India’s Chai Bunk Café targets 200 stores in 2023

Chai Bunk Café has opened 46 stores across India since starting operations in 2021 | Photo credit: Chai Bunk Café

Indian coffee shop start-up Chai Bunk Café is seeking to accelerate its outlet growth across the country over the next 12 months and reach 200 stores by the end of 2023. 
 

The franchise-operated chain, which has opened 46 stores across India since starting operations in 2021, said it will expand its presence via three store models — a traditional bricks-and-mortar outlet, a compact café kiosk and an eco-friendly modular format, based inside a recycled shipping container. 

Founder Sandeep Bandari said there has been a significant increase in demand for tea and coffee shops across India as café culture becomes more widespread. 

International coffee chains, including Costa Coffee, Starbucks, Tim Hortons and Pret A Manger, have all gained ground in the Indian market over the last year and have announced plans for further expansion. 

Chai Bunk Café’s expansion plans also demonstrate the growing success of domestic premium café concepts across India. 

In November 2022, domestic tea café chain Chaayos reported 145% sales growth for the 12 months ended 31 March 2022, reaching Rs 135 Cr ($16.5m). 

Following $53m raised in Series C funding in June 2022, Chaayos reached its 200-store milestone and announced a target of operating 400 outlets by the end of 2023. 

In December 2022, Bengaluru-based tea café chain Chai Point announced plans to launch an initial public offering (IPO) within the next 18-24 months. The company currently operates 180 retail stores and a 5,000-strong brewing machine footprint across India. 

Meanwhile, Blue Tokai Coffee Roasters raised $30m in its Series B funding round in January 2023, which the Indian specialty coffee roaster and café chain said will help increase its Indian store footprint and enhance its B2B presence.