After Starbucks success, Tata Global brews tea cafe plan

Shortly after its joint venture partner Starbucks set up its 100th coffee store in India, Tata Global Beverages Ltd (TGBL) has announced its plans to set up a chain of tea cafes called Tata Cha.

As a pilot initiative, four stores are being market tested, the tea major said on Tuesday.

"Tata Global Beverages is evaluating out of home beverage space with the pilot launch of its first tea café Tata Cha. The first Tata Cha tea cafe is located in the heart of Bengaluru. The company plans to test launch a total of four pilot stores to evaluate the consumer proposition and business model. Based on the outcome of the pilot, Tata Global Beverages will decide on future course of action for the out of home beverage space," it said in a release.

The stupendous success of coffee chains like Cafe Coffee Day as well as Barista had forced traditional tea retailing and plantation companies like Apeejay Group, owner of Typhoo Tea, or Wagh Bakri Tea to explore the concept of tea cafes with their brands like ChaBar and Tea Lounge, respectively.

But such initiatives always remained restricted, never fully trying to exploit the potential of cafes offering teas.

Of late, several start-ups have joined the fray, setting up chains across the country like Chai Point, which claims to be the largest organised Chai retailer with over 100 service hubs. The start-up, which started its operations from Bengaluru in 2010, is now present in eight cities.

Chaayos, another start-up, has outlets in NCR, Chandigarh, Karnal and Mumbai.

Even as the number of chai cafes goes up, such outlets might soon lose their individual appeal.

"Tea cafes are possible spaces that will compete with the coffee cafes of the day, and the milk bars and water cafes of the future. Many of these will start looking like one another as they offer mixed menus. And that will commoditise the category and make them yet another restaurant space, as opposed to what they start off as. TGBL needs to guard against that tendency," brand expert Harish Bijoor told DNA Money.

"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. At our first of the four pilot stores, we bring you an extensive menu 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," Tata Global said.