Thinking about coffee? Yeah, me too! And when it’s about coffee, no one can beat Starbucks! The most delicious American coffeehouse and company. But what keeps this company incredibly successful?
So, to bring a better perspective to the business model of Starbucks, we have presented this article for you. Starbucks was based in Seattle, Washington, and started to nurture people with the pleasure of coffee at a time. And today, this coffeehouse is established in more than 38,000 places across the globe.
Starbucks is a choice for all! To find out what makes a company successful on a global scale, this piece will take a close look at its business ecosystem. Through this article, we will get to know all the essential strategies of Starbucks’ business model and how the company operates and makes money. We will discuss the strategies, plan, and revenue model. But most importantly, we will know what’s unique about the Starbucks business model that keeps it at the top. Let’s get started!
About Starbucks
The American-based multinational chain of coffeehouses, Starbucks, is headquartered in Seattle, Washington. Starbucks is responsible for the utmost coffee culture in the United States.
The coffeehouse was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl in 1971 (around 50 years ago). Starbucks was widely welcomed by Americans in their coffee culture. And now, Starbucks is well-established in around 38,038 places across the world, as of 2024. It serves over 83 countries worldwide. Its headquarters are in Seattle, USA.
Starbucks is well known for serving utterly delicious hot and cold drinks, whole-bean coffee, various instant flavoured coffee, including espresso, latte, and others. It also serves loose-leaf teas such as Evolution Fresh juices, Frappuccino, and many others. La Boulange pastries and other snacks as well. Moreover, Starbucks offers tons of different customer-based offers like free Wi-Fi and many others.
In 1971, on the cobblestone streets of Seattle’s iconic Pike Place Market, Starbucks was launched. In this same spot, Starbucks originally welcomed visitors with the promise of freshly roasted coffee beans, tea, and spices sourced from all corners of the globe. Its headquarters are in Seattle, USA, and the company was founded by Gerald Baldwin, Gordon Bowker, and Zev Siegl. There are currently over 38,038 outlets spread out over the globe.
Where Does Starbucks Operate?
As of 2025, Starbucks operates in around 80–83 countries with approximately 32,000+ stores worldwide.
Here’s a more detailed breakdown:
United States: Over 17,000 company-operated stores as of June 2025.
China: Around 7,700 company-owned stores, with a total push toward 9,000 by the end of 2025 .
Other key markets:
Japan: ~1,800 stores
South Korea: ~1,980 stores
Canada: ~1,483 stores
United Kingdom: ~1,354 stores
Indonesia: ~603 stores
Latin America & Caribbean: ~1,700 licensed stores.
Other regions (EMEA, Asia, etc.): Thousands more, with a focus on Europe, the Middle East, Africa, including a major footprint via local franchise partners like Alsea.
Key Products and Services of Starbucks
Starbucks mainly focuses on better interaction with its customers. Therefore, it offers its key services, such as communication, for a better connection with audiences. The bond between customers and the coffeehouse becomes very strong. And Starbucks always gets the best relationship throughout.
This also encourages a calm and relaxing environment inside Starbucks’ stores. They aim to touch the inner soul of their customers. And in such a manner, the consumers always come back for more coffee and snacks.
Target Audience of Starbucks
The world-famous chain of coffeehouses, Starbucks, targets its audience through demographic segmentation. It mainly targets people aged 25-44 years. This rounds up around half of the total business revenue.
The next large target group is young adults around the age of 18-24 years. Through these major groups, Starbucks earns a great source of revenue. And these together bring around 40% of Starbucks’ total sales.
A collection of concepts that define Starbucks and its place in the market forms the basis of the company’s business model. Providing first-rate goods and services, building strong communities, and giving customers something truly special are the fundamental elements of these concepts. Starbucks has succeeded in attracting and retaining customers by emphasising these features. It offers multiple beverages are available, including hot and cold drinks, VIA, coffee made from whole beans, tea made from entire leaves or loose leaves, lattes, fresh juices, Frappuccino drinks, and more.
Starbucks Business Model Canvas
The above image shows the business model canvas of Starbucks in detail.
Starbucks’ business model is well designed to make the business work, and also, how it can make more profit. Starbucks gathers its value through incredible customer interaction and experience.
It also sells a variety of foods such as cakes, yoghurt, salads, pastries, and more. By popularising darkly roasted coffee, Starbucks has set itself apart from other coffee firms. Starbucks’ usage of automated espresso equipment sets them apart from other coffee producers. Coffee producers and roasters are integral parts of Starbucks’ business plan.
When it comes to globalising a business, suppliers are essential allies. In order to guarantee a steady supply of high-quality coffee goods, it interacts with farmers, roasters, and shippers. In the case of items other than coffee, it collaborates with a number of regional, state, and local vendors. Starbucks’ business model relies on a distribution network that includes both company-operated and licensed locations to sell its products. In addition to these channels, it sells its products through warehouse clubs, specialty stores, grocery stores, and supermarkets. Starbucks business plan focuses on expanding company-owned and licensed stores, enhancing customer experience, and growing packaged product sales globally.
Starbucks gives people the pleasure of drinking coffee. It creates a calm and relaxing environment for its customers with great quality beverages in its coffeehouses. Starbucks has always been pretty creative in its business methods and strategies.
It offers instant, on-time delivery to its customers consistently. Now that we have the basic idea of the business model of Starbucks, let’s get our minds to what is unique about its business model and how it actually makes money.
What Is Unique About the Business Model of Starbucks?
Starbucks has opted for the most creative and unique marketing strategies. It has received immense success through its business model and strategies. But the thing that makes the business model utterly unique is the Classic Logo, which works best to engage more loyal customers throughout. The concept of the logo is to gather a huge audience base.
The other thing is how it presents its advertisements to its customers. With its store, modern cup design, digital content, and many others, it provides customers with a feeling of warmth and comfort. That’s why the audience connects more with Starbucks.
How Starbucks Makes Money | Starbucks Revenue Model
Starbucks’ company-operated outlets generate the bulk of the company’s income. Starbucks sells coffee, drinks, and snack items in its thousands of shops throughout the world, generating enormous revenue. Let’s find out the revenue streams through which Starbucks earns money.
Starbucks Revenue Streams | Starbucks Revenue Model
Part of Starbucks’ success in this sector comes from its ability to provide a pleasant and uniform experience for customers everywhere. From the welcoming decor to the warm smiles of the coffee shop employees and the scent of freshly brewed coffee, Starbucks has perfected the art of creating a welcoming and comfortable environment for its customers.
In addition, the company-operated Starbucks locations are great for more than just getting a cup of coffee on the go. People now gather there for a variety of reasons, including socialising, studying, and working. Book clubs, live music, and art exhibitions are just some of the events that these establishments frequently host. Starbucks has succeeded in attracting and retaining customers by encouraging a feeling of belonging among its patrons.
Earnings for Starbucks come from both company-operated and licensed locations. Partners who have secured a licence to sell Starbucks products run these sites. By using a licensing strategy, Starbucks is able to go into new areas and serve more customers without taking on the entire financial and operational risk of running its outlets. Using its well-known brand name, Starbucks has expanded into packaged coffee, tea, and other goods that may be found in grocery stores and on the internet. Starbucks guarantees extensive distribution and maximum availability of its packaged products through partnerships with shops and online platforms.
Number of Starbucks Stores Worldwide (2003-2024)
USP of Starbucks
Customers will have a more favorable impression of Starbucks since they know they will enjoy what they purchase. Starbucks hosts events where customers can win t-shirts, mugs, and gift cards to celebrate the opening of new outlets. To boost their “brand awareness and brand loyalty,” Starbucks depends significantly on word-of-mouth publicity.
Starbucks Competitors
Starbucks faces competition from many other big and small coffee brands around the world. Here are some of the major ones:
Dunkin’ Donuts – Famous for coffee and donuts, Dunkin’ started in 1950 and now has over 11,500 stores in 35+ countries.
Costa Coffee – A popular British coffee chain founded in 1970, now owned by Coca-Cola.
McCafé – McDonald’s coffee brand, launched in 1993, found in many McDonald’s locations worldwide.
Tim Hortons – A top Canadian brand known for coffee and donuts, with over 4,600 stores across 13 countries.
Peet’s Coffee – Started in 1966, Peet’s is known for its strong, freshly roasted coffee.
Lavazza – A famous Italian coffee brand, founded in 1895, with cafes mainly in Europe.
Café Coffee Day – India’s biggest coffee chain, started in 1996, with stores in parts of Africa, Europe, and Asia.
Local coffee shops – Starbucks also competes with thousands of small, independent cafés all over the world.
So while Starbucks is a global giant, it’s always competing with both well-known brands and cozy neighborhood coffee spots.
Starbucks SWOT Analysis
SWOT Analysis of Starbucks
Starbucks Strength
Worldwide, the term “Starbucks” draws up images of coffee shops and positive consumer experiences.
This company’s youthful clientele is a key factor in its dramatic rise to popularity and rapid expansion.
Every Starbucks is known for its great atmosphere and friendly service.
The name and symbol of Starbucks are easily remembered.
Starbucks Weakness
Many people think that Starbucks’ menu prices are too high when compared to other chains and local businesses.
In many emerging countries, including India, Starbucks is still on the rise.
There has been a shift among health-conscious consumers towards beverages with a focus on nutrition.
Starbucks Opportunities
To make coffee-based products more affordable for the target market, consider introducing more affordable alternatives.
Starbucks can explore newer markets by targeting smaller towns and cities.
Perhaps they might expand their product line to include more than just coffee. In many markets, such as the UK and India, tea is the beverage of choice.
Starbucks Threats
Competitors include already-established coffee shops and fast food joints that sell coffee with other foods.
Threats of substitute products and services include other beverage items, such as colas, teas, or liquids that are sold in retail stores.
Conclusion
Starbucks’ business model is quite known for its strategic deals and promotions. Their business model is utterly successful and always finds more customer engagement. It has a good impact through its licensed and company-operated stores. It works with simplicity and stands up to its ethics.
Today, Starbucks is a well-established company with a huge audience base. The business model of Starbucks shows that with utter determination and hard work, you can achieve everything within your reach.
FAQ
What is Starbucks business model?
Starbucks follows a premium café retail model, selling high-quality coffee, beverages, and food in a cozy, customer-focused environment. It earns revenue through company-owned stores, licensed stores, and branded products sold in retail channels.
Who is the founder of Starbucks?
Gordon Bowker, Jerry Baldwin, and Zev Siegl founded Starbucks in 1971.
Is Starbucks owned by Tata?
Tata Starbucks Private Limited is a joint venture company owned by Tata Consumer Products and Starbucks Corporation.
Who are the competitors of Starbucks?
The competitors of Starbucks include Costa Coffee, Tim Hortons, The Coffee Bean & Tea Leaf, Cafe Coffee Day and others.
How does Starbucks operate?
Starbucks operates through company-owned and licensed stores, selling coffee, food, and merchandise. It focuses on delivering a consistent, high-quality customer experience worldwide, both in-store and through packaged products sold in retail and online.
How many Starbucks are there in the world?
There are 40199 Starbucks, as of 2024 in the world.
How does Starbucks make money?
