Chaayos’ extensive tea menu includes Kulhad Chai, Kesar Chai and Masala Chai | Photo credit: Chaayos

New Delhi-based tea chain Chaayos is piloting a premiumised store offering at existing sites in an effort to gain market share in India’s competitive branded café market. 
 

To diversify its extensive tea menu – which includes Kulhad Chai, Kesar Chai and Masala Chai – Chaayos is trialling filter and black coffee beverages at select stores across the Indian capital and launched its first cold beverage range in January 2024. 

The brand’s Chief Financial Officer Pranav Dahiya said the trials are focused on improving customer experience through menu expansion, the use of ceramic cups instead of paper and upgraded café design. 

Chaayos’ new focus on premiumisation comes amid growing competition in the Indian branded coffee shop market, with domestic and international chains increasingly vying for market share. 

Gurgaon-based Blue Tokai Coffee Roasters, Creaegis-backed Third Wave Coffee and small-format concept abCoffee were among those to attain new investment last year to realise ambitious growth plans. 

Additionally, Tata Starbucks has announced plans to grow its 400-store footprint to 1,000 sites by 2028 and New Delhi-based Barista is seeking to double its retail presence to 800 outlets by the following year. 

Further highlighting growing demand for high-quality café experiences in India, US coffee chain Dunkin’ launched a new store design and revamped coffee menu in November 2022 in a bid to attract younger consumers. 

Founded in 2012, Chaayos currently operates more than 200 stores across India. The tea chain, which counts Tiger Global and Alpha Wave Ventures among its investors, previously outlined plans to reach 400 outlets this year.