Premium drinks lift Indian café sales, but matcha inflation squeezes margins
Boba Bhai and other café chains are expanding matcha, bubble tea and specialty coffee menus as consumers trade up. But imported-input costs are rising: matcha wholesale prices have climbed 30-75% in a year, prompting sourcing, inventory and recipe changes to protect margins.
Indian café chains are expanding premium matcha, bubble tea and specialty coffee despite imported-ingredient inflation. Larger operators including Boba Bhai, Coffee Island and abcoffee are using sourcing, inventory and recipe measures to hold prices, while smaller chains may pass costs to consumers.
Why this matters
The margin squeeze follows Boba Bhai reporting FY26 revenue of ₹70 crore while losses widened 32% to ₹12.5 crore, making input-cost control more important as it expands premium drinks.
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