One Stripe Chai founder Farah Jesani on pivoting from cafés to DTC

In 2019, startup chai brand One Stripe Chai saw coffeeshops as the ticket to its success. Then the pandemic came and everything changed.

After a bumpy few months, the brand focused predominately on its direct-to-consumer website and finding online customers. And while its foodservice business has resumed, founder and “chief chai officer” Farah Jesani says she’s still focused primarily on growing the DTC sales.

Jesani joined the Modern Retail Podcast and described the quick change. Right before 2020, Jesani said, One Stripe had over 70 coffeeshop wholesale accounts. “That’s where I was like, okay, this feels like this is a viable business. This feels like something we can really grow,” she said. Then the pandemic hit and “everything tanked.”

At that time Jesani was faced with a decision: does she close up shop or does she pivot? She opted for the latter, and began testing out consumer-focused products and packaging -- something she had never done before. After a few months of trial and error, it worked. The brand got written up in publications like Bon Appetit, and this helped launched the DTC business -- which Jesani says has remained pretty profitable since launch. “To date, we’ve barely put in any ad dollars,” she said.

Now that things are opening back up, Jesani is focusing on growing both DTC and wholesale channels -- although supply chain hiccups have made things slow going. As Jesani described it, 60% of her focus is on DTC and 40% on other retail partnerships. With that, she’s enthusiastic about the prospect of more growth.

The hope now, she said, is to find a national retailer. I would love for our concentrates to be in Whole Foods,” she said. “More than that, I would love our concentrates to be the concentrates that are used at the coffee shops at Whole Foods.”