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Once a Pizza Hut worker earning Rs 5,000, this founder now runs a café chain with 50 outlets

Shiju Pappen said during his initial days in Delhi he was earning Rs 5,000-6,000 per month for almost a year straight and struggling to make ends meet.

October 17, 2024 / 10:55 IST
Shiju Pappen worked at a Pizza Hut when he moved to Delhi-NCR. (Images: shijupappen/Linkedin)

From earning just Rs 5,000 a month as a restaurant worker to running a successful café chain with 50 outlets across India, Shiju Pappen’s entrepreneurial journey is a tale of perseverance. Once cleaning tables and washing dishes at Pizza Hut, Pappen is now the founder of The Chatpata Affairs, a food venture celebrating India’s vegetarian street food culture.

Today, his business generates Rs 8 crore in annual revenue.

Founded in 2020, just before the pandemic altered the business landscape, The Chatpata Affairs offers a menu featuring nearly 200 items, from traditional litti chokha of Bihar to tangy, crispy chaat from North India. With an ambitious vision to elevate Indian street food to global prominence, Pappen aims to make these dishes as iconic as burgers and pizzas.

Growing up in a small town in Rajasthan, Pappen faced immense challenges after losing both parents at a young age. This hardship fuelled his determination to create a better life, leading him to Delhi in 1997, where he took on various roles at Pizza Hut, from cleaning to serving.

“I was earning only Rs. 5000-6000 per month for almost a year straight. It was tough to manage rent, electricity and food. However, I had no option but to manage with whatever I was earning,” he told Startuppedia in an interview.

With over two decades of experience in the fast-food industry, including a notable stint as CEO of Southern Fried Chicken, Pappen identified a significant gap in the market: the lack of representation for Indian street food. His desire to bring authentic flavours to a wider audience culminated in the launch of The Chatpata Affairs.

The onset of the COVID-19 pandemic presented formidable obstacles, particularly rising rental costs. Pappen innovatively pivoted to a mobile cart model to sustain his business. Starting with limited offerings, he has successfully expanded to 50 outlets nationwide, with key locations in Bengaluru, Chennai, Gurgaon, and Hyderabad.

They are a bootstrapped business and their key focus is on franchise models. Currently, 40 of the 50 outlets operate under the franchise model, while 10 are company-owned. Each outlet occupies approximately 200 square feet and requires an investment of Rs 5-6 lakh, generating monthly profits of Rs 60,000 to Rs 70,000.

After a slow start, generating only Rs 2 lakh per month with two outlets, Pappen’s business took off. By FY-23, they reported revenues of Rs 6 crore, which surged to Rs 8 crore in FY-24. The founder is now eyeing an ambitious goal of reaching 100 outlets by March 2025 and 500 by 2027, projecting an annual revenue of Rs 1,000 crore.

Pappen now plans potential expansions into the Middle East and Europe. The Bengaluru-based venture has 200 employees working on its payroll.

first published: Oct 17, 2024 10:51 am

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