With over 4.5 lakh Kulhad Chai every day, CSB brews the perfect experience of happiness and creates soulful memories. Chai Sutta Bar is India’s fastest-growing Chai Chain & franchise that started its journey back in 2016. Hailing from the commercial capital of Madhya Pradesh, CSB is known for its uniqueness and world-class service. Startup Reporter recently conducted an interview with Mr. Anand Nayak, Co-founder, Chai Sutta Bar.
What prompted you to roll out this tea join? How do you get the courage and strength to flag off your tea join chain, which is your maiden entrepreneurial venture? What has been the experience so far?
Chai Sutta Bar (CSB) was founded based on a deep passion for tea and a desire to provide a unique experience for tea lovers in India. Recognizing the potential for innovation and standardization in the tea industry, we saw an opportunity to introduce a new concept that would transform the way Indians enjoy tea.
Our approach was to serve tea in traditional clay cups, known as kulhad, in order to offer an authentic and sustainable experience while supporting local artisans. With this vision in mind, we embarked on our entrepreneurial journey and launched Chai Sutta Bar in 2016.
Although our journey has been challenging, we were determined to make our dream a reality. Our goal is to create a brand that prioritizes the needs of our customers and brings joy to tea lovers throughout India.
Did you do any market study on whether tea joins are overpowering the erstwhile Cafes and coffee chains?
Both coffee and tea are widely enjoyed beverages across the globe. However, it is observed that tea is more frequently consumed than coffee, owing to factors such as its accessibility, affordability, and cultural relevance in various regions.
In India, despite coffee being considered a high-quality product, it has not been able to gain as much popularity as chai or tea, which is the preferred beverage for a vast majority of the population. Nonetheless, there is a growing trend of coffee culture in urban areas, with the emergence of coffee shops and innovative coffee-based beverages.
What exactly is your model and in what way are they different, other than serving tea in kulhad?
We operate under a franchise model, which has proven successful for us in the market for the past seven years. We specialize in flavored Chai, and our recipe is unique, resulting in a taste that we believe is unmatched. We are proud of our product, and we believe that our success in this area is difficult to replicate. We believe that our brand has given us a chance to differentiate ourselves in the highly competitive world of franchising.
How many varieties of tea do you serve? What kind of snacks do you serve? Are you planning to introduce more snacks?
At CSB, we provide a variety of chai (tea) flavours. In order to satisfy the wide range of preferences of our consumers, we provide various flavours and blends. We have masala chai for everyone, from the traditional blend to special varieties like chocolate and rose chai. In addition to our delicious chai, CSB offers a wide selection of food. Popular choices from our menu include sandwiches, hamburgers, Maggi, and more. To keep our menu interesting and unique for our consumers, we experiment with creative snacks and continually look into new possibilities.
You are growing at a pretty rapid pace, it seems. How many outlets do you have at this point? 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?
With more than 450 outlets spread across 195 cities, CSB has already solidified its position throughout India. Our goal is to keep growing across India, getting to more places and providing our delicious chai and snacks to more customers.
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? Are you looking at setting up multiple base kitchens at different locations?
As we supply Kulhad and “Chai Patti” from our firm end to small warehouses in many cities and areas, the supply chain is crucial to our operation. This procedure is necessary for us to efficiently distribute our products to the customers.
In terms of how our kitchen is run, we prepare food right there on the counters using the mechanism and products from local vendors. Compared to buying everything from our company, this strategy is easier for us to handle. We can guarantee the quality and freshness of the products used in our food by partnering with local vendors.
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 now have a large number of our outlets in suburban regions and small towns. Our goal is not simply to open outlets and make money; we also want to give the young people in these cities the chance to work and be a part of CSB. We take pride in what we do, which is what makes us unique.
Besides serving tea on 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.
