{"id":4311,"date":"2022-09-02T12:30:00","date_gmt":"2022-09-02T07:00:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=4311"},"modified":"2023-09-23T09:13:22","modified_gmt":"2023-09-23T03:43:22","slug":"reading-the-tea-leaves-from-chai-to-high-tea","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/reading-the-tea-leaves-from-chai-to-high-tea\/","title":{"rendered":"Reading the tea leaves: From chai to high tea"},"content":{"rendered":"\n<p>Written by <a href=\"https:\/\/www.financialexpress.com\/author\/christina-moniz\/\" target=\"_blank\" rel=\"noopener\">Christina Moniz<\/a><\/p>\n<p>Retail chains are on an expansion spree, riding on growing demand from a young consumer cohort<\/p>\n<div class=\"row\"><div class=\"col-sm-6\"><img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/10\/123-1024x576.png\" alt=\"\" class=\"img-fluid lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\"><\/div>\n<div class=\"col-sm-6\"><p>Just about a month back, Wagh Bakri Tea Group, the third largest packaged tea company in India with a turnover of over `1,500 crore, opened its 15th tea lounge in Noida\u2019s upscale DLF Mall of India.<\/p>\n\n<p>A little over two years ago, Chaayos\u2019 physical footprint was 75 outlets across the country. Currently, its store count is 200.<\/p>\n\n<p>Just about a month back, Wagh Bakri Tea Group, the third largest packaged tea company in India with a turnover of over `1,500 crore, opened its 15th tea lounge in Noida\u2019s upscale DLF Mall of India.<\/p>\n\n<p>A little over two years ago, Chaayos\u2019 physical footprint was 75 outlets across the country. Currently, its store count is 200.<\/p><\/div><\/div>\n\n<p><b>Get the drift?<\/b><\/p>\n\n<p>Today the humble cuppa is much bigger than an excuse for roadside tittle-tattle. The rash of tea lounges and bars have taken what used to be, at its best, a social lubricant, and turned it into a `700-crore market.<\/p>\n\n<p>Homegrown tea caf\u00e9 chains have been quick to cash in on the out-of-home demand from a young consumer cohort, offering snacks, groovy ambience and even free wi-fi connectivity. Chains such as Chaayos, Chai Point and Wagh Bakri\u2019s Tea Lounge are ramping up their offerings to cater to a segment for whom coffee shops were the default hang-out zone. Up until now.<\/p>\n\n<p>But how sustainable are they, given that 80% of the tea drinking market is unorganised? Pramod Damodaran, CEO, Wagh Bakri Tea Lounge, says brands in this segment are catering to the \u201cneed state of the consumer\u201d, whether it is meetings,family outings, a quick rest after shopping at the mall or a quiet moment in airports, offices or hospitals. \u201cWe elevate the tea drinking experience and make it premium, almost akin to how tea drinkers in the past would enjoy their tea at fancy hotels, but we offer the experience at affordable prices,\u201d he says. While coffee chains offer muffins and croissants with their beverages, Wagh Bakri pairs its teas with pakoras, samosas and vada pav, which resonate more with the average Indian consumer.<\/p>\n\n<p><b>Growing the market<\/b><\/p>\n\n<p>Nitin Saluja, founder, Chaayos, draws parallels with global coffee brand, Starbucks. \u201cBefore Starbucks launched in the US, there were very few good quality coffee retail outlets. In the Indian context, before chai cafes were launched, consumers could barely enjoy a good cup of tea in a hygienic retail space outside their homes,\u201d he says.<\/p>\n\n<p>The pandemic, too, played its part in getting consumers to choose hygienic options. That is why home delivery, which was 20% of Chaayos\u2019 revenue prior to the pandemic, now hovers around 30-35%.<\/p>\n\n<p>The success of chai chains is a reflection of evolving consumer preferences. Saluja says despite the presence of huge international and homegrown brands in the coffee retail segment, the category earns an annual revenue of around 1,500 crore. \u201cIn comparison, there are only 3-4 homegrown chai caf\u00e9 players, but their combined annual revenue is around700 crore. Only chai retail chains in India can replicate the success of coffee chains in the West,\u201d he says.<\/p>\n\n<p>Damodaran says his chain is not competing with coffee chains but rather catering to the growing need for cafes. It is for this reason that the brand also offers coffee across its outlets. Wagh Bakri has 15 tea lounges and 10 tea kiosks (Tea World) across Maharashtra, Gujarat and Delhi NCR but plans to ramp up its footprint in the North, West and South over the next three years.<\/p>\n\n<p>\u201cThe industry can ensure long-term health only by capturing the value offered by out-of-home consumption in modern branded formats, packaged branded sales in modern retail and direct-to-consumer models,\u201d sums up Devangshu Dutta, CEO, Third Eyesight.<\/p>\n\n<p>Source: <a href=\"https:\/\/www.financialexpress.com\/brandwagon\/reading-the-tea-leaves-from-chai-to-high-tea\/2652582\/\" target=\"_blank\" rel=\"noopener\">financialexpress<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Written by Christina Moniz Retail chains are on an expansion spree, riding on growing demand from a young consumer cohort Just about a month back, Wagh Bakri Tea Group, the third largest packaged tea company in India with a turnover of over `1,500 crore, opened its 15th tea lounge in Noida\u2019s upscale DLF Mall of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[27,212,215,631,37,3,43],"tags":[99,100,52,211,174,291,59,191,714,65,715],"class_list":["post-4311","post","type-post","status-publish","format-standard","hentry","category-branding","category-consumer","category-food-grocery","category-food-service-restaurants","category-marketing","category-press-quotes","category-retail","tag-brand","tag-brand-building","tag-branding","tag-cafe","tag-consumer","tag-food-beverage","tag-india","tag-indian-market","tag-restaurants","tag-retail","tag-tea"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - 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