Kulhad Chai's Chai Sutta Bar Reaches 650 Stores — The Strength of a Homegrown Chain Conquering Small Cities with Cheap Chai

India's tea (chai) café chain Chai Sutta Bar has, by its own count, over 650 stores across more than 390 cities reached this scale. Its disposable unglazed clay cup, the kulhad, is the signature vessel for its cheap chai, and the chain has expanded rapidly by capturing young consumers and small cities. Founded in 2016 by Anubhav Dubey and Anand Nayak, the company has also opened stores overseas in Dubai, the UK, Canada, and Oman, tapping into a market distinct from Starbucks-style cafés with a strategy of turning homegrown drink culture directly into a chain.

A Store Model Built Around the Kulhad and Low Prices

Chai Sutta Bar's distinguishing feature is serving chai in unglazed clay cups rather than plastic or paper. The company explains that this supports the livelihoods of potters across the country who make these kulhads, and a story linking traditional craft to a food-service chain forms the core of the brand. Its structure of keeping the per-cup price low and earning through turnover suits students and young working professionals with limited disposable income.

A Footprint Across '390 Cities' Beats an Urban-Only Focus

The strength the company publicizes is its spread across more than 390 cities, not just major ones. Centered on franchising, it has extended its store network into Tier 2 and Tier 3 cities. Rather than prime locations where upscale cafés cluster, the approach of racking up numbers at sites such as small-city train stations, university areas, and shopping streets shows the winning path for a homegrown chain.

The Scale of the 'Homegrown Beverage' Market Japanese Companies Should Note

India's chai market is a massive everyday consumption category that far exceeds coffee. It isn't easy for a Japanese company to launch a finished-brand product in this space, but there are points of contact through store fixtures, cup supply, tea leaf and spice ingredients, packaging, or franchise operation know-how. Chai Sutta Bar's growth, built by turning a homegrown drink directly into a product, shows that an approach rooted in local lifestyles works in the food-service and food business.

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-German Doner Kebab opens its first India store in Bengaluru, a franchise that reached 450 outlets in 15 years
-The Flavor Indian Consumers Choose in the Heat — Sindhu Mangoes Take the Top Spot

Source: Chai Sutta Bar official / The Weekend Leader