global marketing

Chaai Goes Global. India Among Biggest Players in Global Functional Tea Market

Indian "Nastas" to go Global
Chaai Goes Global. India Among Biggest Players in Global Functional Tea Market
Image credit: Franchise India
3 min read

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Tea is one of the widely consumed beverages in the country and India is one of the largest tea producers in the world. It is a fully matured category and the penetration level is above 95 percent. The total branded or the packaged tea (in various forms) market in India is estimated to be nearly Rs 9,500 crore and growing at a CAGR of 5-7 percent, in line with the population growth.

Global Functional Tea Market is estimated to grow at the CAGR of 4.4%. Growing demand for healthy hot beverages from all consumer groups is driving the growth of Functional Tea Market. Increased consumption of functional tea in developing countries is influencing key players to introduce a different variety of functional tea in the market.

In conversation with FranchiseIndia.com, Vamsi Krishna GNS, Founder, Chaai Resto, opens up his expansion plans via franchise model and gives us an insight of tea industry in India.

Aim to Become a Global Brand

Vamsi says, “More than 8.5 lakh tonnes of tea are consumed in our country every year. Tea is more than a cup of beverage for Indians. Apart from social reasons, tea also has a very good global market, which is the prime reason for us to build a brand of tea. We are currently serving some big corporate firms and have entered entertainment segment in multiplexes.

He adds, “Our target is to make ‘Indian nashtas’ along with tea available everywhere through our outlets and cloud kitchens. So, we are now focused on expanding and making ‘Chaai Resto’ a global brand.”

Chaai Resto’s Exceptionality

Vamsi elaborates the uniqueness Chaai Resto Offers to keep itself apart from the competition as, “Our cafes are designed to get a vintage look and feel. We are promoting Indian food in a modern way at an affordable price. We are imbibing Indian food culture into our brand and are ensuring our customers feel it. Also, we focus on lively ambiance with feel-good music and consistency of taste. Our mini nashtas with hot chai and couple combos which are available round the clock on online platforms are stealing the show.”

Expansion Plans via Franchise Model

Vamsi reveals his expansion plans as, “We are now on a mission 150 outlets by 2020 in South India through franchisee model.  Anybody who wants to become foodpreneur with an investment of 15 lakhs can take our franchisee and carry the mission forward. And also, we are coming up with a small cloud kitchen format which caters only to online ordering systems.”

Chaai Resto dreams to make the company a successful and profitable Indian food retail brand. Going by the philosophy of ‘Paying It Forward’, it strives to ensure that its business partners are profitable.

Franchising Facts

Franchising Fee on sign up           400,000

Total Budget                                 697,180

60% Incl Fee & Initial Start          418308

30% 0n before 1 week opening 209154

10% on completion                      69718

Total Tentative Cost                 1097180

This article was originally published on Franchise India by Nibedita Mohanta.

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