Real GDP growth to recover in Q3, Q4, says RBI report
The Reserve Bank of India on Monday said the real Gross Domestic Product growth is expected to recover in the third and fourth quarter of the current financial year.
Amid India’s growing demand for coffee consumption, the key player in the segment – Starbucks Corp – plans to more than double its stores in India in four years, opening the equivalent of one new shop front every three days.
In a statement, the global coffee giant said it wants to operate 1,000 stores in India by 2028, and the focus will be in so-called tier-2 and tier-3 cities.
Advertisement
It will also expand drive-thrus, airports and 24-hour cafes, and expects its Indian workforce to double to 8,600.
Advertisement
“Over the past 11 years, the India market has grown to become one of Starbucks fastest-growing markets. With a growing middle class, we are proud to help cultivate the evolving coffee culture,” said Chief Executive Officer Laxman Narasimhan.
While tea has long been the hot beverage of choice in India, coffee drinking has grown increasingly popular as aspirational consumers flock to cafes.
Along with Starbucks, high-end cafes and farm-to-cup local chains, such as Blue Tokai, have proliferated, selling beverages sourced largely from locally harvested crops.
Notably, Starbucks has operated in India since 2012 through a 50% joint venture with Tata Consumer Products Ltd.
Currently, it has 390 stores across 54 cities, and in the quarter ended Sept 30, a net 22 new Starbucks outlets were opened in India with revenue growing 14% from a year earlier.
Notably in the Financial Year ending March 2023, Starbucks India registered a three-fold spike in its collection which flew to Rs 1087 crore as compared to Rs 360 crore in FY21.
With over 300 Starbucks stores in India, the cost of rent rose 62% to Rs 81 crore in the last fiscal. Its electricity, maintenance, advertising, and other overheads catalyze the overall expenditure by 48.6% to Rs 1140 crore in FY23 from Rs 767 crore in FY22.
Advertisement
