How this chai chain spreads its wings across 195 cities in India in 7 years

It was founded in 2016, when the two friends (Anubhav Dubey and Anand Nayak) were in their early 20s and were preparing for their UPSC exams (the two were later joined by their friend Rahul Patidar). The Chai Chain, christened as ‘Chai Sutta Bar’ is now present in more than 195 cities across the country and more than three countries outside, including Nepal, Oman and Dubai. A hot cup of tea is wishful thinking for all, so they think. And the Indore-headquartered Chai Sutta Bar promises to offer an unmatched experience with amazing flavours of tea and unique combinations of tea and snack.

Speaking to Bizz Buzz exclusively, Anubhav Dubey, Founder, Chai Sutta Bar, explained the trio's thought of mixing traditional India culture with hints of western culture which promises to be a great offering looking at the marketplace. Their idea of Chai Sutta Bar was to serve Indian traditional chai coffee on the bar table and giving a twist to the original tea concept prolonging in the Indian society and culture from ages

What prompted you to roll out this tea chain? Where did you get the courage and strength to flag off Chai Sutta Bar, which is your maiden entrepreneurial venture? What has been the experience so far?

Chai Sutta Bar (CSB) was born out of a deep passion for tea and a desire to create a unique experience for tea lovers in India. As tea enthusiasts, we noticed the lack of innovation and standardization in the tea industry and saw an opportunity to introduce a new concept that would revolutionize the way Indians consume tea.

The idea was simple yet innovative: serve tea in traditional clay cups called kulhad, providing customers with an authentic and sustainable experience while supporting local potters. With this vision, we took the bold step of launching our maiden entrepreneurial venture, Chai Sutta Bar, in 2016.

The journey has not been without its challenges, but we were determined to make our dream a reality. We are committed to creating a customer-centric brand that would delight tea lovers across India.

Did you do any market study on whether tea joints are overpowering the erstwhile Cafes and coffee chains?

Coffee and tea are popular beverages worldwide, but in general, tea is more commonly consumed than coffee. This is because the demand for tea is higher due to its availability, affordability, and cultural significance in various regions.

In India, despite coffee being a premium product, it has not been able to surpass the popularity of chai or tea. Chai continues to be the preferred beverage for the masses in India. However, coffee culture is gradually gaining popularity in urban areas, with the emergence of coffee shops and the introduction of new coffee-based drinks.

What exactly is your model and in what way are they different, other than serving tea in kulhad?

We are operating under a franchise model, which is similar to other franchise models, but our bootstrapped company has been thriving in the market for the past seven years. Our unique product is flavored Chai, and our edge lies in the taste. Our recipe, taste, and pricing are unmatched, and once you taste our Chai, you may even begin to dislike your homemade tea. It is a tough challenge for others to replicate our success in this area. In conclusion, we believe that our entry into the market has given us a chance to distinguish ourselves and succeed in the highly competitive world of the franchise business.

How many varieties of tea do you serve? What kind of snacks do you serve? Are you planning to introduce more snacks?

We serve a wide range of chai (tea) varieties at CSB (Chai Sutta Bar). We offer different flavors and blends to cater to the diverse preferences of our customers. From classic masala chai to unique variations like chocolate chai and rose chai, we have something for everyone. In addition to our delicious chai, we also serve a variety of snacks at CSB. Our menu includes popular options like sandwiches, burgers, Maggi and more. We are constantly exploring new options and experimenting with innovative snacks to keep our menu fresh and exciting for our customers.

You are growing at a pretty rapid pace, it seems. How many outlets do you have at this point and in how many months/ years have you arrived at this number? What is the number of outlets that you are looking at this year and over the next year?

Yes, CSB has experienced rapid growth since its founding in June 2016. We currently have over 450 outlets across 195 cities. Our expansion has been driven by the love and support of our customers who have embraced our concept of serving the best chai in kulhad (earthen cups). As for our future plans, we aim to open more outlets both in India and around the world by 2024, with a focus on expanding our presence in new markets and reaching out to more chai lovers.

When do you plan to go pan India, or is it already there?

CSB has already established a strong presence across India with over 450 outlets in 195 cities. Our vision is to continue expanding our footprint pan India, reaching more cities and serving more customers with our delicious chai and snacks.

At CSB, we are proud of our journey and the impact we have made in the lives of our customers and employees. We remain committed to our mission of serving the best chai in kulhad while providing a unique and enjoyable experience for all chai lovers.

Would all your outlets be company owned or are you open to a franchise model as well?

We are open to both company-owned outlets and the franchise model. Our aim is to expand the reach of our brand and provide the best chai experience to everyone. We believe that both models have their advantages, and we are open to exploring both options.

The way you are growing, your supply chain management is going to be crucial. Isn't it? What is the plan like on this front? Are you looking at setting up multiple base kitchens at different locations?

The supply chain plays a critical role in our business, as we supply Kulhad and 'Chai patti' from our company end to small warehouses in different cities and localities. This process is essential for us to deliver our products to the customers efficiently.

Regarding our kitchen operations, we make the food directly on the counters using the mechanism and products from local vendors. This approach is more manageable for us compared to procuring everything from our company. By working with local vendors, we can ensure the freshness and quality of the ingredients used in our food.

Do you have any funds raising plans to back up your expansion ambitions? If so, how much? Are you in talks with any VC or angel investors?

We do have plans to raise funds to back up our expansion ambitions. We are in talks with several VC and angel investors and are looking to raise a significant amount of funds to fuel our growth. However, we cannot disclose the exact amount at this moment.

What are your plans to tap tier-II, tier-III towns, and even beyond?

We already have many of our outlets in suburban areas and in small towns. Our aim is not just to open outlets and earn money, we are also providing opportunities to the youth of these cities to get employed and to be a part of CSB. The special part is that we take pride in what we do.

Besides serving tea in kulhad, have you adopted any other sustainable practice in your operation?

We've tried various options such as paper and even edible cups. However, the kulhad has been with us from the very beginning and has proven to be the best option for us. We are committed to sticking with it and plan to continue using it in the future.