{"id":4509,"date":"2020-10-26T09:46:00","date_gmt":"2020-10-26T09:46:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=4509"},"modified":"2022-11-02T12:10:51","modified_gmt":"2022-11-02T12:10:51","slug":"tea-cafes-expand-start-home-deliveries","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/tea-cafes-expand-start-home-deliveries\/","title":{"rendered":"Tea Cafes expand; start home deliveries"},"content":{"rendered":"\n<p>Written By <a href=\"https:\/\/www.financialexpress.com\/author\/devika-singh\/\" target=\"_blank\" rel=\"noopener\">Devika Singh<\/a><\/p>\n\n<p>Given the low footfall, QSRs like Chaayos and Chai Point have added more food items in their menus for delivery<\/p>\n<div class=\"row\"><div class=\"col-sm-6\"><img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/10\/Chai-Point1.webp\" class=\"img-fluid lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><\/div>\n<div class=\"col-sm-6\"><p>Experts say these chains are \u201cstepping away from their core offering\u201d.<\/p>\n\n<p>Social distancing has thrown a spanner in the works for tea caf\u00e9s that were originally built around the concept of \u2018catching up\u2019. Given the low footfall, QSRs like Chaayos and Chai Point have added more food items in their menus for delivery, and are ramping up their packaged food offerings.<\/p>\n\n<p>According to a Zomato report released in August, dining was operating at 8-10% of the pre-Covid level, while food delivery was clocking 75-80% of pre-Covid GMV. The food services industry has been making the most of home deliveries to recover the loss in business from dine-in; however, experts say, it hasn\u2019t worked well for tea caf\u00e9s. \u201cTheir core offering is \u2018a fresh cup of tea\u2019, which loses effectiveness when delivered to homes,\u201d says Pinakiranjan Mishra, partner and national leader, consumer products and retail, EY India. The fact that tea is an oft-consumed beverage in homes is another challenge.<\/p><\/div><\/div>\n\n<p><b>Beyond beverages<\/b><\/p>\n\n<p>Tea caf\u00e9 chains have tied up with e-commerce platforms to deliver items from their expanded food menu. Chai Point\u2019s menu, for example, now includes \u2018all-day breakfast\u2019 options like parathas. \u201cTime-strapped consumers are looking for food items that are filling, and hence, we have launched 12 more products,\u201d says Amuleek Singh Bijral, co-founder and CEO, Chai Point.<\/p>\n\n<p>The company has enabled consumers to place orders on WhatsApp. For deliveries, it has tied up with Dunzo, Shadowfax and other regional players. The effort is to \u201ctry and create an alternate discovery channel\u201d, says Bijral.<\/p>\n\n<p>Meanwhile, Chaayos has added street foods such as vada pav and pav bhaji to its menu. \u201cThere has been an increased demand for hygienic street food, as consumers are unable to venture out, and we want to tap that,\u201d says Raghav Verma, co-founder, Chaayos. The company, which would receive a mix of residential and corporate orders in pre-Covid times, has lately seen a rise in order volumes from residential areas.<\/p>\n\n<p>Both the QSRs are also betting on packaged foods. Chai Point used to offer packaged tea and snacks at its outlets pre-Covid, but now it is retailing these products through its own website. Besides tea packs, snacks such as khakra, cookies, and ingredients used to make tea, such as jaggery, honey and natural sweeteners are being sold on the platform.<\/p>\n\n<p>Chaayos is now offering instant tea mixes, in addition to tea packs and snacks. It has tied up with e-commerce platforms \u2014 Amazon, Flipkart, Big Basket, Grofers and Milkbasket \u2014 to sell these.<\/p>\n\n<p><b>Not their cup of tea?<\/b><\/p>\n\n<p>Experts say these chains are \u201cstepping away from their core offering\u201d; the only leverage they have is the brand awareness they enjoy. \u201cThere are very few synergies between a caf\u00e9 and a packaged foods business that these companies can tap,\u201d says Devangshu Dutta, chief executive, Third Eyesight.<\/p><p>\n\n<\/p><p>Entering the packaged tea and snacks categories puts them in direct competition with the big FMCG brands \u2014 Lay\u2019s and Uncle Chipps in the snack category and Tata Tea\u2019s and HUL\u2019s tea brands in the packaged tea segment, for example.<\/p>\n\n<p>Keeping their pricing in the mid-premium to premium range, experts say, would help these companies recover delivery costs and create a differentiated positioning. That seems to be the strategy adopted by the QSRs. A 250 gm pack of Chai Point\u2019s Assam tea, for instance, is priced at Rs 199, slightly higher than HUL\u2019s Red Label, which is priced at Rs 145. Chaayos\u2019 pricing is more premium \u2014 Rs 298 for a 200 gm pack of masala tea.<\/p>\n\n<p>These companies may be looking at this alternative revenue stream only for the short term, say experts, until footfalls return to the pre-Covid level. A long-term strategy, after all, would require higher investments in distribution and marketing.<\/p>\n\n\n<p>Source: <a href=\"https:\/\/www.financialexpress.com\/brandwagon\/tea-cafes-expand-start-home-deliveries\/2113733\/\" target=\"_blank\" rel=\"noopener\">financialexpress<\/a><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Written By Devika Singh Given the low footfall, QSRs like Chaayos and Chai Point have added more food items in their menus for delivery Experts say these chains are \u201cstepping away from their core offering\u201d. Social distancing has thrown a spanner in the works for tea caf\u00e9s that were originally built around the concept 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":[3],"tags":[],"class_list":["post-4509","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tea Cafes expand; start home deliveries - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/tea-cafes-expand-start-home-deliveries\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tea Cafes expand; start home deliveries - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Written By Devika Singh Given the low footfall, QSRs like Chaayos and Chai Point have added more food items in their menus for delivery Experts say these chains are \u201cstepping away from their core offering\u201d. 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