At a time when India’s food and beverage sector is being redefined by convenience, premiumisation and youth-centric innovation, the Wagh Bakri Tea Group is betting big on delivery-led growth to take its premium tea experiences to a wider audience.
Speaking to HospitalityBiz India on the sidelines of an event to launch a new menu at the brand’s Connaught Place Delhi outlet, Sanjay Singal, CEO, Wagh Bakri Tea Group, said that while physical expansion continues, the brand’s sharper focus is on leveraging the reach of online delivery platforms to serve more consumers without losing the warmth and authenticity of its signature cup of chai.
“Expansion can happen in two ways in the retail industry,” Singal explained. “One is that you open more brick-and-mortar stores, and the other is that you use delivery mechanisms to reach more consumers from existing stores. In an area like Connaught Place, there’s so much density of offices and residences — if I can increase the delivery of tea or food, I can go to many more consumers without adding new stores.”
The group currently operates around 52 tea lounges across 11 cities, including 22 express outlets. The company has added nearly dozen new outlets in the last one year, Singhal said. But he emphasised that the real opportunity now lies in deepening the delivery footprint of each outlet.
“Given the rapid growth of Swiggy, Zomato and other delivery platforms in India, we are focused very heavily on increasing our delivery,” he said. “We have developed special packaging so that when you order tea, it remains hot and fresh for at least 30 to 45 minutes, depending on the weather. That ensures you get the same taste and aroma at home that you would enjoy in our lounges.”
To make this possible, the company has invested in meticulous operational tracking — from how long it takes to brew each order to how quickly it is picked up by a delivery partner. “Every restaurant is tracked for how many minutes it takes for a tea to be ready,” Singal said. “There’s a standard — five to six minutes — by which time the tea must be packed and handed over. The quality of tea cannot be compromised because, as you know, if you boil it again, the taste goes down. That’s why packaging, temperature retention and timing are everything.”
Singal believes that delivery is not just an add-on channel but a fundamental shift in how modern India consumes food and beverages. People have more income but also less time. Traffic is a problem, and most people can go out for a meal or beverage only once or twice a week. But delivery occasions can be four to six times a week. That’s where the larger opportunity lies, he noted.
While delivery takes center stage in the growth strategy, Wagh Bakri is also working to make its menu more youthful and aspirational. “Young people don’t naturally gravitate to tea as a category; they prefer energy drinks, colas or coffee. So, we are presenting tea in formats that are relevant to them — bubble teas, salted caramel teas, vanilla lattes — and even introducing Korean-inspired food pairings. Our goal is to make tea cool again,” Singal said with a smile.
When asked about business expansion, Singal said that they operate lounges themselves because of their “obsession with quality”. He said that rigorous training and retraining goes behind making a perfect cup of tea at their lounges.
The new ‘Rock & Roll’ menu blends ‘desi’ with modern featuring classic Aloo pyaaz and paneer parathas to a contemporary chilly cheese variants, shawarma rolls, schezwan rolls to Kulchozzz. The new food and tea menu was launched in the presence of Chef Manjit Singh Gill, former corporate chef of ITC Hotels and president of Indian Federation of Culinary Associations (IFCA).
