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Tata Global Beverages has ventured into the ₹2,500-crore café business with the pilot launch of its first tea café – Tata Cha in Bengaluru.
The company plans to test launch four pilot stores to evaluate the consumer proposition and business model, based on which, it will decide on the future course of action for the out-of-home beverage space.
The 1,400-sq-ft, 70-seater tea café has a variety of hot and cold teas, milkshakes, dunkers, snacks and meals. Pricing begins at ₹ 50 for a standard portion of tea and the meals are priced at ₹120-180.
“The plan is to open three kinds of formats – large format cafés spanning 1,200-1,400 sq ft on highstreets, an abbreviated 700 sq ft format in highstreets and neighbourhoods and kiosks in malls and IT parks.
“We will open two kiosks and an abbreviated format in Bengaluru,” Sushant Dash, Regional President – India, Tata Global Beverages, told BusinessLine , without revealing the investments planned for the same. Pointing out that with increasing disposable income, the trend of eating outdoors is on an upward trajectory, Dash said: “we want to be a part of this trend and through this pilot launch of Tata Cha want to test our model and feasibility.
“At the core of this venture is the motivation to enhance the appeal of tea and make it more vibrant for the newer consumer groups like the millennials.
“The menu is crafted to revive lost Indian recipes that blend warmth with a dash of youthfulness. This includes, signature tea-based hot and cold beverages, traditional snacks, dunkers and meals with a twist.”
He said tea constitutes 70 per cent of all beverages consumed in India.
The ₹23,000-crore domestic tea market is growing at 3-4 per cent YoY, of which the share of green tea is just 1 per cent.
“We are aware that Indians love boiled tea. Tata Cha will specialise in serving freshly boiled tea, just like the corner tea shop.”
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