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Chai Kings: Brewing Resilience Through Consistency
S. Chandrasekar and A. Uma Maheswari
Xavier Institute of Management & Entrepreneurship, Chennai, India
Volume 18: 2025, pp. 185-200; ABSTRACT
Chai Kings, a Chennai-based tea retail chain, faced a critical growth dilemma in February
2024. With $2 million in fresh funding and investor pressure to expand from 56 to 130 outlets within
two years, co-founder Jahabar Sadique must choose between rapid franchise expansion and slower
company-owned growth. The company’s competitive advantage rested not on its products but on an
organizational culture built through authentic leadership, rigorous standard operating procedures,
and demonstrated resilience during the COVID-19 pandemic. The decision tested whether culture,
manifested through psychological safety, employee motivation, and operational discipline can
survive the scalability demands of franchising or whether protecting these intangible assets requires
sacrificing growth speed and investor expectations. This case examines the intersection of
leadership philosophy, organizational behavior, and strategic growth imperatives.
Keywords: authentic leadership, franchise strategy, organizational culture, psychological safety,
employee motivation, operational standardization.
