Chaiiwala is on a mission to bring Indian street food to the rest of the world. With 120 stores already operating in the UK, Canada and Dubai, Chaiiwala is preparing to enter a major new market. Co-Founder Sohail Alimohamed revealed all, during an in-depth interview with Inside Food & Drink. Report by Imogen Ward.
Initially opened as a small café in Leicester, Chaiiwala was established in 2015 to bring a touch of Indian flavour to the UK. As the popularity of its drinks took off, so did the brand. Before long, Chaiiwala had become an international sensation as pioneers of chaii and Indian street food.
“Today, Chaiiwala has 120 locations, with sites in the UK, Canada and Dubai and some of the UK’s biggest franchisees backing it,” explained Co-Founder Sohail Alimohamed.
“We are also glad and humbled to have inspired many businesses to open similar cafés. We are on the way to making Chaii a mainstream beverage – similar to the recent growth of coffee. Having already entered Canadian and Middle Eastern markets, we now have our sights set on bringing our business Stateside.”
Chaiiwala has steadily carved a unique place for itself within the market, thanks to its commitment to the vibrant flavours of Indian street food.
“We have developed some staple items that our customers love, from Karak Chaii to Desi (Indian) Breakfast and our Bombay Bowls,” said Mr Alimohamed. “The popularity of each product varies from store to store.”
A warm welcome
The Chaiiwala experience is unlike any other, often leaving customers wanting more. In order to provide this welcoming atmosphere, the company constantly innovates its offering.
Whether through its vibrant ambiance, creative menu or consistent focus on quality and service, the brand ensures every visit feels both familiar and refreshing.
“We go beyond serving delicious Indian street food,” Mr Alimohamed continued. “We are passionate about fostering connections and creating welcoming spaces for everyone. Whether enjoying a cup of chaii with friends in our cafés, or having flavourful dishes delivered to your doorstep, Chaiiwala brings people together.”
Recently, Chaiiwala digitalised its menu boards to inspire customers’ buying habits.
“Before, our menu boards were filled with text, now thanks to our digital upgrade, they feature stunning visuals that encourage customers to try new dishes,” explained Mr Alimohamed. “Since implementing this change, we have witnessed a 30 per cent increase in transaction variation.”
These new menus are also expected to have a positive impact on Chaiiwala’s plans in the mainstream market by increasing the appeal and accessibility of its dishes.
Similarly, the launch of Chaiiwala’s new app is making ordering its food easier than ever. Customers can collect loyalty points with each purchase and take advantage of the
company’s new click-and-collect service from the comfort of their own homes.
Chaiiwala has even covered its bases when it comes to the environment, introducing sustainable packaging and finding new ways to encourage customers to eat in rather than take away. Not one to do thingsin half measure, the company is also designing a new store constructed entirely from recycled materials.
Franchising the brand
Although Chaiiwala now operates as a fullyformed franchise, this was not always the case. From the get-go, the company was inundated with enquiries from franchisees who were eager to transform the café
into a chain. However, it was not until two years after the launch of its first store that Chaiiwala felt prepared to take the next step.
“This franchisee was highly experienced, having already worked with several Costa stores in the past,” explained Mr Alimohamed. “The company had an excellent understanding of franchising, making it the perfect choice to guide us into this area of the market.”
Following the success of its initial franchise deals, Chaiiwala has not looked back and now operates with a tight knit community of around 30 franchisee partners.
“This model is effective because it allows us to operate with a capital-light approach while leveraging local expertise and manpower,” continued Mr Alimohamed. “This is often where a lot of businesses go wrong, by solely relying on data to grow. It’s a no-brainer that a business will make better decisions when it knows the territory it is working in.”
Upscaling potential
The company is quick to adapt for different markets. When first established, Chaiiwala was strategic in its search for new locations – initially focusing on highstreets with a high South Asian demographic. Once it had successfully saturated this market, the company began testing more mainstream locations.
“Our research shows that the mainstream market is ready for us,” said Mr Alimohamed. “That is why our next 300 UK locations will be targeted towards mainstream clientele.
“The nation already loves Indian food, we’re just giving them a way to enjoy it more frequently, more causally and with an affordable price tag. We are positioning Chaiiwala as a unique and attractive alternative to established fast-food chains and coffee shops.”
To increase its success within the mainstream market, Chaiiwala has improved accessibility by opening stores in different formats, including universities, airports and
drive-throughs. Chaiiwala will extend into hospitals within the next year, to further expand market visibility.
“We have seen a lot of brands achieve profitability in hospitals, and as a health-conscious brand, this would be a perfect fit for Chaiiwala,” added Mr Alimohamed.
Alongside this evolution of store formats, Chaiiwala has done the same with its menu now serving a full offering from breakfast to lunch, plus all-day snacks. At the end of 2024, Chaiiwala launched a new desserts range, allowing customers to enjoy a sweet treat post-dinner – creating a whole-day proposition.
A new market
Chaiiwala is planning to expand globally with the help of several experienced franchisees.
Following a major consultancy project in early 2024, which narrowed down key target markets, Chaiiwala highlighted the US as having major potential.
“We are set to enter the US market this year and gradually extend our footprint to make it our largest market yet,” revealed Mr Alimohamed. “We have identified 900 locations that are ideal for Chaiiwala and are seeking statewide partners in five key states to bring this vision to life. These will need to be seasoned franchise professionals, with experience rolling out brands in the region and a capability to manage multiple branches.”
Thanks to receiving a significant number of leads, Chaiiwala has narrowed its focus down to New York, New Jersey, Illinois, Texas and California. All going well, the company expects to open its first US store by mid-2025.
Although this is an exciting development for Chaiiwala, its other markets remain an important element of the business too, which is why it intends to open 300 additional stores in the UK and 200 new locations in the Middle East.
“We have developed some great relationships over the years, with franchisees and realtors, and we are so grateful for their support,” said Mr Alimohamed. “It’s one of the elements of the job that I enjoy most. I have met a whole host of different people, and I never miss an opportunity to go say hello when a new store opens in the UK. As the company continues to grow, I look forward to welcoming new franchisees into the Chaiiwala family.” n
