Starbucks evaluating the Indian organised coffee retailing market.

Starbucks could be in talks with six potential partners and is considering a joint venture with Indian firms from the retail and lifestyle sectors. The news comes after the announcement at the start of the year that Costa Coffee intended to build a portfolio of 300 sites in India using a local franchise partner.

The organised coffee retailing Market in India is rapidly evolving. Existing players include Barista, Amalgated Bean Company (Café Coffee Day and Coffee Day Xpress), Global Franchise Architects (Coffee World), Qwikys, Impresario Entertainment (Café Mocha). There are several new players who wish to enter this segment which include Costa Coffee, Starbucks, Tata Mr. Bean Coffee Junction and Barnie’s We are seeing an increasing no. of International Brands willing to enter the Indian market. Starbucks has sensed huge potential in the Indian food retailing market. Much of these companies are banking on growth through both a mix of company-owned and franchisee stores.

Specialised café formats are now emerging, the two current largest players, Barista and Café Coffee Day are now experimenting with Bookshop Cafés, similar cafes like garden cafés, fashion cafés, sport cafés even singles cafés can be expected in the future.

Such cafés will become more of a community frequented by intellectuals, pop lovers, pizza lovers and will be more of discussion groups. A coffee company before franchising such a model, would have to demonstrate that such models can be successful. Such cafés do lead to an additional income stream but with additional investment.

However, as several coffee companies are aggresively expanding in new markets, prospective franchisees can expect better business opportunity selling that cup of coffee.

Awaiting your comments.