ChatGPT said:
Starbucks makes money by selling coffee, drinks, and food in its stores, earning from both company-owned and licensed outlets, and through packaged products sold in supermarkets and online.
Starbucks Corporation is an American coffee chain that was established in 1971 in Seattle, Washington. By 2023, the organization had a presence in over 38,000 areas around the world. Starbucks has been depicted as the fundamental delegate of “second wave espresso,” a reflectively-named development that advanced high-quality espresso and specially simmered coffee. Starbucks now uses robotized coffee machines for proficiency and well-being.
Starbucks serves hot and cold beverages, entire bean espresso, micro-ground moment espresso known as VIA, coffee, caffe latte, full-and free leaf teas such as Teavana tea products, Evolution Fresh squeezes, Frappuccino refreshments, La Boulange baked goods, and bites (for example, chips and wafers); some offerings such as the Pumpkin Spice Latte are explicit to the territory of the store. Numerous Starbucks outlets sell pre-bundled nourishment items, sweltering and cold sandwiches, and drinkware such as cups and tumblers. Furthermore, there are Select “Starbucks Evenings” areas that offer brew, wine, and appetizers.
Starbucks first ended up productive in Seattle in the mid-1980s. Despite an underlying financial downturn with its venture into the Midwest and British Columbia in the late 1980s, the organization experienced rejuvenated success with its entrance into California in the mid-1990s. Starbucks opened an average of two new stores every day between 1987 and 2007.
Brian Niccol is the current CEO of Starbucks, a role which he started on September 9, 2024. Before Niccol, Indian-American Laxman Narasimhan served as the CEO of Starbucks.
This article is a case study of Starbucks with Starbucks Startup Story, its presence in India, business strategy, future plans, and more.
Starbucks – Company Highlights
Startup Name
Starbucks
Headquarters
Seattle, Washington, United States
Sector
Food and Beverage, Hospitality
Founders
Gordon Bowker, Jerry Baldwin, Zev Siegl
Founded
1971
Valuation
$108.84 billion (September 2024)
Revenue
$35.98 billion (FY23)
Parent Organization
Joint Venture Company of Tata Consumer Products and Starbucks Corporation
If you are wondering how did Starbucks start? Then, the story of Starbucks started when the company was a roaster and retailer of whole bean and ground coffee, tea, and spices with a single store in Seattle’s Pike Place Market. Gordon Bowker, Jerry Baldwin, and Zev Siegl founded Starbucks in 1971.
Zev Siegl stated that at that time he knew the coffee industry inside and out, he was well-versed, especially with the gourmet end of the industry. Besides, he was also known as the most educated coffee guy in the country at that time. So, the three college friends – Zev Siegl, Jerry Baldwin, and Gordon, started with their coffee bean shop and roastery at Seattle’s famous Pike Place Market in 1971. Eventually, they found a mentor in Alfred Peet, who was the founder of Peet’s Coffee and the man responsible for bringing custom coffee roasting to the U.S., and started with the coffee business in full swing. Starbucks initially began by selling coffee beans that were roasted by Peet’s, a gourmet coffee company in Berkeley, California, and later on, started roasting on their own.
Starbucks – History
The first Starbucks store was initiated in 1971 in Washington by 3 individuals who met while they were studying at the University of San Francisco: English educator Hun Baldwin, history educator Zev Siegl, and author Gordon Bowker. The trio was encouraged to sell top-notch espresso beans and hardware after businessman Alfred Peet showed them his style of simmering beans.
During this time, the organization sold simmered, entire espresso beans. During its first year of activity, Starbucks bought green espresso beans from Peet’s and then started purchasing legitimately from producers.
Starbucks – Name and Logo
Starbucks Logo
Bowker reviews that Terry Heckler, with whom Bowker claimed a publicizing office, thought words starting with “st” were ground-breaking. The organizers conceptualized a rundown of words starting with “st” and in the long run arrived at “Strabo,” a mining town in the Cascade Range. The team then finalized “Starbucks,” the name of the young chief mate in the book “Moby-Dick”.
Starbucks has given too many slogans/taglines already among which the most popular one is – “Brewed for those who love coffee”.
Starbucks – Expansion Journey
Number of Starbucks Stores Worldwide (2003-2024)
In 1984, the first proprietors of Starbucks, driven by Jerry Baldwin, acquired Peet’s. During the 1980s, all-out offers of espresso in the US were falling. However, offers of strength espresso expanded, shaping 10% of the market in 1989; it stood at just 3% in terms of market share in 1983. By 1986, the organization worked six stores in Seattle and had just barely started to sell coffee.
In 1987, the first proprietors sold the Starbucks chain to the previous manager Howard Schultz, who rebranded his II Giornale espresso outlets as Starbucks and immediately extended. Starbucks then launched its outlets outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois. By 1989, 46 stores existed over the Northwest and Midwest, and every year Starbucks was simmering more than 2,000,000 pounds (907,185 kg) of coffee. At the hour of its first sale of stock (IPO) on the financial exchange in June 1992, Starbucks had 140 outlets with an income of $73.5 million, up from $1.3 million in 1987.
The organization’s fairly estimated worth was $271 million at this point. The 12% segment of the organization that was sold raised around $25 million for the organization, which encouraged a multiplying of the number of stores throughout the following two years. By September 1992, Starbucks’ offer cost had ascended by 70% to more than multiple times the income per portion of the past year. In July 2013, over 10% of in-store buys were made on the client’s cell phones utilizing the Starbucks app.
The organization used the versatile social media stage when it propelled the “Tweet-a-Coffee” campaign in October 2013. People had the option to buy a $5 gift voucher for a companion by entering both “@tweetacoffee” and the companion’s handle in a tweet. Research firm Keyhole observed the advancement of the event and a media article from December 2013 detailed that Starbucks had discovered that 27,000 individuals had taken an interest and $180,000 of buys were made to date.
Starbucks Expansion Around The World
As of 2023, Starbucks is positioned 137th on the Fortune 500 rundown of the biggest United States organizations by revenue.
In July 2019, Starbucks announced a “monetary second from last quarter total compensation of $1.37 billion, or $1.12 per share, up from $852.5 million, or 61 pennies for each offer, a year sooner.” The organization’s fairly estimated worth of $110.2 billion expanded by 41% in the middle of 2019. The income per share in quarter three was recorded at 78 pennies, considerably more than the estimate of 72 cents.
In January 2011, Starbucks Corporation and Tata Coffee reported designs to start opening Starbucks outlets in India. Despite a bogus beginning in 2007, in January 2012, Starbucks declared a 50:50 joint endeavor with Tata Global Beverages, called Tata Starbucks Ltd., which would possess and work outlets marked “Starbucks, A Tata Alliance”. Starbucks endeavored to enter the Indian market in 2007. However, it didn’t provide any explanation behind its withdrawal of it.
It was on October 19, 2012, that Starbucks opened its first store, a 4,500 sq ft store in Elphinstone Building, Horniman Circle, Mumbai. Starbucks opened its first cooking and bundling plant in Coorg, Karnataka in 2013 to supply its Indian outlets. The company extended its reach to Delhi on 24 January 2013 by opening 2 outlets. Tata Global Beverages declared in 2013 that they would have 50 areas before the end of the year, with a venture of INR 4 billion. The organization did open its 50th store in India on July 8, 2014.
The third city in India to get a Starbucks outlet was Pune, where the organization opened an outlet at Koregaon Park on 8 September 2013. Starbucks opened a 3,000-square-foot lead store at Koramangala, Bangalore on 22 November 2013, making it the fourth city to have an outlet. Starbucks opened the biggest espresso-forward store in the nation at Vittal Mallya Road, Bangalore on 18 March 2019. The store is estimated at 3,000 sq ft and is Starbucks’ 140th outlet in India.
Tata Starbucks opened 25 stores between 2017 and 2018, which went up to 30 during 2018-19. On 21 February 2019, CEO Navin Gurnaney reported that Tata Starbucks would use only compostable and recyclable bundling materials over the entirety of its stores from June 2020.
Starbucks Corporation In India
Starbucks reported its entrance in Gujarat on 7 August 2019. The organization opened five stores in Surat and Ahmedabad the following day. Starbucks’ leader store in the state is situated at Prahlad Nagar, Ahmedabad, and offers more vegan alternatives than other Indian outlets.
Starbucks currently has over 450 stores across 70 cities in India and is planning to reach 1000 stores by 2028.
Starbucks’ strategies for business in India seemed rock-solid but the brand wasn’t completely immune still. In any case, the world’s biggest bistro chain is building its position cautiously via a progression of well-picked steps. Numerous worldwide brands have entered India since the 1990s, being pulled in by its developing and optimistic customer base. Yet, not all have succeeded. The Starbucks case analysis highlights how strategic partnerships and localized approaches helped the brand succeed in the Indian market.
Starbucks isn’t the primary contestant in India’s composed espresso showcase; so it doesn’t have any first-participant advantage. Cafe Coffee Day (CCD) is the market head while Barista Lavazza was the main espresso chain to open for business. Both are valued by the white-collar class. Costa Coffee, Coffee Bean and Tea Leaf (CBTL), and Gloria Jean are valued by the rich group in India.
India is customarily a tea-drinking nation, so espresso chains have concentrated on giving a feel where individuals can unwind and invest energy with one another. This setup implies higher capital expenses. It is different from the US, where the vast majority have a liking for espresso. The Indian buyer base has likewise advanced in the recent decade. What can worldwide brands like Starbucks do to augment their odds of achievement in India?
Starbucks – Business Strategy in India
Picking a Local Partner
Worldwide brands face the difficult choice of either going solo or tying up with a nearby accomplice. Starbucks’ choice to team up with India’s TATA Global Beverages demonstrates attention to utilizing different advantages. The TATA Group is one of India’s morally determined brands, an observation passed on about Starbucks India too.
Given that India produces espresso beans in just a couple of spots, the other sourcing alternative was bringing in the beans. Be that as it may, this would have raised costs fundamentally.
Tata’s espresso plant in Karnataka has been contracted to supply beans to Starbucks universally, making common cooperative energies. It has contracted to take into account TATA’s TAJ SATS, which supplies TATA’s top-notch lodging network – TAJ. The TATAs are put into the retail part with store brands like Westside, Tanishq, Croma, Star Bazaar, and so forth. Starbucks can use them for information sharing on Indian land, territory points of interest, and handling land administrations. This would enable its very own development to outline. This strategy gives scope for store-in-store deals.
Consistency in Store Arrangements
This keeps up the one-of-a-kind selling purpose of customer experience and allows to pick up economies of scale on CAPEX. Starbucks plans to have a similar store group crosswise over India. However, the size can change depending on financial matters. This is how it works all around. Starbucks wants to provide an agreeable ‘café’ experience. Having a similar organization gives clients the solace of accepting the equivalent ‘Starbucks’ vibe in any place they go throughout the world.
Keeping the store designs steady means it needs to pick and open new areas stringently, to such an extent that the area can yield a throughput by the venture. Its methodology in-store arrangement is different from CCD, which has picked various configurations to tap the potential interest in any region. CCD has opened a couple of premium outlets dependent on the area’s customer profile. It has additionally gone for non-store organizations like takeaway booths and candy machines. Be that as it may, Starbucks may expect that such non-store configurations may weaken its image esteem.
