Chaiiwala of London, a prominent chai cafe brand, is set to expand its footprint in the Greater Toronto Area (GTA) by opening 40 new locations, with a significant focus on Downtown Toronto. The brand aims to establish a presence in key areas such as Mississauga, Brampton, Etobicoke, and Ajax, as reported by 6ixRetail. While the precise timeline for the new downtown locations remains uncertain, franchise partners are actively pursuing real estate opportunities.
Founded in 1927 in New Delhi, Chaiiwala opened its first Canadian outlet in Scarborough in 2021, marking the initial phase of its international expansion. Currently, the brand operates 22 locations across Canada, spanning four provinces, and is targeting a national goal of 100 stores by 2030. Canada is positioned as the model market for Chaiiwala’s broader North American strategy.
The Canadian operations are overseen by master franchisors Ajmal Gundhra and Shiraj Kothiwala, who acquired the rights to the brand in 2020. Despite challenges posed by the pandemic, the company adapted by implementing virtual training programs and modifying its UK format to meet the expectations of Canadian consumers, which included increasing seating capacity and reducing capital expenses.
A new loyalty program is in development to enhance customer retention, particularly in urban markets like Downtown Toronto. The menu features a diverse selection of hot and cold beverages, including the signature Karak Chaii, Pink Chaii, and Karak Coffee, complemented by South Asian-inspired street food, roti rolls, and desserts. Pricing is strategically positioned between well-known chains such as Tim Hortons and Starbucks, with store formats tailored to local demographics, ranging from university campuses to suburban hubs.
“Downtown Toronto is definitely in our plans,” Gundhra stated in an interview with 6ixRetail. “We see that the downtown core is a natural next step for Chaiiwala. It’s where cafe culture thrives. People are looking for both convenience and a place to slow down.”
The anticipated expansion reflects Chaiiwala’s commitment to bringing its unique offerings to a broader audience, ensuring that both new and existing customers can enjoy their beloved chai and food in accessible locations throughout the GTA.
