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Chai Kaapi – Brewing a Brand with Desi Roots and Global Vision

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Introduction

When most of the country was chasing coffee trends and fancy café culture, Sahil Juneja Co-Founder of Chai Kaapi chose to do something different – they decided to give India’s beloved chai a cool, contemporary identity. This blog explores their unique journey, core strategies, and lessons for aspiring entrepreneurs.

The Big Idea – Making Chai Aspirational

Chai Kaapi started with a bold vision — to elevate the perception of chai from a street-side drink to a premium café experience. While others followed coffee culture, they believed that chai deserved the same spotlight. Inspired by the term “Kaapi” (coffee in South India), they created a brand that merged the casual comfort of chai with the premium appeal of a café.

Identifying the Target Customer

Chai Kaapi crafted their brand for everyone — students, professionals, and families. Their pricing was intentionally kept affordable (₹30-50) so that people could visit multiple times a day without hesitation. Their aim was not exclusivity but inclusivity — to create a space where chai lovers and coffee drinkers alike could sit, sip, and connect.

Building from Basics – Menu Planning

They started with just coffee and cake, but quickly adapted. Understanding that a beverage-only model couldn’t survive high rentals, they added essential food items. No fancy fusion dishes — just basics like sandwiches, puffs, and mocktails. This helped them test the market with minimal risk and scale the menu based on real demand.

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Smart Setup – SOPs and Standardization

One of Chai Kaapi’s biggest strengths lies in their Standard Operating Procedures (SOPs). From the temperature of oil for puris to 118 test iterations for perfecting chai, every detail is documented. They created proprietary chai blends and automated kitchen steps using sachets and measured portions — ensuring consistency across all stores, crucial for franchise success.

First-Year Strategy – Maintaining Footfall

To keep footfall consistent in the early days, Chai Kaapi offered free internet via leased lines — a novelty in 2016 when 1GB data was expensive. Customers stayed longer, ordered more, and became loyal. By collecting customer data through login codes, they also built an early database for future marketing.

Challenges Faced in Team Building

Being a new brand, one major challenge was hiring. Potential staff hesitated to leave stable jobs for an unproven company. To build trust, they set up a corporate office and training center — a move that helped attract and retain employees. This showed early commitment and vision.

From One Store to Franchising

After proving profitability in their company-owned outlets, they launched a franchise model. With a clear SOP system and central kitchen support, they ensured franchisees could replicate the experience. Their current model charges ₹6 lakh + taxes as franchise fees and 5% royalty, ensuring ongoing support and quality control.

Observing Consumer Behaviour Shifts

Chai Kaapi noticed a clear evolution in consumer behaviour — from price sensitivity to experience-seeking. Today’s youth don’t just buy food; they buy ambience, hygiene, and emotional connection. Their brand positioning shifted from “Fill Your Film” to “Dusra Ghar” (Second Home), based on what customers began calling them.

Learnings for Aspiring Entrepreneurs

Chai Kaapi’s founders had no prior F&B experience. Yet, through relentless R&D, real-time problem-solving, and customer-first thinking, they built a scalable brand. They emphasize:

  • Start small if you lack funding

  • Learn by doing and failing fast

  • Never depend on one person (e.g., chefs)

  • Focus on consistency, not complexity

  • Treat SOPs as your startup bible

Conclusion

Chai Kaapi’s story is more than just about selling ₹30 chai — it’s about redefining how India drinks it. From understanding their customer to crafting SOPs and staying lean, their journey offers a masterclass in building a scalable, customer-loved business from scratch.

For any aspiring entrepreneur, their story proves that great brands aren’t born with big money — they’re brewed with clarity, consistency, and connection.