“It’s not just about brewing a good cup of coffee but connecting with customers on a deeper level.”
This philosophy led Harmanpreet Singh to make an unconventional career move—leaving his family bakery to establish a specialty coffee shop in Jalandhar, a northern Indian city where tea has traditionally reigned supreme.
Coffee, a staple in India’s southern states where it is brewed strong and served frothy in steel tumblers, has never been the preferred beverage in northern regions. However, during the Covid-19 pandemic in 2021, Singh noticed a shift in consumer preferences. Youth and overseas residents returning to India were increasingly drawn to specialty coffee.
To cater to this emerging trend, Singh relocated to Bengaluru, the heart of India’s coffee culture, to learn the nuances of brewing. “I studied everything—from the way coffee is served to the role things like decor, cutlery, music, and even packaging played in the overall experience,” he explained.
Three months later, he applied his newfound knowledge by opening Buland Café in Jalandhar. Today, Buland Café boasts 40 outlets across the city and is a favored spot for young people seeking a place to relax or work while savoring freshly brewed coffee. Singh sources his beans from Karnataka’s renowned coffee estates, using various roasting techniques to craft unique blends. He also personally trained his staff to ensure that every cup meets exacting standards. “It’s a thriving scene,” he remarked.
Singh is part of a growing cohort of young entrepreneurs capitalizing on the rising demand for specialty coffee in India’s smaller towns and cities.
India has long had a vibrant cafe culture, albeit mostly limited to metropolitan areas where international and homegrown chains dominate. The pandemic, however, brought a surge in demand for specialty cafes in tier-two cities, fueled by the rise of remote working and a need for social spaces.
According to café owners, consumers are increasingly willing to pay a premium for coffee roasted in small batches and tailored to individual tastes. Bharat Singhal, founder of Billi Hu roasteries, noted, “Clients have become more knowledgeable about the roasts and are interested in the origins of their coffee.”
This growing interest is reflected in data. A 2023 report by CRISIL revealed that over 44% of Indians now drink coffee. While much of this consumption occurs at home, small-city cafes are playing a significant role in driving specialty coffee demand. Bhavi Patel, a coffee consultant and dairy technologist, emphasized the trend’s importance.
For roastery owners, the shift is measurable. Sharang Sharma, founder of Bloom Coffee Roasters, reported a 50% increase in subscription-based orders over the past year. “Customers have moved from French presses to pour-over or espresso machines, adopting more sophisticated brewing methods,” he said.
Despite being a nation associated with tea, India has a rich coffee-drinking heritage. In the early 1900s, Indian Coffee Houses emerged as intellectual hubs, hosting discussions on politics and societal issues in colonial-style cafes that served English breakfasts alongside steaming coffee.
The 1990s marked a turning point for India’s coffee culture. Economic liberalization enabled entrepreneurs to open private cafes, attracting young patrons who viewed these establishments as trendy social spaces. Café Coffee Day (CCD), launched in 1996, became a national sensation with over 1,700 outlets at its peak. However, financial troubles and the untimely death of its founder led to a steep decline in CCD’s presence.
In 2012, Starbucks entered the Indian market, spurring the rise of homegrown specialty coffee brands such as Blue Tokai Roasters, Third Wave Coffee, and Subko Coffee.
While major cities like Delhi, Mumbai, and Bengaluru remain the epicenters of coffee culture, smaller cities are catching up. Entrepreneurs like Singh credit social media for some of this growth. “People want good coffee but they also want to be in a space that’s trendy and which they can post online,” he observed.
Nishant Sinha from Lucknow recognized this shift early. His Roastery Coffee House combines a stylish ambiance, free Wi-Fi, and cozy seating with a diverse range of coffee roasts. While his beans are sourced from southern coffee estates, the food offerings cater to local North Indian tastes.
Experimentation is also driving growth. In Ludhiana, Jatin Khurana serves a reimagined version of the “Shadi Wali Coffee,” a nostalgic blend of instant coffee, milk, sugar, and chocolate powder popular in the 1990s. At his Urban Buhkkad café, Khurana replaces instant coffee with freshly ground beans in various roasts to elevate the flavor. “The idea is to capture the essence of the beverage that many Indians grew up drinking,” he explained.
However, the booming industry faces challenges. Bharat Singhal pointed out that some small coffee shop owners compromise on quality by using inferior machines, serving weak coffee, or hiring untrained baristas. Additionally, running a specialty café involves high costs, from sourcing premium beans to maintaining infrastructure.
For Neha Das and Nishant Ashish, who opened The Eden’s Café in Ranchi in 2021, profitability was initially elusive. They envisioned the café as a safe and relaxed space for students to gather. Over time, their hazelnut coffee and cold brews have become local favorites.
“It took some time, but longevity requires more than profit,” Das reflected. “It’s about dedication, crafting local flavors, and understanding customers, even if it means working with slim profit margins for the long haul.”
As India’s coffee culture evolves, entrepreneurs are proving that specialty coffee is more than just a trend—it’s an opportunity to create spaces that blend quality, innovation, and community.
