Nitin Saluja, the founder of Chaayos, is a name synonymous with India’s evolving chai culture. An IIT Bombay graduate, Saluja turned his passion for chai into a thriving business that has redefined how millions of Indians enjoy their daily cup of tea. From humble beginnings as a chai enthusiast to building a chain of over 200 cafes, Saluja’s journey is a testament to innovation, perseverance, and a deep understanding of consumer needs.
Nitin Saluja’s love for chai began long before he became an entrepreneur. Born into a family where he was affectionately known as the “designated chai-maker,” Saluja’s early years were marked by a deep appreciation for the art of brewing the perfect cup of tea. This passion stayed with him as he pursued higher education, graduating from the prestigious Indian Institute of Technology (IIT) Bombay in 2007 with a degree in engineering.
During his time at IIT Bombay, Saluja demonstrated his entrepreneurial spirit by co-founding Think Labs, a robotics education company. This venture, started during his college years, grew into a successful enterprise valued over $10 million, showcasing his ability to identify opportunities and execute them effectively. After graduation, Saluja joined Opera Solutions, a consulting firm, where he worked for over five years, gaining valuable experience in business and operations.
The Genesis of Chaayos: A Chai Lover’s Dream
The idea for Chaayos was born out of Saluja’s personal experience while living in the United States. Away from home, he struggled to find a cup of chai that matched the taste and warmth of “ghar wali chai” (homemade tea). This longing for the perfect cup of chai, combined with his observation of India’s tea-drinking culture upon his return in 2012, sparked the idea for Chaayos.
At the time, India consumed 30 cups of chai for every cup of coffee, yet there were no dedicated chai cafes. Coffee chains like Starbucks had already established a strong presence, but chai, despite its immense popularity, lacked a similar platform. Saluja saw an opportunity to fill this gap. He envisioned a cafe where customers could customize their chai to their exact preferences, offering “meri wali chai” (my kind of tea).
In November 2012, Saluja, along with his friend Raghav Verma, opened the first Chaayos outlet in Cyber City, Gurgaon. From the outset, Saluja was hands-on, managing every aspect of the business. He worked as the store manager, took orders, made chai, and even cleaned tables. This immersive experience allowed him to understand the intricacies of the business and connect deeply with customer needs.
Building a Chai Empire: Growth and Expansion
Chaayos quickly gained traction. By 2017, the chain had grown to 43 outlets across Delhi, Mumbai, and Chandigarh, with plans to expand to Pune and Bangalore. By 2018, the number of cafes had risen to 53, spread across seven cities, including Noida, Gurgaon, and Ambala. Today, as of 2023, Chaayos boasts over 200 branches, a testament to its rapid growth and widespread appeal.
What sets Chaayos apart is its focus on customization. Customers can choose from a variety of chai options, with over 80,000 possible combinations. From traditional flavors like tulsi adrak chai to innovative ones like honey ginger-lemon tea, Chaayos caters to diverse tastes. Saluja himself designed much of the menu, ensuring that each cup of chai meets the highest standards of quality and taste.
The business model also emphasizes consistency. Chaayos leverages technology to standardize the taste of chai across all outlets, ensuring that customers experience the same quality regardless of location. “Chai cannot be made if the internet stops working at Chaayos,” Saluja once said in an interview with Raj Shamani on the YouTube talk show Figuring Out, highlighting the tech-driven approach that underpins the brand’s success.
Challenges and Lessons: From Startup to Scale-Up
Building Chaayos was not without its challenges. One of the biggest hurdles was standardizing the taste of chai across multiple outlets. Chai is deeply personal, with every household having its unique recipe. Saluja had to balance this diversity with the need for consistency, a challenge he addressed through rigorous research and development.
Another lesson came from Saluja’s hands-on involvement in the early days. Working 15-hour shifts as a store manager, he learned the importance of customer engagement and operational efficiency. “I ran the store as the store manager, the order taker, the inventory manager, everything that is done by a store manager,” Saluja recalled in a podcast with Chitrangada Singh on The Rockford Circle Season 2 (LiveMint). “I did that from 8:00 am till 11:00 pm….for a year and that’s how I learned the business.”
Saluja’s journey also highlights the importance of adaptability. Initially, Chaayos focused solely on chai, but over time, the menu expanded to include snacks like bun maska, Maggi sandwiches, and keema pav. These additions complemented the chai experience and broadened the brand’s appeal.
Impact and Legacy: Revolutionizing Chai Culture
Chaayos has transformed the way Indians consume chai. Before Chaayos, chai was primarily a street-side or home-brewed experience. Saluja introduced a cafe culture dedicated to chai, elevating it to a level of sophistication and customization previously unseen. Today, Chaayos is not just a cafe chain; it’s a brand that has become synonymous with quality chai.
The impact extends beyond the business. Chaayos has inspired a new generation of chai entrepreneurs and has put India’s tea culture on the global map. Saluja’s success story is often cited as a case study in business schools, highlighting the power of identifying unmet needs and building a brand around them.
Looking ahead, Saluja remains focused on innovation. Chaayos continues to experiment with new flavors and formats, ensuring that it stays ahead of evolving consumer preferences. With over 200 outlets and a loyal customer base, the brand is well-positioned for further growth.
Nitin Saluja’s journey from an IIT graduate to a chai entrepreneur is a story of passion, perseverance, and vision. Through Chaayos, he has not only built a successful business but also revolutionized India’s tea culture. His ability to blend tradition with innovation, coupled with his hands-on approach, has made Chaayos a household name.
As Saluja continues to expand his chai empire, his story serves as an inspiration for aspiring entrepreneurs. It’s a reminder that sometimes, the simplest ideas—like a perfect cup of chai—can lead to the biggest successes.
