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Food and Beverage 2015-08-20

Trailing towards success and high end profits

By Feature Writer
Trailing towards success and high end profits

The Indian tea industry and the beverage café market are currently valued at Rs 19,500 crore and Rs 2000 crore respectively. India is the second largest tea consuming market in the world but the tea café industry is practically non-existent. Uday Mathur, Director, Tea Trails enlightens about the interesting journey undertaken by him for transforming tea industry by his brand Tea Trails.

What are your views on the emerging concept of tea cafés? What is your strategy to tap this market?

We see this as a large opportunity waiting to be tapped. Tea Trails has now embarked on a pan-India expansion strategy that is a combination of company owned and franchise outlets. In the initial phase, brand plans to enter the markets of Mumbai, Pune, Bangalore, Hyderabad, Delhi NCR and Ahmedabad.

Why did you opt for franchise route?

We believe that franchising is the fastest route to expand. Once our business model is proven, we want to leverage our first mover advantage and create new tea café category in a short period of time by working with like-minded franchise partners who share our passion.

How many outlets do you currently have? How many among them are franchisee-run?

Tea Trails currently has a network of eight outlets in Mumbai. Out of these two are franchise units.

How has franchising helped you so far?

The response to franchising has been overwhelming and master franchisees for the territories of NCR, Maharashtra and Andhra Pradesh have been finalised. We plan to have a network of more than 60 outlets this financial.

What are your expansion plans?

We wish to have 300 outlets in a span of three years and 500 outlets by 2020. We believe that in five years time, tea cafés will occupy a large share of the Indian market just like café and lounges. We aim to see Tea Trails as a dominant market leader and a locomotive force for the growth of this industry.

What sort of training and support do you provide to your franchisees?

Franchising is all about replicating a successful business model. We understand the need for perfecting the operating systems, back-end support, brand building, ongoing trainings and monitoring. Tea Trails has invested significant resources in creating a franchisee support program that will ensure the successful launch and operations of all franchise outlets.

Are you seeking international expansion?

Tea Trails international foray will start with first outlets in the Middle East by 2016 with further plans to enter the markets of UK, USA and Europe.

Franchise facts

Area Investment Breakeven RoI
500-1300 sq. ft Rs 25-45 lakh 12-18 months

40%

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