For a very long time, Irani Chai has been a simple everyday routine in Hyderabad. From techies to daily wage workers, everyone used to gather at local cafes, where a steaming ek pauna costed mere pocket change. But things are changing quickly.
Cafe Niloufer, an iconic chai spot in the city since 1978, has raised its prices effective May, and the backlash has already started. Now, a full tea costs Rs. 80 and a single tea costs Rs. 60. This sudden jump has made many regular customers angry, social media is full of complaints, and some have even gone as far as to ask for a total boycott.
Hyderabadis debate over Cafe Niloufer’s price hike
For regular Hyderabadis, the anger is about losing an affordable tradition. Irani chai was never meant to be expensive. People are arguing that charging Rs. 80 for ingredients like milk, tea leaves and water feels completely unfair.
Those pushing for a boycott say it is time to stop going to Cafe Niloufer and start supporting smaller cafes that keep prices low. Some social media users highlighted places like Charminar’s iconic Nimrah Cafe, Blue Sea Cafe and Cafe Bahar.
However, not everyone agrees with the criticism.
Some users argued that they need to support the employees as well, and price hikes are normal. Supporters also argued that comparing a premium establishment to a roadside stall is unfair. They pointed out that at Cafe Niloufer, customers are paying for a whole experience along with the chai. The branch has grown into a heavily renovated space that offers comfortable air-conditioned seating, valet parking, and a high-end bakery experience.
A continuous debate about chai price
This is not the first time Cafe Niloufer’s pricing model has sparked a debate about Hyderabad’s chai lovers. The brand has been under scrutiny for running different price structures across its setups. Previously, the owner, A. Babu Rao, addressed this business philosophy himself.
When questioned in a podcast about why the exact same cup of tea can cost drastically more depending on where you sit in the cafe, Babu Rao explained that the pricing strategy is intentionally designed around privacy and exclusivity. He had clarified that the higher price tags are not for a different tea recipe, but for the peaceful environment, premium ambience, and better views.
While the debate continues, Cafe Niloufer’s tables are still quite busy. Seems like the management is betting that their loyal fans will keep coming back for the rich taste.
