Are you interested in starting a Starbucks Franchise In India? The franchise models are being considered, and India’s coffee industry is growing at 21% until 2025. The market value of chain cafes in India is increasing gradually through the years, reaching over 40 Billion INR.
Owning a franchise is one of the effective ways to step into the entrepreneurial world. Without starting from scratch, you can leverage the business using the franchisor’s brand name; this is one of the successful types of business expansion used worldwide.
I’ll cover every detail of the ‘Starbucks’ franchise, from getting into it the licensing process, basic requirements, contact details, and a lot more exclusive information.
Starting a Starbucks Franchise in India is a golden opportunity to make it big in the food & drinks industry. Nevertheless, it’s also a huge responsibility! Starbucks looks for entrepreneurs who are honestly ready to be committed to the brand & its promises.
You might have read somewhere that Starbucks does not offer a franchise; how come they operate 191 stores in the Indian Market? And what is the story behind the joint venture with Tata Global Beverages?
However, Starbucks does not offer franchises, yet budding entrepreneurs like you can still apply for the Starbucks licensed shop; now, what is a licensed shop?
Well, that was just an introductory part; now, let’s jump into the valuable GUIDE to easily wrap your head around Starbucks Franchise in India.
For What Reason Is Starbucks Not A Franchise?
CEO of Starbucks, Howard Schultz, avoids franchising because he wants to maintain the ‘fanatical’ level of control over his locations. In order to have proper domination over the quality of the coffee, the business CEO Howard Schultz decided to go against the franchise business model.
Though going against the franchise model of expansion, Starbucks has grown immensely and is the largest coffee-house chain in the world currently!
CEO for the years 1986-2000 & 2008-2017, Howard Schultz believes in delivering a quality product to the customers, and he is against the franchise models, as he has viewed franchising as a way to get access to capital because you are using other people’s money to grow. Entrepreneur
Starbucks delivers premium quality to customers, which is hard to learn and has to be explained to customers, requiring an educated staff. If Starbucks had franchised its business model, it would have been a tough job for them to provide sensitivity to customers.
Starbucks, a retail company that sells beverages, mostly coffee-related drinks, runs on the company-owned chain business model.
Why Starbucks A Tata Alliance
Starbucks tried to enter the Indian market in 2007, but due to some reasons, Starbucks resulted in a false start.
In January 2012, Starbucks announced a 50-50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd., which would own and operate outlets branded “Starbucks, A Tata Alliance.”
In this way, the two companies bring a rich heritage and passion for coffee, tea, and innovative beverages.
The first store of Starbucks India was in Mumbai, then expanded, opening two outlets in Delhi, Pune to be the third city followed by Koramangala.
Then Starbucks entered the Gujarat market and opened five stores in Ahmedabad & Surat.
Starbucks operates 341 stores in India across cities like Mumbai, Delhi, Surat, Vadodara, Pune, Bengaluru, and more. Tata Starbucks – Wikipedia (May ’23 Data)
What Is Starbucks Licensed Store?
You can’t open your Starbucks Coffee shop, as Starbucks doesn’t offer franchises. But there’s an option to go with a Starbucks-licensed store in India, which means your store is still owned by Starbucks.
Licensed stores are helped by the company in many aspects like the interior design, menu, equipment, promotions, onsite visits, training & support and etc.
Though franchising helps to grow the company, Starbucks prefers licensing to have more control over product quality & service.
Yet
People in India can apply for a licensed shop in desirable retail locations like airports, universities, etc.
The number of Starbucks Coffee stores is increasing year by year. According to Statista, In FY 2013, India had only 12 outlets, and by FY 2019, the total number of stores jumped to 146.
How To Start Starbucks Franchise In India?
To start a Starbucks outlet, you’ll need a license as they don’t give franchises to an individual, just to have proper control and domination over the business by delivering the best value service. To start a Starbucks franchise in India, you’ll need a license, experience, investment, skills, etc.
Starbucks has been the number 1 coffee shop in the world and the top coffee shop in India by being a tough competitor for Cafe Coffee Day.
Ensure the approval from Starbucks ‘A Tata Alliance’ will only be approved once the candidate meets all the requirements of the franchise owners.
Knowing the requirements beforehand can ease the process for you, and it’s also essential to go through them; it’s like a checklist that can give you a probability!
These are a few basic requirements mentioned in the next section!
What Are The Requirements Of Starbucks Franchise?
