The Hindu Business Line : Barista to shut 10 `unviable' stores

Said Mr Yogesh Samat, Chief Executive Officer, BCC, "We have decided to exit from 10 unsustainable outlets, against the current 130. The company is, however, looking at store relocations at the same time."

While calling store relocation a "routine exercise for any retail chain", Mr Samat added that the non-viable stores BCC proposed to shut down would be across metros and socio-economic B and C towns and cities, depending on the kind of footfalls the stores have been generating.

Most of the stores that will have their shutters downed will be in stand-alone locations. Currently, the majority of Barista stores are stand-alones, while about 15 Barista stores are in malls.

The company is also in the process of rolling out a franchising model for its store operations.

Meanwhile, speculation about Tata Coffee hiking its equity stake in BCC, against the current 34.3 per cent, persists. While Mr Samat declined to comment on the same, sources said, "Fresh funds will have to be infused for future growth."

According to Mr Samat, BCC was likely to begin making net profits within a year-and-a-half.

About six months ago, the company had reduced prices of its beverages and food products by about 25-30 per cent, across the board. Mr Samat did not rule out the possibility of bringing down prices further.

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