How to Start a Hojicha Café Business in India

While matcha has found its footing in Indian café menus, there is one more Japanese tea which is slowly gaining a following. The roasted taste, subtle flavour and rich brown color of hojicha can be seen in lattes, cold beverages and even desserts. As customers go beyond the traditional flavors of coffee and tea, the concept of Hojicha presents itself to be an interesting one for entrepreneurs wanting to venture into the specialized beverages business.

Setting up a Hojicha cafe requires more than just introducing a new beverage to the market. The process involves deciding what type of café would work best, creating a menu for the Hojicha drink, cost estimation, procurement of ingredients, pricing, and finally selection of a good location. This article focuses on the various aspects involved in setting up a Hojicha cafe in India.

Key Takeaways

• Hojicha is gaining attention in India as consumers explore alternatives to conventional coffee and matcha.
• A Hojicha concept can work as a full café, kiosk, takeaway counter or compact specialty beverage outlet.
• The initial investment depends largely on the format, location, interiors, equipment and menu size.
• A focused menu of Hojicha drinks and desserts helps build a distinct café identity.
• Pricing, ingredient sourcing, rent and daily sales will play a major role in determining profitability.
• FSSAI, GST, local approvals and other applicable registrations should be considered before starting operations.

Why Is Hojicha Growing in India?

India’s café culture is moving beyond familiar coffee and tea flavours, with consumers increasingly curious about specialty beverages and Japanese-inspired drinks. Hojicha is emerging as one of the newer flavours to attract this attention. Google India reported that Hōjicha reached an all-time high in Indian searches in March 2026, while searches for “what is hojicha” and “hojicha latte” saw breakout growth in August. The search interest is particularly notable in Delhi, which recorded the highest interest for Hōjicha in India.

Another factor behind its growing appeal is curiosity around how Hojicha compares with better-known Japanese tea options. The breakout search for “hojicha vs matcha” shows that consumers are not only discovering the drink but also trying to understand how it differs from matcha. This creates an opening for cafés to introduce Hojicha through lattes, iced beverages and desserts while giving customers a flavour that feels familiar enough to try but distinctive enough to stand out.

Is It Profitable?

Hojicha is likely to be profitable when the idea revolves around premium drinks, managed costs of ingredients, and an appropriate location for its execution. It offers flexibility in the sense that roasted tea can be used for both hot and cold drinks as well as desserts, thus providing a café with options to generate revenue rather than just a single product.

However, profitability of the business has more to do with its execution rather than the uniqueness of the Hojicha drink. Factors such as rent, volume of orders, average order value, cost of ingredients, cost of manpower, and price setting will directly affect the bottom line. It takes lesser capital to run a kiosk or a takeaway café than a café proper, while inclusion of desserts and complimentary drinks can enhance the average order value.

Hojicha vs Matcha: What Is the Difference?

The differences between hojicha and matcha lie in the fact that they both have origins in green tea but differ in process, colour and taste. Hojicha is a brown coloured tea that has been made through the roasting process of tea leaves, while matcha is a green coloured powdered tea that comes from the process of growing tea leaves in shades.

For a café owner, this is significant because Hojicha provides an alternative flavor, which is not only a variation of matcha. In addition, the product’s roasted flavor allows for creating drinks with milk, as well as various desserts and confections. This gives the entrepreneur a chance to differentiate their menu from the competition.

What Kind of Café Should You Start?

The appropriate format for the establishment would depend upon the amount of money you have and your target customers and location. A Hojicha business does not need a huge dine-in facility in order to create its presence. The entrepreneurs can opt for an appropriate format based on their financial capacity.

A kiosk or takeaway store can be an appropriate choice for entrepreneurs to test the demand for Hojicha, whereas a café would give more flexibility to offer more dessert items and seasonal drinks. Ultimately, the business model should fit the profile of consumers and location rather than the scale of investment.

Setup Cost

The level of investment required would vary based on the format, site and size of the store. The investment required for a kiosk or takeaway stand is typically lower compared to that required for a full-service café.

These numbers are approximate and not definitive in any way. The costs associated with paying rent and putting down a deposit differ considerably from place to place, while the decision between opening a kiosk, takeaway or café is going to play an important role in determining the total cost of the venture. Entrepreneurs must also have enough working capital set aside for running costs.

What Equipment Do You Need?

The requirements of equipment depend on the type of menu as well as the format of the establishment. In a Hojicha-based cafe, it is not necessary to have different equipment for each item; rather, the important factor is consistent brewing and preparation.

Should the facility have a capability to produce desserts, further appliances including ovens, mixers, refrigerators and baking utensils would need to be provided. Otherwise, a small kiosk with a restricted menu can help maintain a more modest list of the required appliances.

Where Should You Open?

Location will play a major role in determining whether customers are willing to try and repeatedly buy a premium specialty beverage such as Hojicha. Instead of choosing a location only for high footfall, look for areas where customers already spend on specialty coffee, matcha, desserts and lifestyle experiences.

Locations Worth Considering

• Premium high streets: Suitable for a visible café with dine-in seating.
• Shopping malls: Useful for kiosks and takeaway formats with steady customer movement.
• Business districts: Office workers provide opportunities for morning, lunch and evening beverage sales.
• College and university areas: Younger consumers tend to be more receptive to emerging beverage trends.
• IT and commercial hubs: Strong potential for takeaway and delivery orders.
• Lifestyle and entertainment zones: Suitable for cafés positioned as an experience rather than just a beverage outlet.

