Chai Point to foray into packaged food segment via digital route

With packaged food consumption on the rise after the Covid-19 pandemic outbreak, organised tea retail chain Chai Point is brewing a digital strategy to foray into the segment.

The Saama Capital-backed company is planning to enter the direct-to-consumer packaged food segment by next month via its digital platform and e-commerce websites such as Amazon and Flipkart. Its products team has come up with over 20 items in the packaged foods and beverages segment to enhance the chai experience at home. Most of these products will be made in-house, while for some, the company has roped in third-party manufacturers.

“Over the course of 2-3 years, the packaged food segment will become a Rs 50 crore opportunity for us,” says Amuleek Singh Bijral, co-founder and chief executive officer of the Bengaluru-based startup, which is currently touching Rs 200 crore in revenue.

Bijral says the company has also focused its energy on home deliveries during the pandemic and has opened delivery-centred back kitchens to cater to the rising demand for snacking at home. Chai Point currently has over 65 per cent of its 175 stores up and running with per store orders already touching the pre-Covid-19 levels as it has opened new avenues for ordering such as
Whatsapp, for its patrons. The delivery mechanism, built over the social media platform, already generates 10 per cent of the total orders for the company.
 

With lesser competition and several small chains vacating their restaurants, Chai Point has blocked around 10 new properties in high traffic locations to add brick-and-mortar stores whenever the environment is more amicable.

“There is less competition for the right set of properties and a lot of smaller chains are going through tough times vacating stores, so wherever we felt there has been an opportunity during lockdown, we have made the move,” explained Bijral.