Are you really interested in starting a Starbucks Franchise In India? The franchise models are getting into consideration and the market value of chain cafes in India is increasing gradually through the years while reaching over 40 Billion INR in 2020.
Owning a franchise is one of the effective ways to step into the entrepreneurial world. Without even starting from scratch, you can leverage the business using the brand name of the franchisor, this is one of the successful types of business expansion used all over the world.
I’ll be covering every detail of the ‘Starbucks’ franchise, from the process of 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.
As you might have read somewhere that Starbucks does not offer a franchise, then how come they are operating 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 still have an option to 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 get your head wrapped around Starbucks Franchise in India easily.
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 and 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 something hard to learn, have to explain to the customers, which requires an educated staff. If Starbucks would have franchised their business model it would have been really a tough job for them to provide the level of sensitivity to customers.
Starbucks a retail company that sells beverages that mostly consist of 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 2 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 2 outlets in Delhi, Pune to be the third city followed by Koramangala.
Then Starbucks entered the Gujarat market and opened 5 stores in Ahmedabad & Surat.
Currently, Starbucks is operating 191 stores in India across cities like Mumbai, Delhi, Surat, Vadodara, Pune, Bengaluru, and more. Tata Starbucks – Wikipedia
What Is Starbucks Licensed Store?
You can’t open your own Starbucks Coffee shop, as Starbucks doesn’t give any 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 the product quality & service.
People in India can apply for a licensed shop in desirable retail locations like airports, universities, and 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, and etc.
Starbucks has been the number 1 coffee shop in the world as well as the top coffee shops in India by being a tough competitor for Cafe Coffee Day.
Make sure the approval from Starbucks ‘A Tata Alliance’ will only be approved once the candidate meets all the requirements of the franchise owners.
Getting to know the requirements beforehand can ease the process for you, and it’s also quite 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 store. Requirements like location, mindset, skills, experience, and more are a few examples.
Every franchise has different requirement criteria and Starbucks too has a bunch of 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:
Starbucks is present in all the posh locations in India, where there are higher chances of more customers.
So, make sure the location where you start is good enough to generate good sales revenue.
You can’t start a strong business with zero skills, you need skills to run a business. Every successful business out there does run on skills, so before getting into the Starbucks outlet make sure 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.
These skills would help you to run the business smoothly.
Think big, believe in yourself, growth mindset, 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
Before getting into it, you should know that Starbucks only accepts entrepreneurs who have 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?
There’s no such form to apply for the Starbucks Franchise in India, but you can get in touch with them via contact details mentioned on their official website.
No application form or anything on the site, but by writing an email you can get in contact with them.
Starbucks does have a dedicated sub-domain page for career options like for jobs, internships, store managers, retail & non-retail careers, and more.
You can check out this link to know 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 you want to reach out to the Starbucks Franchise you can contact them via the available contact options that I’ve mentioned below!
|Starbucks Franchise/Licensing Contact Email||partner.resour[email protected]|
|General Inquiries, Phone Number||18602660010|
|Customer Care Email||[email protected]|
|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 if there are any new jobs at Starbucks India you’ll get notified.
On the other hand, there are many profiles on LinkedIn who work for TATA Starbucks Operations, and more, you can also contact them for more information.
One of the head, 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 that 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
To know more about the Starbucks Menu, check out the menu page by Starbucks India.
Short History & Success Story About Starbucks
Starbucks is going to hit its 50th year in March 2021, a long journey, and they are committed to providing the highest quality of coffee in the world to their customers.
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 then how to grew 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 in the business before entering into the market, so here’s a list of benefits that 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 the 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 USP is by serving a 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 till 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. As an individual can opt for a licensed shop by Starbucks, and if you have never done or experienced business earlier then 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, which is 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.
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 in a year.
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 more few expenses which would cost you, but due to lack of proper sources I don’t have solid information available.
Does Starbucks Give A franchise In India?
No, Starbucks doesn’t give any 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.
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, you have any queries or doubts let me know in the comments, I’ll get your problem solved, 100%.
I don’t think that there might be a question still 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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