Indian tea cafe chain Chaayos marked another year of significant growth, with its revenue soaring to Rs 237 crore in FY23—a 75.6% increase from Rs 135 crore in FY22.
The company, known for its variety of teas and snacks, operates with dine-in, takeaways, and online ordering options. With 200 cafes currently, Chaayos plans to expand to around 400 in the coming years.
Chaayos's expansion significantly increased its expenses. Material costs rose by 62.3% to Rs 86 crore, forming a quarter of their total expenditure in FY23. Employee benefits increased by 53% to Rs 78 crore. Additional outlays like rent, marketing, and legal fees led to a 65.4% surge in total costs, hitting Rs 349 crore.
Despite the revenue surge, Chaayos witnessed its losses widen by 33.8% to Rs 95 crore in FY23, up from Rs 71 crore in FY22.
However, the company showed some positive signs, with improvements in Return on Capital Employed (ROCE) and EBITDA margin, which stood at -29% and -27%, respectively. On a unit level, Chaayos spent Rs 1.47 to earn a rupee.
Chaayos, a popular tea cafe in India, is using new AI technology to serve its customers better. Its tech has helped them keep 20% more customers coming back and raised their earnings by 14% right after they started using it.
Notaby, It has put screens in cafes for ordering, an app to order without touching anything, and even a way for customers to check in and pay with their face.