Chaiiwala tests compact format to widen reach

The food chain is also targeting drive-thrus and travel hubs.

Chaiiwala is using container stores as a lower-cost expansion format as it pushes beyond traditional high-street locations.

“For us, the focus is on making sure the value equation stays strong,” co-founder Sohail Alimohamed told QSR Media UK. “That means developing formats that are more capital efficient, such as container sites that require lower investment but can scale quickly.”

The company, known for its Indian-style chai tea and street food, posted nearly £90m in system sales last year, with growth partly driven by expansion into alternative formats alongside its traditional store network.

The container strategy, which uses stores built from one or more modified shipping containers rather than a traditional brick-and-mortar building, forms part of a broader diversification push that also includes drive-thrus and travel hubs.

Alimohamed said different store formats serve different customer needs, from dine-in visits to quick purchases for commuters and travellers.

“Different environments require different approaches, and brands need to be able to adapt without losing consistency,” he said in an emailed reply to questions. “The ability to operate successfully in high streets, travel hubs, drive-thrus, and smaller formats is critical.”

The expansion strategy is also shaping menu development. Ahead of the QSR Media UK Conference & Awards 2026 on 22 June in London, Chaiiwala said its breakfast wrap launch sold more than a million units in 12 weeks, reflecting demand tied to drive-thru and travel-oriented locations focused on morning traffic.

The chain has also added street snacks and side items aimed at lifting average order values without significantly increasing operational complexity.

“We are investing in our systems and franchise model,” Alimohamed said. “That includes supply chain technology and operational processes that support franchisee profitability and consistency across the estate.”

Chaiiwala opened 24 stores globally last year and is building a pipeline across the UK and overseas markets.

“There is a huge opportunity in the market, particularly for globally relevant cuisines like Indian street food,” Alimohamed said. “But capturing that opportunity comes down to execution, not just ambition.”