Starbucks is a premium brand of coffee, which is well known around the world. Over the years, the company has become one of the biggest names in the coffee industry. No other company enjoys such popularity. If one has a desire for the company and has huge money to invest, they can invest in Starbucks, as it is the best coffee brand in the industry.
Starbucks is an American company and a reputable coffeehouse chain around the world. The company was born in Seattle, Washington in 1971 through the efforts of three university students Zev Sigiu, Gordon Bowker and Jerry Baldwin. The Starbucks started the second wave of coffee around the world. Presently, it is available in 78 countries and six continents.
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Everything Need To know about the Starbucks Franchise Cost in India
The Starbucks franchise is gaining popularity in India as it is making its way across multiple cities. People in India are huge fans of quality international brands of tea, coffee and other beverages. A significant portion of the population are daily consumers of tea and coffee. Coffee is the first thing that many people need in the morning before starting their day.
If you have a passion for premium coffee shops and can make a significant investment in the business, you should consider Starbucks as an alternative. The brand’s popularity is unmatched by any other brand and is renowned for its premium quality beverages. Now, let’s get into the details of their business model and further we will discuss the cost of setting up a Starbucks franchise in India.
Starbucks in India
Starbucks has opened 191 stores in India. It entered the Indian market in January 2012 with a joint venture with Tata Company, named ‘Starbucks, a Tata Alliance’. Since then, it has been opening the company’s stores at various locations in India. The two industries merge together with a passion for tea, coffee and other innovative beverages.
First, you need to understand the non-franchisee model of the company. Starbucks franchise goes against the franchise business model and the city has its own rules for opening chain shops. You can’t easily apply to Starbucks in the usual way with other franchises.
They have a unique policy in the worldwide franchise business, as the company does not offer franchise to anyone. Managing a Starbucks franchise is a challenging task. The company requires a highly qualified and professional workforce.
Who Owns Starbucks in India
Starbucks has a partnership with India’s awe inspiring brand Tata. Tata Starbucks opened its first India store in October 2012 and now it has 136 outlets all over the country. Tata Starbucks Private Limited, mainly known as Tata Starbucks Limited, promotes Starbucks in India. It is a 50:50 joint progressive company owned by Tata Consumer Products and Starbucks Corporation.
Presently, the joint venture group has expansion plans in the Indian market. In addition, Starbucks coffee is exclusively available on all Vistara flights, a joint venture between Tata Sons and Singapore Airlines.
Why is Starbucks not a franchise !!
Today, franchising is the way many large corporations choose to grow their business. In this method, an investor, called a franchisee, pays a certain amount to a company in exchange for proprietary knowledge, trademarks and recipes of the company. Franchisees use the name of the company to run their business.
Starbucks’ Howard Schultz decided to go against the model of franchising to protect the quality of the coffee and exercise proper control over the entire business. This decision bodes well for the company because with the help of superior customer service and creative marketing, Starbucks has been growing in the coffee industry by leaps and bounds.
Howard Schultz sees franchisees as middlemen because he doesn’t want them between the company and the customers. He believes that it is the interaction between customers and employees that is important and focuses on training employees not only on how to make coffee, but also how to deal and interact with customers so that each customer has get a homely and personalized experience.
What Is Starbucks Licensed Store !!
You cannot open your own Starbucks coffee shop, as Starbucks does not offer any franchises. But there is an option to go with a Starbucks licensed store in India, which means your store is still owned by Starbucks. The licensed stores are assisted by the company in many aspects such as interior design, menus, equipment, promotions, onsite visits, training and support etc.
Although franchising helps the company grow, Starbucks prioritizes licensing to have more control over product quality and service.
How To Start Starbucks Franchise In India !!
You will need a license to start a Starbucks outlet as they do not franchise an individual, only to have proper control and dominance over the business by providing the best value service. You will need license, experience, investment, skills etc. to start a Starbucks franchise in India. Starbucks Café has been a tough competitor for Coffee Day being the No. 1 coffee shop in the world as well as the top coffee shop in India.
Be sure that franchise provided by Starbucks ‘A Tata Alliance’ will be only accepted only if the recruiter fulfills all the requirements of the franchise owners. Knowing the requirements in advance can make the process easier for you, and going through them is quite essential too, it is like a checklist which can give you a chance! These are some of the basic requirements which are mentioned in the next section!
What Are The Requirements Of Starbucks Franchise !!
In the same way that every business you enter has a set of requirements for going into it, you also have some requirements for a Starbucks licensed store. Requirements like location, mindset, skills, experience, and more are just a few examples. Every franchise has different requirements and Starbucks has different needs too!
Here are the major requirements that you should go through:
Location
Starbucks is present in all the posh locations in India, where the potential for more customers is high. Therefore, make sure that the location you start from is large enough to generate good sales revenue.
