Know About Starbucks Coffee Franchise Cost in India

Coffee is one of the most widely consumed beverages around the world. In fact, many people aren’t even able to start their day well without first drinking a cup of coffee. Furthermore, it forms an essential part of family or work meetings. So, what comes to mind every time you think about coffee? Starbucks, of course!

Starbucks is a famous and reputed international brand when it comes to coffee. It has been serving people for years and is the leading global coffee chain. And the company keeps opening new outlets all around the world. There’s no denying that the demand for Starbucks remains at an all-time high. So, if you are considering joining the coffee industry, setting up a Starbucks franchise is the way to go!

Want to start a Starbucks outlet in India but don’t know where to begin? Read this post. Here, I will provide you with information about Starbucks coffee franchise costs in India, requirements, advantages, and more.

Brief History of Starbucks

Starbucks is a coffee brand that started in the US thanks to Jerry Baldwin, Gordon Bowker, and Zev Siegl in 1971. In the 1980s, the trio sold the company to Howard Schulz. The then-new owner extended the company fast, starting in Seattle and the West Coast area later before going countrywide and finally worldwide. Since then, the company has been expanding, and today it has more than 35,000 outlets.

Starbucks Business Model

Before you launch a Starbucks coffee store, a thorough understanding of the company’s distinctive business model is crucial. Technically, Starbucks does not operate under the traditional franchise structure.

If you aspire to establish a Starbucks coffee shop in India, applying through the company’s website is the first step you should take. Why? Because independent openings are not permitted. Before opening a licensed store in India, obtaining explicit authorization from the company is mandatory. The company has policies that they strictly follow to manage business operations and locations effectively.

Starbucks actively supports each licensed location’s establishment, overseeing critical aspects such as menu planning, interior design, equipment, promotions, and on-site visits, as well as providing ongoing support and training. That’s why the brand prefers to offer licenses instead of franchising. This way, they can control the service and product quality provided.

Instead of pursuing rapid expansion, Starbucks prioritizes preserving the excellence of its coffee offerings. This deliberate strategy has proven successful. They have managed to penetrate more than 80 countries, including India.

Who Runs Starbucks in India?

Starbucks in India is in partnership with the well-known Tata brand. The first store, under the name Tata Starbucks, brewed its first cup in October 2012, and now there are more than 130 stores scattered across the country.

Tata Starbucks Private Limited, once called Tata Starbucks Limited, is the force behind this company in India. It’s a partnership where both Tata Consumer Products and Starbucks Corporation each own half of the company. The stores proudly carry the name “Starbucks A Tata Alliance.” It’s a unique blend of Tata’s Indian legacy and Starbucks’ global coffee charm.

How to Get a Starbucks Franchise in India

As you know by now, Starbucks doesn’t give out franchises. So, let no one lie to you on this. This means you can rent the store but won’t be the owner. To get the license, you must ensure you get a space in a strategic location. They prefer it if you can get a shop near colleges, airports, mega shopping malls, etc.

Once you have rented the space, visit their website and fill out the application form. After filling out the form, the company has to interview you. You need to provide answers regarding your capital investment, space availability, etc., for them to determine if you are the right fit. If you convince Starbucks officials, they will give you the license. From there, you will receive inventory and training.

Starbucks Eligibility Criteria

What do you need to qualify for a license from Starbucks in India? Let’s take a look at what these things are:

• You need leadership and communication skills. In other words, you need to be good at leading and talking to people.
• You should really like the business, be positive, and know a bit about marketing.
• You must know how to treat customers well and make them happy.
• Have a store in a busy location. Pick a place where many people go, as this helps your business grow fast.
• You should also be able to think big, believe in yourself, and have a positive mindset and financial skills.
• You need to have experience in running multiple stores.

Starbucks Franchise Price in India

Wondering what is the Starbucks India franchise cost? Getting a Starbucks franchise in this country costs a good amount of money. However, the price varies. It depends on where it is, how big it is, and other things you need to pay for.

For example, the first thing you need to be aware of is that there’s an initial fee of Rs. 25 lakhs to Rs. 40 lakhs. This fee covers the setup, training, support, and the rights to use the Starbucks name in India. On top of that, you also need to take into account extra money to set up the store, like for the space, equipment, supplies, stock, and paying the staff. Also, there’s a need for money to market and advertise the store, which adds to the overall cost.

