Hyderabad: If you love chai, Cafe Niloufer is probably on your must-visit list in Hyderabad. Known for its delicious Irani chai, bun maska, and Osmania biscuits, this iconic cafe near Niloufer Hospital has been a favorite since 1970s. But recently, its pricing has sparked a lot of chatter among chai lovers.
The introduction of lounges and exclusive sections in upscale areas like Banjara Hills has brought with it a noticeable price hike, sparking debates about the value of ambiance versus tradition.
Babu Rao, the owner of Cafe Niloufer, has an inspiring story. He came to Hyderabad in 1975 with no money and no place to stay. He started working as a cleaner at the cafe, then became a waiter, and later learned to make tea. In 1993, after years of hard work, he became the owner.
Now, Babu Rao runs multiple Niloufer outlets across the city, each catering to a different crowd. He even gives back to the community by providing free meals to hundreds every day.
Tea at the ground floor is priced at Rs. 70, while the same cup costs Rs. 150 upstairs at the cafe’s premium lounges. This stark contrast has left many patrons scratching their heads.
In a recent podcast, Babu Rao, the mind behind Café Niloufer’s expansion, addressed the curiosity.
The host asked Babu Rao “Why is the tea Rs. 70 downstairs but Rs. 150 upstairs?”
Babu Rao replied: “We created the first-floor section for privacy. If actors, politicians or celebrities sit on the ground floor, people crowd around for pictures. To avoid this, we opened a separate section upstairs.”
About the Rs. 150 price on the top floor, he explained: “It’s about exclusivity. People willing to pay extra enjoy peace, a premium ambiance, and a better view.”
Despite the debates, Café Niloufer serves all types of customers. At the original location at Lakdikapul, you can still get chai for Rs 15 or Rs 20, while the lounges cater to those seeking a fancier experience.