Before settling on a property, consider issues of rent, visibility, foot traffic, parking, competition in the vicinity, delivery service and the spending pattern of the target customers. A smaller unit operating in a good specialty-food area is much better than a larger café in an expensive mismatched area.

Where to Source Hojicha and Other Ingredients?

Sourcing is particularly important for a Hojicha-focused concept because the quality, roast profile and consistency of the tea directly influence the taste of the final beverage. Entrepreneurs should evaluate suppliers on quality, consistency, pricing, minimum order quantities, storage requirements and delivery timelines rather than choosing a supplier only on price.

Key Sourcing Options

Specialty tea suppliers and importers: Indian distributors dealing in Japanese teas can provide Hojicha in loose-leaf or powdered formats and simplify procurement for a new café.

Direct Japanese sourcing: Larger businesses with established demand can explore importing Hojicha directly from Japanese suppliers. This route requires closer attention to import procedures, documentation, shipment costs and inventory planning.

Domestic distributors: Local specialty-ingredient distributors can be useful for smaller outlets that want lower order quantities and faster replenishment.

What to Check Before Choosing a Supplier

• Origin and grade of Hojicha
• Roast level and flavour profile
• Powder or loose-leaf format
• Packaging and shelf life
• Minimum order quantity
• Wholesale price
• Storage requirements
• Consistency between batches
• Delivery timelines

Hojicha should be stored properly to protect its flavour and aroma. Alongside tea, the café will also need dependable suppliers for milk, plant-based alternatives, sweeteners, chocolate, flavouring ingredients, desserts, cups and other packaging materials. Building more than one supplier relationship also reduces the risk of menu disruptions when a particular ingredient becomes unavailable.

How to Make Your Café Stand Out?

Hojicha itself is a point of differentiation, but the café needs a stronger identity to turn initial curiosity into repeat visits. Since many customers may encounter the flavour for the first time, the experience should make Hojicha easy to understand, enjoyable to try and memorable enough to revisit.

Build Around a Signature Product

Create one or two drinks that customers immediately associate with the brand. A signature Hojicha latte, iced drink or Hojicha-based dessert can become the product customers recommend to others.

Offer Hojicha Beyond Drinks

Using the flavour across desserts, soft serve, cakes, cookies or seasonal specials gives customers more reasons to explore the menu and increases opportunities to raise the average order value.

Make First-Time Trial Easier

A tasting flight, smaller serving, introductory combo or Hojicha-and-dessert pairing can help customers who are unfamiliar with the flavour decide what they like.

Create a Distinct Café Experience

Japanese-inspired design, thoughtful packaging, attractive presentation and a simple explanation of the tea's roasted character can strengthen the brand without making the café feel overly themed.

Keep the Menu Fresh

Limited-time flavours and seasonal creations can generate repeat visits and give the café regular content for social media. The goal is to build a recognizable Hojicha identity rather than compete only on price.

Licences and Registrations

Before starting operations, the café should identify the registrations and local approvals applicable to its business structure, location and services. The main requirements include:

The NSWS portal should also be checked to identify approvals applicable to the specific state, location and business activity. If the café imports Hojicha directly, additional import-related compliance, including applicable DGFT requirements, needs to be considered.

Challenges to Consider

Hojicha offers a relatively new café concept, but its novelty also brings a few challenges that entrepreneurs need to plan for.

• Limited awareness: Many customers may need an introduction before trying Hojicha.
• Sourcing: Specialty or imported Hojicha can involve higher costs and longer replenishment cycles.
• Pricing: Premium prices need to be supported by consistent quality and presentation.
• Customer retention: Initial curiosity does not guarantee repeat purchases.
• Location costs: High-footfall areas often come with higher rents, putting pressure on margins.
• Taste consistency: Changes in tea quality, preparation or recipes can affect the customer experience.
• Trend dependency: The café should have a broader menu and strong brand identity rather than relying only on Hojicha's current popularity.

A focused menu, reliable sourcing and careful cost control will help reduce these risks while the concept builds its customer base.

FAQs

Can I start with a Hojicha kiosk instead of a full café?

A kiosk needs less space, equipment and initial investment than a full café. It is also suitable for testing demand in malls, high streets, office areas and other high-footfall locations.

How should I introduce Hojicha to first-time customers?

Start with familiar formats such as Hojicha lattes and iced drinks. Sampling, tasting combos and a short menu description highlighting its roasted, nutty flavour can also make the first purchase easier.

Should a new Hojicha café also sell coffee and matcha?

Yes. Adding a small selection of coffee, matcha and other beverages gives customers more choice, particularly when visiting in groups. Hojicha should remain the concept's signature offering.

How can I test Hojicha demand before opening a café?

Start with a limited menu through a kiosk, pop-up, delivery kitchen or existing café counter. Tracking orders, repeat purchases and customer feedback provides useful insight before investing in a larger outlet.

Conclusion

Hojicha is emerging as an interesting specialty beverage opportunity as Indian consumers explore new tea flavours and café experiences. Entrepreneurs can start with a compact kiosk or takeaway model and expand into a full café as demand develops.

Success will depend on product quality, smart pricing, reliable sourcing, the right location and a distinctive menu. With controlled costs and a clear brand identity, Hojicha offers an interesting concept for entrepreneurs entering India’s evolving café market.

Looking to explore more emerging food and beverage business opportunities? Discover the latest franchise and business ideas on Franchise India.

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