Chaiiwala targets hospitals, campuses in expansion push
It wants to transform Indian dining into a modern, social experience.
Chaiiwala is expanding into hospitals, universities, and other nontraditional locations as part of its push to capture new dining occasions and reach customers beyond the country’s high streets.
Chief Financial Officer Abdul Piranie said the Indian street food and tea chain wants to reshape how consumers experience Indian dining - turning it into a modern, social experience rather than a quick stop for takeaway.
“If you went to an Indian restaurant many years ago, the ambience wasn’t great,” he said via Zoom. “The food was good, but you didn’t feel like hanging around. You just want to grab your food and get out.”
Founded in 2015 by Sohail Ali, Muhummed Ibrahim, and Mustafa Ismail, Chaiiwala serves authentic Karak chai and Indian street food classics such as kebab rolls and samosa chaat. The concept draws from the founders’ family recipes, which trace back to 1927 in New Delhi, where one founder’s great-grandfather sold tea on the streets.
The UK-based brand’s expansion strategy has increasingly focused on travel and institutional hubs, which offer high footfall and strong sales potential.
“We’re in airports at the moment - travel hubs are really working well. We’re in universities, and we’d love to be in hospitals as well,” Piranie said.
Chaiiwala now operates 135 restaurants globally, including 108 in the UK, 24 in Canada, and 3 in Dubai. The company reported a 35% year-on-year increase in global system sales to £89.4m for the 2024 fiscal year, and a 16% rise so far this year.
The approach mirrors a wider trend across the quick-service restaurant sector. SSP Group Plc, which operates food and beverage outlets in travel locations, posted a 6% increase in group sales for the third quarter from a year earlier.
Mordor Intelligence forecasts the airport quick-service restaurant market will expand to £32.7b ($43.54b) by 2030 from £26.8b ($35.77b) this year.
Piranie said Chaiiwala’s expansion isn’t confined to one format. “The challenge in our industry is finding the locations and competing with other brands [for them],” he said. “Different areas have different circumstances, hence the need for different formats.”
Last year, Chaiiwala opened 24 outlets, including its second drive-thru in Mellor Brook near Blackburn and branches at London Luton Airport and Birmingham Airport. Internationally, it added a flagship store at the University of Calgary and another branch in Dubai’s Al Barsha district.
The mix of formats and locations, Piranie said, helps the company refine its model ahead of further global expansion. The chain plans to boost its travel hub presence in the UK and is preparing to enter the US market.
Within the next decade, Chaiiwala aims to reach 500 branches in the UK and expand throughout the US.
