Why MBA Chai Wala Failed?

Have you heard the fascinating story of the MBA Chai Wala? Many people have been thinking about the dynamics of success and the dangers that may come with it after reading this riveting tale of ambition, celebrity, and unforeseen difficulties. The path of the MBA Chai Wala serves as a striking illustration of dashed hopes and unmet objectives in a world where viral phenomena can become famous overnight.

MBA Chai Wala, a well-known tea shop in the middle of the city, was previously bustling with patrons who flocked to enjoy their distinctive tea blends. Nevertheless, despite its early success, the company subsequently experienced a continuous loss in sales and clientele. This case study tries to analyse MBA Chai Wala’s failure and pinpoint the major causes of its demise.

What is MBA Chai Wala?

Why MBA Chai Wala Failed?

Prafull Billore established MBA Chai Wala in 2016. He borrowed Rs 8,000 from his father to open a roadside tea stall, and he gave the business the amusing name MBA Chai Wala. The idea behind the stand is to convey the lively and varied feel of an MBA Chai Wala who speaks poetry, sings Bollywood songs, uses puns and generally exudes an exuberant, joyful and simultaneously endearing atmosphere.

He has experimented with a variety of novel ideas, such as selling tea during political rallies and titling the tea after the programmes started by the parties. MBA Chai Wala quickly became a popular chain, and by 2018, it had over 100 stores across India. However, the chain’s growth began to slow in 2019, By FY 2019–20, the company’s revenue had reached Rs 3 crore. Prafull now employs 20 people at his 300-square-foot eatery, MBA Chai Wala.

The rise of the Chai Wala phenomenon

breakfast over a wooden table
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Chai, the traditional Indian tea, has seen an increase in popularity in recent years. This has caused the tea Wala phenomenon to flourish, in which young businesspeople are creating tea booths and cafes all around India. Prafull Billore, who started MBA Chai Wala in 2016, is one of the most well-known Chai Walas. After posting a video of himself preparing tea in his college dorm room on social media, Billore’s story quickly became well-known. As soon as the video went viral, Billore had numerous requests to start a chai kiosk.
MBA Chai Wala gained popularity rapidly, and Billore soon began opening shops all around India. Additionally, he started selling t-shirts, mugs, and posters under his own brand.

The success of Billore is evidence of the influence of social media. His tale gained popularity because it resonated with Indians all around the country. People were captivated by Billore’s message of inspiration and hope as well as his entrepreneurial energy. The Chai Wala phenomenon serves as a reminder of how social media can make anyone famous in a matter of hours. One illustration of how social media may be used to start a successful business is Billore.

Exploring the Viral Nature of the Chai Wala’s Story

The fact that Billore’s story went viral was due to a variety of variables. First, the chai-making video he shot in his dorm room was well-produced and interesting. It demonstrated Billore’s love of chai and offered visitors a window into his time spent as a college student. Second, a lot of individuals could relate to Billore’s story. He was a young businessman seeking to establish his reputation. People who were likewise attempting to fulfil their aspirations found inspiration in his narrative.

Third, Billore’s tale came at a good moment. The video gained popularity at a period when chai was becoming more popular in India. This increased the attractiveness of Billore’s tale to those who were already interested in chai.

The Impact of Social Media on Creating Overnight Celebrities

A significant factor in the growth of the Chai Wala phenomenon has been social media. Because it was posted on social media, Billore’s tale gained a lot of attention. Social networking websites like Facebook, Twitter, and Instagram allowed Billore’s tale to quickly spread to a wide audience. Social media has also made it simpler for business owners to start profitable ventures. Entrepreneurs previously had to rely on conventional marketing strategies like print ads and TV commercials.

But thanks to social media, business owners can now spread their message to a wide audience without having to invest a lot of money. One example of how social media may be utilized to produce overnight celebrities is the Chai Wala phenomenon. Thanks to social media, anyone with a compelling tale can succeed by reaching a wide audience.

