1. A significant portion of our brand sales are derived from our franchise-operated Tea Cafés. Our inability to maintain, renew or enhance relationships with our franchisees could adversely affect our business, results of operations and financial condition.
2. Our business prospects depend on the strength of our brand i.e. `Tea Post'. If we are unable to maintain and enhance the value and reputation of our brand and/or counter any negative publicity, our business, results of operations and financial condition could be materially adversely affected.
3. Our proposed new Tea Cafés may not be profitable or perform as planned and could also adversely impact sales of our existing Tea Café, which could adversely affect our business, results of operations and financial condition.
4. We intend to expand our Tea Café network within our current operating regions and also enter into new geographies and therefore we may be exposed to significant liability and could lose some or all of our investment in such new regions, as a result of which our business, financial condition and results of operations could be adversely affected.
5. Majority of our Tea Cafés are concentrated Gujarat and Maharashtra, and we generate the majority of sale from our Tea Cafés in these states. Any adverse developments affecting our operations in these states could have an adverse impact on our revenue and results of operations.
6. We are exposed to all of the risks associated with leasing real estate, and any adverse developments which could materially affect our business, results of operations and financial condition.
7. We make significant capital improvements to our leased Tea Cafés, the cost of which we may be unable to recoup.
8. Any adverse development in relation to our relationship with as well as performance of third-party food delivery apps, may adversely affect our business, results of operations and financial condition.
9. The success of our business strategy relies on our ability to establish, sustain, and effectively deliver our value leadership approach which includes offering quality products at competitive price points and ensuring operational efficiency to support our pricing model.
10. Our warehouse facility plays a crucial role in our business operations, serving as the central hub for inventory management, supply chain coordination, and distribution to our Tea Cafes.