Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
operation 15 Jan 2016

4 reasons Starbucks Chairman Views India as biggest biz ground

Starbucks operates in the country under a 50:50 joint venture with Tata Global Beverages and runs 75 outlets across seven cities under the label of Tata-Starbucks since October 2012.

By Nusra Deputy Features Editor

Starbucks, world’s largest coffee chain, which entered India in 2012, observes major business opportunities in India to unfold in 2016.

The group CEO and Chairman Howard Schultz was on a one day visit to India, and he sees India a land of opportunities and success.

"We see a major business opportunity here. In 2016, we intend to bring our speciality tea brand Teavana here, which we acquired in the US two years ago," added Schultz.

Four reason that motivates Starbucks coffee to expand in India:

Land of opportunity: As the country is welcoming new trends and brands, this could be the best time for any restaurant and cafe chain to spread their wings in a country, which is really getting them a good return. The coffee chain has been posting increased customer traffic for the last few quarters, despite the increase in prices of its coffee items. In Q4, the company witnessed a 4% increase in customer count, effectively resulting in 3% growth in the traffic for the fiscal 2015.

‘Millenials’ a growth booster: The Indian audience is overall responding very well to the influx of international chains in the market. Brands like Carl’s Jr, Burger King, Starbucks Coffee, Dunkin’ Donuts, are gaining customers’ attention by bringing in the new and tweaked menu as per  likes of the local customers’. Hence, it could be another reason for the cafe chain to target Indian market.

Digital disruption: With 2015 turning out to be the year of social wars and tech disruption, Starbucks, which is a youth centric brand can garner biggest traffic from the social media. And, as the tech-disruption gives an opportunity for people to get the food delivered to their home, the cafe chain is also focusing on growing its delivery business in India. "One of the areas where we have grown significantly and become the best-in-class is social media. We have built tremendous value in that, and we’ll bring it here next summer," Schultz added.

Rise of RTC and RTE products: As predicted by the industry leaders, 2016 will be the year of packaged food growth and this could give Starbucks an opportunity to build a significant presence in the consumer packaged goods segment where it sees a bright opportunity.

Starbucks operates in the country under a 50:50 joint venture with Tata Global Beverages and runs 75 outlets across seven cities under the label of Tata-Starbucks since October 2012.

Though the company had said at the launch that it would open 50 stores in the first year of operations, in over three years it has reached only 75.

Comment
Related opportunities
  • Blossom Kochhar Aroma Magic Unisex Franchise Salons/BKCCAD Academy - A..
    Locations looking for expansion New Delhi
    Establishment year 1992
    Franchising Launch Date 2014
    Investment size Rs. 30lac - 50lac
    Space required 1400 sq feet
    Franchise Outlets Less than 10
    Franchise Type Unit
    Headquater ShahpurJat New Delhi
  • Casual dine Restaurants
    About: WRAPICO IS THE CATEGORY LEADER BRAND IN AHMEDABAD AND..
    Locations looking for expansion Gujarat
    Establishment year 2016
    Franchising Launch Date 2016
    Investment size Rs. 20lac - 30lac
    Space required 1000 - 1200 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ahmedabad Gujarat
  • About:Established in 2012,Hot Fut Sports,a venture of Hot Fut Sports..
    Locations looking for expansion Maharashtra
    Establishment year 1950
    Franchising Launch Date 2015
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 6000 - 50000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Beauty Salons
    About: Waves is a well-established and renowned chain of salons &..
    Locations looking for expansion Delhi
    Establishment year 2013
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories