In India, chai isnโ€™t just a drinkโ€”itโ€™s an emotion, a daily ritual, and now, a booming business. Two brands, Chaayos and Chai Point, are leading the charge in this chai revolution, collectively holding ~51% of the market share. We wanted to see how differently theyโ€™ve approached Indiaโ€™s love for chai and turned it into a thriving industry.
At first glance, you might think theyโ€™re similar, but theyโ€™re not! Letโ€™s explore how they differ in their models:

๐“๐ฐ๐จ ๐”๐ง๐ข๐ช๐ฎ๐ž ๐€๐ฉ๐ฉ๐ซ๐จ๐š๐œ๐ก๐ž๐ฌ

Chaayos: With the tagline โ€œExperiments with Chai,โ€ theyโ€™ve turned chai into a playground of possibilities. They have excelled at creating the perfect cup with over 12,000 combinations of tea strength, spice levels, milk ratios, and sugar preferences. Itโ€™s a chai loverโ€™s dream come trueโ€”tailored to oneโ€™s taste buds.
Chai Point: With the motto โ€œIndia Runs on Chai,โ€ the focus is on simplicity. They might not offer as much customization, but itโ€™s all about no-frills, bold flavors that just work.

๐“๐ก๐ž ๐๐š๐œ๐ค๐š๐ ๐ข๐ง๐  ๐†๐š๐ฆ๐ž

Chai Point: They were the first company in India to develop and launch a unique heat-retaining use-and-throw flask. Sleek and practical, it was created after nine months of R&D. They also led the sustainability charge, introducing biodegradable packaging long before it became trendy (later adopted by Chaayos).
Chaayos: Following suit, they launched their version of the flask in 2020. Their kettle-style packaging keeps chai warm for almost an hour. However, they designed it to offer a wholesome experience, complete with stirrers and sugar sachets.

๐–๐ก๐ž๐ซ๐ž ๐“๐ก๐ž๐ฒ ๐๐ซ๐ž๐ฐ

Chaayos: Walk into a Chaayos, and no two stores look the same. From cozy lounges to compact kiosks, their spaces adapt to the neighborhoods theyโ€™re in. (In fact, they wanted to challenge the brand uniformity theory.)
Chai Point: Their spaces are more functional yet thoughtful, with plush lounges for professionals and clever โ€˜shutter windowsโ€™ to make life easier for delivery partners.

๐Œ๐จ๐ซ๐ž ๐“๐ก๐š๐ง ๐‰๐ฎ๐ฌ๐ญ ๐‚๐ก๐š๐ข

Chaayos: Their menu dives deep into Indian comfort food, with snacks like vada pav and bun maska that perfectly complement the chai.
Chai Point: They cater to the health-conscious crowd too, offering options like masala daliya and tomato vermicelli.

๐“๐ก๐ž ๐๐ข๐ ๐ ๐ž๐ซ ๐๐ข๐œ๐ญ๐ฎ๐ซ๐ž
As of FY24, there are 1,238 branded chai outlets in India and both dominate when it comes to revenue, managing 31% of the outlets. This shows just how strong their hold on the premium chai market is.

๐“๐ก๐ž ๐“๐š๐ค๐ž๐š๐ฐ๐š๐ฒ
The story of Chaayos and Chai Point shows how two very different approaches and diverse strategies can both win- as long as you know the pulse of the customer!
So, whatโ€™s your pick? Letโ€™s talk chai in the comments! โ˜•
Chaayos
Chaipoint & Street Food
chai chaibars chaiculture indiantearetail resconretail

amardeep.kaur@resconpartners.com | + posts

Amardeep is a retail analyst who studies global retail trends and forecasts across diverse sectors, offering insights into the market dynamics, opportunities, and challenges faced by businesses. Her expertise spans both market-wide and city-level analysis, helping organizations navigate the complexities of the retail landscape with informed, data-driven perspectives.

Rescon Partners | radhika.r@resconpartners.com | Website | + posts

Radhika is a retail analyst specializing in tracking multinational retailers on their strategy, with a focus on "Go-To-Market" approaches. Radhika examines each potential retailer in-depth, across the geographical scope of the USA, APAC, UK, and Europe