Starbucks to Double Stores in India as Coffee Consumption Booms

Starbucks Corp. plans to double its stores in India in four years, opening one new shop front every three days, as the country’s growing middle class fuels a boom in coffee consumption. The global coffee giant aims to operate 1,000 stores in India by 2028, focusing on tier-2 and tier-3 cities outside its biggest metropolises. It will also expand drive-thrus, airports, and 24-hour cafes, and expects its Indian workforce to double to 8,600.

Coffee drinking has grown increasingly popular in India, with aspirational consumers flocking to cafes. Starbucks, along with high-end cafes and farm-to-cup local chains, has proliferated, selling beverages sourced largely from locally harvested crops. The stronger push in India is part of Starbucks’ broader ambitions to increase its foothold in some of the world’s most economically promising markets.

The company has operated in India since 2012 through a 50% joint venture with Tata Consumer Products Ltd., an arm of one of the nation’s biggest conglomerates. In the quarter ended Sept. 30, a net 22 new Starbucks outlets were opened in India, with revenue growing 14% from a year earlier. The target for 1,000 stores would make India one of the company’s major overseas markets, though dwarfed by the more than 6,500 stores in mainland China.

Read More @ Bloomberg

Suggested Reading