Estimating the Pace of Expansion
India is the place where an inability to screen primary concerns has tossed numerous organizations out of the rigging. So, a top-line just approach doesn’t work here. Since Starbucks needs to pick new areas stringently by its equivalent configuration approach, it has decided on a deliberate pace of extension. It is concentrating on the budgetary feasibility of every outlet, as opposed to going for an aggressive development plan which may have brought about rehashed calls for capital.
This operational process is different from its system in the USA and China where it has fabricated scale by opening stores in pretty much every area – being the main port-of-call for espresso by basically being all over the place. CCD’s methodology behind adaptable store organizations was to guarantee there is a CCD bistro at a simple reach. It is intriguing to check its normal store gainfulness given its scale.
Guaranteeing Top-Authority Backing and Responsibility
Top initiative responsibility from the two sides of the organization, Tata and Starbucks, has been plentifully clear. Starbucks took as much time as was needed to enter the market (6 years), recognizing that India was a mind-boggling market and required cautious passage arranging. The two sides have spoken finally about their dedication and shared their plans to give their business a new direction toward growth.
Altering Contributions to Suit Indian Market and Client Needs
Being adjusted to Indian culture, tastes, and inclinations conveyed at a suitable “esteem” guarantees customer importance, construct, and continued utilization. Starbucks mirrors this comprehension – as observed through a blend of Western staples, a wide scope of intriguing Indian tidbits similar to confined refreshments on the idea. Since its experience ( and item as well, however to a lesser degree) is its image guarantee, its test lies in conveying an all-around steady, yet locally significant brand experience.
The stores, or the “third spot” as Starbucks calls them, have been altered likewise. The stores don’t pursue the worldwide layout and appear to have been planned with consideration, with neighborhood contacts consolidated. Stores in various urban communities have been structured unexpectedly, mirroring the neighborhood culture – e.g., New Delhi’s store has ropes and chat on the dividers and henna designs on the floor, though the Pune store has a rich showcase of collectibles and copper.
There appears to be sufficient utilization of shading – something missing in the US. The stores have been intended to convey a particular, premium café experience, predictable, and in a state of harmony with the one conveyed over the rest of the world.
Starbucks appears to have made a confined plan of action, planned for conveying a universally reliable item and involvement with locally-focused costs. The Tata group conveys a major sourcing advantage (attributable to its quality over the generation chain, developing, broiling, and exchanging espresso), yet it has just gone past that to develop and support associations with nearby espresso cultivators – putting resources into structure economical cultivating rehearses. All of Starbucks’ espresso is sourced locally, a first-ever for the organization.
Scaling up using Arrangements and Organizations
The Tata organization is the genuine overthrow in the Starbucks passage story. Having Tata as an accomplice is gigantically profitable, not due to the validity and strength it offers, or because it coordinates the scale and stature of Starbucks as an organization.
It offers numerous advantages catalyzing pretty much every market section achievement variable – for example, The Tata group has involvement in the retail business, a solid reputation in advancing new pursuits, gives a sourcing advantage through Tata espresso, offers access to high-traffic areas using its lodgings and other retail outlets, guarantees excellent nourishment and refreshment supply through its F&B business and so forth.
Furthermore, the potential for an effective organization is amazingly high given Starbucks’ and Tata’s mutual qualities – the two of them have a solid social inner voice and are resolved to “give back” to the general public and network.
Influencing India for Worldwide Items
Not long after it finished its first year, Starbucks reported that it was serving top-quality Indian Arabica espresso as “Indian coffee” in different markets. Another world-class office for cooking and bundling has just been initiated in Coorg, Karnataka; the results of which are to be analyzed in India and abroad.
Overseeing Discernment and Guidelines
This viewpoint is tied in with structure, a solid positive observation, and a picture for the business and brand crosswise over key outer partners and crowds – incorporating the administration, corporate accomplices, networks inside the eco-framework, and customers on the loose. Given what Starbucks has figured out how to accomplish in a year and a half since dispatch, it appears to be genuinely evident that its thought combined with the Tata advantage (critical reach and impact) has helped in developing solid connections and a positive picture with key outside partners and voting demographics.
Engage Nearby Association
Starbucks is by all accounts constructing a nation-explicit activity with nearby individuals in charge and overall unmistakable customer interface focuses, giving them the necessary position to coordinate and work. There is overwhelming interest in enlisting the perfect individuals and giving the essential preparation – to install and instill the organization’s culture and administration models.
Along these lines, how has Starbucks fared against the McKinsey spread out variables for long-haul India achievement? Its accomplishments against the scorecard look noteworthy. With thorough vigorous passage arranging and brilliant and quick execution, the multi-month-old endeavor appears to have impressive force, making purchaser and network-driven ventures and focused on sustaining its center business and brand. It appears to be very much set to “win” in India.
Whether Starbucks will collect a huge piece of the overall industry and accomplish its objective of India being among its best 5 markets over the long haul is not yet clear. It’s still early days, yet for the organization, this appears to be an incredible beginning and a great globalization model for multinationals looking for an India section.
Starbucks – Products
Aside from the typical items offered globally, Starbucks in India has some Indian-style item contributions, for example, Tandoori Paneer Roll, Chocolate Rossomalai Mousse, Malai Chom Tiramisu, Elaichi Mewa Croissant, Chicken Kathi Roll, and Murg Tikka Panini to suit Indian customers. All coffees sold in Indian outlets are produced using Indian broiled espressos by Tata Coffee. Starbucks additionally sells Himalayan packaged mineral water. Free Wi-Fi is accessible at all Starbucks stores.
Starbucks Espresso Cappuccino
In January 2017, Tata Starbucks presented Starbucks’ tea image “Teavana”. Teavana offers 18 unique assortments of tea in India. One of the assortments called the India Spice Majesty Blend was explicitly created for the Indian market and is only accessible in India. India Spice Majesty Blend is a mix of full-leaf Assam dark tea injected with entire cinnamon, cardamom, cloves, pepper, star anise, and ginger. On 15 June 2015, Tata Starbucks reported that it was suspending the utilization of fixings that had not been affirmed by the Food Safety and Standards Authority of India (FSSAI).
The organization didn’t indicate what the fixings were or which items they were utilized in. The organization additionally expressed that it was applying for FSSAI endorsement for these ingredients.
Starbucks Corporation Other Products
As per the Latte Index positioning of the expense of a tall hot latte at Starbucks in 44 nations, India was the fifth most costly nation to buy the drink depending on January 2016 costs. The record distributed by US-based buyer research firm ValuePenguin found that a tall hot latte cost $7.99 in India, far higher than the $2.75 it costs in the least expensive nation, the United States, yet much lower than the $12.32 in the most costly nation, Russia.
Tata Starbucks propelled the Starbucks Delivers program in mid-2019. The administration offers home conveyance from Starbucks outlets through an organization with Swiggy. The administration was first propelled in Mumbai, with designs to turn it out to other cities.
In its menu, the Tata Starbucks company has launched ice-creams as their new products. The frozen delights are available even in flavours like java chip and caramel macchiato among others and will come in takeaway tubs and single scoops. The ice-creams are now available in 50-60% of the Starbucks stores.
Starbucks – Business Growth
Net Revenue of Starbucks Worldwide From 2013 to 2024
Tata Starbucks, a joint venture between Tata Consumer Products Limited (TCPL) and the American coffee chain Starbucks, reported a loss of INR 81 crore in the 2024 fiscal year, according to TCPL’s annual report. This is a bigger loss compared to the INR 23.9 crore loss in the previous year, FY23. Despite this, the company’s revenue from operations grew by 12% in FY24.
In FY24, Tata Consumer Products invested INR 25 crore into the coffee chain, which also opened the most new stores in India since starting the joint venture in 2012. However, the coffee chain faced challenges in profitability due to weak demand for quick service restaurants (QSRs) in general. Tata Starbucks, which is hoping to make back the initial investment in the current money, has opened 380 stores to date.
Tata Starbucks, a 50:50 joint endeavor between Tata Global Beverages and Starbucks Coffee of the US, has announced a 30% top-line development in financial 2018-19, driven by new store openings and improved execution. Tata Starbucks announced “twofold digit top-line development – 30% for the entire year, driven by new stores and improved store execution,” Tata Global Beverages Ltd (TGBL) said in a financial specialists’ introduction. Tata Starbucks’s income for 2018-19 is required to be approximately INR 450 crores.
TGBL said Tata Starbucks opened 30 outlets in the past financial year, out of which 15 new stores were opened during the last quarter of the money-related year. The organization claimed detailed benefits at the store level; all urban areas were likewise productive and additionally saw an ascend in nourishment share in general deals.
The Starbucks company added around 40 stores in FY21 but the company had recorded a 33% Y-O-Y fall in its revenues during the same fiscal. According to Sushant Dash, CEO of Tata Starbucks, the recovery that the company has seen after the second wave of COVID-19 was better than what it saw after the first wave of the deadly pandemic. The quarterly growth after Q2 FY22 was 120% more than what it saw during the same period in the previous fiscal. The company has hugely focused on home deliveries ever since the pandemic broke out. It has already addressed concerns associated with the spillage and other challenges about home delivery, which contributed to over 18% of the total sales that the company witnessed this fiscal, as per the reports in November 2021. Furthermore, the company has also added ice-creams to its menu in flavors like java chip and caramel macchiato. The Sanjeev Kapoor menu is another thing that has been freshly launched by Tata Starbucks. Besides, the company also launched a one-litre freshly brewed beverage and at-home coffee.
As per reports on 26 May 2025, Starbucks is starting self-service kiosks in Korea and Japan for the first time, allowing customers to place orders without talking to staff. Starbucks Korea said it will set up kiosks in about 10 stores this week. These stores are in busy areas like Seoul and Jeju Island, especially where many tourists visit.
The first kiosks will be placed in two stores in Seoul’s Myeong-dong area, which is popular with foreign visitors. People will be able to use the kiosks from early next month.
A Starbucks Korea spokesperson said the kiosks were made to help tourists who have trouble communicating due to language barriers. The goal is to make ordering easier and attract more visitors in tourist areas.
Tata Starbucks plans to operate 1000 stores in India by 2028. To reach its goal of having 1,000 stores by 2028, Tata Starbucks plans to double its workforce to around 8,600 employees. The company aims to expand into Tier 2 and 3 cities in India, increase the number of drive-thru locations, open more stores in airports, and add more 24-hour stores to better serve customers wherever they are.
Tata Starbucks Pvt. Ltd. is looking to forcefully grow its impression in the Indian market with its eyes on the quickly spreading “espresso culture” among the twenty to thirty-year-olds and upwardly versatile customers. Tata Starbucks, a JV between US-based Starbucks Coffee Company and Tata Global Beverages Ltd, hopes to set up altogether more number stores this monetary than it did previously.
With per-store venture prerequisites being evaluated at INR 1.7-2 crores, the complete CAPEX plan by the organization works out in an overabundance of INR 50 crores during current monetary on the off chance that it opens more stores than a year ago.
The organization is likewise open to different open doors for development including inorganic development through acquisitions. Be that as it may, when tested about any probability of a venture plan in the espresso chain Cafe Coffe Day (CCD), Gurnaney denied estimating any discussions for securing.
