Adding value through quality cups of tea
A hot cup of good quality tea in a hygienic environment at affordable prices is a sure seller. This is the success mantra behind the rapid expansion of the Tea Time brand in the country and the demand for its products abroad.
With an annual consumption of about 837,000 tons, tea in various forms is the most widely consumed beverage in India. Worth over Rs.18000 Cr, tea as an industry is largely unorganized. There are thousands of tea stalls dotting the country, but tea cafes were still relatively unknown when Tea Time founder and managing director Uday Srinivas Tangella decided to become an entrepreneur with his idea of developing a network of shops. Some tea.
How has the Covid-19 pandemic affected Tea Time?
The growth of recent years has exceeded our expectations. This was possible because we serve quality products at a very reasonable price. From 2,800 stores, our vision is to grow to 25,000 stores across the country and in multiple countries around the world over the next two to three years. We have received requests from 12 countries with potential partners willing to pay the advances, but due to the pandemic we have not been able to expand our overseas presence.
What was the idea that launched Tea Time?
As a first generation entrepreneur, I started Tea Time in 2016 with the intention of serving a fine cup of tea across the country at the most reasonable price. Today, the company operates a chain of tea shops that offer a variety of teas, coolers and shakes at reasonable prices. He procures the tea leaves from the tea gardens after inspecting the taste and quality of the leaves. It ensures that the sheets are only purchased after rigorous quality control, after which the sheets are then processed in phases. Each blend is created to evoke an authentic tea tasting experience and to satisfy the desire and love for tea. Our Tea Time means garden to glass in just 20 days, ensuring freshness is not compromised, which is rare indeed for just 10 rupees.
What is your vision of Tea Time?
While fulfilling my dream, I have helped thousands of young men and women become entrepreneurs through this franchise model by helping them open and operate Tea Time stores. My goal is to empower the common man, along with his drive to close the gap in accessibility and affordability of premium products for common people. This is what is helping a Rs. 35 crore business to achieve the goal of creating the largest tea chain in the world.
“We are conducting an audit platform to continue improving the quality of our tea products. We are also working on plans to increase revenue by integrating more products. Snacks to serve in Tea Time stores without increasing overhead.
Adding new stores every day, we are setting up another manufacturing unit for cookies and other packaged snacks to serve in our franchise stores. We offer two retail tea powder products, considering our advantage over FMCG companies, due to lower supply chain overhead. For example, Tea Time sources at Rs. 300-Rs.350 per kg and sells it to franchise stores for Rs. 450-Rs. 500/kg, while most FMCGs source their raw material at around Rs150-Rs. 200/kg and sell it at a retail price of around Rs. 500/kg after adding supply chain costs. Our products are fresher because after purchasing quality raw materials, we are able to supply quality tea powder to our franchise stores within one month after processing, while most companies FMCG takes six to eight months to complete the whole consumer procurement process.
What gives Tea Time its competitive advantage in the market?
As one of the largest buyers and sellers of tea powder as a brand, Tea Time has a dedicated R&D team including tea tasters in Kolkata and Guwahati, and expert tea blenders. The effort is to ensure Tea Time stores have fresh stock kept in a hygienic environment. Given the footfall of most of our stores, spread not only in cities but also in villages and highways, consumers are assured that their tea is made with fresh and aromatic powder, supplied in small sealed packages. for faster consumption.
The company uses four different types of tea leaves for its four blends. Two of our powdered tea blends are expected to be launched and sold directly to consumers starting in April. Having established a large presence in the southern states, where Tea Time stores are renowned for their quality products, we are rapidly expanding into other parts of India.
Safety and hygiene are the top priority of our company, which focuses on hygiene and safety practices, not only to build trust among customers, but also because they play an important role in the construction brand image. While ensuring that franchise stores were of high quality, Tea Time kept drink prices low.
How did Tea Time succeed in such a short time?
The Tea Time franchise has proven to be incredibly useful for franchise owners and brand owners. A Master Franchisee helps expand into new regions where the brand owner could not operate alone. Master franchisees also help grow at a much faster rate than company-owned and operated sites. Tea Time has a number of master franchisees established in approximately 8 states, with a payback period within 12-14 months. It is a matter of corporate pride that at each franchised store our operations are profitable despite the high quality but low price of the tea served. Unlike many companies that have been impacted by the health pandemic, Tea Time has experienced strong growth over the past two years.
How does Tea Time contribute to economic sustenance?
Given the large volume of disposable cups used on a daily basis, we have introduced 100% biodegradable cups in stores. The cups were developed by the company that helped 45 young people set up manufacturing units in my hometown to meet their needs.
Apart from sourcing quality tea from Assam and Guwahati, the company is currently looking to purchase a tea plantation in Kerala either at Munnar or at Vagamon in Idukki district. For better operation, the company also plans to digitize all stores.
My vision is to serve a better cup of tea in every nook and corner of the country. We are on a mission to add value to the lives of our growing community – our customers, farmers, franchisees, employees and our investors. Each cup helps to bring mutual joy.
The Tea Time franchise has proven to be incredibly useful for franchise owners and brand owners.