Chai is India’s staple beverage. A cup of tea in the morning or one after a long day at work is a part of daily life. But how profitable can chai be? For three friends, the hot beverage was at the centre of their career, a business that is now worth Rs 100 crore.
Two friends from Indore, Anubhav Dubey and Anand Nayak, decided to start their own business instead of preparing for civil service examinations or looking for a cushy private sector job. Later on, another friend, Rahul Patidar, joined them.
At the centre of their plans was chai. In 2016, Chai Sutta Bar was established. Today, the brand has over 650 outlets globally.
How A Drink Became A Business
The friends used to sell second-hand mobile phones earlier and decided to open a business together, as per ANI. They started Chai Sutta Bar in Indore at a cost of Rs 3 lakh.
The aim of the venture was to provide affordable food and drinks that were connected to Indian culture. Interestingly, despite the name, smoking is not allowed in the cafes.
One of Chai Sutta Bar’s main offerings was Kulhad chai. Serving the beverage in clay mugs or kulhads became a mainstay for the brand.
Slowly, the outlets added other flavours to their menu, including Tulsi, Ginger, Chocolate, and Kesar Chai variants. Foods such as pasta, burgers, and noodles were also introduced.
Chai Sutta Bar’s Business Model
Affordability is at the centre of the brand. A chai costs Rs 15, while a cup of coffee starts from Rs 20. Cold coffee and shakes are priced at Rs 70 and above.
The brand operates on a franchise model. Co-founder Anand Nayak told YEARS in 2021 that Chai Sutta Bar provides 15 days of training to the franchisee before they open.
Now, Chai Sutta Bar earns around Rs 100 crore.
The brand expanded to Canada last year. Nepal and the United Arab Emirates are other countries where the brand has taken roots.
Also Read: Assam Man Left Security Guard Job To Build Paratha Brand, Now Earns Rs 50 Lakh Per Month
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