Blue Tokai Coffee Roasters has become the first specialty coffee brand in the country to pass on the benefits of the recent GST rate changes to its customers. The company said it will implement price cuts across all its cafés and menus by the end of this month, following the GST Council’s decision to rationalise tax rates on food and beverage services.

"For customers, this translates into better prices on their favourite coffee and food without any compromise on quality. The company has passed on the full benefit of the reduced taxes directly to its customers, making their favorite experience at Blue Tokai a little more accessible," the company said in a statement. 

The move comes after the Council, at its 56th meeting, approved sweeping changes to indirect tax rates aimed at improving affordability and compliance while giving a push to the retail and hospitality sectors. Coffee chains and restaurants have long called for a simpler system, and the latest reforms appear to be a step in that direction.

Matt Chitharanjan, co-founder and CEO of Blue Tokai, said the company wanted to move quickly to pass the benefit to its customers. “The recent GST reforms announced by the Government of India are a big step forward for the retail and hospitality sectors, simplifying the system, easing compliance, and allowing businesses like ours to pass on more value to our customers,” he said.

He added that the decision was in line with the company’s larger philosophy. “This is an extension of what we’ve always stood for - transparency, fairness, and keeping our customers at the heart of every decision we make,” Chitharanjan said.

The changes will take effect across Blue Tokai’s network of more than 180 cafés. Customers can expect to see revised prices on both coffee and food items without any change in quality, the company said.

According to Tracxn data, Blue Tokai last raised $106 million in funding from investors like Snow Leopard Ventures, DSP Mutual Fund and Forte Kochi, and is currently valued at ₹1,410 crore. As of March 31, 2024, the company reported annual revenue of ₹221 crore.