The Road Less Travelled as a Tea Sommelier

India has been a country of tea drinkers for centuries, but the trend is slowly shifting towards healthier options. Matcha, a type of green tea that originated from Japan, is now making waves in India as people become more health-conscious and aware of the benefits of consuming organic products.

The first Indian matcha was produced in 2016 by a tea garden in Upper Assam. While it may not match the quality of the original Japanese matcha, it was a step in the right direction. Matcha, which literally means 'powdered tea', is consumed as tea or used as an ingredient in recipes. Its health benefits exceed those of other green teas, with 137 times more antioxidants as matcha drinkers ingest the whole leaf, not just the brewed water.

Matcha was brought to Japan by a Buddhist monk over 900 years ago and has been an essential component of Zen Buddhism philosophy ever since, especially in tea ceremonies. According to Grand View Research, matcha green tea consumption is predicted to grow from $2.6 billion in 2017 to $5.6 billion by 2025.

Matcha is already popular in the US and European countries as a superfood for fitness, but it is still a relatively new product in India. Nevertheless, the market for green tea has tripled in India, with consumers' changing mindset about organic products and rising healthcare costs. This trend is expected to surpass the market for black tea by 2025.

Matcha coffee, also known as matcha latte, is another variant of matcha that is gaining popularity in India. It has a unique flavor that is slightly bitter and earthy with a hint of sweetness. The vibrant green color comes from the chlorophyll in the tea leaves. Matcha coffee is often marketed as a natural energy booster, which appeals to India's young and busy population. It is also a favorite among fitness enthusiasts and people following a plant-based or vegan diet, as it is dairy-free and contains no animal products.

One of the key reasons for the rise of matcha tea and coffee in India is its numerous health benefits. Matcha contains caffeine, which helps to increase energy levels and improve focus. Restaurants and cafes across India are capitalizing on this trend by adding matcha tea and coffee to their menus. Many have even created specialty drinks and desserts featuring matcha as a key ingredient, which have become popular with consumers looking for unique and healthy food and drink options.

In the world of culinary exploration, the introduction of Matcha tea and coffee has been nothing short of a sensation. Fig At Malcha and Fig at Museo are just a couple of establishments that have added this unique and flavorful option to their menus, delighting their patrons with its health benefits and incredible taste. From hot tea to iced and hot lattes, this vibrant green tea has taken the culinary world by storm.

One of the great things about Matcha is that it can be served in many ways. Whether you prefer a hot tea or a cold latte, the flavor and nutritional benefits remain intact. At Fig At Malcha, they have taken it a step further by offering Matcha lattes with alt milk options, like coconut and oat milk, to give their patrons a truly elevated experience. Fig's brand manager, Sureena Dalal, believes that the gradual spike of caffeine in Matcha makes it a perfect alternative for coffee lovers who need a break.

Kampai, a Delhi-based Japanese restaurant, has also embraced Matcha in their menu. Their guests rave about the newly launched Matcha Cake, a delectable dessert with a creamy Matcha-flavored cake filling on a crunchy cookie crust. Not only does it taste great, but the visually appealing green color of Matcha has made it a popular option for Instagram-worthy food and beverages.

It's not just standalone cafes and restaurants that are taking notice of Matcha's popularity, but even food and beverage chains like Starbucks have introduced it in their menu. Their Matcha Tea Latte has become a favorite alternative to traditional coffee and tea options, with its unique taste and health benefits.

According to Pratishtha Rawat, founder of Glow Glossary, one of the prominent suppliers of Matcha tea in India, the demand for high-quality Matcha has risen gradually. People are more health-conscious and prefer a good quality Matcha that is free from additives. Rawat emphasizes that quality is paramount and cafes can no longer benefit from keeping the commodity grade tea anymore.

The gradual rise in demand for Matcha is attributed to the exposure and experience it provides. It is an acquired taste that requires patience in preparation and drinking. However, with ceremonial grade Matcha, the experience is even more delightful. The tea is delicately sweet and has a more refined taste compared to commercially sourced options, as noted by Sureena Dalal of Fig.

Matcha has taken the world by storm, and it's no wonder why. With its unique flavor, nutritional benefits, and visually appealing color, it has become a staple in the culinary world. Whether you prefer it hot or cold, in a latte or a dessert, Matcha is a must-try for all food and beverage enthusiasts.

Matcha is not only visually pleasing but also has a unique taste that can be enhanced by combining it with complementary ingredients and flavors. For example, a vanilla-based cookie soil or a soft scoop of Matcha in a dessert can add flavor and texture to the drink, making it even more delicious. When paired with the right ingredients, Matcha can become an enjoyable and palatable drink.

The presentation of Matcha tea is also essential to its success. The way it is presented and served can have a significant impact on how it is perceived by people. A beautifully crafted Matcha latte with latte art can be very enticing and inviting. The way Matcha is served and paired with other flavors can also add to the overall experience of drinking it. With the growing trend towards health and wellness, Matcha is likely to continue to gain popularity in India and become a staple in many households.

In India, the day starts with the 'slurrp' of tea and reading newspapers. From workers stopping at the tea joints on the road, to tea being served to the guests coming home, there's no denying that Indians love tea.

With this constant love for the beverage and increasing interest in exploring tea as a business idea, many tea cafes are being opened. A global culture, ecstatic consumer growth, fast urbanization, workplace culture, and rising demand from young people have contributed to Tea sector growth. So, if you're an expert in tea or coffee, you can connect with freaks who love both.

Here are some great marketing tips to help you reach the biggest audience:

Great logo and branding: If you're planning to create a logo or brand for your tea cafe business, you should first research your competitors. Keeping an eye on your competition is a must. Ultimately, your goal is to stand out from the competition while also noticing what they're doing right and where you can improve. After doing your research, you can start focusing on branding. Choosing an image for your tea cafe will keep you recognizable and make your tea stand out. Don't forget to get your tea into the hands of the people you're targeting. Considering all this, you can make your logo appealing to your target market.

Get tea lovers involved: You can also reach out to tea enthusiasts to expand your tea cafe business. Not only will these people become loyal customers, but they'll also bring you new ones.  With blogs, social media, and tea forums, reaching your target audience is easier than ever.

Create a loyalty-rewards program: Sometimes, small businesses aren't willing to invest because they think it'll be expensive. A study by Manta and BIA/Kelsey found that 64% of small businesses with loyalty programs make more money than they spend. The more repeat customers you have, the more profits you make. Therefore, if you want to stand out from the competition, your tea must taste good and be unforgettable, and you must also look for other distinctive features. According to the same study, repeat customers spend 67 % more than first-timers. Customer loyalty incentives are always beneficial, no matter how you slice them.

Exotic & Exclusive Teas: It's best to differentiate yourself from the competition by creating unique teas. If you enjoy tea, you know a wide variety, such as green, white, black, oolong, rooibos, mate, pu-erh, and many others. There are also many options outside of what's typically available in grocery stores regarding tea. Making sure you do your research is key. You can also find many other varieties at specialty tea shops or online if you look for them in your local market. It is also a good idea to offer some limited editions and exotic teas as part of your tea cafe business growth strategy.

Social media is key: Many people make their living by photographing food around the world. Business owners in the industry have reaped the rewards. Gaining more customers requires social media. Make sure your Instagram is strong, and you're presenting your teas professionally. You can hire a photographer to take some pictures. However, you'll get more business if you encourage customers to check in and use hashtags.

India is one of the world’s largest consumers of tea, with about three-fourths of the country’s total produce consumed locally. India stands fourth in terms of tea export after Kenya (including neighbouring African countries), China and Sri Lanka. However, consumers of tea in India are increasingly not getting to taste high quality premium tea varieties as most of them are exported and only a small part is supplied in domestic markets. This is happening even as the domestic tea industry is facing the onslaught from more and more coffee chains which are aggressively capturing a larger pie of the quality beverages market in India. 

According to industry insider, due to the shortage of high quality premium tea supply in India, branded tea marketing companies are forced to buy premium tea from Kenya and Sri Lanka at a very high 100 percent import duty. Such a scenario makes it very difficult for companies to aggressively increase sales of premium tea brands and take on the increasing competition from domestic and foreign coffee chains in the domestic market. The India tea market can grow by at least five percent if consumer preferences for quality tea are met and import duty is lowered.