Skills Required
You cannot start a strong business with zero skills, you need skills to run a business. Every successful business builds on skills, so make sure you have these skills before you head to a Starbucks outlet. These are the skills needs to open a Starbucks franchise:
- Leadership and communication skills.
- Fast pace and good understanding.
- Positive attitude. Good customer service.
- Management skills and experience.
- These skills will help you to run the business smoothly.
- Think big, believe in yourself, have a growth mindset, incredible vision for your business, and be passionate about it.
- The owner must have good mindset, business and financial skills to run the business smoothly.
Experience
Before getting into this, you should know that Starbucks only accepts entrepreneurs who have prior experience in the food and beverage industry. Additionally, candidates must first run their own multi-site business.
How To Apply For Starbucks Franchise In India !!
There is no such formalities or form to apply for Starbucks Franchise in India but you can get in touch with Starbucks through the contact details mentioned on their official website. There’s no application form or anything on the site, but you can contact them by writing an email. Starbucks has a dedicated sub-domain page for career options such as jobs, internships, store managers, retail and non-retail careers, and more.
Product Range Of Starbucks !!
Starbucks primarily offers coffee and food, to give its customers a relaxed atmosphere from the busy schedule life. In food, they offer some bakery sweets, sandwiches, wraps, salads and muesli, desserts and much more. Next in drinks, they offer iced shaken, freshly brewed coffee, crème Frappuccino, cold brew, espresso, coffee Frappuccino, Teavana tea and other drinks.
These are some of the well-known items from Starbucks:
- Vanilla Latte.
- Iced White Chocolate Mocha.
- Pumpkin Spice Latte.
- Cinnamon Roll Frappuccino Blended Coffee.
- Java Chip Frappuccino
- Hot Chocolate
What Is The Cost Needed To Start A Starbucks Franchise !!
According to Business Insider, an average Starbucks store in India costs rupees 6 lakh rent. As a person can opt for a Starbucks-licensed shop, and you won’t be able to go into it if you’ve never done business or experience before, you must first have experience in the food and beverage industry to be licensed. Needed. By Starbucks.
I just mentioned the cost of rent which is around rupees. 6 lakh, a report by Business Insider in February 2020. Rental rates can go up or down, there are other things that can cost you other than rent, which I haven’t mentioned as there is no solid information on this. Internet.
Know More about the Starbucks Business Model !!
The company does not follow the customary franchise business model. Although, you can send a written request to their website to open a store in India, as no individual can set up a Starbucks coffee shop by their own. They have to take permission from the company to open licensed stores in India. Starbucks has these guidelines in place to maintain store ownership and control the management of the business.
The company itself helps set up each licensed store and manages many aspects such as menus, promotions, interior design, equipment, onsite visits, support and training, etc. This is why Starbucks focuses more on licensing than on awarding franchises; Starbucks needs to take control of service and product quality.
The main goal of the company is to balance the premium quality of coffee rather than opening more and more stores. Moreover, the brand has been successful in standing inroad into the Indian market.
FAQ !!
What is the net profit of the Starbucks franchise in India !!
There are no actual figures on the internet that you can refer to, but as per Kotak Institutional Equities report on Business Insider, a Starbucks outlet in India earns more than rupees 93,000 per day, which is approximately rupees 27.9 lakhs for monthly earning. The average annual revenue of Starbucks India is rupees 3 crore in a year.
What is the cost of Starbucks Franchise in India !!
Expenses, you need to pay rent and in posh places the amount of rent is generally higher, apart from this there are some other expenses that will cost you but due to lack of proper sources I don’t have concrete information available .
Does Starbucks offer franchises in India !!
No, Starbucks does not provide any franchise in India, but someone’s can eligible for a licensed shop by visiting their official website.
Is Starbucks Personally Owned !!
No, Starbucks stores in India are not allowed individually, as the policy of the company is against the franchise business model.
Conclusion !!
Finally, we can say that Starbucks is one of the most well known brands in the food segment. Around the entire world, Starbucks has made a name for itself by creating a second wave in coffee culture. Where on the one hand people aspire to consume its products. On the other hand, businesses want to be associated with Starbucks in some form. As a privacy policy, Starbucks does not franchise but permits a license to operate its store except under certain circumstances.
In India, Starbucks merged with a Tata group company to form a 50:50 joint company in 2012. As of January 2021, it has more than 200 stores in 15 cities in India. All these stores are owned and operated by the company. There is a chances that Starbucks India may start franchising its stores in future.
I have served you all the essential information on how to open a Starbucks Franchise in India in 2021, in the simplest way, section-wise! Yet, you have any doubts or queries let me know in the comments, I’ll get your problem solved, 100%.
