Starbucks to stir up the South

Anil Urs Updated - March 12, 2018 at 09:37 PM.

Howard Schultz (left), Chairman, President and CEO of Starbucks Coffee and R K Krishna Kumar, Vice Chairman, Tata Global Beverages, at a press conference in Mumbai. File Photo: Vivek Bendre

After testing various formats in Mumbai and New Delhi for over a year, global coffeehouse chain Starbucks Corp will now make foray into the South by launching its first store in Bangalore.

The Nasdaq-listed chain is in the process of signing up spaces in the city, including a few shopping malls. Some of them are already being readied for a launch by next month.

Starbucks has a joint venture in India with Tata Global Beverages Ltd called Tata Starbucks Ltd.

In an e-mail response to a query from

Business Line , Tata Starbucks said it will open its first outlet in Bangalore in Koramangala. “We are looking forward to opening doors to our first store and serving customers in Bangalore our high-quality coffee, handcrafted beverages, and extensive food offerings.”

Starbucks is also expected to open several stores soon after the initial launch, a coffee retailer working closely with the joint venture said. “Since the city has people who are well travelled and exposed to Starbucks coffees, it is likely to be well received.” The entry of Starbucks could stir up the market in Bangalore, which is also home to the country’s largest coffee retail chain, Café Coffee Day.

Expansion plans

DTZ, a global realty consultant, said in a recent note: “Among the notable deals during the third quarter, the most prominent was Starbucks reportedly signing several leases across both high-street and mall locations to mark its entry into the Bangalore market.”

Starbucks has, in the past year, opened around 25 stores in Mumbai, Delhi-NCR and Pune.

The first Starbucks store in India was set up in Mumbai. Later, the company opened two more stores at Oberoi Mall and the Taj Mahal Palace Annexe in Mumbai.

Earlier this week, Starbucks had said it sees India as one of its top five global markets in the long term and will continue to expand aggressively here.

The coffee retail chain had also said it plans to open 50 outlets in the country by 2012 at an investment of Rs 400 crore, but has not been able to achieve the target.

Sourcing

In Karnataka, Starbucks and its Indian partner Tata Coffee have set up a roasting and packaging plant to cater to the domestic as well as select overseas markets in future.

The facility is spread across 8,258 square feet and has an installed production capacity of 375 tonnes. The plant has three major sections – green coffee storage and handling, roasting, and packing and dispatch.

>anil.u@thehindu.co.in

Published on November 19, 2013 08:48