Starbucks India to boost store rollout
Starbucks India will ramp up its strore presence according to master franchisee Tata Global Beverages.
While Starbucks opened 25 new stores in the last financial year and 30 new stores this year the global coffee chain's local partner will invest more than US$6.4 – 7.1 million to speed up store openings.
Tata Starbucks CEO Navin Gurnaney told the Business Standard “We spend anywhere between $213,000 and $284,000 to build a store. We would not be being aggressive with our store growth if we didn’t see potential. We think the market is very strong.
"Excellence is always well received and we believe we have excellent experience, partners and products. We are extremely bullish on India. India is one of the top five growing markets for Starbucks internationally.”
Starbucks India stores serve an average 270,000 customers per week, with 90 per cent of their chosen beverages being coffee.
“People don’t come to us just to buy a sandwich,” added Gurnaney. “It is always an accompaniment with a beverage. The coffee category has been growing with all groups of people and the millennials are certainly gravitating towards coffee.
"But not just millennials, it is also the 30 years something upwardly mobile, better travelled and better educated people which are growing in India."
While there has been some speculation that Starbucks Tata is considering acquisition of a rival brand, Gurnaney insisted that Starbucks India outlook is extremely optimistic, and that future plans are to be “thoughtfully aggressive”.
Starbucks entered India with its first store in Mumbai launching in 2012.
This article first appeared on Inside Retail Asia, a sibling website to Inside Franchise Business.