Fast-growing Korean fusion QSR brand Boba Bhai has entered the ready-to-drink (RTD) category with the launch of canned bubble teas, priced at ₹99 for 330 ml. The brand is targeting 10–12% of its total revenue from the new RTD offerings by the end of this fiscal.
The new line of bubble teas, aimed at Gen Z and young millennials, is currently available in three flavors, with two additional variants set to hit the shelves next week. “Designed for both impulse and habitual consumption, these drinks align with the lifestyle of our target audience,” said Dhruv Kohli, Founder of Boba Bhai.
The RTD beverages are currently distributed in over 70 cities and are available on quick commerce platforms Blinkit and Zepto. Expansion plans include launching on Instamart, general trade (GT), and modern trade (MT) channels over the next 8–9 months. Kohli also revealed plans to introduce smaller-sized cans specifically for the GT and MT markets.
The company has invested close to ₹1 crore in this new venture and expects returns on investment within 12–14 months. It is also preparing to roll out 3–4 additional flavors and introduce Korean snacks such as chips and sauces in the coming months.
From Cloud Kitchens to QSR Footprint
Boba Bhai currently operates 27 QSRs and 30 cloud kitchens across nine cities. The company now plans to convert all its cloud kitchens into QSR outlets over the next six months, continuing its COCO (company-owned, company-operated) model. “Our focus is on deeper penetration in Tier 1 metros like Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Pune,” Kohli said.
The average high-street outlet spans 600–700 sq. ft., while mall and tech park locations are around 200 sq. ft. The brand’s average CAPEX per outlet is ₹13–14 lakh, with a payback period of 12–14 months.
Currently, 60% of Boba Bhai’s revenue comes from online channels, with an average order value (AOV) of ₹400 online and ₹330 at its outlets. Beverages contribute 55% of total sales, with the remaining 45% coming from food.
To meet growing demand, the company is planning to set up a larger manufacturing unit in Bengaluru. Its current 4,000 sq. ft. facility is running at 80% capacity. “The upcoming plant will be designed to support operations for the next 5–7 years,” Kohli noted.
Strong Financial Outlook
The company closed FY24 with ₹30 crore in revenue and is projecting a threefold increase, aiming to close FY25 at ₹90 crore. Following its recent Series A funding round, Boba Bhai is well-capitalized to expand to 100 outlets and grow its FMCG vertical.
At the store level, the brand is currently 15% profitable, and although it is running at a negative 10–12% EBITDA at the company level, it expects to turn EBITDA positive by December 2025.
As Boba Bhai taps into the rising demand for RTD beverages and fusion cuisine, its aggressive expansion strategy and innovation-led product pipeline position it as a rising star in India’s fast-evolving foodservice and FMCG landscape.