Are you excited about starting a business but unsure where to begin? Look to Shiju Pappen, a Gurugram-based entrepreneur who transformed the vibrant flavors of Indian street food into a successful venture.
Just before the COVID-19 pandemic, he launched The Chatpata Affairs in 2020, turning his passion into a thriving business. Originally hailing from a small town in Rajasthan, Shiju moved to Delhi in 1997 for work. His career began at Pizza Hut, where he took on various roles, including cleaning the restaurant, serving customers, and washing dishes.
In an interview with Startuppedia, Pappen revealed, “For nearly a year, I earned only Rs 5,000-6,000 monthly. Managing rent, electricity, and food was challenging, but I had no choice but to make do with what I earned.”
Turning Point
Later, Pappen rose to the position of CEO at Southern Fried Chicken, accumulating over two decades of experience. Yet, he always felt the urge to establish his own business. With modest savings of Rs 5 lakh and a small, dedicated team willing to wear multiple hats, Shiju made the leap to launch his shop in 2020.
Rapid Expansion
Initially offering just a few items, The Chatpata Affairs has now blossomed into a food chain with a presence across 50 locations nationwide. Notable outlets include prime spots at Ambience Mall in Gurgaon, Church Street in Bangalore, Nanganalur in Chennai, and various universities in Hyderabad.
The menu has expanded to include nearly 200 items, catering to breakfast and dinner with fusion dishes like chaat, badam milk, rolls, papri chaat, sandwiches, and shakes.
Future Goals
Shiju Pappen’s venture utilizes both franchisee and company-owned models. Out of the 50 locations, 40 are franchisee-operated while 10 are company-owned.
He explained that as a bootstrapped business, they focus heavily on the franchise model. Each outlet occupies a modest 200 square feet, requiring an investment of around Rs 5-6 lakh, and these franchises yield a monthly profit of approximately Rs 60,000 to Rs 70,000.
By March 2025, The Chatpata Affairs aims to operate 100 outlets, with plans to expand to 500 locations by 2027. With these ambitions, Pappen believes the company can achieve an annual turnover of Rs 1,000 crore and aims to extend its reach to the Middle East, Europe, and the US.
“I believe it’s a journey with patience and perseverance. And, not at all a lottery ticket to instant wealth or success,” Shiju concluded.
In the first two years, the venture generated around Rs 2 lakh in monthly revenue with just two outlets. However, after two years of adopting the franchise model, their business experienced significant growth.
In the financial year 2023, the company’s revenue soared to Rs 6 crore, followed by an impressive increase to approximately Rs 8 crore in FY-24.