Chaiiwala holds back US push as it works to avoid ‘getting it wrong’
The chain is prioritising the right partners and locations before entry.
Chaiiwala is taking a cautious approach to its US expansion plans, with co-founder Sohail Ali saying the brand is studying the market carefully before making its next international move.
Speaking at the QSR Media UK Redcat Conference & Awards 2026 in London, UK, Ali said the UK chai brand has been evaluating the US for years but is reluctant to move too quickly without understanding the right partners, locations, and operational model.
“America is a huge decision,” Ali said. “We’ve been studying it for so long and going back and forth for so long because we know how fruitful it can be, but we don’t want to get it wrong.”
Chaiiwala, which now has almost 130 sites across the UK, has expanded from its Midlands roots into shopping centres, retail parks, and airports.
As the brand expands, Ali said maintaining control over site selection has become increasingly important, with the brand turning down locations and franchise opportunities that do not fit its model.
“We say no so many times throughout the week for locations and franchise partners,” he said.
Ali said the brand has learned that choosing the right position within a location is just as important as choosing the location itself.
“Where are the anchors? Where are the escalators? Where are the ATMs? Where are the entrances?” he said. “The location within the location is just as important.”
The company currently operates a mix of company-owned and franchise sites, with around 10% of its estate owned directly by the business to test new formats before wider rollout.
Ali said younger customers have been a key part of Chaiiwala’s growth strategy, with the brand using store design, packaging, and social media to encourage engagement.
“We were trying to create viral content through design, whether that’s packaging design or cheeky hashtags on packaging,” he said.
The brand is also using customer feedback through social media and its app to shape menu launches.
“We’re constantly able to understand what they want to see, so we can tailor our LTOs according to live feedback,” Ali said.
Recent launches include matcha and cold drinks, whilst international markets are adapted with local menu changes.
In Canada, for example, Chaiiwala introduced a butter chicken poutine whilst keeping its core chai and breakfast offering unchanged.
Looking back on the company’s growth, Ali said the biggest change he would make is moving faster. “If one thing I would change, I think I would just like to go faster.”
