Barista Coffee Plans to Open 900 Stores by 2030, Targeting Tier-II and Tier-III Towns

Barista Coffee, India's largest homegrown coffee chain, aims to expand its network to 800–900 outlets by 2030. The company is focusing on tier-II and tier-III towns, according to CEO Rajat Agrawal. Recently, Barista opened its 500th cafe in Patna, Bihar, driven by the growing coffee culture among India's youth, especially in smaller towns where aspirations and disposable incomes are rising.

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Barista is also expanding in the coffee vending machine sector, anticipating a tenfold increase over the next five years. This business vertical, launched two years ago, is a significant focus for the company. "Today, we have installed 500 vending machines. There is a huge growth path, and we are looking to have a 10x growth in this network in the next 5 years. So, we are looking at about 5,000 machines in the next 5 years," Agrawal stated.

Expansion Strategy and Market Presence

Barista's expansion plan involves adding 50 to 60 outlets annually through both company-owned and franchise models. "In the next 5 years, we are easily looking at going to about 800-900 stores. We are very confident in growing. We open about 50-60 outlets a year through company-owned and franchise networks. So, 800-900 stores in the next 4 years is quite doable," Agrawal explained.

The company has been concentrating on tier-II and III cities over the past few years due to better yields and lower operational costs. Store rentals are more manageable in these areas, making them attractive for expansion. Agrawal noted that earnings profiles are more favourable in these smaller cities.

Current Market Landscape

In major metro areas like Delhi NCR, Barista operates over 80 stores. The brand has a strong presence in Bombay and is developing around 7-8 stores in Bengaluru. In Calcutta, there are approximately 5-6 stores. Despite this metro presence, Barista's strategy focuses on expanding beyond these areas.

The Indian coffee market is experiencing significant growth. Currently valued at approximately ₹6,000 crore, the cafe chain industry is expanding at a compound annual growth rate (CAGR) of 10-12%. This growth reflects an increasing density of coffee consumption across the country.

Barista anticipates achieving sales of ₹400 crore by FY26 at the network level, including franchise earnings. The company's strategy is geared towards profitable growth by extending its reach beyond metropolitan areas into smaller towns.

With inputs from PTI