Why tea export is important to India?

Tea worth 704.36 million dollar was exported overseas in FY21; Russia, Iran, UAE, the US and China are leading markets for export of Indian tea where flavours like Assam, Darjeeling and Nilgiri among the finest in the world, recognised for their strong flavours and intense aromas are popular. Despite this reputation, India has not been able to capitalise on its potential for tea export; it is the fourth-largest exporter (11 percent of global exports) after Kenya (28 percent), China (19 percent), and Sri Lanka (14 percent). A variety of reasons such as lack of access to capital, inefficient supply chains and non-adaptability to changing trends and technologies can be held responsible.

Early this year, tea industry has urged the government to come up with schemes to help increase tea exports from India and give financial support to set up tea lounges to promote tea drinking in the country in the upcoming budget. Exports of Indian tea have dwindled by 9 percent in the first ten months of 2021 compared to the same period of the previous year and it is unlikely to cross 200 million kg in 2021.

India is working on a strategy to fill the supply gaps that have opened up in the global tea market following the sudden economic crisis which engulfed Sri Lanka, the world’s largest tea exporter. Sejal Purohit, founder of Seven Spring shared that premium tea leaves are getting exported because of better prices than homeland. There is an awareness and demand. Most importantly government supports export hence the respective companies get a lot of benefits and aids. Purohit also added that it adds value to the company's brand positioning in the market.

Why India needs to raise the bar for premium tea?

According to the industry stakeholders retailing of premium teas through specialized ‘Tea Boutiques’ should be encouraged and financially supported by the Tea Board as this popularizes the concept of drinking specialty teas in the country. This will not only encourage people to imbibe a healthy lifestyle, but will surely help the tea industry in these troubled times of production loss owing to climate change and other factors, especially in Darjeeling.

But things are looking to improve. “I would say post the pandemic all of us have realized the value of health. As a result, we have started showing interest in health products and educating ourselves. Due to this, there is a rise in premium quality tea. Moreover, the spending power has been increased for the health and lifestyle segment products. Teas like white tea, Matcha, Oolong, and Darjeeling First flush which fall into the premium category are packed and picked because of lots of health benefits,” Purohit commented.

Indian tea is also at the centre of indigenous holistic wellness traditions, interest in which has grown tremendously since the Covid-19 pandemic. An uptick in demand for herbal and organic teas has created a shift in consumer purchasing habits. More people are now looking to buy domestically produced products. This holds potential for Indian tea to expand its reach.

Another major trend amongst the middle and upper income level consumers in India in the past few years has been the increasing attraction for ‘organic’ products. Considering the benefits for organic and green tea, there has been a surge in the demand for these types of tea varieties over the last few years. But, for few companies, they have been unable to meet this growing demand as supply of organic tea is very limited in India. 

Interventions needed from the govt

“Markets are driven largely by supply and demand for tea. Quality tea demand has increased over the year and positively impacted the industry from the consumers end directly,” Rudra Chatterjee, managing director of Luxmi Group shared. According to him, for tea businesses, rationalization of high logistics cost, especially costs of shipment etc. can be crucial factors to resolve. “Also a focus on quality tea manufacturing across Bought leaf and organized sector help the industry to maintain consistency in quality of tea that again helps manufacturers as well as consumers,” he further added.

Mirroring the sentiment, Piyush Desai, managing director of Wagh Bakri had shared that the priority should be to increase domestic consumption of tea. As per him, there will be severe competition in the international tea market. On the other hand the domestic market sales and marketing by competing beverage coffee is rapidly creating challenge to the consumption of tea. The branded tea players will have to aggressively taken on these challenges and their success will hinge on the supply of high quality premium tea.

What are tea companies now doing?

A multi-million-dollar industry, India's tea manufacturing industry has not just helped employ hundreds of thousands of workers but also put the country on the map for quality tea exports.Tea has become India’s national identity of sorts. From high quality first, flush harvests steeped only for a set number of minutes to homemade tea quickly brewed for friends and family, this beverage has managed to remain a constant even as the rest of the country was metamorphosing.

