Chai Sutta Bar’s Success story
Background Story
Wannabe
IAS Officer decided to ditch his parents dream and ended up opening tea café
with his childhood friend which has a turnover of Rs 100 crores now. That’s Chai Sutta Bar for you guys!
Why did they decide on entering this
segment?
With many
leading tea cafe chains like Chaayos and Chai Point and even many local players
having their presence at almost every corner of the road, how they were able to
craft for themselves a prominent and distinct image is one interesting thing in
itself.
The
founders noted that after water, it is the tea that is widely consumed by the
people, especially in India. And not to forget that India is the second-largest
producer of tea. Thus, it seemed to be a very promising business idea to them.
Unlike
the biggies in the tea cafe business, they didn’t price their chai at 150-200
rather it is priced as low as Rs10!
And
who would not want to get the vibes of a café and get the same local roadside
priced tea?
Interesting,
isn’t it?
To
date, Chai Sutta Bar offers tea with various flavors, including Chocolate,
Rose, Elaichi, Paan, Kesar, Tulsi, etc., in earthen cups known as Kulhad
with other snack items, such as Maggie, sandwiches, burgers, juices, shakes,
mocktails, coffee, pizza, etc., with a wide range of choices to its customers.
Marketing
Strategy
Initially,
the founders marketed their offering in a gimmicky style by setting up a tea
stall outside the girl’s hostel so that their stall would have more girls
aggregated, which will attract more male customers in turn increasing their
sales. Moreover, Chai Sutta Bar leveraged the craze and love that Indians have for
Tea (chai) by serving it in an Indian earthen cup, Kulhad. It
wanted to make its USP of traditional tea serving an important symbol and by
the quality of the product and offering numerous variations with complementing
snacks, it gained the loyalty of customers and was able to retain them.
Currently,
for the folks to be aware of their product, it extensively leverages social
media platforms, such as Instagram, Facebook, YouTube, etc., by enticing
through slogans, viral marketing, and digital marketing, which indeed serve
them well and expand its customer base.
Outlook
The
company’s vision for the next 3-4 years is to serve the traditional Kulhad chai
across the globe. In 2021, it opened 110 outlets in India and aims to make a presence
in every city of India by having 2,000 operating outlets and at least 1 café in
every country by 2025, thus generating more employment opportunities.
The
company also aims to generate employment opportunities by opening new stores in
the cities and using over 3 lakh kulhads every day, supporting
more than 500 potter families and its current aim is to use 5 lakh kulhads every
day. Currently, it employs more than 1500 people from all sections of society
with a special focus on economically weaker families, with its expansion plans
in 2022 it aims to employ to over 500 people with a similar background.
Conclusion
The
Chai Sutta Bar is India’s one of the fast-developing chai franchises with a
diversified franchise model, innovative taste, and presenting the traditional Indian-styled
drink in a modern setting and ambiance. Moreover, it claims to serve
hygienically made food items with a pocket-friendly amount, attracting Gen-Y
and Gen-Z customers.
Sources:
- https://failurebeforesuccess.com/anubhav-dubey/amp/
- https://yourstory.com/smbstory/fmcg-india-tea-brands-indore-chai-sutta-bar-business-entrepreneurs/amp
- https://bit.ly/3KbqW9X
- https://hospitality.economictimes.indiatimes.com/news/operations/food-and-beverages/taking-the-chai-dream-abroad/82519029
- http://www.hospitalitybizindia.com/detailNews.aspx?aid=40828&sid=1
- https://www.freepressjournal.in/business/chai-sutta-bar-announces-expansion-plans-to-hire-over-500
Very interesting and unique topic. Specially for a country with majority of ppl loving chai!!!
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