There are various products that comprises the Food & Beverage industry in our country ranging from baked goods (Biscuits being one the popular product in India), convenience food (foods such as frozen meals, ready to cook food, etc), dairy products (India is the largest producer and consumer of milk) and other confectionary items (Desserts and Sweets).
Apart from food products India is also known for its hot beverage (Tea) with Hindustan Unilever ltd running point on this segment, coffee which is grown in the Southern parts of India and cold drinks with Coca-Cola and PepsiCo dominating this segment. This particular sector in India constitutes 40% of consumer packaged goods.
Introduction to Chai Point
Did you know Chai point is India’s largest chai retailer? Their chai is brewed with fresh and natural ingredients which are delivered all over the country. The tea leaves are sourced from high-quality tea estates and companies located in Assam, Darjeeling and Nilgiris. Apart from chai they also own a brand of consumer packaged goods known as Made-For-Chai. This particular product consists of bite-sized snacks that perfectly complements their chai. The company’s main goal is to deliver a great cup of chai every time.
Chai Point’s main aim is to bring its customer base an unbeatable chai experience, be it in your home or workplace or your neighbourhood. To be consistent with its aim, Chai Point uses a cloud-based platform called Shark which allows the company to track all its billing across all outlets in a fast and seamless way.
History of Chai Point
Chai Point is an Indian Tea Company founded in 2010 by Mr Amuleek Singh Bijral. The company runs its headquarters in Bengaluru, Karnataka. The company currently has more than 100 outlets in around 8 cities across the country.
Timeline of Chai Point
January 2009 – Chai point idea surfaced – making Chai a global brand
April 2010 – opened its first outlet in Bangalore
December 2010 – Launched Customer Assistance Website (CAW)
February 2011 – the company got on-board an Angel investor
May 2011 – Mountain Trail Academy takes charge of training staff members on how to brew the perfect authentic chai for its customers
June 2011 – coupons based loyalty program was launched
January 2012 – Chai Point inaugurated its 10th outlet and it also introduces Vada Pao which became the second-best combination when compared with chai and samosa
February 2012 – Chai Point introduces its exclusively manufactured chai glasses
May 2012 – Chai Point introduces its 24*7 100% electric chai outlet at Bangalore International Airport
July 2012 – Chai Point introduces its own version of Masala-chai biscuit
June 2014 – Chai-on-call launched its website and mobile app
January 2015 – Chai Point showed an annual run-rate on 30 million cups of chai
August 2016 – boxC.in was launched
October 2017 – Chai point started selling teas on amazon.in
The only reason why Chai Point has an excellent brand name is because of its founder Amuleek Singh Bijral whose mission is to give its customer base a quick and refreshing jumpstart on their day so that they can work feeling completely refreshed and rejuvenated. As the CEO say’s “Within the hustle-bustle of life take a moment to whiff our freshly brewed chai that will make you stop, sip and start your daily life again.”
What is the USP of Chai Point?
Chai Point is known for its fresh and natural ingredients. All their products are made with no preservatives which give its customers the prefect taste along with added health benefits every time. Chai Point uses tea leaves from the best tea estates and companies situated in Assam, Darjeeling and Nilgiris to give its customers the authentic chai taste.
Unlike any other chai outlet, Chai Point’s product price remains constant in every outlet across the country. The tea is tasted by expert tea testers to ensure the quality of the product is unparalleled. Therefore every customer gets the best exotic teas with real spices blended with high-quality tea leaves thereby making it 100% natural.
Chai Point provides its franchise outlets with another great service called Garden to Glass, which provides vacuum-packed whole tea leaves in biodegradable packaging to their customers so they can sip on it at home as well.
Another major USP of Chai Point is boxC.in. the company provides freshly brewed chai and coffee automatic dispensers to corporate companies. This ensuring that working professionals also get to taste the perfect cup of chai at work.
Chai point ensures that your chai is at your doorstep within 30 minutes of you ordering it. To make sure the quality and flavour of your chai remain intact Chai Point has come up with a brilliant idea by creating Heat Retaining Flask which promises to keep your chai hot for 45-60 minutes without any harmful BPA’s also known as Bisphenol.
What are the benefits of owning a Chai Point franchise in India?