Tea companies are now growing tremendously and are introducing more varieties that are tasty as well as healthy. India, a predominantly tea-drinking nation with its swathes of tea-growing valleys, is eyeing the top spot for quality tea production in the world. And, homegrown brands have been helping preserve the rich heritage of tea drinking in the country. By translating consumer requirements to farmers, brands can create sustainable supply chains that answer to changing market trends and create a market for premium quality Indian tea in all corners of the nation.

India and its connection with tea are world-famous (thanks to our PM). Keeping aside the political connotation, tea is India’s best-loved beverage, and for most Indians, it is mankind’s greatest discovery. After all, India is the world’s second-largest producer of tea and most of its production is geared to meet domestic demand. Per capita consumption of tea has been growing steadily for the past fifty years and, today Indians consume a whopping 837,000 tonnes of their favourite beverage.

However, most Indians like sipping on milk tea because of the flavour or just out of habit. Initially, people started adding dairy so as to reduce the bitterness of the tea; however, the addition turned into a habit and ended up becoming an addiction for most. But lately, there has been a gradual shift towards flavoured tea with a wider acceptance in the Indian taste palate. 

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Millennials moving beyond ‘doodh-chai’

For young India to move towards a conscious, healthy and effortless lifestyle blending the regular green and black teas with flavours that will meet the interest of audience taste notes has become important for a few of the tea brand. The Indian Chai started in the year 2016, realizing the need for teas to be flavoured. 

“Indian population, in general, have witnessed a large scale health ailments due to their choice in lifestyle leading to weakness, fatigue, fogginess, irregular periods and sleep cycles and our range of wellness teas like PCOS tea, Cough & Cold Tea, tulsi good sleep tea, Dandelion root tea and lungs cleanse and Detoxify tea have significantly helped them supplement their lifestyles better,” Shradha Jain, Co-Founder, The Indian Chai commented. 

Pandemic fueling the demand

“We’ve seen a growing acceptance towards Herbal Teas, wellness teas and iced teas especially post the pandemic. The pandemic has led to a fundamental shift in consumer’s behaviour towards high quality, natural and organic wellness products,” added Bala Sarda, Founder & CEO, VAHDAM India.

At Vahdam India, their range of organic turmeric focused herbal teas followed by other herbal teas are the fastest-growing categories as of now. Consumers are now moving beyond regular tea and open to experimenting. They are increasingly inclined towards trying out innovative flavours and unique blends of hibiscus tea,  Apple cinnamon tea, and anti-hangover tea. There are also various quirky tea blends available in the market like giloy and ashwagandha which cater to the demands and preferences of the consumers ensuring both taste and wellness. 

According to Nalin Sood, CEO & Co- Founder, Teamonk Global, the biggest pain point with green teas is that though they are perceived to be healthy, consumers find them bitter. To solve this, most brands have launched green teas with different flavours, which improve palatability and make them more acceptable. A lot of the green tea growth is now fueled by flavoured variants.

Online shopping comes in favour

There has been a drastic change, rather a major shift in the consumer psyche and they now prefer online shopping over physically visiting the stores. Shalini Raj, Founder, The Infused Kettle feels that this trend has proved to be beneficial for brands offering flavoured and herbal teas as consumers are now well-aware and hence make well-informed purchasing designs. 

“While shopping online, they conduct in-depth research and gather knowledge about new variants and flavours in the hot beverage market specifically in the case of tea offerings,” she added. 

Teamonk Global has sold over 15 mn cups and continue to add to its base of very loyal consumers and are witnessing a very strong demand for the teas, esp from overseas markets, and have doubled the volumes from the pre-pandemic period.  Sood informed that the company is primarily catering to D2C demand and sell teas in major overseas markets including USA, Canada, UK, Europe, Australia, Russia among others, through eCommerce partners and own website. 

