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Starbucks has opened three outlets in Kolkata.
Tata Starbucks, a joint venture between Starbucks Coffee Company and Tata Global Beverages, on Monday inaugurated three stores in Kolkata taking the total count to 113 across seven cities, including Mumbai, Delhi, Chennai, Hyderabad, Bengaluru and Pune. The company plans to set up two more stores by the end of March 2018.
Different models
Tata Starbucks is open to experimenting with 'different models' and strategies to suit the requirement of different markets.
According to Sumitro Ghosh, chief executive officer, Tata Starbucks, in a diverse market like India, it is imperative to evolve different models and strategies tailormade to the needs of various markets.
Keeping this in mind, the company, which typically prefers setting up stores on around 1,500 sq.ft space, has chosen to open smaller outlets (approximately 700 sq.ft) in certain pockets.
“Different models work for different markets. While rentals and availability are some of the reasons (for opening smaller outlets), it is also a part of our strategy,” Ghosh told newspersons here on Tuesday.
Regional flavours
The company is also looking to come up with offerings with a ‘regional flavour’. In one of its first such experiments, Tata Starbucks has launched two new desserts – Chomchom Tiramisu and Chocolate Rossomalai Mousse made out of chenna (cheese curd). These two desserts will be available at its stores in Kolkata. “This is the first time we have come up with region specific offerings. We could explore this for other markets as well,” he said.
Tata Starbucks is also ‘evaluating possibilities’ of moving into Tier II towns as a part of the company’s ‘long term’ strategy to expand its presence pan India.
Revenue growth
The company, Ghosh said, was ‘pleased’ with the growth in topline, refusing to divulge further details. "We are entering new cities and our pace of growth has been good. We are pleased with the growth in our topline,” he said.
As per data available from TGBL annual report, Tata Starbucks saw its losses narrowing to around Rs 16 crore in FY’17, as compared with Rs 20 crore in FY’16.
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