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Sep, 24 2014

Starbucks Coffee to cut sizes of its new outlets in India

In order to maintain profitability, the coffee shop is planning to cut the size of its outlets to half the average size of its existing cafes.

Starbucks which entered India in a 50-50 joint venture with Tata Beverages is planning to open new stores in India which will be less than half the average size of its existing cafes, reported Economic Times.

The coffee chain has taken the initiative to expand into Indian towns and city sub-urbs while maintaining its profitability.

Starbucks coffee is planning to open outlets of 1,000-1,200 sq ft compared to its existing cafes that measures over 2,500 sq ft on an average, said an official who requested not to be named.

"Footfalls in smaller towns and suburbs may not be as high as prime locations and we have to maintain profitability too by keeping rentals in check," the person said.

The first store Starbucks opened in India was its 3,500 sq ft flagship in Mumbai in October 2012, and since then it has opened more than 50 cafes at an average speed of one outlet every two weeks, making India Starbucks' fastest growing market in terms of expansion. 

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