UK-born chai concept Chaiiwala of London is actively pursuing downtown Toronto locations as part of an ambitious 40-store Greater Toronto Area expansion plan. The nearly century-old brand, which launched its Canadian operations in Scarborough in 2021, has established operations across four provinces and now identifies Toronto’s urban core as a strategic priority.
Canadian Master Franchisor Ajmal Gundhra confirmed that the company is working with commercial real estate partners to identify downtown Toronto sites, with committed franchisees ready to enter the market. The brand currently operates 22 locations across Canada, including GTA sites in Mississauga, Brampton, Etobicoke, and Ajax.
“Downtown Toronto is definitely in our plans,” said Gundhra. “We see that the downtown core is a natural next step for Chaiiwala. It’s where cafe culture thrives. People are looking for both convenience and a place to slow down.”
The company is modifying its UK-based store format for Canadian urban markets to optimize performance in high-density commercial environments. “Right now, we’re in the middle of menu engineering and design exercise. We’re streamlining some of the operations, reduce capex and freeing up more space for seating and community engagement, because our stores are designed based on the UK size. Currently, we’re redesigning them to the Canadian vision,” Gundhra said.
The modifications maintain the brand’s signature 52-minute chai brewing process while emphasizing quick-service execution. Pricing positions the brand between established competitors. “We’ve taken our premium product, but we’ve engaged the price according to Tim Hortons level, being in the middle of Tim Hortons and Starbucks,” Gundhra noted.
Chaiiwala of London’s strategic approach to location selection demonstrates sophisticated market segmentation. The brand operates locations ranging from the University of Calgary campus to Erin Mills in Mississauga, adapting to different demographic profiles and traffic patterns. This diverse footprint indicates the brand’s flexibility in serving both student populations and suburban family markets.
The company’s expansion strategy emphasizes cultural authenticity as a competitive differentiator. Gundhra frames chai within its broader cultural context, noting that across Southeast Asia, approximately 4 billion people consume chai as both a beverage and social ritual. “For us, chai is basically something that we turn towards anything that ever happened in our life,” Gundhra explained. “You want to have a discussion, make chai. You want to sit down with your friends, let’s have a cup of chai.”
Chaiiwala of London’s Canadian expansion began in February 2020 when Gundhra and business partner Shiraj Kothiwala secured master franchise rights. The timing preceded global pandemic lockdowns by weeks. “We already had a few leases, almost six stores that we signed and we were just about to get into design and to go into permitting. And then COVID happened,” Gundhra said.
The partners maintained their lease commitments throughout 2020-2021 while developing innovative training solutions. When UK-based training staff couldn’t travel to Canada due to pandemic restrictions, the company pioneered live virtual training programs. “We were the first store to ever do that. So we did all the training virtually,” Gundhra noted, describing the process where one team member received in-person UK training while others learned through cameras and televisions.
The September 2021 Scarborough opening validated the market opportunity. “We had lineups throughout the door and the lineups would start at nine in the morning and they would go until like one in the morning. And we were just shocked at the love and the appreciation that the people showed.”
The Canadian market serves as Chaiiwala of London’s international expansion model, with broader North American operations targeting approximately 950 US locations. The brand originated from a 1927 New Delhi tea stall and expanded to the UK in 2016 before selecting Toronto as its first international market.
“It’s actually one of the biggest markets for our brand. When you look at the franchise industry, North America as a whole is probably the largest franchise entity in the world where all these brands thrive,” Gundhra said.
The 40-store GTA target forms part of planned Canadian growth, with the company aiming for 100 national locations by 2030. Current expansion includes confirmed locations in Edmonton (October 2025), King George Hub (January 2026), and additional sites in Kelowna, Saskatoon, and Vancouver throughout 2026.
To compete in Toronto’s saturated cafe market, Chaiiwala of London is developing a loyalty program launching within months. The initiative represents recognition that downtown Toronto requires different customer retention strategies than suburban markets, where the brand has established operations primarily through word-of-mouth growth.
The company positions its competitive strategy directly against established chains. “We are going to compete. We’re not going to lower our standards in design, our food, in our concept, just to be a mediocre type of a brand. We want to be competing with the best because it will only make us get better,” Gundhra said.
“For us, Chaiiwala is a business that is owned by every single Canadian. We want them to be a part of our growth, part of our culture, part of our brand that brings people together,” Gundhra said.
The downtown Toronto expansion timeline depends on real estate acquisition. “To be honest, we’re working on it as we speak. Our realtors are looking for sites daily in downtown and we’re working hard. We do have franchisees that have selected downtown as their first door or opening. We’re basically just waiting for the right real estate to come by so that we can expand into Toronto.”
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, The Canadian Opera Company, Starbucks Canada and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024, 2025 and 2026, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.