How Chai Franchises Compete with Coffee Brands

Chai franchises are no longer underdogs in a market once dominated by international coffee chains. With a deeper cultural connect and lower price points, tea-based brands have crafted a strong niche, effectively competing with established coffee players in urban and semi-urban areas.

Unlike coffee, which is often seen as aspirational, chai offers familiarity and comfort, making it more inclusive. Brands like Chaayos, Chai Point, and MBA Chai Wala compete by offering custom-brewed options, local snack pairings, and strong delivery networks—something many coffee chains overlook.

Affordability is a major differentiator. A full chai experience typically costs ₹50–₹100, compared to ₹150–₹300 at premium coffee outlets. This price advantage helps attract students, professionals, and families alike.

Chai franchises also focus on regional flavors, offering masala chai, adrak chai, kadak Mumbai cutting, and tulsi variants—something global coffee brands don’t cater to. Moreover, store designs now match global café aesthetics, with cozy seating, free Wi-Fi, and ambient music, reducing the experiential gap.

Technology is another battleground. Chai brands now use loyalty apps, quick billing systems, and cloud kitchen tie-ups to maximize efficiency and retention.

In a chai-loving nation, these franchises are not just surviving—they’re thriving by delivering a culturally rooted, modern café experience.