Chai Point company has partnered with Mountain Trail Academy (MTA) which offers its franchise owners and staff members with adequate and up-to-date training on how to brew an authentic chai and how to serve its customers with the perfect cup of chai. MTA helps the company to maintain its quality and also ensures constant up-gradation of skills regularly. The company provides trained staff to its franchisees so that they can help and train the franchise staff members and continue a smooth flow of operations on a daily basis.
Chai Point lets its franchise outlets have tie-ups with local stores and offices so that the outlet can provide authentic freshly brewed tea to everyone on a regular basis. This also results in a regular flow of income and creating brand awareness for their product.
What are the requirements of opening a Chai Point Franchise?
Area required to set up the outlet
Chai Point requires an area of 600-800 Sq.ft. The commercial property can either be owned by the individual or can be taken on a lease as well.
Skills or experience required
The main responsibility of the staff members is to maintain hygienic and healthy conditions to ensure that the outlet it spic and span every time. The franchise owner should possess entrepreneurial skills to make sure there is growth in the quality of its products and a constant increase in customer base in its area.
The employees at the franchise outlet should be innovative and should be able to understand the market around them and implement the necessary actions required to attract more customers to its outlet and also trying to introduce different exotic teas based on customers taste and preference without impacting the current customer growth.
Regions of operations
Chai Point outlets are situated in office areas, tech parks and high-streets thereby attracting customers from all sectors.
As of 2019, Chai Point stores are present in over 8 cities with more than 150 operational outlets.
The 8 cities with Chai Point outlets are Delhi-NCR, Hyderabad, Bangalore, Goa, Gurgaon, Pune, Mumbai and Chennai.
Mountain Trail Academy (MTA) provides all its Chai Point franchise outlets with well-structured training which are broken down in the easy-to-understand curriculum.
The main motive of MTA is to create a strong and competent workforce who are skilled and educated on how an authentic cup of freshly brewed tea is made and served to its customers. This is considered as the most important job role as this depicts customers the face of Chai Point.
Minimum staff requirement at Chai Point store
Minimum of 4-5 employees is required to run a Chai Point outlet.
What are the financial requirements for a Chai Point store?
The total one-time investment amount required to set up a Chai Point franchise store is around 25-50 lakh rupees depending upon the built-up area.
The profitability of the store explained below through a hypothetical example
Total investment made in ABC Chai franchise = Rs.30,00,000
Expenses incurred in a month
- Rent paid for a 800 Sq.ft area = Rs.2,40,000
- Salaries paid to 6 employees (Rs.10,000*6) = Rs.60,000
- Miscellaneous expenses incurred for the month = Rs.20,000
Total expenses incurred in a month = Rs.3,20,000
Income earned in a month
- The average footfall of customers in a day = 150 customers
- Average amount an individual spends in the chai store = Rs.200
- Total income earned in a day (150*Rs.200) = Rs.30,000
Total income earned in a month (Rs.30,000*30) = Rs.9,00,000
Gross profit for the month
Gross profit for the month (50% of Rs.9,00,000) = Rs.4,50,000
Total profit for the moth
Total profit earned in a month (Rs.4,50,000 – Rs.3,20,000) = Rs.1,30,000
You can get back your entire investment based on the profitability example within 1 and half-2 years.
This article tells us that Chai Point is creating its brand around chai because in India Chai is one thing that you can find it anywhere. To turn this store into a globally loved brand Chai Point is coming out with innovative products thereby making this the first choice of beverage for its consumers.
Chai Point’s slogan, “India runs on chai”, Clearly shows the amount of hard work the company is putting in by ensuring that not only its customers are rewarded with the perfect cup of chai but they are also recognising its staff members by conducting an event called chai masters wherein there are some great tea experts and masters who help then company in selecting top three chai brewers from all the outlets across the country. This proves that Chai Point not only values its customers but also its staff members as well.
Not only they attracting more customers to their stores but they are also targeting corporate workplace by either opening a small outlet on the work premises or providing offices with large chai dispensers or with their one of a kind heat-retaining biodegradable disposable flasks. Corporate workplaces can also book regular deliveries of their favourite Chai on the Chai Point app as well. This has become a very convenient way for working professionals.
To keep a track of the all the deliveries and orders places all over the outlets in India, Chai Point uses its own cloud-based platform called as SHARK, which connects information starting from point of sale to auditing to delivering products to employee management and many more.
The above article can be concluded by stating the obvious fact that Chai Point is the best Chai outlet to invest in with guaranteed profits and recognition in the food and beverage sector in India. All you need is passion and great entrepreneurial skills.