Hyderabad's iconic chai spot set to open another giant outlet

Hyderabad’s Cafe Niloufer, an institution synonymous with the city’s tea culture, has officially finalised its next grand destination. For generations, the name Niloufer has evoked memories of perfectly balanced, piping-hot Irani chai paired with melt-in-the-mouth bun maska, serving as a social equaliser and cultural touchstone for millions. From its humble origins to becoming an iconic culinary empire, the brand has defined the art of tea brewing in Hyderabad’s central districts, making its latest real estate move one of the most anticipated expansions of the year.

Cafe Niloufer to find a home in Kompally

Fairmount Builders has officially announced the successful leasing of a jaw-dropping 36,000 square feet of premium commercial space to Cafe Niloufer at the newly developed ‘Fairmount Downtown’ complex in Kompally. While official launch dates are yet to be announced, the sheer scale of the lease has already sent waves of excitement through northern Hyderabad.

The Kompally branch is expected to mirror the ultra-luxurious, high-scale architecture of its famed Hitech City counterpart. Rather than a traditional quick-service corner shop, this new hub is engineered to be a multi-level premium lounge lifestyle destination.

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Building on the success of its Hitech City store

This ambitious northern expansion follows directly on the heels of Cafe Niloufer’s historic milestone last year, when it launched India’s largest tea cafe right in the heart of Hyderabad. Spanning 40,000 square feet in the IT corridor, that flagship lounge completely redefined what a traditional tea house could evolve into, merging artisanal bakeries, upscale global dining, and premium lounges into a singular powerhouse venue.

Notably, the brand has been facing a lot of backlash from regular customers over the rising price of its tea. Many long-time fans have taken to social media to complain that Irani chai is now turning into an expensive luxury. While the management explains that the higher prices are due to the grand buildings, air-conditioned lounges, and better service, the cafe now faces a tough challenge.