Existing market players tapping the segment

Luxmi tea which is into the business since 1912, is soon entering the segment of flavoured tea. “We have our own estates in which we have allowed herbs and fruit that are endemic to the region to grow along with our teas, we will be incorporating them as additives to our green and black teas,” Atul Rastogi, President, Luxmi Tea Co. Pvt. Ltd. shared. 

The growth trajectory that these companies foresee will be from flavoured green teas as consumers are aware of the fact that green tea is among the least processed teas and has high antioxidant content. 

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Rastogi further commented that the Asia Pacific is the fastest-growing market for flavored teas and India is second only to China in terms of acceptance of teas that have been blended with spices, fruit bits, flower petals, herbs, and a whole array of botanicals. 

Tea has made everyone re-discover, and the timeless wisdom of the Indian way of life – simple, natural, organic and holistic. Although there is a long way before it replaces the traditional milk culture there has been a clear massive change in the mindset amongst consumers. 

We Indian’s have always loved our favourite cup of tea, be it any time of the day or night. Anubhav was preparing for UPSC in Delhi and Anand was doing a garment business in Indore city of Madhya Pradesh way back in 2016. The idea spiked in Anand’s mind who together with Anubhav thought of doing something of their own. Looking at the circumstances Anubhav quit his UPSC preparations and moved to Indore. With bare 3 lakhs rupees as capital in hand the duo decided to pursue their dream and launched Chai Sutta Bar in 2016. On asking why ‘Chai’, Anubhav shared that tea is the largest selling beverage on planet after water. “Countries/customs, ways of preparation and consumption might differ but the product Tea would remain same. Hence we thought selling Tea would be our safest bet,” he added whose overall turnover crosses approx.50 crores and above but are still bootstrapped. Excerpts from the interview:

We see that in the last 7-8 years there has been a sudden growth of tea cafes across India. Why so?

See, tea is not just the highest selling beverage but it also has a lot of health benefits associated with it. Everyone consumes tea in different ways, if you go to analyse figures statistics suggest, in 2015 the consumption of Tea in India alone was 932 million kilograms and by 2020 it is 1116 million kilograms which seems a fair number and a drastic demand. Tea is not only a refreshing beverage, it also works like a stress buster for many, some may assume to be culture representation whereas many treat it as a tradition.

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How is Chai Sutta different from others in the segment?

When you say Chai Bar, it’s all about mixing two complete opposite traditions together. And when is complemented with Sutta, most people know what that is but we do not promote any kind of tobacco in Chai Sutta Bar premises. It’s just about making chai available on a bar table is what separates Chai Sutta Bar from others. Except this the ambiance has a very positive vibes while one enjoys a cup of Chai in a Kulhad like a desi way Chai Sutta Bar ensures that its customers are not economically drained.

You have expanded to 70 cities in India and 3 countries outside India. What was the accelerating factor behind this fast growth?

To set the perspective right, from the beginning the idea was to be present in all the University and Hostel areas across the country. But little did we expected the overwhelming response that we get from our regular customers that Chai Sutta Bar will become the most loved Chai outlet across the nation. Few factors that we definitely think worked in our favor were:

·        Increasing demand for Chai

·        Young office going crowd

·        The affordability that Chai Sutta Bar provided

·        Extremely pocket friendly siders

·        Unique taste and flavors

·        Positive ambience and environment

·        Bar feels

·        Well maintained hygiene

How about entering into a franchise concept because it is believed that it’s the best medium when expanding to a new geography?

Definitely, we completely agree that the franchise models works wonders. It has done wonders at least for us, we have grown exponentially in the past 4.5 years with this model and there is no stop that we see coming through our way. When we specifically talk about covering geographies definitely this model works wonders as we are able to open our wings and fly continuously, specifically for a product like Chai who’s demand is only going to grow and never reduce.

Who are you targeting as your customer?

Our target audience is anybody and everybody who consumes Chai and is open to experiment with flavors. Our 1 kulhad chai costs as low as Rs. 10/-, a nominal amount that everyone can afford to shed at Pan Gumti and Chai Tapri’s as well. So we have no discretion in audience, we want to work with the objective of serving the right cup of chai with complete hygiene and positivity

How have you priced the teas?

