COURSE CODE: SSC234

COURSE NAME: INDIAN ECONOMY

FACULTY NAME: DR. HARRY
TOPIC: Focusing on Consumption & Behaviour: The Chai Stall Economy: Campus
Consump on

Name Reg no. Roll No.

Atharv Parashar 12207341 15

Gopika Mohan 12212717 37
Pushkar 12221387 39
Monal Singh 12222564 50
 INTRODUCTION

Tea, affectionately known as chai across India, transcends the boundaries of a mere beverage. It is a
cultural phenomenon, a daily ritual, and for many, a moment of comfort and connection. In the
bustling world of Indian campuses, chai stalls are more than refreshment spots—they are vibrant
hubs of conversation, collaboration, and cultural exchange. These stalls often become unof icial
landmarks where students discuss everything from politics and personal stories to academic stress
and career goals.

This report is based on a documentary project titled “The Chai Stall Economy: Campus
Consumption”, which delves into the functioning and signi icance of one such tea outlet: the Chai
Sutta Bar franchise operating at Lovely Professional University (LPU). The outlet represents a
modern blend of traditional Indian street chai with contemporary food business models, catering
speci ically to a young, student-oriented demographic.

The documentary aimed to explore the operations, customer behaviour, seasonal demand, and
socio-economic dynamics of this chai stall. Interviews were conducted with employees, the owner,
and several student customers to understand the underlying business strategies and cultural value
of the outlet. What emerged was a clear picture of a business that operates at the crossroads of
tradition and modernity, deeply integrated into the rhythms of campus life.

We discovered that seasonal changes in luence product preferences, that affordability is key to
student loyalty, and that such ventures support local employment and entrepreneurial
aspirations. In addition to being a favourite hangout, the Chai Sutta Bar has created a sustainable
micro-economy within the university, balancing investment, labour, and consumer trends.

This report seeks to expand on these indings, not only to re lect on the documentary but to
understand how such small-scale ventures shape, and are shaped by, the student ecosystem
around them.
METHODOLOGY

To produce the documentary and this report, we followed a qualitative research method
that included direct interviews, observational research, and ield recordings. The
documentary was shot over several days during different times (morning, afternoon,
evening) to capture a holistic view of the chai stall’s operations and customer low.

We interviewed:

• The owner of the Chai Sutta Bar to understand the business model,
investment, seasonal demand, and customer pro ile.

• Seven employees to discuss working conditions, labour responsibilities,

and peak hours.

• Multiple students (customers) to understand consumption habits, menu

preferences, and why they choose Chai Sutta Bar over other options.

We also analysed the outlet’s menu, footfall patterns, and pricing strategy. Ethical consent
was obtained from all participants before ilming or recording responses. We relied on
natural interactions rather than scripted scenes to preserve authenticity.

This methodology allowed us to gain grounded insights into how the business operates
and how it engages with the university community, which is essential for building a
realistic and impactful report.
REPORT DISCUSSION

1. Cultural Signi icance of Chai in Student Life

Chai is woven into the everyday rhythm of Indian life, particularly for students who ind in it both
stimulation and solace. At LPU, the Chai Sutta Bar is not just a beverage point—it’s a cultural meeting
ground. For many, starting or ending the day with chai has become routine. It’s where study groups
meet, friendships are strengthened, and countless hours are spent in conversation and
contemplation.

The use of kulhad (earthen cups) is symbolic—it re lects tradition and also adds an eco-friendly
aspect, appealing to students’ growing environmental consciousness.

2. Menu Preferences and Consumption Trends

The outlet offers a diverse menu featuring different types of chai (masala, chocolate, ginger,
cardamom), cold beverages like mojitos, and quick bites including sandwiches, pasta, and Maggi.
Our interviews with students revealed that the hot chai varieties are most popular during winter,
whereas mojitos and lemon soda become popular during the hotter months.

Snack combos are frequently ordered with tea, indicating that the stall isn’t just about chai—it
ful ills light meal needs as well. Its strategic menu pricing keeps everything affordable, ensuring
even students with limited allowances can enjoy their offerings.

3. Seasonal Demand Fluctuations

Seasonal variation in product demand plays a critical role in the business model. The owner revealed
that:

• Winter: Highest sales due to chai demand

• Summer: Reduced tea sales, but increased mojito consumption

• Exam Season: Slight dip in overall sales, especially during morning hours

• Festivals or Events: Sudden spikes in sales due to campus footfall increases

This seasonal adaptability is a key success factor. The outlet changes its promotional
strategies based on the season, highlighting cold drinks in summer and spiced teas in winter.
4. Economic and Operational Structure

According to the owner:

• Initial Investment: ₹15,00,000

• Monthly Labour Cost: ₹1,10,000 for 7 employees

• Rent: A ixed monthly cost (exact igure undisclosed)

• Daily Maintenance and Raw Material Costs: Varies, but adds signi icantly to
monthly expenses

Despite the relatively high investment, the outlet seems to maintain pro itability through volume
sales, minimal food waste, and ef icient labor allocation. Bulk procurement of ingredients also
helps in cost management.

5. Labour Dynamics

The stall employs 7 staff members who manage everything from preparation to customer service.
They operate in shifts to cover all active hours. Interviews with staff revealed that work is physically
demanding, especially during peak times, but provides stable income and skill-building
opportunities.

