Café brands chart differentiated growth strategies across Tier 1 and Tier 2 markets, focusing on hospitality, customer loyalty and sustainable scaling
As India’s café economy evolves beyond rapid outlet expansion, hospitality brands Common Time and Sidewalk are pursuing a growth strategy centred on market-specific consumer behaviour, operational discipline and customer experience, even as they scale aggressively across the country.
The café brands, operated by Bhatia Hospitality Group, have reported a fourfold increase in Annual Recurring Revenue (ARR), rising from Rs 12 crore in FY 2024–25 to Rs 48 crore in FY 2025–26. The group is now targeting Rs 75 crore in ARR as new locations become operational over the coming months.
The company currently estimates its valuation at around Rs 150 crore and aims to move towards Rs 250 crore within the next year through measured expansion and continued operational growth.
According to Directors Jaivardhan Bhatia and Sagar Bhatia, the growth strategy is shaped by distinct consumer preferences emerging across India’s urban and smaller-city markets.
“In Tier 1 cities, consumers increasingly gravitate towards specificity and depth. Café brands no longer need to be everything to everyone. Specialisation, focused menus and distinct experiences are what drive loyalty,” they said.
The founders noted that urban consumers are increasingly seeking shorter, intentional moments of pause, where coffee becomes integrated into daily routines rather than serving solely as a destination dining experience.
In contrast, Tier 2 cities continue to demonstrate a preference for longer dwell times and more community-oriented café environments. Consumers in these markets often seek broader food offerings alongside coffee, creating different hospitality and operational requirements.
Reflecting these trends, Common Time and Sidewalk are following separate expansion pathways.
Common Time plans to deepen its footprint across the Delhi-NCR region through new outlets in Hauz Khas, Aerocity and Golf Course Road in Gurugram. The brand is also preparing to enter Goa in August and Mumbai later this year.
Sidewalk, meanwhile, is expanding beyond its existing markets into Banaras, Prayagraj, Bareilly and Dehradun, targeting growing discretionary spending and rising demand for café-led social experiences in Tier 2 India.
Despite operating in a sector often characterised by venture-backed expansion, the hospitality group has remained bootstrapped and continues to rely primarily on internally generated capital for growth.
The founders said this approach has enabled the business to maintain tighter control over expansion timelines, market selection and unit economics while preserving the identity of its brands.
Rather than prioritising footprint growth alone, the company evaluates investments through the lens of long-term sustainability, operational efficiency and customer retention.
The group believes that while ambience, branding and marketing can attract first-time visitors, sustainable café businesses are ultimately built on consistent food and beverage quality and strong hospitality standards.
Executives argue that hospitality remains the more difficult factor to scale, particularly as coffee consumption matures and customer loyalty becomes increasingly tied to familiarity, service consistency and emotional connection rather than product expertise alone.
As a result, Common Time and Sidewalk are investing heavily in team development and workplace culture, viewing talent as a critical driver of sustainable growth.
The company said its next phase of expansion will focus not only on adding locations but also on strengthening operational capabilities and creating experiences that encourage repeat visits, positioning hospitality as the foundation of long-term success in India’s increasingly competitive café market.
