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Chai cafés are the hottest pick among VCs. Can they become profitable ventures in the long run?

Years after the success of Café Coffee Day, the humble chai and tea room are in the spotlight. Despite being a household beverage, chai took time to make its way into the organised restaurant business. But with investors’ backing, chai cafés are now booming.
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6 Feb 2020 10 Mins Read 4 comments
A Chaayos outlet in New Delhi Getty Images
A Chaayos outlet in New Delhi
Indians have a unique connection with tea. A piping hot cup of chai is not just a drink, but a ritual, a celebration, and a stress buster. Despite the amount of love it has garnered, when it comes to running a successful QSR (quick-service restaurant) business, the humble tea was never the first choice for restaurant owners.
aren’t even getting a term sheet,” DSG Consumer Partners, one of the Chai Point’s investors, was quoted by CNBC. Chai cafés essentially need to repeat the love that chai tapriwaalas have generated countrywide over the years. That, along with chasing profitability to keep the investors happy, is no easy feat. ( Graphics by Mohammad Arshad)
Indians have a unique connection with tea. A piping hot cup of chai is not just a drink, but a ritual, a celebration, and a stress buster. Despite the amount of love it has garnered, when it comes to running a successful QSR (quick-service restaurant) business, the humble tea was never the first choice for restaurant owners. aren’t even getting a term sheet,” DSG Consumer Partners, one of the Chai Point’s investors, was quoted by CNBC. Chai cafés essentially need to repeat the love that chai tapriwaalas have generated countrywide over the years. That, along with chasing profitability to keep the investors happy, is no easy feat. ( Graphics by Mohammad Arshad)

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