Starbucks enters Bangalore, starts hot brew battle with Cafe Coffee Day

Nov 23 2013, 19:23 IST
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World’s largest coffee chain, Starbucks, entered Bangalore, home turf of Cafe Coffee Day (Reuters) World’s largest coffee chain, Starbucks, entered Bangalore, home turf of Cafe Coffee Day (Reuters)
SummaryWorld’s largest coffee chain, Starbucks, entered Bangalore, home turf of Cafe Coffee Day.

The world’s largest coffee chain, Starbucks, on Friday entered Bangalore, the home turf of Cafe Coffee Day (CCD), the world’s fifth-largest coffee chain, even as the former acknowledged the contribution of CCD in developing the coffee culture in the country over the past 17 years. Starbucks also announced it will take the India Estate Blend, made from the highest quality Arabica grown in India, to the 19,000 stores the company operates across the world. 

The outlet in Bangalore, which is the fourth city and the first in south India to have a Starbucks store, is the 30th store of the joint venture company between Tata Global Beverages and Starbucks.

It will open two more outlets in the city by the end of this year. “The business we built here over the first year of operation has shown us the tremendous opportunity for growth in India. We are expanding our footprint by the one shop-one neighbourhood concept,” said John Culver, Starbucks Group president, China and Asia pacific.

According to the company, it is not about the number of outlets the company is opening in the country, but earning the respect and trust of the consumers. “This is a connection that we develop with consumers by elevating the experience around coffee.Indians are very value concious and the long queues are indication that we give them the value at the current price level,” said Avani Davda, CEO, Tata Starbucks. She added that the company will also open stores in all formats including the “Hubstores”, the takeaway centres, in commercial areas.

Starbucks had plans to open more than 50 outlets in its first year of operation but has only managed half of the target due to difficulties in getting good real estate. CCD, which is aiming at 2,000 outlets by year 2015, currently boasts of around 1,500 outlets across the country.

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