Labour management is vital to the outlet’s smooth functioning. Regular training ensures
consistency in service and food quality. Moreover, the interpersonal skills employees gain from
interacting with students are valuable in their professional development.

6. Brand Impact and Youth Appeal

Chai Sutta Bar is a brand that resonates with students because of its rustic- modern appeal. The
name itself is catchy, and the consistent branding across franchises provides a sense of quality and
familiarity. Its youth-oriented ambiance—stylish decor, quick service, and Insta-worthy kulhads—
makes it a cool place to hang out.

Students also appreciate the availability of quick, hygienic food in a semi-cafe setting without the
higher prices of typical coffee shops. The brand’s understanding of youth sentiment gives it an edge
over local chai vendors.
7. Challenges Faced

Like any business, the chai stall has its share of challenges:

• Seasonal Revenue Variance

• High Labour Costs

• Ingredient Price Fluctuations

• Increased Competition from Other Cafes and Vending Machines

• Waste Management during Peak Hours

Despite these, the owner remains optimistic, citing the continuous student demand and adaptability
as strong pillars of survival.

8. Social Role on Campus

Beyond economics, the chai stall plays a social and emotional role. It is a neutral, affordable space
where students of all backgrounds feel welcome. This inclusivity adds to its appeal. It is also seen
as a “stress release” spot, where students can disconnect from academic pressure and enjoy a
casual break.

9. Student Loyalty and Emotional Branding

Regular customers often develop emotional bonds with the staff and the space. Some even prefer
the stall over other cafes due to the friendly service. Many spoke about how a simple cup of tea
helped them cope during lonely or stressful days. This emotional branding builds long-term
loyalty and contributes to consistent sales.

10. Sustainability Practices and Environmental Impact

The use of kulhads re lects a conscious effort to reduce plastic use. However, with the volume
of sales, managing overall waste—especially from snacks and cold beverages—remains a
concern. Students have suggested that the outlet could do more in terms of recycling and waste
segregation.
RECOMMENDATIONS

Based on our observations and interviews, here are a few suggestions that could enhance
operations:

1. Introduce Loyalty Cards or Digital Discounts: To reward regular customers

and encourage repeated visits.

2. Flexible Menu for Exam Seasons: Offering low-caffeine or calming drinks

during exam stress could boost sales.

3. Waste Management Bins and Awareness Posters: Promote environmental

responsibility among students.

4. Feedback Box or QR Code System: To collect customer suggestions for

menu or service improvements.

5. Extend Seating Options: Even a few extra stools or standing tables could
help during peak times.

These small changes could improve ef iciency, sustainability, and customer satisfaction.
CONCLUSION: Our Viewpoints and Re lection

This documentary project offered much more than just a look into a campus tea stall—it opened a
window into the broader micro-economy thriving within Indian universi es. What struck me the most
was how deeply integrated this single outlet was into the life of thousands of students. From comfort
to community, food to familiarity, the Chai Su a Bar had become a vital space.

I was also impressed by the entrepreneurial courage it takes to run such a business. With a significant
investment and fluctua ng sales, managing opera ons is no small feat. The owner and employees
showcased resilience, adaptability, and professionalism—values o en overlooked in informal or small-
scale business narra ves.

The documentary made me more aware of the importance of such micro-enterprises. They not only
provide employment and affordable food op ons but also shape the cultural landscape of campuses. They
foster rela onships, offer relief from stress, and represent innova on at the grassroots level.

On a personal level, I found myself more curious about how everyday choices—like where we get our
chai—connect to larger systems of economics, labour, and community building. It made me realize that
business studies or economics are not confined to textbooks or boardrooms; they are alive and brewing
right around us, some mes in a simple cup of tea.

This project has been a learning experience not just in research and storytelling but also in empathy and
observa on. Going forward, I will carry this understanding into how I approach consump on, culture,
and community spaces.
QUESTIONS ASKED TO THE OWNER

1. When do sales peak? Who are most of your customers?

Ans: Seasonal preferences, Sales peak in winter(mainly chai), In summer mojitos are
more popular. We have all kinds of customers- students,facul es…
2. How many varie es of chai do you sell? And prices?
Ans: More than 10. Prices – medium =20 , Large= 40
3. How much rent do you pay?
Ans: Rent is around 55000 per month.
4. How many employees do you have?
Ans: we have 7 employees
5. What is the labour cost?
Ans: 110000
6. Investment for the chai stall?
Ans: 15 Lakh

QUESTIONS ASKED TO THE CUSTOMERS

1. Have you ever thought where the ingredients of chai of chai su a bar comes from?
Ans: Maybe from their warehouses.
2. What would the campus be like without this chai stall?
Ans: Maybe it will be incomplete because a lot of students prefer to go there.
3. Do you know the chai wala and whats your impression on them?
Ans: Yes I do, they have a vast variety so I prefer to go there.
4. Are the prices reasonable?
Ans: Yes it is.
REFERENCES

1. Primary interviews conducted with employees, customers, and owner of Chai

Su a Bar, Lovely Professional University, 2025.

2. Chai Su a Bar official website – www.chaisu abarindia.com

3. Campus retail and F&B consump on trends – indianretailer.com, 2024.

4. Ar cles on youth beverage consump on in India – Economic Times, 2023.

5. Franchise economics in India – Franchise India Reports, 2024.