Chai Point, which launched its pilot in 2010 in Bangalore, is now spread over 40 stores across Bangalore and Delhi NCR. With a very simple idea, which took the concept of roadside tapris to organized and hygienic stores, Chai Point aims to revolutionize India's Chai environments. Targeting the working professionals, Chai Point allows one to easily order chai through the internet, mobile app, call or walk it to the nearest Chai Point hub. VM&RD talks to Amuleek Singh Bijral, CEO, Chai Point and find out about this game-changing business model.

What was the idea behind'Chai Point'?

Chai Point came into existence to bridge a glaring gap. For a Rs 15,000 crore tea market (in 2010-2011, now close to 30,000 crore) - there was no organised last-mile access brand i.e. no brand of Chai (the form in which Tea is consumed in India). Well-heeled people still drink chai from shanties in pathetic unhygienic conditions.

We aim to do for Tea what was done for Coffee by so many international brands like Peets & Starbucks.

What is your business & service model and what is Chai Point's USP?

Our foremost customer target segment is the white-collar worker. We are creating micro-hubs across all major cities wherein customers can get access to their daily ritual of chai. Either by walking into these hubs or by getting chai delivered to them or through RTD (Ready-To-Drink) packaged formats.

We want to own and honor the ritual of chai across India by ensuring that our focus on authencity is spearheaded by a sharp focus on technology and contemporary service. Our mobile app facilitates delivery of chai and food offerings. The same app has a wallet for faster and hassle free payment options. The app will soon have queue buster features, wherein during rush hours your order will be ready at a hub as soon as you land in. We are foremost a beverage company anchored around Chai.

What were the challenges you faced while setting up your business?

It took us two years to arrive at our current and core model. We initially thought we would setup base in low rental areas and did not appreciate the brand dilution risk there. Our Chai@Work model also evolved much later. We always believed in delivery of Chai but got a true sense of technology and its importance in delivery centric F&B models only when we launched our heat-retaining disposable flask made of food grade PET. Our flask is definitely our hero and something truly "Made in India".

What new methods have you used to acquire and retain customers?

We live on innovation. The key initially was to launch an aggressive MSR-based prepaid card, which still sells a lot and we have more than 40,000 such cards in circulation. Ours is a high repeat customer business, where we have customers who walk in to our hubs or get chai delivered or have it at their corporates on average twice and as high as four times a day. We have two formats of prepaid cards:

Next, we introduced dispensers that allowed for Chai@Work services and then launch of its two subsequent versions.
The Mobile ordering app now allows for customers to place orders directly from the app. While our heat-retaining use and throw flask for chai delivery.

We aim towards a greener earth, and for this we use electric scooters for delivery which have zero emission and contribute to environmental conservation.

We soon plan to launch chai-decoction packs and "Made for Chai" range of packs. These are bottled format of Chai liqueur which is right now being used for events.
 
How is technology incorporated in your business?

We have built up every piece of our technology except our accounting platform. Our SCM ERP, delivery platform and POS is called SHARK and it's based on 100 per cent cloud based technologies - Clutch DB, PHP and Pyhthon. We also work closely with two cutting edge startups in further extending our technology readiness.

How did design help you in creating this brand and offer differentiated signature in brand experience?

Our operating principle is "less is more". We believe in building things on an incremental basis without adding the burden of being something to everyone.

Our core focus on the white-collar worker has helped us shape our design sensibilities. Two years ago, we finalised our store design bible and since then we have been incrementally improving it. We understand that often our customers need just a quick break from work to recharge. Attention to hygiene is important, while lighting and music has to be bright and uplifting. The service has to be happy and fast. Cashless transaction needs to drive a vast majority of our service. And lastly, we need to inspire and re-instill energy through the design of our stores.

What is your expansion plan? What new ideas are brewing in Chai Point for the near future?

We are working hard to be in the top six white-collar centric cities across India at the earliest. Right now, we have 75 service hubs and intend to have 200 more service hubs and do daily deliveries of 25,000 by FY18.

New ideas are abundant …after all we are very proudly a Bangalore-based company. We will be launching some new tea beverage formats; energy bars and snacks for corporates and will be adding breakfast to our delivery portfolio.