Masala chai and coffee both have a place in India's cafés. For a customer, the choice may come down to taste and routine. For an operator, compare recipes, equipment, selling prices and local demand before choosing the menu; a beverage category alone does not determine business performance.
The numbers — chai is bigger than coffee in India
India consumes roughly 1.1 million tonnes of tea per year vs 1,20,000 tonnes of coffee (Tea Board of India, Coffee Board of India 2025 data). That's a 9x difference. Coffee dominates urban café aesthetics — but tea dominates the actual market.
National beverage demand does not establish the sales or profitability of an individual café. Assess the customers, competition and operating costs around your proposed site.
Caffeine content — chai vs coffee
- Masala chai (250 ml): 50–80 mg caffeine
- Filter coffee (250 ml): 90–120 mg caffeine
- Espresso (30 ml): 60–80 mg caffeine
- Cold brew (250 ml): 150–200 mg caffeine
Tea has L-theanine — an amino acid that pairs with caffeine for smoother, longer-lasting alertness without the coffee jitter. This is why chai drinkers can have 4 cups a day; coffee drinkers usually max out at 2.
Cost economics — compare the complete recipe and operating costs
For a café operator, a useful comparison includes:
- Ingredients: recipe, portion size, milk, tea or coffee and wastage.
- Selling price: what local customers will pay and the menu mix they choose.
- Equipment and labour: purchase, maintenance, training and preparation time.
- Outlet costs: rent, utilities, staffing, packaging, delivery charges and applicable franchise fees.
Use supplier quotes and a location-specific cost scenario. A lower ingredient cost does not by itself mean a more profitable outlet.
Health perception — the new battleground
Indian consumers in their 20s and 30s actively associate tea with wellness — particularly herbal, green and organic variants. Coffee is increasingly seen as transactional (energy hit) while tea is positioned as ritual + wellness.
The smartest tea brands have leaned into this. T VANAMM's menu spans 130 items, of which 30+ are wellness teas — tulsi, ashwagandha, hibiscus, fennel-cardamom — formats coffee simply cannot match.
Cultural shift — chai as a brand category
For decades, chai was unbranded. Roadside vendors, family recipes, no standardisation. Coffee benefited from international brands — Starbucks, Costa, Café Coffee Day.
Indian tea brands offer different customer experiences and business structures. T VANAMM and Chai Sutta Bar describe owner-operated franchise opportunities; Chai Point publishes a company-managed FICO investment, while we found no published Chaayos franchise terms. Compare the actual offer and responsibilities rather than assuming every tea brand follows the same expansion model.
Which format suits your customers?
Tea and coffee can serve different tastes and occasions within the same café. Compare local preferences and the costs of preparing each drink instead of assuming one category will produce better returns.
T VANAMM offers tea and coffee alongside juices, ice creams and snacks. Entrepreneurs should assess the menu, premises, staffing and written franchise terms together. Revenue, profit and investment recovery are not guaranteed.
Disclaimer: Health benefit comparisons in this article are based on published nutritional research and should not be taken as medical advice. Caffeine tolerance varies by individual — if you have caffeine sensitivity, hypertension, anxiety disorders or are pregnant, consult your doctor before increasing tea or coffee consumption. Profit and business figures cited are illustrative market-level estimates, not guarantees of financial performance.

