Chai Sutta Bar

In March 2019, Anubhav Dubay, the co-founder and CEO of Chai Sutta Bar (CSB), a fast-growing coffee chain, was prepared to discuss the company’s growth strategy with other leadership team members. He glanced at the crowded street with people tangled up in their work and remembered his college days of preparing for the Indian civil services. The aroma of the coffee, tea, and delicious seasoned snacks had engrossed commuters before heading towards work. He recalled the journey of CSB, which had begun in 2016 in Bhawarkua, a suburban area in Indore, an Indian city—the challenges and successes of his entrepreneurial journey, which he had taken with his two friends. Their main objective was to provide Indian consumers with affordable, low-cost beverages. CSB strategy of catering to consumers’ budgetary needs gained rapid popularity and garnered incentives for its expansion across the country. They have established over 150 outlets in different parts of India. Following this success, the company realized the need for a global presence by scaling up the business and expanding into other countries. They have three options: either CSB can follow their baseline strategy, which entails existing growth, similar to what they have done in India, or they can opt for shared ownership by selling a portion of their equity at a fivefold of their current Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which would allow them to remain the face of change; alternatively, they can choose a complete buyout for ten times their current EBITDA with a nominal lifetime royalty fee. Here, we will examine the opportunities and possible challenges that CSB may encounter while expanding into the international market.