Chai Sutta Bar completely comprehends that Chai is a necessity for most and not luxury. Our pricing model with a Kulhad selling at Rs. 10/- to appetizers and mocktails selling at Rs. 100/-. Anything and everything on our menu is within this range that is the USP of Chai Sutta Bar. We have priced our products in the most economical, affordable and realistic range without compromising on the quality or taste.

What is the average sale and ticket size?

We sell on an average 3 lakh + Kulhads in a day. Our average sale is approx. INR 12000/- per outlet in a single day.

Who do you see as your competitor as we have seen that brands like chaayos and Chai Point have already experimented a lot with their offerings and have now entered into delivery and retail spaces?

It is said that the tea market is really competitive but we take brands in our business segment as a source of inspiration, a reason to innovate, and to learn from their experiments and failures.  However, we feel that the demand for Chai is never going to die so even if there are multiple competitors in the market who have Chai as their key product will sell brilliantly and we also feel that we ourselves are our biggest competitors because if each day we do not up our game by a notch any business would die. So keep bettering ourselves is our biggest experiment we think we do as a brand.

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What’s your expansion plan?

Our aim is to be present across the world and in every possible gali or lane in India. We are currently present in 65 cities and 3 countries but by 2025 we aim to make Chai Sutta Bar an International Brand.

Since ages, Tea has always been a very popular drink in India and is available in various variants. It has many medicinal qualities which are helpful in many ways. With the introduction of new age tea’s made up with herbs, flowers and spices people are experimenting with their tea’s. New age teas provide the highest quality of medicinal benefits.

Not only this, since the covid-19 pandemic has hit the globe, more and more people are experimenting with healthy and immunity boosting foods, drinks and tea is one such drink or I would say addictions for we Indians that has been experimented well in the country.

Healthy souls was started in August 2019 by Nitish Jha, ex-founder, World In A Box that was an extension from his earlier venture to do something in healthy food segment at larger scale. Unfortunately because of Capex heavy nature of the business, it would have meant opening kitchen in all major cities which they could not implement that time. “We took our learning from the venture and ran a pivot to launch a wellness brand which could be scaled to all major part of country by utilizing already strong logistics chains that has been possible due to the e-commerce boom in India. Idea was to help anybody who is busy achieve his health goal through our beverages. That's what we say @ Healthy Souls, Building a healthy India one tea at a time,” added Jha.

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The brand has Immunity Plus Tea which comprises of various ingredients like Neem, Brahmi, Rosemary and Turmeric. All the ingredients have brilliant properties which work towards the enhancement of immunity and act as an immunity booster,’ he shared pointing at the benefits of these ingredients that are not just a taste enhancer but also a game-changer for many infections. Excerpts from the interview:

How have you seen the change in eating/drinking habits of customers during covid-19 pandemic?

Millennials started eating at home as ordering in was discouraged initially. Lots of people moved towards ancient ayurveda and started including herbs and spices like tulsi, cinnamon, clove, ginger, garlic, turmeric etc in their food and beverages. People were consuming more warm drinks like kadha and herbal teas as compared to their traditional chai.

We have seen that customers are looking at more immunity boosting foods and drinks post covid. What’s your view?

Yes, there has been a gradual shift in focus from just eating healthy, low carb food to ingredients which are immunity boosting. Turmeric latte was a big hit in west and our haldi doodh is back in India as well and almost mandatory now to drink at some houses.

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What are some of the range you are offering?

We offer lot of teas for lifestyle diseases like insomnia, obesity, digestive issues, immunity and metabolism enhancers. Our major range consists of moringa tea, Nettle & parsley tea, fennel chamomile & ginger tea, turmeric, brahmi & Neem tea, ashwagandha & tulsi tea, cinnamon black pepper & garcinia cambogia tea

Who are your regular customers?

These are usually people who are busy in their lifestyle and don't find enough time to take care of their health. This tea acts as a supplement for them and ensures they can still meet their health goals.

What is the price point, average order you do a week?

We start at 1200 and go up to 5000 on an average. A single cup of tea costs less than Rs 35.  All our teas are backed by free nutritionist & health coach support.

