Especially the coffee wave is spreading in small town India.

“It’s not just about making a good cup of coffee, but connecting with consumers on a deeper level.”

That was the thought that led Harmanpreet Singh to leave his family bakery to open a specialty coffee shop in the northern Indian city of Jalandhar.

It was an unexpected decision – coffee has always been popular in the southern states, traditionally served strong and frothy in steel tumblers. But it is still not the first choice of beverage in the vast regions of northern India, where tea drinking is an intrinsic part of the culture.

For Mr. Singh, the journey began in 2021 during the Covid-19 pandemic when he saw an increase in demand for specialty coffee, especially among the city’s youth and expatriates who had returned to the country at the time. .

Acknowledging this change, he moved to the southern city of Bengaluru to learn brewing techniques. “I studied everything – from the way the coffee is served to the role the decor, cutlery, music and even the packaging plays in the overall experience,” he said.

Three months later, Mr. Singh put his education to the test and opened Buland Cafe in Jalandhar.

Today, the cafe has 40 outlets across the city and has become a favorite spot for the city’s youth, who come here to relax or work over cups of coffee.

Roasted beans in various blends are sourced from the famous coffee estates of Karnataka. Mr. Singh says he personally trained his staff on how to brew the perfect cuppa and take care of the coffee machine.

“It’s a thriving scene,” he says.

Mr. Singh is among a crop of young entrepreneurs who are cashing in on the wave of specialty coffee consumption in small towns and cities in northern India.

India has had a vibrant cafe culture for years – but it’s largely confined to big cities where local specialty and international coffee chains dominate the market.

However, post-Covid, many tier-two cities are also seeing an increase in demand for such spaces as people adopt practices such as remote working and look for new places to meet friends and family. .

Cafe owners say more Indians are now willing to pay more for coffee that is roasted in small batches and made to their preferences.

“Clients are becoming more knowledgeable about roasters and interested in the origin of their coffee,” says Bharat Singhal, founder of Bully Ho Roasteries.

In fact, more than 44% of the Indian population now drinks coffee, according to a 2023 report by CRISIL, a marketing analytics company.

Coffee consultant and dairy technologist Bhavi Patel says that while most of it comes from domestic consumption, growing demand for specialty coffee in small towns plays a major role.

Roastery owners say the increase is also evident in numbers. “Subscription-based orders have grown by 50 per cent in a year,” says Sharang Sharma, founder, Bloom Coffee Roasters. “Consumers have moved from French presses to pour-over or espresso machines, and embrace more sophisticated brewing methods.”

While India is often associated with tea, it also has a long history of drinking coffee.

The culture took shape in the 1900s when Indian coffee houses emerged as a hangout place for the intellectual and elite class. Housed in colonial-style buildings, these cafes served English breakfasts with hot coffee and offered a place to discuss politics and mobilize support for important periods in history.

A change occurred in the 1990s when economic reforms opened India to the world, allowing entrepreneurs to open private coffee shops frequented by young people, who considered it a hip experience. Seen as

Cafe Coffee Day (CCD), which opened in 1996, quickly became one of India’s most popular and widespread coffee chains. At its peak, CCD boasted more than 1,700 outlets, serving as a popular gathering place for students and young adults. But mounting debt, management problems and the untimely death of its founder closed most of its outlets across India.

In 2012, the arrival of international giant Starbucks brought home specialty coffee brands viz Blue Tokai RoastersThird Wave Coffee and Subco Coffee.

While big cities like Delhi, Jaipur, Mumbai and Bangalore still dominate the scene, smaller cities are fast catching up, says Mr. Singhal.

However, it’s not just changing palettes that’s increasing usage. “Often it’s social media,” says Mr. Singh. “People want good coffee, but they also want to be in a place that’s modern and that they can post online.”

Nishant Sinha from Lucknow is among those who have already grasped this trend.

Its Roastery Coffee House offers an array of coffee roasts with a modern atmosphere, free Wi-Fi and comfortable seating options. While the beans are sourced from coffee estates in the south, the food is distinctively North Indian.

In the northern city of Ludhiana, Jatin Khurana is experimenting with other flavours.

At his Urban Bohkid Cafe, Mr Khurana serves “marriage coffee”. [the wedding coffee]” — a wedding favorite in the 1990s, popularized for its instant coffee, milk, sugar, and sprinkles of chocolate powder.

But instead of coffee powder, Mr. Khurana uses freshly ground beans, available in different roasts and varieties, to enhance his flavors. “The idea is to capture the essence of a drink that many Indians have grown up drinking,” he says.

It’s an exciting time to be in business – but growth comes with its own challenges.

“Demand is growing, but small coffee shop owners cut corners, whether it’s choosing substandard machines, serving weak coffee shots, or hiring inexperienced baristas,” says Mr. Singhal. ” says Mr. Singhal.

And running the business is not always profitable given the high cost of coffee and the infrastructure costs involved in running such places.

When Neha Das and Nishant Ashish opened The Eden Cafe in Ranchi in 2021, they wanted to create a safe and relaxed place for young students in the city to come together.

Today, their hazelnut coffee and cold brews have become favorites of many.

“It took some time but longevity requires more than profitability,” says Ms. Das.

“It’s about dedication, developing local flavors, and understanding customers, even if it means working with low profit margins for the long haul.”