Every business you enter, there’s a set of requirements to go through; in the same way, you have some requirements too for Starbucks-licensed stores. Requirements like location, mindset, skills, experience, and more are a few examples.
Every franchise has different criteria, and Starbucks has many different requirements too!
In 2020 though it was a bad year, Starbucks managed to open 11 new stores in India: Navin Gurnaney, CEO
Here are the major requirements that you should go through:
Location
Starbucks is present in all the posh locations in India, with higher chances of more customers.
So, ensure the location where you start is good enough to generate good sales revenue.
Skills Required
You can’t start a strong business with zero skills; you need skills to run a business. Every successful business out there runs on skills, so before getting into the Starbucks outlet, ensure you have these skills.
These are the skills required to open a Starbucks Franchise:
- Leadership & communication skills.
- Fast pace & good understanding.
- Positive attitude.
- Good customer service.
- Management skills and experience.
And more…
These skills would help you to run the business smoothly.
Mindset
Think big, believe in yourself, have a growth mindset, have an incredible vision for your business, and be passionate about it.
The owner should have a good mindset, business & financial skills to run the business smoothly.
Experience
Before getting into it, you should know that Starbucks only accepts entrepreneurs with prior experience in the food & beverages industry. Additionally, candidates must have run their own multi-site business before.
How To Apply For Starbucks Franchise In India?
Starbucks does not franchise its brand; you can’t get a Starbucks franchise. You can choose to run a “licensed” Starbucks store. You can contact TataConsumer.com to proceed with all the licensing things, or you can even drop an email at customercare@tatastarbucks.com for more details.
There’s no such form to apply for the Starbucks Franchise in India, but you can contact them via the contact details mentioned on their official website.
There is no application form or anything on the site, but by writing an email, you can contact them.
Starbucks does have a dedicated sub-domain page for career options like jobs, internships, store managers, retail & non-retail careers, and more.
You can check out this link to learn about the career options at Starbucks – Careers Starbucks India
As we were talking about the franchise, you have to approach them via email for all the franchising & licensing; here are the contact details mentioned in the below section to take your next foot forward.
Starbucks Franchise Contact Details
If you have any query related to the franchise or want to reach out to the Starbucks Franchise, you can contact them via the available contact options I’ve mentioned below!
| Starbucks Franchise/Licensing Contact Email | partner.resources@tatastarbucks.com |
| General Inquiries, Phone Number | 18602660010 |
| Customer Care Email | customercare@tatastarbucks.com |
| Official Website | Starbucks India |
| Facebook Page | Starbucks India |
| LinkedIn Page for Careers | Starbucks India |
| Starbucks Careers Page | https://careers.starbucks.in/ |
You can create a new job alert on LinkedIn so that you’ll get notified if there are any new jobs at Starbucks India.
On the other hand, many profiles on LinkedIn work for TATA Starbucks Operations and more; you can also contact them for more information.
One of the heads for growth and partnerships at Starbucks India is Smriti Sekhsaria; you can message her on LinkedIn if you don’t get a reply from the contact email I just shared in the table.
Product Range Of Starbucks
Starbucks mainly offers coffee and food to give a relaxing atmosphere to its customers from a busy, scheduled life. In food, they offer a few bakery sweets, sandwiches, wraps, salads & muesli, desserts, and more. Next in drinks, they offer Iced Shaken, Freshly Brewed Coffee, Crème Frappuccino, Cold Brew, Espresso, Coffee Frappuccino, Teavana Tea, and other beverages.1
These are some of the popular products from Starbucks:
- Vanilla Latte.
- Iced White Chocolate Mocha.
- Pumpkin Spice Latte.
- Cinnamon Roll Frappuccino® Blended Coffee.
- Java Chip Frappuccino®
- Hot Chocolate
And more…
To learn more about the Starbucks Menu, check out the menu page by Starbucks India.
Short History & Success Story About Starbucks
Starbucks hit its 50th year in 2021, a long journey, and they are committed to providing their customers with the highest quality coffee in the world.
An American multinational chain of coffee headquartered in Seattle, Washington. They are one of the largest coffeehouse chains, which operate 30,000 locations worldwide in over 70 countries (as of 2020).
The company was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle’s Pike Place Market. Later in the 1980s, the company was sold to Howard Schultz, and during the first tenure of Schultz as a CEO from 1986-2000, he led the company to an aggressive expansion of the franchise, first in Seatle and then across the U.S. West Coast.
