Mumbai Chai Café – Truly affordable Café!

Is there ever a time when you wonder how much money a Chai Shop or a Vada Pav Shop or similar shop near your office or home makes every month? Isn't it also possible for these roadside vendors to make a lot more money if they take on hygiene problems and other product issues as well?

These situations on the streets did not seem to Sanjjeev Subramonian like problems, but rather like a great opportunity to organize this unorganized segment. In 2021, Sanjjeev co-founded Waah Chai Private Limited (WCPL) with Uday & Kavita which owns & operates a chain of micro cafes under the brand name Mumbai Chai Café.  With a menu full of popular food and beverage items with pocket friendly prices, Mumbai Chai Cafe aka MCC is rapidly creating a new segment of affordable neighborhood cafes across India.

MCC has its iconic “Mumbai ka Amruttullya Chai” on its menu at just Rs.10/- which attracts 1000s of customers every day to each of its outlets.  On the menu you will also find many other popular chai varieties such as Masala Chai, Dum Chai, Ashwagandha Chai, Gudwali Chai, as well as other hot beverages with or without milk. There are a number of popular cold beverages too available on MCC's menu under the milkshake and cooler categories. In addition to its many varieties of Chai and other beverages, MCC also offers 50+ popular finger foods that pair well with its hot and cold beverages. A number of food items are available under categories such as Best with Chai, Mumbai Special & fast food items which are popular with the younger generation. Customers particularly enjoy the Vada Pav, Samosa Pav, Misal Pav, Bhel, Pav Bhaaji, and Pakoda varieties.

The tasty popular products they serve at Mumbai Chai Cafes, which are priced between Rs.10/- and Rs.100/-, and the high standard of hygiene they maintain make them their favorite daily joint for thousands of people.

This successful business model of Mumbai Chai Cafes encouraged the founders, who have built successful brands and businesses in the past through franchisee networks, to expand their new venture as well. It has been less than a year since WCPL began franchising its MCC brand of micro cafes across India. As a result of its low investment and high return business model, MCC began to quickly expand throughout India through its franchisees. Currently, the brand has more than 50 outlets in 18 Indian cities. Due to the popularity of these outlets, many of their customers have even approached the brand to introduce MCC franchisee to Middle East & South East countries.

 This micro cafe model requires a total investment of around 7 lakhs from the franchisee, which includes the franchise fee for 5 years. In the first year of operations, franchisees are able to recover their investment with an average gross margin of 50%, which is one of the best in the industry. This results in a 100% Return on Investment for the franchisees.

Within the next three years, Sanjjeev and his team plan to expand their network to over 500 outlets in India.

Their plan for 500 outlets seems inevitable given the attractive business proposition for franchise investors and the proven unit economics.

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