Roastea, the omnichannel beverage brand popular for its exquisite tea and coffee offerings has opened its 6th outlet in Ahmedabad city at the Palladium Mall. This will be the brand’s 11th outlet in India. Roastea has been serving more than 5 million cups annually.
Chaitanya, Co-founder of Roastea said, “We’re thrilled to announce the launch of our 6th outlet in Ahmedabad, marking our 11th outlet in India. This expansion reflects our commitment to providing an extraordinary tea and coffee experience. As we continue to grow, our vending machines remain a core part of our brand, allowing officegoers to explore our wide range of choices at our outlets. These outlets also serve as retail destinations, bringing our D2C products closer to our loyal fans. We’re excited to introduce new curated beverages and food items at this franchise outlet, and we can’t wait to serve the vibrant community of Ahmedabad again.”
Incorporated in 2019, by Lawyers turned entrepreneur twins, Anurag and Chaitanya Bhamidipaty, Roastea started its first vertical – Fresh milk-based “The corporate coffee & tea vending machine.” With its home-grown manufacturing setup, catering to MNCs, Corporates, Offices & Hospitals, the brand quickly established its name in Gujarat as the best alternative to the existing corporate vending solutions.
After tasting success in the vending vertical, Roastea successfully expanded into premium cafes and kiosks at captive crowd-pulling locations. The company operates over 1,000 vending ,machines across 17 cities in India currently while the range is sold on their D2C website.
India is the largest producer of tea in the world. Over 88% of Indian households consume tea regularly, according to the Tea Board of India. Chaayos & Chai Point are among the top tea cafe chains with a national footprint, while the likes of MBA Chaiwale, Chai Kings, Chai Sutta Bar are among those who are focussing on regional interests.
Chaayos has raised over Rs. 700 Cr (USD 85.5 mn) till date over 8 rounds. The chain operates over 200 stores with an estimated annual turnover of Rs. 134 Cr and reported a net loss of Rs. 52 Cr, with a total expenditure of Rs. 211 Cr for FY 22-23.
Chai Point, on the other hand, has raised Rs. 500 Cr (USD 68 mn) till date over 12 rounds. The company operates ~200 stores across India and is said to have recorded revenues of Rs. 108 Cr for FY 21-22 with a net loss of Rs. 83 Cr.
Editor’s Note
Despite continued losses over the years and a struggle to attain outlet level profitability, Investors continue to chase young entrepreneurs in this space. And the confidence stems from the fact that as a young nation with the most number of people under the age of 40 years, there is a lot of discretionary spends from this cohort. Tea, as a beverage is now mainstream and a lifestyle beverage, than what it was two decades back. And the hope is to get a few “bucks” as they sip tea & snacks.
Needless to say and to be fair, most of the expenses for the chai-retail chains, is being currently spent on marketing & promotions and corporate overheads. With higher quality retail space coming up across the country, there is bound to be more number of patrons visiting tea-cafes driving daily sales, just like how it used to be a decade ago for coffee chains like Cafe Coffee Day. Interesting space to watch, of course.
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