MBA Chaiwala Franchise

clear light bulb
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You don’t need an MBA degree to purchase an MBA Chaiwala franchise. No prior expertise is necessary for this; all you need is the motivation to launch your own business. They will assist you in achieving your objective. You can easily apply for a franchise on their official websites. After adding a few personal details, the process is complete. They currently have franchises in 23 Indian states. And there are more than 100 chai-preneurs in India.

  • Gujarat
  • West Bengal
  • Maharashtra
  • Delhi
  • Uttar Pradesh
  • Uttarakhand
  • Rajasthan
  • Madhya Pradesh
  • Haryana
  • Punjab
  • Himachal Pradesh
  • Bihar
  • Assam
  • Karnataka
  • Chattisgarh
  • Ladakh
  • Arunachal Pradesh
  • Manipur
  • TamilNadu
  • Karnataka
  • Andhra Pradesh
  • Odisha
  • Telangana

MBA Chai wala Franchise Cost.

The location and size of the business have an impact on the pricing of an MBA Chai Wala franchise. The overall investment needed is expected to be between $8 and $10 lakhs, although the franchise cost is only 3 lakhs.

The following advantages are part of the franchise program:

The cost of an MBA Chai Wala franchise varies depending on the location and size of the store. However, the franchise fee is ₹3 lakhs, and the total investment required is estimated to be between ₹8 and ₹10 lakhs.

The franchise program includes the following benefits:

  • Use of the MBA Chai Wala brand name and logo
  • Access to MBA Chai Wala’s training and support programs
  • A share in the profits of the franchised store

To be eligible for the franchise program, applicants must have the following:

  • A minimum investment of ₹8 lakhs
  • A suitable location for a store
  • A passion for tea and entrepreneurship

MBA Chaiwala has three types of business models

  • Full-service model: This franchising concept for MBA Chai Wala is the most prevalent. It entails starting a full-service cafe that offers a selection of teas, snacks, and products.
  • Express model: This model offers franchisees a more compact and cost-effective alternative. It entails setting up a kiosk or a tiny cafe that offers a constrained range of teas and snacks.
  • Cloud Kitchen model: The newest addition to MBA Chai Wala’s collection of business models is this one. It entails opening a food-only cloud kitchen that distributes items.
key mba chai wala

Why MBA Chai Wala Failed?

To understand the reasons behind MBA Chai Wala’s failure, a comprehensive analysis was conducted. It was discovered that several factors played a crucial role in the business’s decline.

  • Lack of Innovation: MBA Chai Wala was unable to change the wants and preferences of its customers. The tea vendor kept on serving the same conventional blends without introducing any fresh or distinctive flavours. Customers started looking for more creative and interesting solutions as a result, which caused a drop in sales.
  • Intense Competition: During the period of MBA Chai Wala’s fall, the tea business saw an increase in competitiveness. Many brand-new tea shops and cafés opened up, providing a huge selection of tea kinds and tailored experiences. MBA Chai Wala struggled to keep its clientele and was unable to set itself out from rivals.
  • Inconsistent Quality: MBA Chai Wala used to be known for its excellent tea quality, but over time, it found it difficult to maintain consistent standards. The customers became dissatisfied as the tea’s flavour started to change. Devoted clients started to switch to other tea suppliers who routinely provided better items as word of the declining quality spread.
  • Limited Marketing Efforts: MBA Chai Wala neglected to make strategic promotional investments and placed a significant emphasis on word-of-mouth marketing. The company was unable to reach a larger audience and draw in new clients as a result. The absence of successful marketing initiatives hampered the company’s expansion and ultimately led to its demise.
  • Ignoring Customer Feedback: MBA Chai Wala ignored client comments and did not attend to their issues. The company didn’t actively seek feedback or make the necessary changes in response to customer recommendations. Customers were turned off by this lack of responsiveness, and the tea stall’s reputation suffered as a result.

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