Chai has undergone a transformation in recent years, from a commonplace flavour enjoyed by many to a trendy beverage that resonates with the Indian youth, and we have innovative chai ventures to thank for this shift.
These trailblazers have elevated the appeal of chai by serving steaming cups of the beverage along with good vibes, captivating stories, and stylish decor that strikes a chord with the younger generation.
Now, two of the most prominent players in this chai revolution are set to compete: Chai Sutta Bar and MBA Chaiwala. An exploration of the tactics and distinguishing features that have allowed Chai Sutta Bar to secure a prominent position in the highly competitive market, whilst simultaneously endearing themselves to tea enthusiasts nationwide.
Chai Sutta Bar: Redefining Chai Culture Since 2016
Anubhav Dubey, the founder of Chai Sutta Bar, serves as an inspiration to many, having achieved great success despite initially intending to pursue the UPSC exams in order to appease his parents. Instead, he followed his passion for tea and, aided by his childhood companion, established a tea empire with a mere 300,000 INR.
Anubhav’s journey is a compelling and motivating tale that highlights the importance of perseverance and industriousness in accomplishing one’s aspirations. What sets Chai Sutta Bar and Anubhav apart from their competitors is their remarkable capacity to establish an emotional connection with the typical Indian, especially the middle-class youth, fostering a strong bond between the brand and its intended audience. As the proverb goes, “a well-spun story can work wonders for sales.”
“The MBA Chaiwala: Building an Empire with Chai and a Big Dream of an MBA”
Praful Billore, the owner of MBA Chaiwala, is well-known for his famous quote “Dream big, start small, act now.” Despite hailing from a middle-class family in Madhya Pradesh, Praful had set his sights on obtaining an MBA degree from a top B-school to secure a high-paying job. However, after failing the CAT exam twice, he began to question his choices and ended up working as a housekeeping staff at McDonald’s.
Although he had lofty aspirations, Praful found that working for someone else was unsatisfying and decided to start his own business as a tea seller. Despite facing numerous obstacles such as parental pressure, societal stigma, fierce competition from other tea vendors, and threats from local thugs, Praful persevered and established Mr. Billore Chaiwala, which is now known as MBA Chaiwala.
As Praful once said, “Chai is a ubiquitous presence in India – it’s always there, whether things are good or bad, whether deals are being made or not.” His venture not only appealed to tea lovers but also resonated with individuals who were struggling to make ends meet while holding onto their entrepreneurial dreams.
Now let’s Compare
| Aspect | Chai Sutta Bar | MBA Chai Wala |
| Product | Wide range of teas served in kulhads & coffees with unique flavours and toppings, snacks and quick bites like Pizzas, Pastas, Maggies,Burgers & more | Multiple flavours of Chai, Coffees, Shakes, & Snacks including Sandwiches, Maggies, Pizzas, Pastas & more. |
| Business model | Franchise model with low investment cost, providing an opportunity for aspiring entrepreneurs to start their own businesses. | Franchise business model based on the principle of “FOFO” (Franchise Owned, Franchise Operated), again a great opportunity for entrepreneurs to start their own business with a proven and successful model. |
| Expansion | 450+ Outlets across 195+ Tier 1, 2 & 3 cities. Global presence in Nepal, UAE & Oman. Further expansion is expected in Canada, USA & UK in 2023. | 200+ Outlets in more than 50 cities in India, majorly present in Tier 1 & Tier 2 cities. |
| Revenue | Higher revenue due to larger reach and extensive franchise network. | Lower revenue compared to Chai Sutta Bar due to fewer outlets. |
| Market strategy | Social media marketing, celebrity endorsements, event sponsorships, tie-ups, festive offers and discounts, quirky packaging, merchandise. | Social media marketing, PR, word-of-mouth, festive offers, social sharing, empowering customers to become brand ambassadors. |
| Vision | To bring Indian cultural values from the roots and blend them with the world-class ambience to serve people with aromatic experiences and cheerful memories. Spread Kulhad Chai across the world and get people to try it globally & taste the aroma of India’s soil with every sip from Kulhad. | To inspire the country’s youth and encourage them to pursue their goals, foster a startup culture, and promote entrepreneurship. Striking conversations & boosting awareness around topics like building business, health & fitness, overcoming social issues, combating climate change, civil rights, gender inequality, and more |
| USPs | Offering chai in eco-friendly kulhads (using 4,50,000 kulhads everyday, thus providing employment to more than 500 families) Serving traditional chai in a bar-like setting. Serving varieties of most loved food items and beverages that satiate both taste and appetite. Pocket-friendly pricing. Providing Employment to orphans & less privileged sections of society. Strong online presence. | Unique and Memorable Tea Serving Style in Kulhads along with toast and tissue which creates a memorable and authentic experience for customers. The founder, Prafull Billore, is known for engaging in friendly conversations with his customers which attracts a significant amount of customers to his shop. Small corner in the shop dedicated to job seekers & potential employers. Great presence on Social Media Organizing Unique events such as book exchange programs or entrepreneurship programs. |
| Target Audience | Youth and middle-aged working professionals, students, and tea enthusiasts who enjoy a trendy and modern tea cafe experience. | People of all age groups who enjoy authentic Indian chai and appreciate traditional tea-making techniques. |
Conclusion
In the contemporary era, the concept of entrepreneurship has developed into a fusion of ingenuity, novelty, technology, and globalization. As our dialogue concerning Chai Sutta Bar and MBA Chaiwala reaches its conclusion, it is a formidable challenge not to be stunned by the limitless prospects that await audacious entrepreneurs. Hence, let us celebrate by lifting a cup of tea to all the ambitious businesspersons who aspire to fashion the future of commerce, one concept at a time.
Suppose you are also an individual seeking to explore the realm of business by attaining a high-level executive position in a reputable organization or embarking on your entrepreneurial expedition while gathering insights from industry experts. In that case, we have a plethora of opportunities that may pique your interest.