You can read more about their history on Wikipedia.
Talking about India, I’ve covered a major chunk of information from the start in the foremost above section called ‘Why Starbucks A Tata Alliance’; you can go through that!
In that section, I’ve explained why Starbucks initially failed and how to grow up to 191 stores in India while being a tough competitor to CCD.
Benefits And USP Of Starbucks
A businessman always looks into the Benefits & Uniqueness of the business before entering into the market, so here’s a list of benefits you’ll gain!
Here’s the list of Benefits And USP Of Starbucks:
- You get the benefit of the proven business formula.
- Starbucks has done extensive research about the coffee market, and you can use it too; it would help you to learn something new.
- Keeping Indian culture in mind, they also serve hot tea to attract Indian tea ‘Chai’ lovers.
- Starbucks is different from its competitors by creating the unique value proposition of becoming the “third place” for customers after the first and second being their home & workplace.
- Starbucks is the biggest coffee chain in the world.
- Apex’s USP is by serving premium coffee to each customer, as their slogan says, ‘To inspire and nurture the human spirit – one person.
Starbucks is known for providing the ultimate experience to its customers and has redefined how we drink coffee. Here’s a video by CNN Business that you must look into; a short video; watch only 1:10 seconds.
What Is The Cost Required To Start A Starbucks Franchise?
According to Business Insider, an average Starbucks store in India shells out Rs. 6 lakhs as rent. An individual can opt for a licensed shop by Starbucks, and if you have never done or experienced business earlier, you’ll not be able to get into it; you need to have experience in the food & beverage industry earlier to get a license by Starbucks.
I’ve just mentioned the rent cost, which is about Rs. 6 lakhs, a report from Business Insider in February 2020. The rental rates might have moved up or down, other than the rent, there are a few more things that can cost you, which I have not mentioned as there’s no solid information on the internet.
FAQ
What Is The Profit Margin Of Starbucks Franchise In India?
There are no actual figures mentioned on the internet that you can refer to, but according to the report by Kotak Institutional Equities on Business Insider, a single Starbucks outlet in India earns a tad over Rs. 93,000 per day, which sums around Rs. 27.9 lakhs for monthly earnings. Starbucks India has an average annual revenue of Rs. 3 crore annually.
What Is The Expense Of Starbucks Franchise In India?
Expenses, you need to pay the rent, and the amount of rent in posh locations is typically high; other than that, there are a few more expenses that would cost you, but due to a lack of proper sources, I don’t have solid information available.
Does Starbucks Give A Franchise In India?
Starbucks has no franchise in India, but an individual can apply for a licensed shop by visiting their official website.
Is Starbucks Individually Owned?
No, the Starbucks shops in India are not owned individually, as the company is against the franchise business model.
Can I Get A Starbucks Franchise In India?
No, Starbucks does not offer any franchises in India, but a candidate can apply to the company to run a licensed outlet in India as it runs on a company-owned chain business model.
Conclusion
I have served you the best information on how to open a Starbucks Franchise in India in 2021, in the simplest way, section-wise! Yet, if you have any queries or doubts, let me know in the comments, and I’ll get your problem solved 100%.
I don’t think there might be a question left, as I’ve covered almost everything.
What you have learned?
- What are the Basic Requirements to Start Starbucks Franchise In India?
- Complete Contact Details about Starbucks Franchise.
- USP, Benefits & History, Cost, Profit Margin, and more.
Hope you got to learn a lot from this article…
Best wishes for your next business.
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TechFixify created this blog for informative purposes, and we are not associated with any franchise Owners/Distributors.
I just wanted to have all details for Starbucks licesnce .Kingly arrange a call back
You can contact them by email ID mentioned in the contact table.
Can you help me to get one
If we don’t have any experience in food or beverages.. is there any other option to open starbucks ?
There are a lot of factors that come in when you apply for the Starbucks Franchise. To get a clear and confirm answer you can contact them by the contact details mentioned in the table, thank you.
I am having land at the best location for Starbucks (in Maharashtra)… but I am unable to contact the Starbucks team…please tell me where I get the contact details of Starbucks.
Just have a look at the contact details that I’ve mentioned in the table.
I just wanted to have all details for Starbucks Licance. Kindly arrange a call for Starbucks team.
Thank you
I can’t arrange any calls, you can just email them and wait for their reply.
Have a nice day 🙂
hi, as you talked about experience in food and beverage industry, what sort of things can be done to gain this experience?