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A Refreshing Hot Pot Of Growth

The Franchising World

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May 2019

As young India goes out to work, it’s the ‘chai’ stalls that are the meeting points for students, working professionals and even aged seniors. As the new India accepts the chai culture, we find out why it’s also a highly profitable venture.

- Shwetha Satyanarayan

A Refreshing Hot Pot Of Growth

From being all-famous ‘chai thelas’ to now becoming the ‘chai’ stalls, the humble chai has had a huge makeover. Especially, early disruptors like Chai Point changed the way India consumes tea. While this drastic customer transition towards branded chai outlets has happened over the years, it is the demand for hygiene kitchens that is driving the growth and will drive the growth further, observes Rohit Kumar, General Manager, Eagle Peak Garam Chai, which runs the chai chain called Chai Garam.

“It’s primarily the growth in the middle class, and quality and hygiene consciousness that is drawing customers to branded tea stalls,” he says. On an average, as many as 100-150 customers visit a tea kiosk or a stall in any metro city; footfalls increase by over 20-30% during weekends. While the footfalls are higher if there is a seating or a dine-in facility, the target customers for chai stalls are often working professionals, students and youngsters.

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