With an end goal to upgrade the client experience, Starbucks is presenting new nourishment things, taking into account all client needs including breakfast and lunch. The income share from nourishment things is right now around 25%, even as it keeps on developing with new things to meet the client’s needs.
FAQs
Who founded Starbucks?
Starbucks was started by Hun Baldwin, Zev Siegl, and Gordon Bowker in 1971.
Where was the first Starbucks started?
Starbucks was started in Pike Place Market, Seattle, Washington, United States.
When was Starbucks started in India?
Starbucks was launched in India in 2012.
What is the revenue of Starbucks?
Starbucks revenue was recorded at $35.98 billion in 2023.
How many Starbucks stores are there worldwide?
There are over 38000 Starbucks stores in the world as of 2023.
Café Coffee Day, popularly known as CCD, is not only a coffeehouse for the individuals of India but has become India’s favorite place for coffee and conversations today. Founded in 1996, the Bengaluru-based Indian multinational chain of coffeehouses has emerged to be one of the favorite haunts of the millennial and the Gen Z group within a short time.
CCD had served over 1.6 billion cups of coffee annually in six countries when it discovered that it was on the brink of bankruptcy. This is why it decided to shut down its operations outside India. It was present in a list of countries — Austria, Czech Republic, Malaysia, Nepal, and Egypt before this decision.
The first Café Coffee Day outlet was set up by CCD owner V. G. Siddhartha on July 11, 1996, in Bangalore, Karnataka, with the slogan’ A big deal can occur over some espresso’.
Café Coffee Day quickly extended through the urban areas in India, including new stores with more than 2000 bistros opened all over the nation by 2016. In a range of 20 years, CCD has blended its approach to progress, with the fame and cherish it has reaped.
The history of Café Coffee Day lies in its origins as a pioneering Indian coffee chain, founded in 1996 by V.G. Siddhartha, with the vision of bringing coffee culture to India and making it a popular hangout spot for the youth. Café Coffee Day Global Limited Company is a Chikkamagaluru-based business that produces coffee on its very own land of 20,000 acres. It is the biggest maker of arabica beans in Asia, sent out to different nations including the U.S., Europe, and Japan.
A Café Coffee Day outlet in Bengaluru
V. G. Siddhartha began the Café chain in 1996 when he started Coffee Day Global, which is the parent of the Coffee Day chain. The first outlet was opened on July 11, 1996, in Bangalore, Karnataka.
Soon after the foundation of CCD Coffee, the biggest challenge faced by Café Coffee was to make a revolutionary change in Indian culture where the majority of the population preferred drinking tea rather than coffee.
CCD Founder – V. G. Siddhartha along with his wife Malavika
CCD quickly extended to different urban cities in India, with more than 1000 bistros opened in the country by 2011. In 2010, it was declared that a consortium driven by Kohlberg Kravis Roberts would invest INR 10 billion in Coffee Day resorts which are owned by CCD. It was during the same time the brand changed its logo to the present logo that is used by the company to feature the chain as a spot or place to talk.
Cafe Coffee Day Logo
This was finished with real changes in the format of the stores, including the expansion of parlors a complete redo of the interiors, and, above all, its slogan “A lot can happen over coffee.” The organization is vertically incorporated to cut expenses: from owning the plantations to becoming the coffee, preparing the espresso machines, and making the furniture for the outlets.
CCD Case Study
How CCD Started the Journey?
CCD started its journey with the incorporation of its parent Coffee Day Global Limited Company in 1996 by V.G. Siddhartha. It was on July 11, 1996, when the first CCD outlet was set up at Brigade Road, Bangalore, Karnataka.
Siddhartha did his Master’s in Economics from Mangalore University and had an enthusiasm for innovation. VG Siddhartha dived deep into the stock market in his early career. He had worked for JM Financial and Investment Consultancy in Mumbai when he was just 24 years of age. Veerappa Gangaiah Siddhartha Hegde acted there as a Management Trainee/Intern in portfolio Management and Securities Trading on the Indian Stock Market under Vice-Chairman Mahendra Kampani.
However, after completing his 2 years of work anniversary with JM Financial Limited, VG Siddhartha had to return to Bangalore when he received the capital from his father to start a business of his choice.
VG Siddhartha started by buying a stock market card for INR 30,000, and a company called Sivan Securities, which was later renamed Way2wealth Securities Ltd. The venture capital division of the company came to be known as Global Technology Ventures (GTV).
Siddhartha emerged as a full-time proprietary investor in the stock market in 1985. Furthermore, he also became the owner of 10,000 acres of coffee farms by then.
“When coffee trading was liberalised in the ’90s, I doubled the money I had invested in the plantations within a year,” said VG Siddhartha.
It was then that the Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), a company that focused on coffee exports, was born in 1993.
Siddhartha’s plantations began to produce 3,000 tonnes of coffee, and with the help of ABCTCL, he traded over 20,000 tonnes. This way, in around two years, the company became the second-largest exporter from India.
As soon as its first coffee outlet or CCD store was set up on Bangalore’s crowded Brigade Road, it began to start a new journey.
The company soon expanded far and wide with its revolutionary concept, which allowed the millennials to sit and talk while sipping on their favorite beverage.
CCD is India’s largest coffee chain to date and is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises.
CCD First Outlet opened in Bangalore in 1996
He was inspired by the proprietors of the “driving espresso brand in Germany, — Tchibo”. This motivation gave Siddhartha a dream of an alternate world generally speaking and opened his eyes. It likewise gave a heavenly idea. With that thought, cup by cup he made his billion-dollar domain.
The company owned around 1,700 cafes, 48,000+ vending machines, 532 kiosks, and more than 403 ground coffee-selling outlets. The annual turnover of Coffee Day Enterprises was worth INR 4,264 crore, as per a Moneycontrol report of 2019.
Café Coffee Day had accumulated a total debt of around INR 6,550 crore, as was reported in March 2019.
The coffee price hit a 13-year low in the international market, which also dragged the Indian prices when the Indian coffee exports were down by 10 %. To combat this debt, Siddhartha had to sell his entire 20.32% stake in the Bengaluru-headquartered IT services firm, Mindtree to the engineering major, L&T for around INR 3,200 crore. He was the largest shareholder in Mindtree and exited the company after remaining invested for close to two decades.
The mounting debts were just unsettling not only for the business but for Siddhartha as well. Even with the sale of his stakes, going ahead turned out to be tough because the working capital requirements could not be met.
All these led Siddhartha to strike a deal with the global beverage maker Coca-Cola for an equity sale in the flagship Café Coffee Day (CCD) at an enterprise valuation of around INR 10,000 crore. Besides, Blackstone was also reportedly in talks with the company to buy a majority stake in the real estate venture of the founder, known as Tanglin Developments, for around INR 2,800 crore.
VG Siddhartha slowly started to come under the radar of the Income Tax Department, which first raided the premises of the Café Coffee Day owner in September 2017. They discovered around INR 650 crore of concealed income from the documents seized when they concluded the search and seizure operations.
The income tax raids were also eventually conducted at 20+ locations, including Mumbai, Bengaluru, Chennai, and Chikmagalur, by the senior officers of the Income Tax Department of Karnataka and Goa regions.
The Missing Founder of CCD and his Death
Siddhartha had been found missing since July 29, 2019, and this news of the missing MD was further confirmed by Coffee Day Enterprises.
Siddhartha had been found missing since July 29, 2019, and this news of the missing MD was further confirmed by Coffee Day Enterprises. Siddhartha had allegedly told his driver that he would be going for a walk near the bridge and asked him to wait at a distance on the 29th of July 2019. The driver lodged a missing complaint with the police after waiting for two long hours for his return. A fisher claimed that he saw someone jumping off the bridge, but it was only allegedly true until two days later when his body was found in the Nethravathi River backwaters.
The Café Coffee Day boss VG Siddhartha had supposedly left a letter where he expressed his unhappiness over not creating “the right profitable business”. Besides, he also alleged that a senior income tax officer allegedly harassed him.
“I have failed to create the right profitable business model despite my best efforts. I would like to say I gave it my all. I am very sorry to let down all the people that put their trust in me. I fought for a long time, but today I gave up as I could not take any more pressure.”
“I could not take any more pressure from one of the private equity partners forcing me to buy back shares, a transaction I had partially completed six months ago by borrowing a large sum of money from a friend. Tremendous pressure from other lenders led to me succumbing to the situation. There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking the position of our Coffee Day shares… This was very unfair and has led to a serious liquidity crunch,” goes the last letter from the CCD chief.
In September 2019, the organization named reviewing firm Ernst and Young to examine their books of records. They also asked the inspector to investigate the conditions of the last letter composed by Siddhartha and the focus he put on it.
Without leaving much room for speculation regarding the company leadership, Malavika Hegde, the widow of Siddhartha, addressed all realities and showed radical honesty by taking charge of the sinking ship in December 2020. She is the daughter of the former Chief Minister of Kerala SM Krishna. She has a degree in engineering and has been associated with the coffee business since 2008. She was appointed as a non-executive director of the company in 2013.
Malvika took office at the most unprecedented time, burdened with the multiple responsibilities to take the company out of the debt mountain of whooping INR 7000 crore, make the company profitable, and retain the trust of her employees.
CCD has adopted a very effective business strategy, which is compartmentalized below.
Innovation and Expansion
The humongous amount of sustenance and refreshments made CCD possible. Besides, the ambitious moves of CCD and its rapid expansion into level 2 urban communities of India and other remote areas were some triumphant techniques that encouraged CCD to be on the fronts of its rivals like Starbucks and Barista.
Its different auxiliaries like Coffee Day Fresh ‘n’ Ground, Coffee Day Square, Coffee Day Resorts, Coffee Day Beverages, and so forth have helped the organization to satisfy the client’s needs and stay ahead simultaneously.
Also, CCD’s regular involvement on Twitter, Facebook, and Instagram further engaged its customers. Café Coffee Day also brought in the character, Beano, to connect with the purchasers in 2016.
Strategy of Distribution
In 2020, there were 1,752 CCD outlets crosswise over 29 states of India. Café Coffee Day has likewise extended outside India with its outlets in Austria (Vienna), the Czech Republic, Dubai, Malaysia, and Cairo, Egypt. The Indian sorted-out division has the potential for around 5,000 bistros, yet less than 1,000 bistros exist, as of now.
S.No.
Elements
Illustration
1
People
17000+ employees, 20 in R&D, 70 in HR
2
Technology
The latest technology in a coffee plantation, Curing, roasting, and Probat roasting machines
3
Channels
Cafe, Lounge, Square
4
Value Proposition
Identifying target customers, defining the benefits, and providing the best value to satisfy
5
Profit Formula
Financial sustainability of the firm in long run basis
6
CSR
Provide free education and training to villagers and offer them jobs
Difference In Concoction
These are some prominent moves that made CCD stand out from its peers and rivals:
Past nourishment, the emphasis is on getting the experience right. CCD propelled its application to follow shopper conduct, customize offers and advancements, empower cashless exchanges through implicit wallets, and fabricate unwaveringly.