What is the future of such product now that everyone has become health and immunity pro?

We are looking to increase our channel partners to reach out to wider audience. There is going to be exponential increase in demand for such products in future. 

A hotelier from New Zealand having an experience of 20 years in the industry returned to India with a dream of having a cup of tea with our honorable Prime Minister Narendra Modi. Jagdish Kumar, a follower of Modi Ji, sacrificed his green card and came back to India in December 2018. Here he started his own business of selling chai.

Started from the scratch of selling usual tea, he then started a brand named Chotu Chaiwalah serving 35 variants of tea and their most popular varieties with quirky names like- Mummy Ke Hath Wali Chai, Mardo Wali Chai, Corporate Wali Chai and Dosto Wali Chai are what makes it a unique point of attraction.

After receiving quite an applaud for his work in this sector, he started his own company named Corpbite under which he opened multiple food brands like Chotu Chaiwalah, Chaat House, Unlimited 24, Motulal Bhaturewala and more since 2018. Inspired by Modi and his journey, he wishes to meet him one day over a cup of tea and associate it with his startup mission to make youngsters aware about the 'Make In India' campaign and realize its potential and guide them to grow a business under its concept. Excerpts from the interview:

What was the whole idea behind NRI Chaiwala? How many outlets are you running?

As I mentioned I am a big fan of Modi Ji and his startup policies like startup India, make in India, and digital India. The whole idea for NRI Chaiwala is to introduce and spread the variety of chai within the country. Encourage the youth and let them aware the value of startups.

Since, you are one of the biggest admirers of PM Modi. How are you trying to make his vision ‘Vocal about Local’ successful?

Well, the message is very clear that the honorable Prime Minister Narender Modi ji is promoting local products and trying to make it in India so the country cannot be dependent. We are doing a couple of things for vocal n local.

a) We are trying our best and using all local products so that will help boost the Indian economy. Like The chai leaves us all bought from Assam to promote our local product. We do not import from China or Sri Lanka. Our all the product is local

b) We are spreading awareness that how important is made in India, (vocal for local) how it’s contributing to developing the nation as well individual per capita income.

Covid-19 has brought the whole sector to an halt. What is the future of restaurants like yours?

India’s restaurant industry is facing what is possibly its worst existential crisis. While the COVID-19 lockdown reduces risk of transmission, it has also meant that revenues dropped to zero, with businesses struggling to find the cash to pay their employees and make rent. Even after lockdown ends, dining-out will never be the same. Restaurants can bring about contactless dining. From checking in to the restaurant and seating themselves, to ordering and online payment, limiting contact with staff would go a long way to maintain social distancing and hygiene norms. Customers could also be able to pre-book their food through apps, or do so via smart phone apps once they reach the restaurant and are seated. Valet service would also offer minimal physical contact, via automated valet tokens and minimum-contact handover of car key. Restaurant will focus mainly on delivery or take away.

I believe that post Covid, customers will be much more selective and conscious going to a restaurant/ cafe. How are you planning to beat this fear from your loyal customers?

Hospitality sector has been one of the worst-affected service sectors due to Covid-19 and is expected to take longer than expected time to recover. As people would continue to avoid travel and crowded space in the post-lockdown days, the sector would see slow recovery. It is very difficult to survive in the dining industry for the next few months or may be a year at least. We are carrying out sensitivity training across our teams, and modified body language models to include maintaining a healthy distance, this could mean reducing the number of table. We are not exposing crockery, cutlery or glass ware to reduce the chance of contamination. We are keeping it in a safe cupboard and when required it will be brought and placed on the table. Of course all the tables are going to be cleaned with sanitizers and chlorinated water. Our entire cutlery is washed in dish-washers with effective soap solutions where water temperature is as high as 80 degree. When it comes to sanitization and cleaning we are taking utmost care,

Tell us something about your uniqueness and way of cooking that makes NRI Chaiwala different from other tea cafes?

