๐ฎ๐น๐ฎ-๐จ๐ป๐ฐ๐ผ๐๐ฒ๐ฟ๐ถ๐ป๐ด ๐ง๐ต๐ฒ ๐ฅ๐๐๐ ๐ฆ๐๐ผ๐ฟ๐
First thing first: MBA in MBA chaiwala stands for โMr. Billore Ahmedabadโ
Prafull Billore plays on two things with this name -
1. PM Narendra Modi, who also calls himself a โChaiwalaโ
2. MBA degree is sort of aspirational for many.
Smart move.
Prafull said โ He wanted to be a โbig businessman.โ
Though he had no passion for making tea, He saw that tea consumption was very high in his neighborhood.
So he started a roadside Chai stall in 2017.
In 2022, his turnover was INR 4 crore, with 50 cafes.
This is where it gets interesting.
- First thing โ These are not roadside stalls but cafes like #Chaayos
2. Letโs talk revenue.
โน 4,00,00,000/50 = โน 8,00,000/Year/Cafe
โน 8,00,000/12 = โน 66,667 Cafe/Month revenue.
โน 66667/30 = โน 2,222/Day/Cafe revenue.
Just โน 2,222/Day revenue from each cafe! ๐คฏ
3. Letโs talk monthly costs.
- Raw material
- Electricity
- Rental
- Employee Salary
- Misc Expenses
For 2 employees/cafe, each getting 12k/month, amounts to 24k/month.
To run such cafes, the ideal places would be near the colleges or main eating places in the market, so rentals will be on the medium to the higher side.
Even if the cafe size is small, it would cost approx 20k, even 30k+ at places.
Then raw material will be, letโs say, another 20k per month.
Cuzโ even normal home grocery requirements today are in the range of 7โ15k+.
Electricity for commercial usage has higher slab rates.
So Letโs take 15k for that.
Add these 4 now:
24k + 20k + 20k + 15k = โน79k / month.
๐๐ผ๐๐ = Revenue (67k) โ Cost (79k) = ๐บ๐ถ๐ป๐๐ โน๐ญ๐ฎ๐/๐บ๐ผ๐ป๐๐ต ๐
Now, Iโve done a very conservative calculation.
So, Iโm expecting LOSSES to be even higher.
Probably 100K/month +
So,
Prafull understood that calling yourself an entrepreneur is cool.
But
Running a business is tough.
&
Making profits is even tougher.
Then he saw Youtubers and Influencers making a ton with Motivational BS.
Seemed easy with no accountability.
So, armed with his 4 Crore revenue story, Prafull started giving generic gyan on YouTube, podcasts, interviews, Instagram, and anywhere he was called to give Gyan.
Some would say that he is the cheap version of Ashneer Grover. ๐ I donโt know.
Now, allegedly he started selling his franchises while promising that anyone could be a millionaire with his guidance.
He took 10. In some cases 30 lakh from many.
Some even took huge loans to pay him.
Min income he promised was 10,000 /Day /Store.
That didnโt happen because Prafull himself hasnโt been able to do that with his first 50 stores.
Now, these franchisee owners are filing cases against Prafull for manipulating them and making them invest in his loss-making stores (Video link in comments).
It seems like his motivation is no longer effective. ๐ฟ
๐Want more such stories? Join my ๐๐ฅ๐๐ newsletter โ https://lnkd.in/dPaNZA3Y
Sources:
1. Madhya Pradesh: โMBA Chaiwalaโ booked for franchisee fraud in Indore โ https://www.freepressjournal.in/indore/madhya-pradesh-mba-chaiwala-booked-for-franchisee-fraud-in-indore
2. MEET โCHAIWALAโ WHO DROPPED OUT OF MBA TO SELL TEA, BUILT RS 4 CR TURNOVER BUSINESS
https://yourstory.com/smbstory/mba-chaiwala-entrepreneur-prafull-billore-tea-business-success-story
