Hyderabad

Hyderabad: Why Cafe Niloufer Has Two Prices for the Same Tea?

Hyderabad, 19th November 2024: If you’re a Tea lover, you’ve likely heard of Cafe Niloufer, a legendary spot in Hyderabad. Known for its iconic Irani Tea, bun maska, and Osmania biscuits, this beloved cafe has been a hotspot for locals since the 1970s. But recently, a peculiar trend has caught the attention of Tea enthusiasts – the price difference for the same Tea in different areas of the cafe.

The Rise of Lounges and Price Increase

Over the years, Cafe Niloufer has expanded to upscale neighborhoods like Banjara Hills, where the cafe has introduced premium lounges and exclusive sections. This move has resulted in a noticeable increase in prices, leading to debates among customers about whether the cost of tea is all about ambiance or if the traditional charm of the cafe is slowly fading.

The Man Behind Niloufer: Babu Rao’s Remarkable Journey

Babu Rao, the owner of Cafe Niloufer, has a remarkable story. He arrived in Hyderabad in 1975 with no money and nowhere to stay. He started working as a cleaner at Cafe Niloufer, later becoming a waiter, and eventually learning to make tea. By 1993, after years of hard work, he became the owner of the cafe.

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Today, Babu Rao runs several Niloufer outlets across the city, catering to a variety of customers. He is also known for giving back to the community by providing free meals to hundreds of people every day.

Why Is Tea More Expensive Upstairs?

At Cafe Niloufer, tea on the ground floor costs Rs. 70, but the same tea on the first floor in the premium lounge is priced at Rs. 150. This significant price difference has left many customers wondering why the tea costs more upstairs.

In a recent podcast, Babu Rao explained the rationale behind the price hike. When asked, “Why is tea Rs. 70 downstairs, but Rs. 150 upstairs?” he responded:

“We created the first-floor section for privacy. If celebrities, politicians, or well-known figures sit on the ground floor, people often crowd around them for pictures. To avoid this, we opened a separate section upstairs.”

He added, “The Rs. 150 price is for exclusivity. Those looking for a peaceful environment, a premium ambiance, and a better view are willing to pay extra for that experience.”

A Cup for Everyone

Despite the price difference, Cafe Niloufer remains a place for everyone. At the original Lakdikapul location, you can still enjoy tea for as low as Rs. 15 or Rs. 20. For those seeking a more premium experience, the lounges offer a higher-priced option with added comfort, privacy, and a more exclusive atmosphere.

While some patrons are debating the price hike, Cafe Niloufer continues to serve the community, maintaining a balance between tradition and modernity with its two price options.


Conclusion: The price difference at Cafe Niloufer reflects the growing trend of offering premium experiences in upscale areas like Banjara Hills. Whether you prefer the cozy ground floor or the exclusive first floor, the cafe remains a cherished spot for Hyderabadis, both old and new.

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