The price of a cup of chai in most restaurants across the city has risen to Rs. 25, following a collective decision by restaurant owners to increase prices by Rs. 5 per cup. This move, they say, is necessary due to the rising costs of essential items such as tea powder, cooking gas, labor wages, and other overheads.
Tea powder prices have surged significantly, with an increase of Rs. 150 to Rs. 180 per kilogram, according to Mohd Amair, manager at Al Saba Hotel in Mallepally. “This sharp rise in tea powder costs has left us with no option but to raise the price of tea,” he explained.
In prime locations, hotels typically sell between 6,000 to 8,000 cups of tea daily. Some establishments, especially those famous for their ‘Irani chai,’ report selling over 10,000 cups per day.
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According to another hotel owner, a profit margin of Rs. 3.50 to Rs. 5 per cup is essential to cover the increased costs and prevent financial losses. The size of tea servings varies, with Irani chai typically offered in 80 ml or 90 ml cups, while restaurants with dining facilities serve it in 110 ml cups.
Restaurants use between one to five bags of tea powder daily, each bag containing 30 kg of tea powder. “The prices of cooking gas, labor, milk, and other miscellaneous expenses have all gone up, making the price hike unavoidable,” said Noman Ali of Taiba Bakery and Café at Masab Tank. He noted that the soaring tea powder prices have particularly contributed to the need for an increase.
However, not all restaurants have implemented the price hike yet. Abood Bin Aslam of Nimrah Café & Bakery shared that they are still deliberating on the decision. “While it’s true that ingredient costs have risen, and I’ve heard other hotels have increased prices, we haven’t made a decision yet. I understand why others have, but we are still considering it,” he said.
The increase in tea prices has sparked varied responses from customers, but for many restaurant owners, the move was essential to sustain their operations amid escalating costs.
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