Chaiiwala’s Bold Expansion: Brewing Success Across Borders

In the ever-evolving world of food and beverage, few brands capture the essence of cultural nostalgia and modern-day convenience quite like Chaiiwala. Originally born in the UK, the brand has rapidly expanded its footprint across multiple markets, successfully bridging the gap between South Asian tradition and contemporary global dining. During a recent conversation with Sohail Ali, Co-founder at Chaiiwala on the sidelines of The Retail Summit in Saudi Arabia, we discussed insights into the brand’s journey, its expansion strategy, and the lessons learned while navigating international markets.

A Journey Steeped in Growth

Since its inception, Chaiiwala has grown into a formidable presence in the UK with nearly 100 stores. The brand has also successfully expanded into Canada with 20 locations and is making significant strides in Dubai, where it currently operates three stores. Despite this success, the team remains focused on further growth, targeting two key international markets—Saudi Arabia and the United States.

“We had some investment a couple of years ago from a Saudi family, so we already have strong connections there,” Ali revealed. “Over the last few days, we’ve met some highly experienced operators in the franchising and F&B sector, and the potential for Saudi Arabia is phenomenal.”

The brand is taking a methodical approach, planting seeds in key markets to ensure sustainable growth. With an ambitious goal of opening 200-300 locations in the Middle East within the next five to ten years, Chaiiwala is strategically positioning itself to become the go-to chai brand in the region.

Learning from Dubai’s Market

Chaiiwala’s presence in Dubai serves as a strategic testbed for its expansion in the Middle East. The brand’s three stores in the city—each with a distinct model—helped the team gather crucial insights. The flagship store in Dubai Hills Mall provides a full-service restaurant experience, the Business Bay outlet offers a street-facing location, and the express store, located within an office building, serves busy professionals on the go.

“We’ve learned that the key to success in Dubai is securing the right real estate at the right price,” he explained. “Location is everything.”

Beyond real estate, the brand also had to adapt its menu to regional tastes. While Chaiiwala retains its signature items—such as the iconic Karak Chai and Desi Breakfast—it has also embraced localization. “We follow a strategy similar to McDonald’s, where we maintain core products but fine-tune the menu to suit each region,” he added.

Embracing a Health-Conscious Future

As the world moves toward healthier eating habits, Chaiiwala has been proactive in evolving its menu to cater to conscious consumers. A notable example is its sugar-free Karak Chai, a rarity in a market dominated by pre-mixed, sugar-heavy options.

“Post-COVID, there’s been a global shift towards healthier choices,” Ali acknowledged. “Our goal is to offer products that are not just flavourful but also nutritious. We have a very expansive vegetarian menu as well, and many items are vegan friendly.” The company is continuously innovating, working on a formula that mimics the taste of traditional sugary chai without the excess sugar.

The Role of Branding and Social Media

Chaiiwala’s success isn’t just about great chai—it’s also about creating an immersive brand experience. From day one, the founder envisioned a brand that would thrive on social media, ensuring that every element of the store’s design and packaging was ‘Instagrammable.’

“I designed the packaging and branding to encourage customers to take photos and share their experiences online,” he shared. “It’s about making chai a lifestyle choice rather than just a beverage.” This digital-first approach will play a key role in Chaiiwala’s expansion into Saudi Arabia, where platforms like Snapchat enjoy widespread popularity. “Saudi has one of the largest social media user bases, and we know exactly how to tap into that.”

The Road Ahead: A Multi-Format Future

Looking ahead, Chaiiwala is not limiting itself to traditional storefronts. The brand is actively exploring diverse formats, including airport kiosks, university campuses, hospital outlets, and even fuel station drive-thru’s.

“Saudi universities are like mini cities with their own metro stations, making them a prime target for expansion,” Ali noted. “We are keen to explore drive-thru formats in partnership with fuel station operators, as well.”

A Brand Rooted in People

Expansion isn’t just about location—it’s about people. With Saudi Arabia’s evolving labour laws requiring businesses to hire a local workforce, Chaiiwala is committed to training and integrating Saudi employees into its operations.

“We’re seeing a rise in female participation in the workforce, and we’re excited to be part of that change,” he said. “We’ll be bringing some of our legacy staff from the UK and Dubai to help train local hires.”

As Chaiiwala continues its ambitious growth trajectory, it remains rooted in its mission: to bring authentic, high-quality Desi chai and street food to a global audience. With a keen eye on market trends, a passion for innovation, and a deep understanding of cultural nuances, the brand is well on its way to becoming a household name in the Middle East and beyond.