India Coffee Shops to see changes

India: Coffee shops business in India is poised to see some new changes as Tata Global which is a joint venture between Tata Global Beverages Ltd and Starbucks Coffee Co, which operates business under the brand name of Starbucks is planning to accelerate its expansion drive. Currently, Starbucks has a store count of 79 and company wants to increase its number of store in coming years. 

At the same time UK’s costa coffee is working to make its India business profitable rather than increasing store count. Devyani International which is master franchisee of Costa Coffee in India, has planned to come up with different strategy and the company is changing its focus from increasing number of outlets to quality of distribution with its existing stores. The company aims to work with 100% profitability with the right store location and different approach. The company witnessed a revenue of over 100 crores in the current financial year; whereas it had also seen some turbulent times in the past.

According to a recent report published by TechSci Research “India Coffee Shops / Cafés Market Forecast, Consumer Survey and Opportunities, 2021”, coffee shops / cafés market in India is projected to grow at a CAGR of over 11% during 2016-2021. In addition to India urban centres like New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata, entry of new chains into tier II and tier III cities is anticipated to emerge as a major factor driving growth in coffee shops / cafes market in the country over next five years.