Starbucks Franchise in India: Cost & Process [Jan’25]

DISCLAIMER- Tata Starbucks Pvt. Ltd. has sole and exclusive rights to own and operate Tata Starbucks Restaurants in India and do not offer any starbucks franchise in India. 

Within the vibrant, constantly changing landscape of India’s coffee culture, Starbucks stands tall as one of the premium coffee experiences globally and a badge for corporate brand excellence. For entrepreneurs passionate about quality coffee, with keen eyes and interests in the food and beverage industry, owning a Starbucks franchise in India holds a special place that makes it a very exciting opportunity.

From the careful selection of its coffee beans to staff training programs for baristas, a Starbucks commitment to excellence shows in every aspect. Being a franchisee with this brand, you not only become part of a global network recognized by everybody due to its exceptional line of coffee but also gain extensive support and resources designed to help you succeed in your venture.

Whether you are an established entrepreneur looking to diversify your portfolio further or a first-time franchisee showing interest in breaking into the world of franchising, this book will help you learn everything about getting a foothold to be part of their renowned Starbucks franchise network in India.

 

Beginning of Starbucks

The history of Starbucks began in 1971 when the company first opened its doors to the public at Seattle’s Pike Place Market.

The store offered a wide variety of tea, spices, and freshly roasted coffee beans sourced from around the world. The name came to be “Starbucks” as an homage to the nautical feel of “Moby-Dick,” with the mental image evoked by the adventurous, early traders of coffee.

When, in 1981, each still a young New Yorker, Howard Schultz walked into, he became jealous of Starbucks after being impressed with the better coffee offered there. In 1982, he joined the company out of interest. 

The following year, when Schultz visited Milan, he had first-hand exposure to the coffeehouse culture that was flourishing and widespread in Italy.

It was after this visit that he had the idea of giving Starbucks the artistic touch of the Italian coffeehouses.

Starbucks took this new idea on board by 1987, a factor which was evident with the change from brown aprons to green. The next course of action for Starbucks was to start expanding; first it was Chicago and Vancouver, then California, Washington D.C. and New York.

In 1996, Starbucks crossed the ocean and opened its first store in Japan. It expanded into Europe in 1998 and moved into China in 1999.

Thus, within a few decades, Starbucks had grown exponentially to become a global hub servicing millions of customers every week.

For years, Starbucks has maintained its vision: to unleash the full power of human connections, one cup, one conversation, and one community at a time.

 

Vending Machine Price List in India

 

Starbucks Outlets

As of 2023, Starbucks acquires over 38,038 outlets globally. This number also includes other segments that are owned by the Starbucks chain like Siren Retail.

Starbucks has recorded a growth in the units almost every year over the last twenty years.

 

Launch of Starbucks in India

While the first foray of Starbucks into the Indian market was in 2007, it was only on 19 October 2012 that the brew masters of the legendary coffeehouse planted their flag under Indian skies. 

This epoch making launch occurred across a whopping 4,500 sq ft store in the Elphinstone Building at Horniman Circle, Mumbai. 

It further etched its roots in Indian soil by opening its first roasting and packaging plant in Kodagu of Karnataka, a place surrounded by lush landscapes, providing fresh beans to all Starbucks caffeinated coffees sold in the country in the year 2013.

 

Starbucks Menu

Exquisitely fusing global favourites with unique local flavours, Starbucks in India is a menu of diversity, just like its customers. Beyond classic espresso beverages and signature Frappuccinos lies a treasure trove of hidden gems waiting to be discovered that truly makes for a special Starbucks Experience in India.

Top fusion beverage picks of Starbucks include Tumeric latte, masala chai latte, alphonso mango frappuccino, indian-style filter coffee, alongside an array of dessert and snack selections including paneer tikka sandwich, murg kathi roll, elaichi mawa croissant, chocolate rasmalai mousse, chicken makhani pie and much more.

Some hidden gems of Starbucks include rose milk macchiato, filter kaapi, mango saffron cheesecake and masala popcorn.

A menu that caters to each taste bud, Starbucks in India celebrates its global roots and the rich culinary traditions of India. 

From indulging in a timeless cup to trying an elusive beverage to relishing some uniquely Indian food items or desserts, visiting Starbucks is a journey full of delightful discoveries.

 

Reasons to Choose a Starbucks Franchise in India

A Starbucks franchise is just about the most effective business venture for many compelling reasons. Here are some reasons from this perspective that can serve to highlight why investing in a franchise of Starbucks will be found as a smart, effective, and profitable venture-

  1. Globally Recognized Brand
  2. Proven Business Model
  3. Comprehensive Training and Support
  4. Innovative Product Offerings
  5. Strong Marketing and Advertising
  6. Sustainable and Ethical Practices
  7. Prime Location Selection
  8. Consistent Quality and Standards
  9. Community Engagement
  10. Growth and Expansion Opportunities
  11. Access to Advanced Technology
  12. Exclusive Supplier Relationships
  13. Financial Performance
  14. A Starbucks franchise bundles the power of the brand with battle-tested systems and enjoys incredible growth potential, an extremely attractive feature to entrepreneurs.

 

Starbucks Franchise Cost & ROI

Unlike most franchises that quite easily grant franchises to people, Starbucks does not. Instead, a franchise request can be applied through their website. 

