VISAKHAPATNAM: As Covid-19 continues to challenge businesses of all kinds, some business chains have seen an upward trend in demand. Despite the changed purchasing power and consumers’ concerns around safety, few businesses have creatively adapted and have seen an increased profit margin.
Tea business is one such business amid the pandemic.
Desi Tea Time Pvt Ltd, the largest tea chain of Andhra Pradesh, has quickly adapted to the changed outlook, which made it now thrive in business with a spurt of more than 800 outlets in India after the last year’s lockdown.
Tea Time Founder and CEO Uday Srinivas Tangella told The New Indian Express, “Just like every other business, we too were hit hard by Covid-19 last year. When the lockdown halted supply of required materials, and constrained business hours, we couldn’t wrap our minds around the changes. Outlet franchisees were doubtful whether there would again be a business to the one prior to Covid-19. But, that uncertainty didn’t last for too long; Indians love tea, we added the flavour.”
He said their one strategy that remained unchanged throughout is to understand the needs of the consumers and to fulfil them in the best possible way.
“Now, more than ever, being safer is their priority, solicitude is our response, which exactly is the need of the hour,” he added.
Tea has been an integral part of Indians’ lifestyle since ages. The country is not only the world’s second largest tea grower, but also is the world’s largest tea consumer. Indians love their hot cuppa quite a lot. Local tea stalls brewing chai adding to the early morning fog is a common sight in every corner of India.
Aside from mere indulgence, tea lovers are now considering the health benefits of tea to safely indulge in the staple beverage with changing healthcare preferences. On the other hand, many young entrepreneurs and employees, who lost their jobs due to the pandemic, are looking at the surviving small businesses as a safe bet.
“One of the reasons for the rise in number of outlets is unemployment. Many people find themselves at the crossroads as they lost their means of survival due to Covid-19. We have survived the crisis. I’m glad that I can be of some help to the jobless during these tough times,” Uday said.
The profit margin of a single Tea Time outlet is between 40 per cent and 50 per cent, with an investment of Rs 4 lakh to Rs 5 lakh.
Tea Time offers flavours of tea along with the traditional tea. Immunitea, an immunity booster tea made with spices, is a new addition in the brand’s menu. Uday said Tea Time’s reasonable pricing also take a part of the credit in footfall during the pandemic. The brand now has 1,400 outlets in India spanning across Andhra Pradesh, Telangana, Tamil Nadu, Kerala and Karnataka.