If you are the one who is planning to obtain a coffee brand and by any chance, Barista coffee house is on your list, then you should probably read this informative piece.
In this blog, we have extensively mentioned the growth strategy and key growth driver for the Barista franchise. In case you don’t have any idea about this franchise, then we’ll recommend you to go through this page.
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About the Barista Chain
The first Barista outlet was opened way back in 2000 in New Delhi. The operation are currently handled by its CEO, Rajat Agrawal. Under his leadership, the chain has shown immense growth potential.
As per the latest data, the chain currently operates more than 400 outlets across the country and few more locations in the neighboring countries like Maldives, Dubai, Sri Lanka, and more.
In terms of outlet presence, the chain is only behind the Cafe Coffee Day, another largest coffeehouse with presence of nearly 1400 outlets across the globe.
Unlike other coffeehouses, at Barista, one can undoubtedly enjoy the overall customer-friendly staff behaviors, lip-smacking food and drink options, including coffee, tea, desserts, cakes, sandwiches and more.
What’s the Barista’s current outlet presence and shareholdings?
With more than 400 outlets, Barista is on track to become one of the prominent brands in India’s coffee industry.
According to the CEO, Rajat Agrawal, the company currently owns and operates nearly 120 outlets out of the total 400, while the remaining 280 are successfully owned and managed by franchise partners. This results in a 30:70 ratio.
Additionally, Rajat Agrawal has mentioned to ET Retail that their future plans include adjusting this ratio to 50:50. This change will enable them to manage a significant number of stores on their own, driving the company’s future growth.
What’s the Barista franchise future growth potential?
The CEO has informed ET Retail that the chain plans to double its overall store presence in the coming five years.
According to him, the franchise already holds a prominent position in Northern India (comprising around 65% of outlets), and there might be plans to diversify their store presence in the other three zones, including South, East, and West India.
It will be interesting to learn about their expansion strategies and potential untapped areas for their growth. According to the report, it’s evident that the Barista chain may now focus more on top-tier cities, including Mumbai, Pune, Hyderabad, Bengaluru, and others.
Also, with a store distribution ratio of 50:50 between the company and franchise partners, there will undoubtedly be lower risk for its franchise partners, and the company will always be available to them as and when required.
What are the major growth driver for the Barista franchise?
First of all, unlike the international markets like US, UK, and Canada, the India’s coffee restaurant industry has still now reached at that level, and with penetration of some international brands like Pret A Manger, Starbucks, and Tim Hortons will certainly give the necessary boost to the industry.
The Barista chain is the second-largest coffeehouse in India, and with their future plan to double their store size in the coming 5 years, it unquestionably appears to be a great move for the company and the most viable option for franchise seekers.
Third major driver: Currently, the majority of the chain’s revenue comes from the beverages part (around 70%) and remaining of them are pushed from food and merchandise sales.
To mitigate this, they are planning to steer proper growth for its food sector. The store level profit growth seems perfect and Barista is all set to register systemwide revenue of ₹240 crore in this financial year.
Overall, the future growth prospect for the Barista chain seems stable and in upward trends. The chain has forecasted to double their store count by next five years.
With solid plans to grow their outlet presence to other territories in India, sheer focus on controlling the outlet operations, and necessary steps planned to diverse the revenue figures may allow the chain to grow not only in terms of store sizes but also become a profit making coffeehouses.
If you are passionate enough to open their franchise outlet, then you should be aware about its franchise cost. According to the current data, to become an eligible Barista franchise owner, you may need to invest at least ₹15 lakh, which can probably go beyond ₹1 crore for the dining model.
Before investing, we’ll recommend you to kindly get in touch with the franchise officials and talk to at least 5-7 existing franchise owner.