The licensed stores are wholly owned and operated by the company,  from menu items and promotions to designing interiors and equipment, and employee training.

In India, the conventional model of a Starbuck’s franchise is displaced by having licensed stores. In this way, ownership will stay in the hands of Starbucks. The amount and investment involved in opening a licensed store by various owners may be different.

However, the company shall always prefer those who have previous experience in the food and beverage sector. This can ensure that every outlet of Starbucks maintains the high standards and unique environment of the brand, providing customers with a strong, consistent, high-quality experience.

In place of traditional franchising, Starbucks will move to licensing models in order to maintain the quality across stores. 

It decides operational control, from menu items offered to interior design, equipment, or training, with an aim at consistency in the quality of coffees offered to customers under the name Starbucks. 

The estimated cost of rent for any Starbucks outlet in India is around INR 6 L while the initial fee ranges between INR 25 L to 40 L, though the company does not officially disclose this information.

Starbucks does not grant franchises to any person who does not have previous business experience. Its setup cost is also different for different kinds of outlets, and all the financial details are not disclosed publicly.

Space requirements for a Starbucks franchise in India depend completely on the type and size of outlet.

Requirements Details
Frontage  Min. 20 ft.
Space 1000 sq. ft. (Standard Store)
Seating Area Min 200 sq. ft. + 30 chairs
Safety & Infrastructure Fire safety measures, adequate power supply
Coffee Preparation Area Separate area for coffee preparation and brewing
Facility Standards Adequate sanitation, lighting, ventilation
Equipment Cash drawer, register, POS system
Waste Disposal Designated area
Compliance Adherence to local safety, health and environmental regulations
Food Handling Hygienic preparation, and safe storage 
Brand Standards Adherence to strict brand standards

DISCLAIMER: These figures are estimated and highly variable. We encourage you to consult the officials of Starbucks before making any financial decisions. 

 

Steps to Apply for a Starbucks Franchise in India

Starbucks does not issue any individual franchise. Anybody can submit an application on their site to have a company-authorized, licensed coffee store. No independent opening of Starbucks coffee shops is allowed.

Tata Starbucks Pvt. Ltd. has sole and exclusive rights to own and operate Tata Starbucks Restaurants in India and do not offer any franchisees.

To apply for a Starbucks franchise or any franchise related query, one is required to directly contact the Tata Starbucks Pvt. Ltd through their email: ( contact@tatastarbucks.com  ). 

The Tata Starbucks Pvt. Ltd. team requests the aspiring franchisees to contact them on the email provided above to avoid any fraudsters or scams. 

 

Eligibility Criterion for a Starbucks Franchise in India

Franchisees participating with Starbucks are expected to adhere to rigorous standards and guidelines-

  1. Source products from Starbucks-approved suppliers only to ensure uniformity of its products.
  2. You will do so with an insightful understanding of the prevailing lease agreements, characterized by the tenancy considered, provisions for renewal, and other expenses accrued for such renewal.
  3. Participate in national, regional and local marketing campaigns in a bid to offer your share of promoting the Starbucks brand.
  4. Choose high-traffic locations in addition to centers that are near business areas and have flexibility in their commercial climate.
  5. Get extensive training for both the franchisee and the staff on the requirements expected of Starbucks compatible standards.
  6. Meet Starbucks’ standards by offering its prescribed beverages, foodstuffs, and seasonal promotions.
  7. Maintain consistent standards for preparing and presenting products, customer experience, and the overall appearance of the store.
  8. Full participation in Starbucks national and regional marketing programs.
  9. Regular auditing by Starbucks regarding compliance with the terms of the franchise agreement and related standards.
  10. local community events and sponsoring community-based initiatives to foster positive brand presence.
  11. A better customer experience will be provided by a well-trained staff, clean facility and efficient service.
  12. Embracing green practices and initiatives wherever feasible.
  13. Keep open communication with the Starbucks representatives in ensuring the logic for their support, updates, and assistance.

 

Documents Required for a Starbucks Franchise

A number of documents or certificates are required to own your very own Starbucks franchise, the list is given below-

  1. PAN Card copy
  2. Business Registration Certificate copy
  3. Aadhar Card copy
  4. Food License copy
  5. Bank Statement copy
  6. GST Registration Certificate copy
  7. Store/shop Lease Agreement copy

Some other documents may be asked for.

 

Afterword

Imagine the world of franchising in India at Starbucks—where passion for coffee joins entrepreneurial zeal. Accept the challenge of upholding Starbucks’ commitment to quality and community by shaping the coffee culture in India while owning a globally renowned brand. Feel the power of being a Starbucks Franchisee as a stepping stone in bringing extraordinary experiences in coffee while making a mark on the Indian culinary scene. Avail the opportunity of brewing success with Starbucks.

Author: Rahemeen Rizvi

Rahemeen Rizvi is a dedicated science enthusiast currently pursuing a BSc in Toxicology at Jamia Hamdard. With a keen interest in the intricacies of scientific study, she combines her academic pursuits with a passion for writing and calligraphy, bringing creativity and precision to her work. Her love for the sciences is matched by her artistic talents, making her a well-rounded individual in both her studies and creative endeavors.

Leave a Reply

Your email address will not be published. Required fields are marked *