Meet Chaiiwala of London, an international franchise system that hinges on the social experience and is looking to Canada for its next big market
By Gina Makkar
Across India, chai has a rich history that symbolizes warmth, comfort, and hospitality. Chai wallahs (tea vendors) are an anchor in their communities, serving beverages with their sweet aromatics of ginger root, cardamom, and clove, and enticing tea drinkers from all walks of life to pull up a seat and have a cup.
Inspired by the feel-good nostalgia of home, Chaiiwala of London first opened its doors in the United Kingdom in 2015, the concept a nod to its Indian roots and the tea stall created by its founder’s forefathers in 1927. Today, it has 110 locations in three countries. As part of the brand’s global expansion plan, Surrey, British Columbia-based friends and business partners Shiraj Kothiwala and Ajmal Gundhra secured the Canadian franchise rights. Their goal: to foster the same sense of togetherness in North American communities that chai drinkers experience across the world. “Chai was not a popular drink in Canada, and the name ‘Chaiiwala’ was intriguing to us. It was a way that we could stand out and create our own niche,” says Gundhra.
With a diverse cultural landscape, Canadians are often open to exploring flavours from different regions and cultures, making Canada a natural choice for expansion. For the health-conscious consumer, Chaiiwala uses fresh, natural ingredients and offers food and beverage options inspired by a fusion of English, Indian, Pakistani, and East African cuisines. The menu boasts something for everyone, from caffeine-driven students to busy professionals to time-strapped families. Commuters can enjoy breakfast on the run with an omelette wrap or sweet Bombay toast. Late-night diners can grab a cup of the famous karak chaii, a savoury samosa burger, or a tempting slice of gulab jamun cheesecake.
Spreading the word in a java-loving world
The partners opened their first location in Scarborough, Ontario, in 2021, followed shortly by a second in Abbotsford, British Columbia. Today, with 80 franchise agreements in place, the brand anticipates 22 storefronts to be open by the end of 2024, with locations in Ontario, Alberta, Saskatchewan, and Manitoba. They project the completion of 25 to 30 more locations by the end of 2025. “We are definitely looking for more franchisees,” explains Gundhra. “We’re always open [to new locations], and we want to grow as fast as possible and keep the brand happening and vibing with the new generation.”
Like all endeavours, expanding a franchise system in a new country is not without adversity. With real estate at a premium and the cost of building materials on the rise, securing new locations is sometimes a challenge, and navigating the different permit processes across various cities and provinces is a test of endurance and patience.
Fortunately, Gundhra channels the expertise he garnered from his background in construction to minimize costs and maximize efficiency when planning new buildouts. “We try to lower the cost for the franchisees as much as possible. When we are done quicker, they are happier, as they can begin to make money sooner. Our building costs are a lot cheaper than any other brand that’s out there, that’s for sure.”
The company also continues to establish relationships with suppliers to streamline processes and negotiate the best possible costs for franchisees. “We’re in a good position. As we begin to sell more, we buy more. There’s always room to make things better, and as we grow, things become a little bit easier every day.”
When it comes to staying competitive among other cafe concepts on the market, Gundhra says that as generations change, so do consumer tastes and preferences. “Food is always evolving. I think it’s about taking the time to start thinking ahead, which is what we are doing. I think we’re coming in with the right mindset, and hopefully, in the next few years, we can be at 40 to 50 stores.”
In an era where a cup of joe or a latte has long been king, the Chaiiwala reception has been markedly positive as they expand to different regions. “It’s been very consistent,” shares Gundhra. “People love the taste. Certain things can be an acquired taste, like sushi. But with us, the taste is already quite lovely, and from the first bite, people say it’s amazing.” The brand endeavours to maintain the creature comforts of its time-honoured, tried-and-true recipes while inspiring new, innovative menu options desired by the next generation.
Nurturing its network, and the environment
For prospective franchisees, a background in business is beneficial, and the brand seeks individuals who want to be owner-operators. “We don’t want a big firm to come in and buy 10 stores. The owner-operators will always do a better job because that’s their bread and butter, and they are willing to put their money where their mouth is,” says Gundhra. “We like people who are a bit more open-minded, even a bit younger, as they’re starting their lives and they’re able to spend more of their time on the brand.”
A variety of build concepts, from express stores to dine-in, cafeteria-style, drive-thru, and kiosks, allow owners to enter the market at various price points and secure the most suitable concept for their unique community.
Once on board, franchisees complete an intensive two-week training program. Managers and supervisors train at an established location, followed by on-site training when the build is complete, allowing the team to become familiar with the set-up and layout.
Once open, Kothiwala says internal audits on each location are conducted every six to eight weeks for quality assurance. “We offer continuous support, and our area managers and trainers visit the stores on a weekly basis. There’s also a lot of support from the head office on sales revenues. Does it go up? Does it go down? We discuss that weekly with the store owners.”
With an established system in place internationally, the duo also garners plenty of support from the head office in the United Kingdom, a significant benefit to franchisees. “We try to follow their footsteps,” says Kothiwala. “They know if they’ve made any mistakes, and they make sure that we don’t do the same.” The peace of mind allows the partners to focus on what they do best: grow the brand.
Inspired to share their success, the franchise recently started the Chaiiwala Foundation to give back by empowering communities across the world. With a love for the environment, the brand employs sustainable building processes by using greener products in its lighting materials and heating. They also reduce waste by recycling and safeguarding against water loss, effectively minimizing their carbon footprint.
They also maximize their social impact by embracing and becoming a part of local communities. More than a place to gather and cultivate unity over cups of tea, they provide opportunities to grow careers and change lives.
For franchisees interested in procuring a Chaiiwala location, Gundhra says success is about hard work and having a vision. “If you’ve got the vision and you’ve got the right mentality and you’re putting the hard work in, I think you’ll definitely be successful.”
Now that the brand has begun to take shape in the market, Gundhra says the next goal is to achieve further recognition among the many ethnicities that make up the majority of the population. “We’ve got a lot of Canadians coming into the store and they like the product, but we want that to resonate a little bit more. We ask everyone to come out and try the food. You be the judge.”
Learn more about franchising with Chaiiwala of London
