Starbucks Expects India To be Its Top Market

Average size of a Starbucks outlet even in India is bigger than peers such as Cafe Coffee Day in a market
  • Franchise India Buereau
Restaurant India

World largest coffee retailer Starbucks is expecting India to be among the top five businesses without giving a timeline. Despite India unit posting slowest sales growth last fiscal.

John Culver, group president, Starbucks International after inaugurating its 100th store in the country said “We are excited on the opportunities that India plays for Starbucks going forward. Today, we operate in 75 markets across the globe. One day, India will be one of the top five markets that Starbucks operates around the world. Our joint venture with Tata sits on the top of all partnerships we have in the world. They are a company with unrivalled experience and shared values, committed to social responsibility.”

Tata Starbucks, the unit in India formed in partnership with the Tata Group, clocked net sales of Rs 272 crore, a growth of 14%, during the year ended March 2017 and narrowed losses to Rs 32 crore. The sales performance is a steep decline from nearly 40% growth in business it saw in preceding years, likely indicating that its novelty factor is waning as it focuses on profitability and halts aggressive expansion.

Globally, most cafe consumers including that of Starbucks are attuned to a takeaway culture, which helps cafes add margins with very little cost. The average size of a Starbucks outlet even in India is bigger than peers such as Cafe Coffee Day in a market where young office-goers and students prefer to spend hours in cafes over coffee and snacks.

The coffee retail said it will enter Kolkata early next year and plans to open three stores there and will constantly evaluate newer cities.

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