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Costa @ 100 in India

Costa @ 100 in India

by Editor
March 9, 2023
in F&B, Lockdown Impact
Reading Time: 2 mins read
0

UK origin-cafe chain Costa Coffee, which was acquired by The Coca Cola Company in 2018 for USD 5Bn, has opened it’s 100th cafe in India. The company entered a JV with Devyani International (India) in 2008 to expand its business in the country. Devyani Group also operates Pizza Hut and KFC across India through a master franchise format.

Commenting on the milestone, Vinay Nair, General Manager, India & Emerging Markets, Costa Coffee, said, “We are excited to celebrate the 100th store milestone because India is a key market for Costa Coffee globally. This milestone demonstrates how the ever-growing community of coffee lovers in India has embraced our handcrafted coffees, like our signature drink – the Flat White. Costa Coffee is all about crafting a memorable coffee experience for our consumers and we’re committed to bringing this experience to more coffee lovers across the nation.”

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The 100th cafe has come up at New Delhi’s tony neighbourhood, the Khan Market which is a haven for F&B enthusiasts. The locality is also a favourite for expats working in India, visiting NRIs and foreigners/ tourists for the delicacies the restaurants there offer. Real estate cost in this area is among the highest in the world. A space measuring 600 sft. Could cost as high as Rs. 5-6 lakhs pm. Business prospects, no doubt are significantly higher than many other parts of India.

With an aim to serve more coffee lovers, Costa Coffee has been focused on expanding its cafe footprint in India, across high streets, malls, and airports. Costa Coffee will continue to expand its retail presence in tier 1 and tier 2 markets in response to consumers seeking innovative coffee experiences and to cater to the overall growing demand for coffee as a category.

At its peak, Cafe Coffee Day operated over 1,500 cafes across India (circa 2016-18) when Starbucks ran over 100+ cafes and other international chains like Costa, Coffee Bean and Tea Leaf, etc. were still understanding the Indian market with less than 50 cafes each, and present mostly at Malls, only in top metro cities. Post pandemic, the revival for cafes has been the fastest and the highest, with customers spending more time at cafes. This is mostly due to hybrid working modes, where employees do not have to visit their workplace everyday. Therefore, the coffee shops become a favourite hangout to work, meet clients and customers and also socialise.

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