Lucknow-born brand targets rapid expansion as it blends artisanal sweets with specialty coffee in a modern retail format
The Hazelnut Factory (THF) has crossed the Rs 100 crore revenue milestone within seven years of its inception, signalling strong traction for its premium mithai-café concept and reinforcing its position in India’s evolving organised food and beverage market.
Founded in 2019 by Ankit Sahni, the brand set out with a differentiated proposition—to reimagine traditional Indian mithai within a contemporary café format alongside specialty coffee. Originating in Lucknow, THF has since scaled into a multi-city presence, capitalising on rising consumer demand for premium, experience-led dining formats.
Reimagining Mithai for the Modern Consumer
At the core of THF’s strategy is the repositioning of mithai from a conventional sweet shop product to a premium, design-led offering. The brand has focused on product innovation, improved ingredient quality, and refined presentation, introducing new flavour profiles and elevated packaging.
By applying the principles of specialty coffee—such as sourcing, craftsmanship and flavour profiling—to mithai, THF has created a distinctive consumption experience that bridges tradition with modern retail sensibilities.
Strong Growth and Market Traction
From a single outlet in Lucknow, the brand has expanded to 18 outlets across 10 cities, employing over 1,000 people. It reported an 85 per cent growth in FY 2025–26, driven by strong same-store performance and increasing consumer preference for premium, experiential formats.
Industry observers note that such hybrid formats—combining traditional products with modern café culture—are gaining momentum, particularly among younger, urban consumers.
Expansion Plans and Strategic Focus
As part of its next growth phase, THF plans to open 12–15 new outlets in the coming financial year and is targeting a further 70 per cent revenue growth. The company is also investing in supply chain capabilities, backend integration, production facilities and talent to support scalable expansion.
Ankit Sahni, Founder and Chief Executive Officer, said the milestone validates the brand’s differentiated approach. He emphasised that the focus remains on building a scalable business anchored in quality, consistency and consumer experience.
Co-founder Badal Sahni added that the achievement reinforces the belief that Indian mithai can be reinterpreted for modern consumers without compromising authenticity, while continuing to innovate across products and formats.
Riding Premiumisation in F&B
THF’s growth reflects a broader shift in India’s food and beverage landscape, where consumers are increasingly gravitating towards premium, culturally rooted offerings with contemporary appeal.
With a clear expansion roadmap and a strong focus on brand differentiation, the company is positioning itself to consolidate its presence in the premium coffee and mithai segment.