In 2016, CCD partnered with Freecharge to empower cashless exchanges at the outlets, where the clients could utilize their portable numbers to pay and finish the exchange in under 10 seconds. Be that as it may, Harminder Sahni, author, and MD Wazir Advisors, consider these as strategic contributions.
To further lift involvement, CCD started Café Concerts in 2016 with attention to live gigs in Mumbai, Delhi, Pune, and Bengaluru. Cafe concerts were unique at the time when it was introduced by CCD and played a big hand in hooking the young crowd.
The chief components influencing rivalry in the espresso retail area include evaluating, item/administration quality, brand recognition, taste, and item assortment.
To separate itself from rivalry, CCD has manufactured its retail procedure on 3As:
Affordability: CCD ensures that it attracts every kind of customer — be it a school/college student or an office goer, at an affordable price.
Accessibility: The goal of the brand was to ensure that the cafes should be within arm’s reach. CCD believes in serving people across the country by providing the same experience everywhere.
Acceptability: CCD ensures that consumers should buy and drink their product without compromising on taste. The strategy was to bring people together to relax and unwind. The company further encouraged its customers with its catchy tagline that says “Let us catch up on CCD” which every Indian must have heard at one point or another.
The Present Day CCD
Number of cafes of Cafe Coffee Day across India from financial year 2014 to 2024
At its peak in 2019, CCD operated 1,752 outlets across 243 Indian cities. However Café Coffee Day reportedly shut down around 280 outlets in the wake of FY20 and with this, the company reported a total of 1480 outlets, as per the reports dated June 30, 2020. CCD closed 19 more stores in the past 12 months, reducing its total to 450 in 141 cities.
The Bengaluru-based coffee chain recorded a 10% rise in net revenue, reaching INR 1,013 crore ($120.6 million) for the 12 months ending 31 March 2024.
Coffee Day Enterprises Ltd (CDEL) reported a total default of INR 433.91 crore on interest and principal payments to banks, financial institutions, and unlisted debt securities, including NCDs and NCRPS, for the quarter ending June 30, 2024. The total loan funds of the company amounted to INR 1,159 crore, including INR 102 crore in long-term borrowings and INR 1,057 crore in short-term borrowings, with net debt at INR 881 crore as of FY24.
The company had been trying to pare its debts with the sale of its non-core assets after the death of its founder. CCD has announced to repay its debts worth INR 1644 crore to 13 of its lenders. This had been possible with the sale of its technology business park to Blackstone Group and Salarpuria Sattva at an enterprising value of INR 2,700 crore. The company also sold its stakes to Mindtree and L & L&T previously.
The company’s net debt was worth INR 2,909.95 crore in the FY20 and as per the latest reports dated March 31, 2021, CDEL’s net debt came down to INR 1,731 crore.
It was during the same time that CDEL announced that it had appointed Justice Manjunath to “suggest and oversee actions”, who will supervise the recovery of over INR 3,535 crore, which was allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Limited (MACEL), which goes as a personal firm promoted by its late founder V G Siddhartha.
The last report said that the “Management of the Company is putting its best efforts to get back the company on track.” It further added that “the debt levels have reduced significantly from the beginning of the financial year March 2021.”
CDEL’s net operational revenue was measured on a consolidated basis in FY21, which was valued at INR 853 crores against INR 2,522 crores in FY20.
The brand currently has a presence in the coffee, logistics, and hospitality segments. The coffee business of the company, which includes its popular café chain brand Café Coffee Day (CCD), contributed around 47% of its consolidated net revenue. The other remaining parts were a result of its logistics business and logistics, which accounted for 45% and 8% of the revenues.
CCD currently operates 450 cafes, which run in 141 cities, and 265 CCD Value Express kiosks. Furthermore, it also boasts of having 52,581 vending machines as of FY24 to “dispense coffee in corporate workplaces and hotels under the brand”.
Achievements of CCD
2007 – Cafe Coffee Day won the Times Food Award under the category of “Best Coffee Bar” from the Times of India
2008 – Cafe Coffee Day won the Burrper’s Choice Award for being cast a ballot as the “Coolest Café” by the clients of burrp.com
2009 – Espresso Day Global won the honor of “Retailer of the Year” under the classification of Food & Beverages (cooking administrations) by the Asia Retail Congress
2010 – Cafe Coffee Day won the Indian Hospitality Excellence Award under the category of “India’s Most Popular Coffee Joint: 2010”
2012 – Cafe Coffee Day was positioned as the 26th Most Trusted Service Brand in India and as the second Most Exciting Brand under the classification of “Nourishment Services” in India under a study done by Brand Equity (EconomicTimes)
2012 – Cafe Coffee Day won the Best Coffee Bar Award from mouthshut.com
2013 – Cafe Coffee Day was positioned as the 26th Most Trusted Service Brand in India under a study done by Brand Equity (Economic Times)
2013 – Cafe Coffee Day was granted “The NCPEDP – Shell Helen Keller Award 2013” by the National Center for Promotion of Employment for Disabled People for being a good example organization in creating work open doors for individuals with inabilities
2013 -Espresso Day Global was granted as the Best Retailer under the class of “Best Customer Service in Café Restaurant” by the Star Retailer Awards
2013 – CafeCoffee Day won the Brand Excellence Award in retail part from ABP news
2012-2013 – Espresso Day Global was granted a bronze prize by the Coffee Board of India for being the third-best exporter of green espresso
2014 – Espresso Day Global was granted “Retailer of the Year” (Organization Food and Grocery) for retail greatness by ABP News
2014 – Espresso Day Global was granted ‘Retailer of the Year for brand greatness by ABP News
2014 – Cafe Coffee Day was positioned as the 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India, and as second Most Exciting Brand under the class of “Nourishment Services” in India, under an overview done by Brand Equity (Economic Times)
2014 – Mr. V G Siddhartha was conferred upon the ‘ET Retail Hall of Fame for his commitment to the development of the retail part
Conclusion
Café Coffee Day has faced tough times but is still loved for shaping India’s coffee culture. The company is working hard to reduce its debt and grow again. With its strong brand, loyal customers, and new ideas, CCD can remain a favorite place for coffee lovers.
Yes, CCD has been in debt for a long time. Coffee Day Enterprises said it has Rs 518 crore of debt including both short and long term and that it has defaulted on about Rs 263 crore of payments.
Is Cafe Coffee Day shutting down?
Almost 500 cafe outlets of the coffee chain Cafe Coffee Day have been closed down since April 2019, as the company looks to arrest the falling profitability of its coffee business and readies for divestment of the business. CCD had to close these outlets as it readies for divestment.
What happened with Cafe Coffee Day?
Coffee Day Enterprises Limited reported that at least Rs 2,000 crores ($270 million) was missing from its accounts, soon after the death of founder V.G. Siddhartha which led to an investigation initiated by their board.
What is the CCD tagline?
“A lot can happen over coffee”, is the tagline of Cafe Coffee Day.
Who are the competitors of Cafe Coffee Day?
A few cafe coffee day competitors are – Starbucks, Costa Coffee, Barista, and Gloria’s.
Can I sit and work in CCD?
It’s ok to sit and work until you’re asked to leave.
Why is CCD in loss?
CCD is at a loss because the founder V.G. Siddhartha died of an apparent suicide in 2019. His sudden death came as a surprise and caused a huge loss to the company. Also, the brand has suffered another hit due to the Covid-19 pandemic and the lockdown.
Caffeine is a necessity for many people and statistics show that around 30-40% of the world’s population consumes coffee every day. If you happen to fall into that category, prefer coffee to chai and can’t get your morning started without a cup of coffee. Here is a warning that your coffee-drinking habits are about to make your budget more expensive. Why? Let’s start with the basics!
The process of production of your coffee takes up to five years. That includes growing it in the nursery, picking up the cherries, removal of raw beans, and drying them. Later being sold to the processors and shipping it. Coffee is grown by millions, including by farmers in countries in Latin America, Africa, and Asia where the climate is suitable for it to grow.
Mainly there are 2 types of coffee: Arabica and Robusta. Arabica has 1/2 as much caffeine as Robusta. 70% of the world’s coffee is Arabica, which has a sweeter and softer taste. Grows within a quite narrow temperature range and is particularly sensitive.
Robusta, as the name implies, is robust, strong, and contains twice as much caffeine as Arabica; it is consumed by approximately 30% of the world’s population, which is stronger and harsher in taste and counts as your instant coffee.
Apart from this, both species’ roots require a specific set of environmental conditions to grow, needing a temperature between 18-21 degrees Celsius. Anything more or less than that can stunt the growth of the plant or make it freeze before it reaches a certain level of elevation. It also requires proper amounts of rain and temperatures during the day and night as well.
The factors that come into play in the surging prices of coffee are listed below:
Brazil and Coffee, and the Supply Chain Logistics
Global Coffee Consumption from 2012/13 to 2020/21
Although coffee brands such as Nestle are seeing high sales. While Brazil is the place to get your coffee, the country is currently facing a shortage of containers and vesselsfor the supply of coffee. Everything is taking a long time to get from one place to another as compared to before. And this problem is not just limited to Brazil. The world is lacking sufficient containers. Most of the coffee was stuck in transit due to the pandemic. The other delivery challenges that Brazil’s supply chain is facing are congestion at ports and scarcity of truck drivers to move the coffee domestically.
Shipments from Asian countries have been on a decline with dwindling fastener inventories. Flying in coffee is one of the other factors driving up shipping prices. The belief is that coffee has to be roasted freshly for its flavour. This leads to coffee being roasted in the regions where it’s being exported and not where it is produced, increasing the carbon footprint that follows another point.
Land Problems and Climate Change
The coffee industry is vulnerable to climate change. In recent years, rapid climate change has made it more difficult to cultivate coffee. It was estimated by Time magazine in 2018 that by 2050 the land used to produce high-quality coffee could become unproductive. Other claims include that Brazil could lose 79% of its most suitable coffee-growing land. Under a moderate climate change scenario, the world could lose half of its prime coffee-growing land.
Climate and environmental changes are happening and there’s no denying the fact. Brazil has been through some rough weather conditions, which is one of the major factors that influence both the price and the production of coffee. The world’s leader in coffee production has seen both drought and frost in the last decade and again. The drought resulted in the loss of 30% of the world’s Arabica coffee, as estimated by the international coffee organization. Brazil is not the only country that is affected by weather-related events such as earthquakes, hurricanes, and snowstorms. The world is currently facing the global challenge of adapting coffee to changing climates all around the world.
The weather is becoming more extreme around the world due to climate change. When crops were damaged in 2020 due to other disasters the supply of coffee was diminished. The entire supply chain has been adversely affected by an imbalance between the lower supply of coffee and the expected increase in demand. The rise in temperature adversely affects the viability of coffee, especially Arabica coffee.
The toll also includes 60% of the wild species of coffee being at risk of becoming extinct because of climate change. Rapid climate change requires farmers to push the elevation levels at which coffee grows in the mountains. Resulting in low-quality beans. Higher temperatures and warm climates also mean an open invitation to pests and fungi.
The Pandemic and the Rising Labour Cost
After the pandemic, the globe has seen a rise in inflation. Students who were studying abroad had to leave their dorms and universities with uncertainty. Most of these students and people who were living abroad moved back to their homes. This results in a gap left in the market, which has been expanding ever since.
