Chai Sutta Bar has grown from a single shop in Indore to over 200 locations across India

• 52
• 0

Anubhav Dubey and Anand Nayak's parents, like those of any middle-class household, encouraged them to consider possibilities such as CA, CAT, MBA, UPSC, and others when planning their professional paths.

<font color="#222222" face="Georgia, serif"></font>

None of them, however, worked out. After failing to pass these tough examinations, the couple reverted to the entrepreneurial ideas they had "harboured for a long time."Tea is the most popular beverage in the world, second only to water. According to an IBEF report, India is the world's second-largest producer of tea. This was a watershed moment for the relationship. After witnessing "chai everywhere," the two friends decided to launch a tea-café franchise in Indore in 2016 with an initial capital of Rs 30 lakh. They chose the unique moniker Chai Sutta Bar for their chain. Anubhav used a variety of techniques to get people's attention in the early days of the company.

They built the first outlet outside a girls dormitory because they knew it would be easy to pull the lads in once the girls started pouring in. They'd appear out of nowhere.
Anand and Anubhav would also frequently shout about "Chai Sutta Bar" in crowded areas. They both have a large number of acquaintances. They would get them to sit at our establishment, making it appear as if we were doing exceptionally well. The young entrepreneurs have come a long way since their first outlet in 2016. CSB has grown to over 200 stores in over 100 Indian cities throughout the years. There are 195 franchisee models and five company-owned models. Their point of uniqueness is now their price and the way they serve their product.

Unlike brands like Chaayos, Chai Point, and others, Chai Sutta Bar's tea starts at Rs 10 and goes up from there. Other brands start at Rs 100 or Rs 120 for tea, which is out of reach for most people. Kulhads are used to serve tea (small cups made of clay). Every day, the enterprise buys roughly three lakh kulhads from 500 potter families. The company began by serving simple tea in kulhads and later expanded their menu to include flavours such as Adrak Chai, Chocolate Chai, Masala Chai, Elaichi Chai, Tulsi Chai, Kesar Chai, and others. Sandwiches, pasta, noodles, burgers, and other foods were also introduced by CSB. While tea remains our primary product, we have moved into culinary categories since the margins are attractive. The CSB supply chain is centralized, with the master kitchen in Indore, and the ingredients are sourced locally. Anubhav states that total sales from all stores are Rs 100 crore.

Taking an Indian brand to a foreign market
While CSB has a large presence in India, its first foreign shop, in Dubai, will celebrate its second anniversary in January 2022. Once their brand had established itself in the Indian market, Anand and Anubhav were serious about their global goals. They choose to start with the Middle East market, starting with Dubai and then moving on to Oman.

Indians, Bangladeshis, and Pakistanis who drink tea regularly are among their target demographics.
The COVID-19 pandemic struck just as the founders were hoping to expand further in India and overseas, bringing everything to a standstill. With stores closed and fixed expenditures such as rent and salaries stacking up, CSB lost Rs 3 crore in the first two quarters of FY21. During this time, the team produced a great deal of content about the company. Chai Sutta Bar's YouTube channel has 26,000 subscribers and various videos about the art of preparing tea, the company's history, and more. They gave away complimentary tea to healthcare personnel and police officers. As the country grew more open, so did the company's chances. Anubhav is hopeful about the future and aims to expand CSB's footprint in India by opening stores in the United States, the United Kingdom, and Canada. While tea is in high demand in India, CSB faces a difficult struggle in maintaining its position in a market dominated by both organized and unorganized businesses.