Hailing from a quintessential Indian middle-class family, the journey of Anubhav Dubey and Anand Nayak took an unforeseen turn from the trajectory of competitive exams to the realm of entrepreneurship with their brainchild, Chai Sutta Bar. Much like any average middle-class household, the parents of Anubhav and Anand steered their aspirations towards fields like CA, CAT, MBA, UPSC, and more, as they outlined their career pathways. Nevertheless, destiny had its own designs, and none of these paths bore fruit.
After encountering setbacks in their pursuit of excellence through these demanding exams, the duo found themselves revisiting the entrepreneurial aspirations that had been quietly nurturing within them for an extended period.
It was during these moments of introspection that Anubhav shares, “We would fill our bikes with 50 litres of petrol and roam the streets for ideas when we realised that the demand for chai is everywhere.” Tea, the second most consumed beverage globally after water, holds an indispensable place in the lives of people across the world. Interestingly, India stands tall as the second-largest tea producer, as highlighted by an IBEF report.
This revelation acted as a tipping point for the friends, who saw the omnipresence of “chai” as a beacon guiding them towards their endeavour. In 2016, with an initial capital of Rs 30 lakh, the two comrades embarked on the journey of establishing a tea-cafe chain in Indore, aptly christened as “Chai Sutta Bar.”
Reflecting on the early stages of their venture, Anubhav reveals that strategic planning played a pivotal role in capturing attention. “We strategically placed our first outlet near a girls’ hostel because we understood that once the girls began frequenting, attracting the male crowd wouldn’t pose much of a challenge. It would happen organically,” he explains. Additionally, Anand and Anubhav resorted to raising awareness about “Chai Sutta Bar” by vociferously discussing it in bustling public spaces. Their expansive friend circle came in handy as they encouraged friends to patronize their outlet, creating the illusion of thriving business activity.
From its humble origins in 2016, the entrepreneurial journey of these young visionaries has traversed vast distances. Over the years, Chai Sutta Bar has flourished into a network encompassing more than 200 outlets spread across 100 cities in India. Within this expansive network, 195 operate as franchise models, while five remain under the company’s direct ownership.
What sets Chai Sutta Bar apart, according to Anubhav, is the pricing strategy and the unique presentation of their offerings. While brands like Chaayos and Chai Point offer tea starting at Rs 100 or Rs 120, Chai Sutta Bar distinguishes itself by offering tea starting at a highly affordable Rs 10. Moreover, the tea is meticulously served in kulhads, small clay cups that infuse a rustic charm to the experience. This strategy has led to the daily procurement of around three lakh kulhads from 500 potter families.
The brand, which originated with the simplicity of chai served in kulhads, has innovatively expanded its menu to include diverse flavors such as Adrak Chai, Chocolate Chai, Masala Chai, Elaichi Chai, Tulsi Chai, and Kesar Chai. Additionally, Chai Sutta Bar introduced an array of delectable eats including sandwiches, pasta, noodles, burgers, and more. Elaborating on this diversification, Anubhav reveals, “Tea remains at our core, but venturing into food categories was a strategic move driven by favorable profit margins.”
Chai Sutta Bar operates with a centralized supply chain, anchored by a master kitchen in Indore, and locally sourced ingredients. Anubhav proudly claims that the collective sales from all their outlets culminate in a substantial Rs 100 crore figure.
While Chai Sutta Bar has firmly entrenched itself in the Indian market, January 2022 marked the second anniversary of the brand’s inaugural overseas outlet, nestled in Dubai. Anand and Anubhav’s global aspirations began to take shape once their brand gained solid ground in the Indian market. Their initial focus centered on the Middle East market, commencing with Dubai before subsequently exploring Oman. “Our target audience comprises Indians, Bangladeshis, and Pakistanis, all avid tea consumers,” Anubhav explains.
However, their global ambitions faced an unforeseen obstacle as the COVID-19 pandemic struck, grinding operations to a halt. The pandemic’s onset witnessed a period that Anubhav describes as “unimaginable,” with outlets shuttered and fixed costs accumulating, resulting in losses exceeding Rs 3 crore during the initial two quarters of FY21.
During this challenging period, the Chai Sutta Bar team channeled their energy into content creation. Their YouTube channel burgeoned to 26,000 subscribers, housing a plethora of videos delving into the art of tea-making, the brand’s journey, and more. In a heartwarming gesture, they extended free tea services to healthcare workers and police personnel. As the country gradually reopened, so did the avenues of growth for the company. Anubhav exudes optimism about the brand’s future, envisioning the establishment of outlets in the US, UK, and Canada while further consolidating Chai Sutta Bar’s presence across India.
Yet, amidst this potential lies a formidable challenge. The Indian tea market is dominated by an array of established and unorganized players. Navigating this landscape demands strategic innovation, resilience, and adaptability – qualities that have already propelled Chai Sutta Bar’s ascent from a modest local establishment to a prominent national and international brand.
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