The plan is to open one new cafe every third day.
Starbucks, the world’s largest coffee chain, has unveiled ambitious plans to open a new cafe every third day in India, with the goal of reaching the 1,000 mark by 2028. Laxman Narasimhan, the CEO of Starbucks, expressed this strategic move as the company’s bet on India, a predominantly tea-drinking nation that is currently experiencing remarkable development and an improved ease of doing business.
Narasimhan emphasized the impressive growth observed in India, citing investments in infrastructure, ongoing construction activities, and the country’s digital revolution. He commended the government’s efforts to eliminate friction in business and taxation, stating, “The government is focused on eliminating some of the friction that does exist in areas like business or taxation and how they lean in to support businesses that are looking to invest in the country.”
This announcement comes during Narasimhan’s first visit to India since he assumed the role of CEO in March of the previous year. Starbucks, in a joint venture with Tata Consumer, presently operates 390 cafes in India. The decision to rapidly expand its presence in the country reflects Starbucks’ confidence in the market and its willingness to tap into the evolving consumer preferences.
The move to open a new cafe every third day underscores Starbucks’ commitment to capitalizing on the growth potential in India. Despite the nation’s traditional preference for tea, Starbucks sees an opportunity to leverage the changing dynamics and cater to the evolving tastes of Indian consumers.
Starbucks’ expansion plan aligns with the positive business environment in India, characterized by a focus on infrastructure development, ongoing construction projects, and digital advancements. The company’s strategy involves leveraging these favorable conditions to establish its presence in key locations across the country.
The joint venture with Tata Consumer has played a crucial role in Starbucks’ success in India, providing a strong foundation for growth and collaboration. As Starbucks looks ahead to its goal of 1,000 cafes in India by 2028, it anticipates contributing significantly to the coffee culture and creating a notable presence in a nation known for its rich tea traditions. This strategic move reflects Starbucks’ confidence in the potential of the Indian market and its commitment to being a key player in the country’s evolving cafe culture.
Source: The Economic Times