This is because most of them did not return to foreign lands to complete their degrees or changed their jobs completely. This brings us to hospitality businesses offering attractive prices for the available staff. The prices of everything on your menu would therefore increase, along with their wages.
Another factor contributing to inflation is a shortage of labour, as there is a need for more workers in the sector with the increasing number of jobs in the recovery economy. Besides getting coffee right from the place where it was produced, getting it in your hands involves labour costs in all different segments, right from picking them up from the farm to getting them served to you in your café by your barista.
Everything and everyone are connected in the world, and yes, that also means theongoing war in Ukraine as well as the constant lockdowns in China. Which is affecting the global supply chain. As a result of freight costs, global food prices are rising, making the price of your coffee jump through the roof. As a result, we are left with the next situation, which is the fluctuation of supply and demand.
Coffee leaf rust is making headlines. You might have read about it and wondered. Here is what coffee leaf rust looks like. This coffee rust fungal disease is taking over, causing a possible coffee leaf rust epidemic, and has been one of the socio-economic factors influencing the prices of coffee. Coffee rust usually appears as a yellow, dust-like powder that settles on the leaves, making the leaves dry and fall off the branches. The increase in moisture, as well as temperatures, can lead the fungus to multiply and grow. Leaf rust can destroy most of the production. Coffee leaf rust makes it hard to predict the lifecycle of the coffee plant. New, aggressive fungus variants of coffee rust were first discovered last year in May, increasing fear among the public.
Not only this but the book Coffee Is Not Forever: A Global History of the Coffee Leaf Rust written by Stuart McCook already predicted that coffee could get more expensive. The countries that continue to fight the coffee leaf rust include Columbia, Mexico, Brazil, and more in 2022.
Supply, Demand, and the Trend Factor
As mentioned before, every industry has its own changes in demand and supply factors. In the case of the coffee segment, it is not balanced. The demand for coffee is greater than the supply, considering everything mentioned above.
Remember when social media went crazy and obsessed with everyone whipping the Dalgona coffee trend back in 2020? The world is a kaleidoscope of many colours. Just as there is much diversity, there are different cultures. This gives rise to the various ways in which people enjoy their coffee.
The trends today are shifting towards more people wanting to try high-end coffee roasters, different flavours, newer brewing methods, artisan coffee and special drinks, sustainable coffee and so much more. The prices have also shot up at the rosters and the supermarkets. The younger generation has a say in what’s popular, making the trend. Which disrupts the demand and supply chain, leaving you with an overpriced cup of coffee even in your cafés. Apart from that, there’s a growing trend to have their green beans flown in, rather than brought in by the boats with the belief that coffee tastes the best when roasted freshly, at the place of its consumption.
Conclusion
Given the scenario, coffee prices are estimated to rise further. The rapid climate change, increasing demand, and trends that are becoming more obvious have directly affected the way coffee is traded, having a negative impact on the global supply chain. Further rapid climate change, land problems, and coffee leaf rust have negatively impacted the production of coffee, making it hard to grow, which also brings us to the point that coffee could be considered more of a luxury than a commodity in the future.
FAQs
What are the two main types of coffee?
Arabica and Robusta are the two main types of coffee.
What are the factors that are affecting the prices of coffee?
The supply chain logistics in Brazil, land problems, rapid climate change, fluctuating demand and supply, changing trends, shortage of labour, coffee leaf rust disease, etc. are some of the factors affecting the prices of coffee.
Is coffee going to get more expensive in the future?
Yes, keeping the current scenario in view coffee prices are likely to surge in the future.
Hollywood has given the world some of the greatest celebrity who has turned out to be inspirational and influential. Many popular brands hire these celebrities because they are aware of the power those celebrities hold. To market their products, they grab this opportunity with both hands.
One of the most popular superstars of Hollywood, Hugh Jackman has been in the industry for almost three decades and it wouldn’t be wrong to say that he is an actor who has been able to capture the world with his amazing acting skills.
The Oscar-nominated, Australian actor started his career in Hollywood with the film Erskineville Kings in 1999 but gained momentum after playing the role of the superhero Wolverine in X-Men. His role of wolverine got him the Guinness World Record of “longest career as a live-action Marvel character”. Apart from that his films like, Van Helsing, The Front Runner, Les Misérables, The Greatest Showman has helped in gaining him worldwide recognition and fame.
He has won some of the greatest awards in the world like Golden Globe, Grammy, Emmy and Tony awards for contributing to the entertainment industry. Apart from being a part of some of the biggest blockbusters, the 53-year has also been associated with some of the world-famous brands. In this article, we will talk about the brands that are endorsed by Hugh Jackman. So, let’s get right into the business.
“People relate to people, and if your brand feels like people, they’ll relate to you, too.” – Laura Busche
Keurig is an American brand that sells single cup coffee brewing systems. It was founded by John Sylvan, Peter Dragone. Hugh Jackman himself is the co-founder of Laughing Man Coffee brand, in 2015 Keurig collaborated with Laughing Man Coffee and also took Jackman as their brand ambassador and made him the face of their future campaign.
Qantas
One of the world’s oldest airlines is Qantas of Australia. It was founded in 1920 by Fergus McMaster, Hudson Fysh, and Paul McGinness. It is Australia’s largest domestic and international airline and is famous for serving customers with premium and class service. Their service is quite popular in the aviation industry.
Qantas partnered up with Hugh Jackman in the year 2015, to promote the country on the global front with the help of the Australian actor. Qantas believed that Hugh Jackman is the perfect person to be the face of the airlines.
R.M. Williams is a popular Australian brand known for its footwear and apparel. It was founded in the year 1920 by Reginald Murray Williams. The brand is mainly famous for its riding boots as they are handcrafted and are made of a single piece of leather.
The brand roped in Hugh Jackman and made him the global brand ambassador of their brand in the year 2019 before that in 2015 Hugh Jackman also invested in the company.
Hugh Jackman and the Australian fashion brand worked together for different ad campaigns, the most popular one was the ‘Undeniable Character’ campaign that was launched in the April of 2019.
Montblanc
Founded in the year 1906, Montblanc is one of the most popular brands that deal with fashion accessories like watches, eyewear, jewellery, perfume and writing instruments. It is a German brand, whose headquarters is situated in Hamburg, Germany.
In 2016, the German luxury brand roped in Hugh Jackman and made him the global ambassador of the brand. The products created by Montblanc is what made him attracted to the brand and he agreed to become the face of the global brand.
Micromax
Micromax is an Indian multinational brand that deals with consumer electronics and home appliances. The brand is mainly famous for developing high-end smartphones, founded in the year 2000 by Rahul Sharma, it was the biggest company in 2010 that made low-cost mobile phones in India. The headquarters is situated in Gurgaon, India.
Micromax made Hugh Jackman the face of the brand in 2013, for the Canvas range phones. Hugh Jackman was a part of several Micromax phone campaigns.
Hugh Jackman’s popularity knows no bounds, from some of the greatest roles in the Hollywood industry to being a well-respected actor, his journey is commendable. Brands want to associate with the X-Men actor as they are aware of his fan-following. His collab with some big brands has made the actor more a pretty popular face in the industry.
FAQs
What is the net worth of Hugh Jackman?
The net worth is Hugh Jackman is $180 million.
How old is Hugh Jackman?
Hugh Jackman was born in 1968 and is currently 53 years old.
Which is the most popular role of Hugh Jackman?
Hugh Jackman is famous for his role of superhero Logan/Wolverine in X-Men.
Starbucks is a chain of coffeehouses that has its headquarters in Seattle, Washington. Starbucks is the world’s largest coffee brand and the most popular go-to destination for coffee lovers.
The company has 32,660 stores in 83 countries, including 16,637 company-operated stores and 16,023 authorized stores, and has a net worth of $10 billion.
The espresso mecca started during the 1970s with Gordon Bowker, an author; Zev Siegl, and a few experienced instructors; and Jerry Baldwin, an English educator. CEO Howard Schulz took over the 1980s, and he was the person who introduced beverages to the coffee chain. Previously, they just sold espresso beans.
Starbucks’ grande espresso coffee has 330 milligrams of caffeine, has about as much caffeine as three cans of Red Bull. By examination, a standard 16-ounce cup of blended espresso contains around 190 milligrams.
Starbucks has dangerously more caffeine than the daily safe portion of caffeine in the grande espresso: 400 milligrams.
Starbucks owned a Record Label
Starbucks is widely known for the music they usually have playing at each store. In 1999, Starbucks purchased the record name “Hear Music” and marked specialists like Paul McCartney, Ray Charles, Alanis Morissette, Carly Simon, and Sonic Youth. The record label collapsed in 2008.
There is a Secret Drink Size not shown on the Menu
Starbucks Drink Size
Starbucks has three standard drink sizes: tall, grande, and venti. However, there are more than 2 sizes that are not advertised on the menu. First is an 8-ounce “short” cup, which is the cup wherein a child’s hot cocoa is served.
However, you can get any drink in it. Then, there’s the Trenta, which holds 31 ounces and is just for frosted beverages.
Starbucks has a City Mugs Collection
Starbucks City Mugs Collection
Starbucks offers a hearty mug as a souvenir to remember your trip to the city! This chain has a line of “You are here” mugs and they can be found in all main cities around the world. These mugs can be found in gift shops, tourist spots, and rest stops.
Starbucks has secret shops
Starbucks Roy street Coffee & Tea
Starbucks has a couple of secret shops, says The Seattle Times. One is known as Roy Street Coffee and Tea in Seattle and they sell things that aren’t on usual Starbucks menus.
This includes things like wine, lager, and connoisseur cheeses that can’t be mass delivered. Starbucks uses these secret shops to try out new items too.
Starbucks drink has more than 87,000 combinations possible
Starbucks surely has a big menu, but 87,000 options?
Starbucks deputy Lisa Passe clarified how they prepared it to a Wall Street Journal blogger: “If you take the whole of our center drinks, multiply them by the modifiers and the customization choices, you get more than 87,000 mixes.”
In this way, clients can make their most loved beverage that suits their lifestyle.
The 10-minute rule
Starbucks has a 10-minute rule guideline that they have to follow. The rule requires each store to open its doors 10 minutes before the posted time and close 10 minutes after the end time.
This is to ensure great customer satisfaction, as many times there is a customer eagerly waiting for Starbucks to open.
A Starbucks lover goes to Starbucks six times a month
Insights say that a normal Starbucks customer visits the store around six times each month. The most loyal customers of Starbucks are known to visit 18 times each month.
Perfumes are banned in Starbucks
Indeed, you read that right. By the Starbucks clothing standard, “Scent, cologne, shaving cream or exceptionally fragrant deodorants may not be worn because the smell influences the taste and fragrance of our espresso.”
The chain likewise restricted smoking during the 1980’s.
Black aprons are the uniform for coffee connoisseurs
Starbucks Black Aprons
The dark aprons are kept for ” coffee experts.” Starbucks baristas need to become certified coffee experts to wear dark aprons. The coffee connoisseurs have to learn all about coffee making to work at Starbucks.