You also have to pay a Starbucks royalty fee, which is around 6-8% of the sales, to use the company’s name and get support and training. There’s also an advertising fee, about 4-6% of sales, to help cover the costs of ads and promotions. Apart from the first payment, the franchisee has ongoing expenses like rent, utilities, and staff wages.

Even though it’s quite expensive to open a Starbucks store, careful planning and understanding can minimize costs. If you do everything right, a Starbucks franchise can be a solid investment.

Starbucks Franchise Profit in India

Still doubtful about the Starbucks franchise cost in India? Let’s talk about profits instead! Unfortunately, no specific numbers or statistics show how much money Starbucks makes in this country. But without a doubt, if you own a Starbucks outlet, chances are you’ll make good money. Since the brand itself is famous, sells quality coffee, gives incredible customer service, and has many loyal fans, chances are you’ll see money rolling in faster than you can imagine.

Documents Needed for Starbucks Franchise in India

Before starting your Starbucks store in India, you need some essential papers. These include:

• A PAN Card Copy: This document is essential to show you’re a business owner.
• Aadhar Card Copy: This paper will help prove who you are and help with payments.
• A Business Registration Certificate Copy: This will help prove you’re officially allowed to do business in India.
• A Bank Statement Copy: It proves to Starbucks that you have enough money to run the store.
• A Shop or Store Lease Agreement Copy: This document proves you have physical space to run your Starbucks store.
• A Food License Copy: You’ll need this document in order to handle the food and drinks you sell in India.
• A GST Registration Certificate Copy: This document is crucial since it lets you charge and collect taxes on what you sell.

You need all these papers to open a store from this company in India. So, ensure you have all of them ready before starting your Starbucks franchise journey.

Products to Serve in Your Starbucks Store in India

Starbucks offers delicious beverages and snacks that many people love. Generally, the company standards require the coffees served across the world to be similar. But since people’s tastes change from country to country, you’ll find lots of different varieties of beverages and snacks offered. In India, some of the items on the menu include:

• Desserts
• Specials in the Menu
• Coffee
• Strawberry Milkshake
• Vanilla Milkshake
• Iced Shaken
• Coffee Frappuccino
• Teavana Tea
• Crème Frappuccino
• Pumpkin Spice Latte
• Cold Brew
• Expresso
• Freshly Brewed Coffee
• Parfait and Fruits
• Sandwiches, Wraps and Croissants
• Cookies and Muffins
• Hot Chocolate, among other things

The Cost of Starbucks Coffee in India

In India, a cup of Starbucks coffee costs around Rs. 200. But this price depends on the city and the type of coffee. In India, their coffee menu has different names for sizes, like short (shot), tall (small), and Vani (large). The company claims to have over 170,000 ways to customize a drink, meaning there’s variety in how you can make profits with this franchise in India.

Why You Should Start a Starbucks Coffee Franchise in India

Starting a Starbucks franchise in India has a lot of benefits compared to opening your own brand. Some of the advantages include:

• Brand Power

Starbucks is a super popular brand, and people already love it! So, if you have a Starbucks store, lots of people will want to come because they know and like the brand.

• Training and Support

When you join the Starbucks team, they teach you everything. It’s like having a coach for your coffee shop. They help you set up, run things smoothly, and make quality products that customers love.

• Proven Business Model

The Starbucks team already knows how to run a coffee shop. They have enough industry experience to understand what works and what doesn’t. So, when you have a Starbucks franchise, you’re using a plan that has already worked.

• Quality Products

Imagine you’re on a basketball team, and your coach only lets you use the best basketballs. That’s what having a Starbucks franchise is like. You get top-notch coffee beans and snacks to sell.

• National and Global Recognition

Starbucks is not just famous in India. The brand is recognized throughout the country and the world. This characteristic means more people will know about your coffee shop, and even tourists might visit your outlet.

• Continuous Innovation

Starbucks doesn’t stop at the same old things. They keep coming up with cool drinks and ideas, so your coffee shop stays interesting, thus attracting more fans.

Conclusion

Starbucks is a very popular and loved brand that never makes compromises when it comes to quality and customer support. If you wish to open a Starbucks franchise in India, ensure you display your best qualities so that you can gain the company’s trust.

I hope you have learned a lot regarding the Starbucks franchise cost in India in this article. While establishing an outlet from this highly regarded company requires a lot of initial capital, it is a business well worth the investment.