Want to know Starbucks Franchise Cost In India ? Well you have landed on the right article “Uhm… one vanilla white chocolate java chip macchiato with three pumps of caramel, one shot of espresso, extra whipped cream and a drizzle of caramel.
All of this in Almond milk and to Anjali.”
Ever heard of a cup of coffee becoming a trend? Yes? You can credit Starbucks with that success. Starbucks is a leading coffee chain that has made its presence known in the global market.
From a good cup of coffee to simply aesthetics - Starbucks has become the way to go for many people.
Students pulling all-nighters to adults hustling through their jobs, a cup of Starbucks has become a must.
Imagine owning a franchise of this madness? That’s what this article is about.
Starbucks is spreading its footprints all over the world. And if you want in on this, you have come to the right place.
This article is your blueprint to become a star of this Starbucks Franchise and make good bucks. Starbucks in India is a joint venture between Tata Consumer Products and Starbucks Incorporation.
Hence, it is a part of the Tata Alliance and all the espressos produced in Indian locations of Starbucks are made with Tata’s Coffee Indian roasted coffee beans.
Let’s first take a look at how Starbucks runs its business:
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Starbucks Business Model
Despite being a franchise, having a chain of stores across the globe, Starbucks does not follow the traditional franchise model of business. Some things are unique to the Starbucks Business Model.
If you want to open a Starbucks outlet in India, you can apply for the same on their website.
An individual cannot open a Starbucks outlet independently.
Authorization from the firm is a necessity to open a licensed store in India.
These three pointers are the crux to their franchise business model. They exist to maintain store ownership and govern the business management.
The company makes sure that every store that is opened as a part of the franchise has a licensed location.
Factors like the menu, the aesthetic of the interiors, promotions, marketing, equipment, onsite visits and evaluation, support, training, and resources are overseen by the company.
The main reason why they do this is that this enables them to maintain a total quality control over their products and services.
Starbucks doesn’t aim at opening multiple locations, but at preserving the quality of the premium coffee and maintaining that standard.
The brand, because of this, has successfully made its presence felt in the Indian market.
How many bucks does it take to open a Starbucks?
Nothing can be finalized before doing a thorough research, especially when money is involved. And when your investment includes something as huge as a Starbucks coffee chain, it can get even more taxing.
No pun intended. To begin with, owning or renting a location to open an outlet will take a big chunk out of your pocket. Since February of last year, the quoted rent of a location would come up to ₹ 6 Lakhs.
Apart from this, obtaining a general food license can cost quite a bit of money. Added to the rent and license, the interiors, furnishings, the employee’s salaries and all of that can be added up to ₹ 1.5 lakhs every year.
Other investments and expenses can differ depending on the outlet’s location and requirement. One must have prior experience in the Food and Beverage industry to open a Starbucks licensed outlet.
- The annual revenue made by Starbucks India can be estimated between ₹ 2.5 - 3 Crores.
- Each outlet makes up to ₹90,000-95,000 per month, implying a yearly income of ₹ 25-30 Lakhs.
Apart from this, running a business has many other expenses, it is good to keep an eye on how much you are spending and making, and then alter things accordingly to run a successful business.
How to open a Starbucks outlet in India?
Like it has already been mentioned, a Starbucks outlet cannot be owned by an individual independently. It does not offer separate franchises.
However, the company licenses a store in a specific area is a possibility. Specific to India, there is no form to apply for and open a franchise here.
Anyone willing can contact them using the contact information found of the Starbucks’ official website.
First thing’s first. Location. To have an outlet, renting or owning a location is very important. Keep in mind that the location must be in a prominent place with high traffic.
You can apply for a Starbucks license, usually from their website - but you can contact them directly.
Giving all the right personal and official details is very important.
The company will evaluate your application and see if your application qualifies for the same.
Once your location is set and your licence and your application are approved, the actual work begins.
Right from furnishing your outlet with the desired aesthetics to match the standard of the company, to deciding the menu,
customizing it to fit the taste of the potential customers you’d be serving and so much more needs to be taken care of.
The company usually makes sure that the employees that are hired at the outlet, be it managers, servers, baristas or chefs; they are exquisitely trained.
This is done so that the quality and the standards of the company are met.
Starbucks already has a reputation and a range with the public, so sustaining that and upgrading it time and time again falls onto the shoulders of these outlets.
Requirements of opening a Starbucks Franchise
A criterion, a set of requirements and standards are what make the business successful and makes it an asset in the market. Starbucks is the same.
The stardom it has amongst the coffee chains - and that on a global scale, is because of the criteria it adheres to. It helps maintain a quality and a standard.
Location, skills, mind-set, talent, training, experience and support are some factors that weigh in on this.
Skills Required: No successful business can sustain without the skill set required to run it.
Skills are the absolute crux of any working professional, be it a barista or the CEO.