The drink sizes don’t mean anything
Rather than using the usual terms like little, medium and huge, Starbucks uses tall, grande, and venti for their beverage sizes. These names were simply made in a conference room.
Chief Howard Shultz needed to bring Italian bistro-style to Starbucks in 1987 and to make “a culture of warmth and having, where everybody is gladly received.”
Starbucks has Round tables for a reason
Starbucks has Round Tables
Round and rectangular tables are widely found in Starbucks. Round tables provide a homely and comfortable feel to the customers even when they are by themselves.
Starbucks has been sued for an underfilled lattes and mochas
U.S. lawsuit blamed the espresso chain for cheating clients by underfilling lattes and mochas to decrease milk costs. The coffee giant was sued for neglecting to fill its coffee cups right to the brim. California residents claim that Starbucks serves lattes that are 25% smaller than the menu claims. They were likewise sued for using an excess of ice.
FAQ
Who is the founder of Starbucks?
Gordon Bowker, Jerry Baldwin, Zev Siegl are the founders of Starbucks.
Who was the first CEO of Starbucks?
Howard Schultz was the first CEO of Starbucks.
When and where was Starbucks started?
Starbucks was started on 31 March 1971 in Seattle, Washington, United States.
The article is contributed by S Shriram, Former VP Marketing and Sales, Levista Coffee.
I stayed home for 150 days straight from March 23, 2020, onwards, when the first one-day lockdown began followed by multiple lockdowns. It was the first time perhaps I stayed at home, ever since I joined LKG four decades back. During the five months, I was on WFH mode, a first for me in my retail career spanning 23 years before when I first scooped Ice-Cream at India’s second and Chennai’s first Baskin Robbins outlet in 1997.
All these years, I had a strong belief that Sales and Marketing professionals can simply not work from home, especially for this long. I was made to revise my thought process all these months even as we sold one more cup of coffee (or more) every hour, every day from April 2020 onwards until now. While thousands of people worldwide have been displaced or retrenched from their jobs, many have chosen alternate professions and have fared well, perhaps better than their previous jobs or businesses.
Our friendly neighbourhood grocer is one such example. Many others too, but what’s striking is the resilience with which these entrepreneurs have risen to the occasion and have not only served customers but also made money, well.
During Unlock 1.0, the Union Government laid down restrictions on shop opening times and the Kirana Shopkeepers took the opportunity on their head, something that established Modern Trade Retailers, as well as the cash-rich Online Retailers, couldn’t live up to. The Kirana opened her / his shop by 6 am every day rain or shine, served customers with glee until 11 am (and later up to 2 pm, followed by 6 pm and eventually till 8 pm) and in the meanwhile, managed their staff and family, store inventory, daily cash flows, spread positive word of mouth in the local community and experimented with the digital media – from sending WhatsApp Posters to taking orders through the same medium as well as instant home-delivery, especially for the comfort of the Elderly, sick patients and the physically challenged.
Coffee and Tea Vendors, on the other hand, saw this as a great opportunity. Those who ran petty shops ventured early in the day and served those who were working on the roads and streets while the more smart ones offered to sell add-ons to their customers as well as cater to those who were in the line of duty such as Conservancy workers, the Police Force and others.
All this time, while a section of people was complaining of job losses, another set of people started their Entrepreneurial journeys and the most fancied product category this time was health and hygiene. From liquid soaps to sanitisers, floor cleaners to disinfectants, there was a sudden rush in this category, especially and there was no stopping for their efforts as this market is about to explode sooner than later.
While FMCG giants like ITC, HUL among others launched revolutionary products in this segment, what took me by surprise was that the secondary, unorganized and unbranded market grew and expanded beyond seams.
Those who have never tried the concept of washing hands before a meal were washing hands (and all exposed parts to sun and air) multiple times every day. Similarly, the “Mask Movement” has gained unparalleled popularity and opportunity. I have seen so many roadside vendors who were earlier selling various products now focusing on this segment.
Coming to Coffee, we at Levista have appointed dozens of new Distributors during H1 FY 20-21 and all this is because we have seen a huge surge of coffee consumption at home. With a high prevalence of WFH or rather SAH – “Stay At Home”, it is but natural to witness consumers drink more hot beverages. And in the process, we have seen many of our partners double or treble business during this period. I reckon that we have just begun. The making of “Corona Millionaires” has only started now and we shall see results over the years.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by The Good Life Company.
Are you feeling tired or depressed? Are you having a bad day at work? Then, you should know that a simple steaming cup of tea or coffee can make you feel much better. Studies have shown that even holding a hot cup of tea or coffee can have positive effects on human mood and behavior. Tea and coffee top the list of most popular drinks worldwide. Also, there are wide varieties of tea and coffee available in different parts of the globe. The Good Life Company, a Mumbai-based startup is serving you the best tea and coffee from around the globe.
StartupTalky interviewed ‘The Good Life Company‘ founder Bhuman Dani& Shariq Ashraf to understand more about his venture.
According to Euromonitor data, the Speciality Tea Market has currently valued at INR 5,100 crore and growing at the rate of 12% p.a. whereas the CTC tea market has valued at INR 13,000 crore, growing at the rate of 3% p.a. in India. Globally, the tea industry is currently at $44 billion, growing at the rate of 5% per annum. As far as coffee is concerned, the instant coffee market in India has currently valued at INR 2,800 crore, growing at 5.5% per annum while the fresh coffee market at INR 1,500 crore growing at 6% per annum. The global coffee market currently stands at $85 billion growing at 4% per annum.
In India, as of 2019 orthodox tea accounts for almost INR 10,000 crore of sales growing at a rate of 10% annually whereas other teas account for INR 13,000 crore of sales at a growth rate of 2.9%. Combined, the tea market in India is expected to be at INR 22,000 crore by 2022.
Founded in 2016, TGL Co. is the fastest growing hot beverages startup in India that sources the finest quality teas and coffees from around the world with a deep focus on fresh, clean and natural ingredients. The Mumbai-based startup envisions itself becoming the largest hot beverages brand in India.
TGL sources teas from the best plantation around the world/ from China, Japan, Sri Lanka, Taiwan, and India, then blends them with dehydrated fruits, flowers, and spices to give them an aromatic flavor.
All About The Good Life Company
The Good Life Company – Team
TGL Co. (The Good Life Company) was founded by Bhuman Dani and Shariq Ashraf in 2016.
Bhuman Dani is an ex-management consultant of BCG, London. He did his MBA from INSEAD and BE in Mechanical Engineering from BITS Pilani, Dubai whereas Shariq Ashraf worked as a management consultant in BCG, Melbourne. He did his MBA from Oxford University.
TGL | Co-Founders | Bhuman Dani & Shariq Ashraf
Bhuman & Shariq met at an alumni event of The Boston Consulting Group (BCG) in Mumbai. Their shared love for tea and coffee coupled with a passion to bring inspired blends and beans to millions in the country, brought them together to change the norm for hot beverages in India.
Currently, TGL Co. has a diverse team of 85+ members across Mumbai, Delhi, Bangalore, Pune, and Kolkata.
“The way we met is a perfect example of serendipity. As a start-up, we believe in wearing multiple hats, where roles are not clearly defined, and people are required to multi-task and handle various responsibilities. We have been actively involved wherever required, starting from packing teas to strategizing future business plans to raising funds,” says Bhuman.
When TGL’s founder Bhuman Dani walked into the East India Company store in London one day, little did he know that it would change his life. With no background in the world of specialty teas and coffees, this experience opened his mind to brews, blends, blades, and beans. On researching more about the Indian specialty tea market further, he realized that there was no player he could clearly relate to when it came to premium teas.
But this appetizer only fueled his thirst for more knowledge in this space. So, he began his apprenticeship with Jane Pettigrew, one of the most renowned master blenders of tea in the world, and learned about teas, origins, and influence of botanicals in creating the perfect blend. His interactions with Sanjiv Mehta (Director, East India Company) inspired him to pursue his passion and create an aspirational brand of premium teas and coffees in the very commoditized Indian consumer industry.
At the same time, in another corner of the world, Shariq Ashraf, an MBA graduate from Oxford University and a self-professed tea aficionado was inspired by another tea company. He got his Eureka moment while traveling to Antarctica via Argentina where he met Ines Berton, the owner of Tealosophy South America’s biggest specialty tea company. He got inspired by his enviable tea knowledge that helps him to know about teas, blends, and the business model.
This led him to quit the Boston Consulting Group and move back to India, following his passion to introduce a spectacular range of tea and coffee.
The Good Life Company – Name and Logo
TGL Co. lets one enjoy the goodness of life through its exquisite range of tea and coffee and believes that the world’s finest tea and coffee should be an everyday luxury that celebrates sophistication, tranquility and good health.
TGL Logo
They’re devoted to bringing an articulate revival to the known hot beverage experience by sourcing the best teas & coffees in the world and masterfully blending them with innovative flavors and botanicals. With every brew and blend, it is reviving the concept of tea and taking it to places where it has never been before.
TGL’s logo symbolizes the Ancient Tea Horse route which first enabled teas to travel beyond China. They want to take it much further into a new era of unwavering excellence. Towards the rapidly increasing tribe of tea aficionados. To re-imagine it, no longer as a legacy drink, instead as one that entices, excites and rejuvenates.
The Good Life Company – USP
TGL Co. brings to you the best of tea and coffee from around the world. Although the company was incorporated in April 2016, it had started selling in October 2016.
The Good Life Tea Company has various types of tea like white tea, green tea, oolong tea, black tea, yellow tea, and CTC tea. It sources tea from countries like China, Japan, Taiwan and Srilanka besides India. One can choose from a variety of ingredients, flavors and aromas.
It also has a wide variety of coffee in India and the different parts of the world.
The USP of TGL’s tea that sets them apart from the competitors are:
Sourcing of Tea Leaves: Most players source their leaves from the Indian subcontinent, i.e. India, Sri Lanka, Nepal and Bhutan. But TGL believes in sourcing the best tea leaves. A white tea grows best in the Fujian province of China. The humidity, temperature, altitude, alkalinity in the soil is optimal for these leaves to grow in these regions. So TGL, instead of just limiting itself to the Indian subcontinent, also goes to China, Taiwan, Japan, Sri Lanka, etc., and source the finest leaves from these countries.
Sourcing of Ingredients: Most players source their ingredients locally that’s why the range is limited and quality is sub-optimal. TGL Co. after sourcing the leaves from around the world, ship them to Europe to its contract manufactured blending facility wherein they mix the teas with dehydrated fruits, flowers and natural flavors in the presence of European botanists and culinary experts – botanists to ensure blends are amazingly healthy and culinary experts to ensure the optimal taste. It uses exquisite ingredients that are both unavailable and unheard of in the country – such as Barberries, Mallow petals, Schizandra Berries, Muira Pauma, Thistle flowers, Osmanthus, etc. Apart from being amazingly tasty, most of these ingredients have medicinal values. TGL Co. follows a streamlined central purchasing principle. It sources ingredients from locations they grow best – for example, Barberries come from Iran, Schizandra Berries from Russia, Muira Puama from the Amazon rainforest & Mangoes and Strawberries from India.
