Tiger Global backed Chaayos breaks tech in Kettle

By: | Published: September 6, 2017 12:46 AM

The Kettle app functions as the customer’s screen for ordering and runs data analytics at the back-end to generate customer insights.

Chaayos, food and beverage company Chaayos, tigerNitin Saluja, founder and CEO, Chaayos.

Tiger global-backed food and beverage company Chaayos opened its first outlet in 2012 to cater to tea-drinkers in India, essentially 70% of the hot beverages market. Now Chaayos is foraying deeper into the food and beverages industry using its consumer insights tool ‘Kettle’ at the forefront of all its technological innovations.

Nitin Saluja, founder and CEO of Chaayos, says Kettle is a technology solution that helps record customer insights and provide recommendations based on their ordering patterns. Saluja says the company has made significant investments in technology for ramping up its delivery business and offering a better customer experience.

Kettle runs data analytics at the back-end to generate recommendation, engage with the customer, and track their relationship with the company. “Kettle is integrated with all the CRM (customer relationship management) that we run. It allows us to track metrics such as group sizes, frequency of a customer, preferences, etc.,” said Saluja.

The Chaayos app functions as the customer’s screen for ordering and adding loyalty points. “We are using technology to make chai ordering easier for our customers. The dine-in option on the app is a 2017 solution for self-ordering at stores. This is an upgradation of the ordering mechanism. Earlier, we did not have a technology interface with the customer and no insights in terms of their spending, ordering, etc.,” Saluja shared.

According to Saluja, customisation at Chaayos helps it maintain an edge over other tea cafes in the country. “The customer can choose the ingredients which he wants in his cup of tea. This creates stickiness for our customers,” he added.

Chaayos launched its delivery service, Chai-on-demand, in 2015 which accounts for 20% of revenues. “Within delivery, 10-11% of the business comes from our own app and remaining from channel partners such as Zomato and Swiggy which charge 5-12% commission,” Saluja said.

By March 2018, it aims to expand its store count to 75 from the current 40 across Delhi-NCR, Mumbai and Chandigarh. “Our business model requires a central kitchen  that works as the nerve centre for our eco-system. We have one in Delhi that takes care of the all the neighbouring regions including Chandigarh and it will also take care of the expansion in nearby areas,” said Saluja.

For FY17, Saluja pegged same-store sales growth at 35%.

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