India to brew more coffee with rising retail outlets in the coming decade

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Mumbai, September 2023: In an era of rising food delivery chains like Swiggy and Zomato, India is experiencing a notable surge in the emergence of novel coffee establishments, extending well beyond the realms of Starbucks and Café Coffee Day.

On the second day of the MAPIC India conference that saw the convergence of high-end retailers from across the country, panelists from the retail coffee chains were unanimous about more brands entering this space with the fresh aroma of grounded coffee beans, lush chairs, socializing, and a laptop.

“With 9-10 coffee outlet brands currently present in the country, a dozen or more are likely to come up in the next decade,” said Mr. Sushant Goel, Co-founder, and CE, Third Wave Coffee.

The young aspiring Indian consumer is increasingly finding it convenient to meet and hang out in coffee chains which is drawing equal attention from private equity firms as are quick service restaurants, industry players said.

Whether it’s a casual catch-up over coffee or a swift professional encounter, experiential retail destinations including coffee establishments are delivering significant aspirational value to the Generation-Z demographic.

While in-house outlet experience for the walk-in customers is extremely important, Mr. Adrit Mishra, COO, of Starbucks India, pointed out that online orders had almost grown three-fold post-pandemic.

Entry of leading brand Starbucks in the western state of Gujarat also helped Café Mocha to attract more customers to its outlet, said Mr. Mayank Gautam, MD, Café Mocha.

According to a recent industry report, Café Coffee Day leads the network with a presence in over 400 locations followed by Barista in over 350 locations, and closely followed by Starbucks at 340 locations.