The Blend: Most players have simple, conventional blends – Green tea with mint, Green tea with ginger, Green tea with rose, Earl Grey, English Breakfast, Chamomile, etc. A typical blend that The Good Life Company offers is Green Sencha Tea mixed with mango, banana, melon, guava, sunflowers, cornflowers and passionflower leaves. It has 8 ingredients in one tea that make it extremely flavorful, tasty & healthy with less than 6 calories a cup and is extremely high in quality because of the sourcing process.
The Good Life Company’s Coffee
The USP of TGL’s Coffee is:
Sourced from the Best Plantations: Some of the best coffee in the world grows in high appellation regions as high as 2000ft. above mean sea level and anywhere between the Tropic of Cancer and Tropic of Capricorn and in places with rich tree shade and a desirable microclimate. These are the kinds of coffee that TGL seeks out for its tightly curated collection. TGL Co. procures the highest quality Arabica beans from the best-placed coffee plantations world over, including Ethiopian Yirgachaffe, Colombian Excelso, El Salvador Santa Cristina, Peruvian Organic Coffee, Brazilian Santos, and coffee from award-winning coffee estates in India.
Expertly Roasted Beans: When you buy coffee off-the-shelf, it is likely you are buying something roasted many months ago and hence, stale. The truth is that the best tasting coffee is the one that is made from a batch of recently roasted beans, i.e. the flavors are freshly extracted and hence, in prime form. TGL Co.’s Indian coffees are roasted once every two weeks, and in small lots, to ensure the flavors are crisp, bright and intense, and for the good haul.
Ground To-Order: Pre-ground coffee rarely produces a cup that can match the complexity of the flavors and aromas that seep from a freshly ground lot. This is because from the moment the beans are ground, air starts to take effect. Most store-bought coffee is roasted many months ago and ground to a generic, industrial- standard. In sharp contrast, TGL Co. prefers and encourages grinding freshly roasted beans to-order, and to the drinker’s preferred way of brewing. This way, the coffee is exposed to minimal oxidative degradation and retains flavor better.
To be able to provide teas apt for the Indian palate, without compromising on quality and health, TGL devised more than 300 recipes with their team of botanists and culinary experts – some extremely fruity with tropical fruits such as TGL Mogo Mogo Green Tea. They also introduced naturally sweet teas, mimicking dessert and cocktail profiles such as TGL Strawberries & Cream Black Tea or TGL Ice Wine White Tea.
The Good Life Company – Revenue Model
TGL Co. has a robust revenue model. The company has different channels of sales based on its target market and each of them operates on a direct or commission basis model.
TGL Co. initially had a very narrow, well-defined slice of the population as the target audience. The company strongly believes that its products stand out in terms of quality and so, right from the beginning, their strategy has been to get as many people to sample and try out their products as possible.
The company reaches its target customers through the 3 following ways:
By partnering with the best hotels, restaurants and cafes in the country like Taj, Marriott, Westin, SOFITEL, Lalit, Hyatt, Hakkasan, Yauatcha, Indigo, Smoke House Deli, The A Club, Fatty Bao and many more.
By taking part in multiple events throughout the year and doing samplings.
Entering modern trade through Shop in Shop concepts where the company’s teas and coffees are displayed in beautiful glass jars, and the customer gets to smell and taste the products and realize the quality of their offering. This helped to build and anchor TGL Co. as a brand.
TGL | Tea
The Good Life Company’s tea is available at almost every major e-commerce platform online as well as its own website and on the shelf at multiple retail locations.
As said by Bhuman and Shariq, TGL Co. focuses on the following factors to attract customers:
Target Audience & Brand Positioning: An average Indian household can be segregated into 3 categories based on income – Elite & Affluent (> 10LPA), Aspirational (5 to 10L) and the Next Billion (<5L). Over the next 5 years, the segment that grows the fastest is the “Aspirational” segment. Thus, having a brand that is Aspirational and not masses, would be the first step to scale up in this category. The category is a commodity that is all about premium sizing and uplifting the existing category to cater to the “value-conscious Aspirational Indian”.
Reinforcing Health & Wellness: More than 50% of India is less than 25 years old & 65% is less than 35 years old. Young India is deviating towards health and wellness due to factors like global trends, peer pressure, influencers, celebrity endorsements. Hence, providing consumers with healthy offerings with natural ingredients having medicinal values that fulfill their health goals is essential.
Innovation & Indulgence: Just focusing on health, wellness and quality is meaningless without repeat purchases. And repeat purchases are only possible if the product is innovative and becomes a daily indulgence for consumers. When health becomes an indulgence, (and if the category is commodity-driven) it conjures instant fortune.
The Good Life Company has raised a total of $1M in funding over 1 round by 2 investors Abu Farhan Azmi and Ayesha Takia Azmi. The Company has used the funding for-
Building a robust sales and distribution network across the country. It aims to reach 1000+ POS within the next 12 months.
Increasing its online sales, both through its own website and online marketplaces.
Revamping the existing website to cater to international markets. The soft launch in June 2019.
Brand building and increasing product awareness: visibility at HORECA, International Airport, Airlines (GoAir), Sports Teams (TGL Butterfly Squad)
Funding for a business is like fuel for an automobile. It helps the business propel faster towards its goals. While we are confident about the quality of our products, funding has enabled us to expand and exponentiate our growth 10x. What we could have achieved in 10 years otherwise, we have been able to achieve in a year.
The Good Life Company – Advisors and Mentors
TGL Co. was conceptualized after detailed discussions with Jane Pettigrew, Sanjeev Mehta, Ines Berton and certain BCG partners.
One of the foremost challenges was understanding the Indian palate and what tea drinkers in India would prefer to consume daily. Initial months were spent in rigorous market surveys wherein Bhuman and Shariq conducted extensive tastings with HORECA owners, various business owners and regular tea drinkers to understand the Indian taste profile. They were surprised to find out that the majority of consumers refrained from consuming loose-leaf tea daily because it was too bitter for their liking. They preferred teas that had a fruity aftertaste or were naturally sweet.
TGL | Challenges | Problem Solving
Another major challenge that TGL Co. faced was the phenomenal growth its products received.
“We grew too fast and too early. While we were extremely happy with the response we received, at the same time, we weren’t prepared then operationally to match the demand. And therefore, we did experience a phase where we had delays in order processing and manual errors in some orders” says Bhuman and Shariq.
With time, the company has been able to equip itself operationally to match the demand by implementing automated production practices and expanding their team.
Getting the sourcing model right was also a challenge that the company faced. For this, Bhuman and Shariq personally visited dozens of plantations across various countries, interacted with numerous tea masters and sommeliers, and selected the leaves from the high quality and best plantations.
Again, working out the supply chain to get these teas from around the world into Europe for blending, and then finally to India for selling was a huge logistical challenge. In order to ensure the freshness of the teas and the blends, TGL Co. air freighted everything instead of the traditional cheaper shipping model. While this adds significantly to the costs, the company believes that the value it adds to the freshness of its teas is invaluable.
Every startup from the outset is implicitly prepared to deal with various crises and dilemmas throughout the journey. However, some dilemmas can still astound you, mainly because it wasn’t anticipated or you simply don’t know how to respond to it.
The Good Life Company – Competitors
Owing to its unique blend, ingredients and tea leaves sourced from different parts of the globe, TGL Co. has been able to make a distinctive place for itself in the Indian tea market. As such there are no direct competitors to TGL Co.
At TGL, we have revived the known tea experience by sourcing the best tea from around the world and masterfully blending them with innovative real ingredients, such as Kashmiri Kahwa Green Tea with real saffron and almonds, Jasmine Blush Green Tea which is a refreshing version of a Jasmine tea with peppermint.
Such innovations have helped us stay ahead of the competition.
Some of the major milestones achieved by TGL Co are as follows:
TGL has witnessed exponential growth over the past 24 months. Revenues have grown ~7x in the past 18 months and the ultimate aim is to create an INR 100 crore revenue brand by 2024.
It has sold over 5 tonnes of tea and 2 tonnes of coffee in the past 12 months that ~25L cups of tea and ~3L cups of coffee.
The company is serving more than 85,000 happy customers and repeat buyers.
TGL is now available at more than 200 hotels, restaurants and cafes across 9 Indian cities including popular properties such as Taj, Marriott, Westin, SOFITEL, Lalit, Hyatt, Hakkasan, Yauatcha, Indigo, Smoke House Deli, The A Club, Fatty Bao and many more.
TGL is also retailing at more than 600 points of sales at popular modern trade stores such as Godrej Natures Basket, HAIKO across Mumbai, Bengaluru, Pune, Kolkata and Delhi-NCR.
TGL is also available at the Mumbai International Airport in the duty-free shopping areas and on the in-flight menu onboard GoAir flights.
The Good Life Company – Awards
TGL Co. has received the following awards:
Awarded as “Startup of the year 2020”
Awarded Coca-Cola Golden Spoon Award 2019 for“Most Admired Food Startup of the Year”
Listed in Sutra HR’s “Top 100 Startups to Watch in 2019”
Bronze Medal Winner in Global Tea Championship 2019
Awarded ET Now Global Award for Retail Excellence 2019 for “Food & Grocery Brand of the Year” (Hot Beverages)
Recognized as an innovative startup by Amazon and listed on Amazon Select.
Awarded Amazon Connect Extra Mile Award for “Outstanding Performance in 2018”
The Good Life Company – Future Plans
TGL Co has interesting plans for the future. Some of its future plans are:
Product Launches
Introducing tea range specially formulated by botanists and culinary experts with herbs, spices and medicinal ingredients aimed at improving overall well-being including immunity boost, digestion, sleeping patterns, etc.
Introducing premium single estate first-flush White Teas at affordable pricing.
Introducing high-quality traditional stone-ground ceremonial grade Japanese matcha and its exotic flavors such as sakura, lavender and more.
ExpandingChannels of Sale
Retail: TGL to launch teas and coffees in retail packs at 1000 Points of Sale across Tier I cities in India over the next 6 months.
Online: TGL to increase online sales via its website and third-party online marketplaces. The company is also setting up an international website to be able to serve multiple countries through their website.
HORECA: Association with popular properties Taj Exotica, Taj Rambaug and Taj Bengal for supplying teas & coffees in rooms as well as on the menu.
Alternate channels of Sale: Collaboration and listing with various co-working spaces, gymnasiums, and airlines.
Team Expansion
TGL aims to grow from a current team of 80 professionals to over 200+ in the next 12 months.
The Good Life Company – FAQs
Who are The Good Life Company owners?
TGL Co. was founded by Bhuman Dani and Shariq Ashraf in 2016.
What does The Good Life Company offer?
TGL Co. is the fastest growing hot beverages startup in India that sources the finest quality teas and coffees from around the world with a deep focus on fresh, clean and natural ingredients.
What is the Revenue Model of The Good Life Company?
TGL Co. earns revenue from the following sources:
HORECA – Hotel, Restaurants & Cafe (Direct sale)
Offline retail (Commission model)
Online retail via own website (Direct sale)
Online retail via third-party websites such as Nykaa, Amazon, etc. (Commission model)
Gifting (Direct sale)
Where to get TGL products?
One can find TGL products on both online and offline platforms. It is easily available in supermarkets and e-commerce sites, if not, one can visit its site.
Devashish Shrivastava
Archana Karthikeyan