Cooking - well our cooking style is not different but our quality of ingredients (Mostly we made in house) if I will talk about chai, we mix a variety of chai leaves and make best chai out of it. We know how much quantity of chai leaves we have to use to make one final product. Our chai masala enhances the taste of chai made from a variety of secret spices. Our background, expertise, knowledge and skills in hospitality give us confidence which others do have. We do understand the role of quality ingredients and quantity we required. A part of cooking below is some of our USP which makes us different from others.

Pricing - our pricing is very reasonable, based on location, clientele and menu selection.

Menu Selection – we do change our menu as per local preference for example (Only) if we think of this particular location we have pizza lovers rather than Wraps.

Higher output in less time - NRI Chaiwala works on a strategy to value and satisfy every customer of the outlet that worked as USP for the brand in producing higher outputs.

Premium atmosphere of outlets - The atmosphere inside NRI Chaiwala cafes is a great stress reliever and relaxing. With proper and right kind of background music, relaxing furniture design.

Diversified Menu - NRI Chaiwala has a diversified range on its menu. Initially serving different flavored tea, serve different snacks and dishes for both Indian and International customers

Are you also delivering online or is there any plan?

As soon as we will get permission by the local government we will start delivering

What according to you will be the future of tea cafes in India?

We Indian are emotionally attached with this industry as after the water chai is most consumable drink in India, we start our day with chai. We can see unbelievable growth in the tea café business, many new startups (TEA CAFÉ) came and succeeded; most famous are Chaayos, Chai Point, NRI Chaiwala, and Chotu Chaiwalah. People are not accepting but they are getting used to it. They are appreciating the new variety in chai cafes and chai atmospheres. Corporate and youth have made these places their chai adda, we can see significant growth. Also investors are very keen and have shown their interest as funding these projects. Recently many brands got funding in millions and can see their rapid growth in opening new outlets and turning into profitable business. Indian was tea nation tea lover’s country is a new concept and variety has boosted this industry.

What encouraged you to start a Chai business?

Pankaj: Chai is India’s national drink (unofficially). But 95 per cent of chai in India is sold on road side thelas in a very unhygienic form. I thought if we can sell chai in a more structured and in a hygienic form, then there is a huge potential
Nitin: Being a corporate guy, I could never find freshly brewed chai in my office. Generally offices have a tea dispenser machine, which gives you an awful taste. I thought to solve this with an entrepreneurial approach and started Chai thela.

We see many IITians venturing into fresh food and chai business. What has brought this trend in the engineers? Is it the food love or immense scope available in the Indian food industry?

Pankaj: I think it is both. People who are passionate about food and wish to start some thing of their own would look out in the same sector. However, for me it was a pure business preposition. I identified the problem – People don’t have access to hygienic tea and decided to do something about it.

What made you name it ‘Chai Thela’? What are the types of tea brewed at your outlets?

Pankaj: We wanted to create a brand which must have a quick connect with customers. Also 90 per cent of tea in India is sold through road side thelas only. Therefore, we thought to come up with modernised (Hygienic and branded) version of a thela and hence, we named it – Chai Thela. There are around 40 varieties of tea at our counter ranging from adrak chai, masala chai, dhaniya chai, green apple chai, mango chai, kashmiri kahwa etc.

You are presently based out of Noida. What are your expansion plans?

Nitin: We are planning to enter Gurgaon and Delhi in the next 4 months and later, we will expand our operations to different cities in India.

Who is your target customer as you are mostly present in IT parks and colleges? What is the range for tea?

Pankaj: Our Target customers are corporate, college campuses and hospitals. The price range of tea is from Rs 10 (Aam Aadmi chai) to Rs 25 (Mango Chai).

From where did you manage to get the funds? Are you looking for any external investments?

Pankaj: Initially, we bootstrapped the company. But now, we are looking for funds for expansion.

We see a lot of tea start-ups in metros. Why aren’t they targeting the tier-II market?

Nitin: There is a great potential in tier -2 cities. After Delhi NCR, we are focusing on tier 2 cities only for expansion.

Who do you see as your competitor in the market? How is your marketing strategy different from others?

Pankaj: There are a lot of players coming up in this sector. However, Chai Point is doing great. Recently, they have raised around Rs 10 crore in funding, but they keep chai in containers and we on the other hand, offer freshly brewed chai.