So having the relevant skills are really important to open a successful outlet. Some may include:
- Communication
- Leadership
- Positive Attitude
- Adaptability
- Quick thinking
- Speed
- An understanding of the business
- An understanding of the consumers
- An excellent client service
- Experience and skills in management.
Apart from this, other skills like hard work, an ability to learn and motivation are very important.
Location:
- Looking for a locality that fits the kind of services you provide is so important.
- Starbucks is usually for the well-off if the Indian market is considered, so choosing a location where the wealthy stay only makes sense.
- A locality that will attract customers should also be kept in mind.
Mind-set:
- Opening a Starbucks franchise, which had already blown up worldwide, is a huge responsibility. You must be confident in yourself to carry it out,
- Being motivated and determined is also very important while starting a business.
- Enthusiasm, a brave and futuristic vision to achieve all the highs and a mind-set of growth is essential.
- Having faith in oneself and preparing yourself efficiently is important.
Experience:
- Starbucks has a set criterion. The company entrusts an outlet only with entrepreneurs who have prior experience of about 10 years in the Food and Beverage industry.
- They also look for candidates who have experience in running a multi-location firm.
Other factors like finances, talent and so much more are a requirement to open a Starbucks franchise successfully.
What’s Starbucks all about: Product Range
Starbucks is primarily a premium coffee selling business.
The business runs on coffee based beverages, later extended to other milk and fruit based drinks - hot and cold, and also baked goodies, different kinds of bread, sandwiches, wraps, salads, desserts, muesli and so much more.
Coffee, espresso, cappuccino, cold brew, lattes, mochas, and so many more beverages are available at Starbucks. So many more that the list goes on and on. Some really popular drinks include:
Latte with Vanilla
Mocha with iced white chocolate.
Pumpkin Spice Latte
Cinnamon Roll Frappuccino: Blended Coffee
Java Chip Frappuccino: Blended Coffee
Hot Chocolate
Chai Tea Latte
Iced Cafe Americano
Chilli Cheese Toast
Mozzarella Cheese Sandwich
Croissants
Chocolate chip cookies
And so much more.
Benefits of Opening a Starbucks Franchise
Starting a business provokes many thoughts. Especially the pros and cons. It’s important for a potential business owner to consider these things.
Along with the pros and cons, uniqueness of the company is also considered.
Starbucks has many benefits. Opening an outlet of Starbucks, even more.
Coffee is a necessity, it is an essential for people. Especially if those people are students or working adults who need all the energy they can get.
And Starbucks is an established brand, it has made a name for itself and has many benefits for the consumers obviously, but also for you, if you are looking to open an outlet as a part of this franchise.
People love Starbucks, that’s one benefit. But looking it at it from a business point of view, an extensive research can be conducted into the market’s demand for Starbucks and learn new business strategies.
The below pointers list out the Unique Selling Propositions and Benefits of owning a Starbucks Franchise:
The Business Model: The Business model for Starbucks is a tried-and-true model. Starbucks has a substantial study conducted on the coffee market, which can be used by you. And they already have it set out for you to carry out.
Despite being a coffee based brand, it adheres to the Indian culture and provides ‘chai’ as a part of its product.
Starbucks is undoubtedly the world’s largest coffee chain.
Starbucks is a cafe that brings people comfort. It is a go-to place for students, working professionals or just people in general to hang out, work (with the free Wi-Fi), or just visit as a ‘third-place’ apart from their home and office.
Starbucks’ USP is the customer service. They not only receive premium coffee, but also personalised, with their choice, tagged with their name. Just as their tagline says, "Love your beverage or let us know. We'll always make it right."
Conclusion
This is everything one might need to know if they want to open an outlet of the Starbucks franchise.
From who can open it, to how to open it, along with other information like the costs, how much you might need to spend, and what are the benefits for the same - this article covers every detail you might look for.
I hope you liked our article on Starbucks Franchise Cost In India , if you have any comments or suggestions do share them in the comments below.
Frequently Asked Questions
How much does a Starbucks franchise cost in India 2022?
There is no set and certain cost range that can tell you for sure, how much it costs. However, the cost arises from renting or owning a location, obtaining a food license, salaries, decor, etc.
Does Starbucks have franchises in India?
Yes, Starbucks does have a franchise in India and has made an impressive place in the market. It has established its presence in the Indian Market. There are currently more than 140 outlets spread across the Indian sub-continent.
How much does a franchise of Starbucks cost?
There is no set and certain cost range that can tell you for sure, how much it costs. However, the cost arises from renting or owning a location, obtaining a food license, salaries, decor, etc.
Can I open a Starbucks franchise?
Anyone can open a Starbucks franchise, of course, subject to the criteria that needs to be met.
Other than having the necessary skills, mind-set, talent, location and finances, Starbucks looks for their partners to have prior and elaborate experience in the Food and Beverage Industry.