Established in 2015, Chaiiwala, meaning ‘tea seller’ in Hindi/Urdu, is the name of a fast-growing Indian street-food brand that has conquered the hearts and taste buds of consumers on three continents. Co-founder and CEO Muhummed Ibrahim spoke to Jon Bradley about his recipe for success.
When Muhummed Ibrahim, together with two friends, opened his first small store in the heart of Leicester, he could hardly envisage the skyrocketing growth the company would experience, although thinking big was the founders’ mindset from the very beginning, he says.
Muhummed Ibrahim,
CEO Chaiiwala
He reflects that hard work, the utmost dedication, an open mind and transparency are amongst the factors that have made the business what it is today – a strong, fast-expanding franchise that remains true to the values on which it was founded.
Striking success
Looking back at these humble beginnings, Muhummed, who obtained First Class Honours degree in Pharmacy, says: “The business was born from just an idea to enjoy chai, something that runs in generations of our families, and to revive this 100-year old family recipe in a modern version.”
Chai, a traditional Indian tea made from a blend of black tea, spices and milk, needs time and passion, and Muhummed highlights the importance of steeping chai for at least 40 minutes to achieve the perfect cup, a practice followed at every Chaiiwala branch by pre-brewing, so that the drink is in excellent condition whenever anyone orders.
Chaiiwala’s first store opened in the heart of Leicester, five minutes away from each of the founders’ houses. It quickly gained popularity for its traditional chai made with fresh ingredients and spices imported straight from India, and a simple menu featuring a variety of street-food favourites such as samosas as well as a selection of sandwiches and salads, all sold at affordable prices.
A second shop was opened six months later, and at that time, incredibly, the company agreed its first franchise. “I had to look the word up, we knew nothing of franchising but we decided this was the model we wanted to follow. The one thing I understood was that we needed to learn from the best. And the best in franchising is McDonald’s. So we set up the system, refined the processes and within three months, we signed up eight more franchisees.”
He insists that Chaiiwala is very selective about its partners – they must have the same ethos and values, be committed to hard work and use their own money, have the same drive and ambition and want to grow the business. “Integrity and reliability is what we look for in a franchise partner, ” says Muhummed.
Passion and dedication
He explains that Chaiiwala’s model is a combination of a QSR (quick service restaurant) and a cafe, placed in busy versatile locations such as train stations, universities, shopping centres, retail parks or the high street. “Our brand is an East–West fusion. For instance, we have gone autumnal with our chai flavours, such as an apple pie or pumpkin pie chai. Our stores are very similar to what you would find at other traditional coffee shops, but with a wider selection of food offerings which are all desi street food, but with a Western twist.”
He reflects that he learned the key business principles from his father, watching how he treated his customers, talked to his suppliers and keeping records up to date. And also the respect he paid to his staff. “A happy workforce is a productive workplace. Making sure the staff are happy creates the right ethos, the right dedication.”
The same attitude is applied to the suppliers, he continues. “The key thing is to have good control of the supply chain and that is one of our strengths. It boils down to solid relationships. When you have created a great, personal relationship, the other party doesn’t want to let you down. On our part, we give them our forecasts, let them know how we want to grow and let them grow with us. The fact is, I don’t want to change suppliers – 80% of the people that we were using in our very early days are the same people we’re using today.”
Muhummed says the company uses UK-based suppliers for items that are key to the brand but also works with farms in the Assam region of India as the management is passionate about supporting local communities. “We want to change lives over there. We want to make sure our farmers are living well, that they have access to education and medical care, to clean water. Again, a happy workforce produces happy results. I can guarantee we use the best quality teas that come out of that region because our farmers are happy.”
He insists that the social aspects are also driving their ambition to grow. “Ultimately, the more money we make, the more charities we can support, the more lives we can change. Success is not just about money, it’s about making a real difference.”
Growing the right way
To support growth, the company has been investing in technology to leverage all the tools that can make the staff’s life easier and the customer experience more pleasant at the same time. “We use digital and AI tools to monitor performance in the stores but never with a view to replacing our staff. Nothing beats human interaction. The purpose of modern technology is to make the staff journey and the customer journey better, not to replace the human factor.”
Chaiiwala currently employs some 50 people in its head office and Muhummed notes that the number is constantly growing. “The team will probably double over the next two years. We have so many projects going on – we have defined a new strategy mapping out 600 potential locations in the UK for new stores over the next five years.”
That target is not unrealistic, given Chaiiwala’s efficient systems and robust infrastructure and – last but not least –recent massive financial backing from a major investor from the Middle East. “America is coming this year, we have already sold 100 locations in Canada, and are opening more stores in UAE as well as multiple countries in the GCC. Growth is also planned for the UK market – we are planning to open 30-plus additional stores this year, followed by another 40 next year.”
This fast growth in just under ten years, of a company that started from nothing, is indeed impressive. Next year, Chaiiwala will celebrate its 10th anniversary and Muhummed says he wants to make sure the company hits its targets. “However, the truth is that I’m already incredibly grateful for where we are today. Going forward, we will keep working hard, to see how many more lives we can empower and change. And we will do it the right way, honestly and transparently, in line with the values we set up this company with.”ces and excellence in delivering quality products to customers nationwide, while prioritising the well-being of our people and securing transparent communication with our shareholders.”
