While coffee enjoys a stronghold in southern India, where it is traditionally served frothy and robust in steel tumblers, tea remains the beverage of choice across much of the north, deeply ingrained in its cultural fabric.
This belief drove Harmanpreet Singh to leave his family bakery behind and open a specialty shop in Jalandhar, a city in northern India.
The decision was unconventional. For Singh, the journey began during the Covid-19 pandemic in 2021, when he noticed a rising demand for specialty among the city’s youth and overseas residents who had returned home during the crisis.
Sensing a shift, Singh relocated to Bengaluru, the hub of India’s culture, to study brewing techniques. “I delved into every detail, from serving coffee to creating an ambiance where decor, cutlery, music, and packaging enhanced the experience,” he shared.
Just three months later, he put his knowledge into practice by opening Buland Café in Jalandhar.
Today, the café has grown to 40 outlets across the city, becoming a popular hangout spot for the youth who come to work or unwind over expertly brewed. Sourcing beans from Karnataka’s renowned coffee estates, Singh personally trained his staff in brewing techniques and equipment maintenance to ensure quality.
“It’s a thriving scene,” Singh says, as he joins a wave of young entrepreneurs capitalizing on the growing specialty coffee trend in small towns and cities across northern India.
India’s café culture has long been vibrant but was largely confined to major metropolitan areas, where global brands and local specialty coffee chains dominated. Post-pandemic, however, tier-two cities have seen a boom in demand for coffee shops, fueled by remote work trends and a need for new social spaces.
Cafe owners report that Indian consumers are now willing to pay a premium for coffee made from small-batch roasts tailored to their preferences. “Customers are more aware of coffee origins and roasts than ever before,” says Bharat Singhal, founder of Billi Hu Roasteries.
According to a 2023 CRISIL report, 44% of Indians now consume coffee, with much of this demand driven by home brewing and the rising popularity of specialty in smaller cities.
This growth is evident in subscription numbers, says Sharang Sharma, founder of Bloom Coffee Roasters. “Orders have increased by 50% in a year as customers transition from basic brewing methods to more sophisticated ones like pour-over and espresso machines.”
While tea is often seen as India’s national beverage, coffee has a history intertwined with the country’s intellectual and cultural movements. The early 1900s saw the emergence of Indian Coffee Houses, colonial-style cafés that became hubs for political discussions and social gatherings.
In the 1990s, economic liberalization paved the way for private coffee shops that catered to a younger, urban demographic. Café Coffee Day (CCD), launched in 1996, became a household name, with over 1,700 outlets at its peak. However, financial struggles and the founder’s untimely death led to the closure of many outlets, making room for new entrants.
Though big cities like Bengaluru and Delhi dominate the market, smaller cities are catching up fast. Singh notes that social media also plays a significant role, with consumers seeking not only great drink but also Instagram-worthy spaces.
Entrepreneurs in smaller cities are catering to these evolving tastes in unique ways. In Lucknow, Nishant Sinha’s Roastery Coffee House offers cozy seating, free Wi-Fi, and a mix of roasts paired with north Indian dishes.
In Ludhiana, Jatin Khurana revives nostalgia with his “Shadi Wali Coffee,” a modern take on the popular 1990s wedding coffee, now made with freshly ground beans for enhanced flavor.
Despite the excitement, challenges persist. Small café owners often face pressure to cut costs, which can compromise quality, says Singhal. Additionally, high prices and operational costs mean running a café isn’t always profitable.
For Neha Das and Nishant Ashish, who launched The Eden’s Café in Ranchi in 2021, creating a welcoming space for students took precedence over quick profits. Their hazelnut cold brews have since become local favorites.
“It takes time,” Das reflects. “But longevity in this business isn’t just about profit; it’s about dedication, crafting local flavors, and building meaningful connections with customers, even if it means operating on slim margins.”
