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written by Khatabook | December 30, 2021

Know All About the Starbucks Franchise Cost in India

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Starbucks Corporation, headquartered in Seattle, Washington, is an American global coffeehouse and roastery business. It is the largest coffeehouse chain in the world. Tata Starbucks Private Limited, originally Tata Starbucks Limited, is a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation that owns and manages Starbucks stores in India. Starbucks "A Tata Alliance" is the name of the franchise. Starbucks in India offers Indian-style goods such as Chocolate Rossomalai Mousse, Elaichi Mewa Croissant, in addition to the typical international choices. All espressos offered in Indian locations are manufactured with Tata Coffee's Indian roasted coffee beans. Starbucks also sells Himalayan mineral water in bottles. All Starbucks locations offer free Wi-Fi.

In this article, you will learn about the Starbucks franchise, along with the Starbucks franchise cost for opening a store in India. You can also learn about how to start a Domino’s franchise and McDonald’s franchise if you are interested in the food industry.

Did you know?

The best selling product of all time is the Rubik’s Cube. The iPhone comes in second place.

What is the Starbucks Business Model?

Before opening a Starbucks store, it is essential to know about the business model followed by the company. The company does not operate based on a traditional franchise model. 

  • You can apply to their website to create a Starbucks Coffee Shop in India, as no individual can open a Starbucks Coffee Shop independently. 
  • To open a licensed store in India, they must first obtain authorization from the firm. 

Starbucks has established these principles to maintain store ownership and govern business management.

The company assists in the opening of each licensed location and oversees various factors including the menu, promotions, interior design, equipment, onsite visits, support and training, etc. This is why Starbucks places a greater emphasis on licensing rather than franchising since it maintains control over service and product quality. Rather than opening as many locations as possible, the company's sole goal is to preserve premium coffee quality. As a result, the brand has successfully broken into the Indian market.

Is Starbucks a Franchise?

Howard Schultz, the CEO of Starbucks, resists franchising because he wants to keep a "fanatical" level of control over his stores. He has opted to go against the franchise business model to have proper control over the quality of the coffee and the business. Despite going against the franchise concept of expansion, Starbucks has grown tremendously and is now the world's largest coffeehouse chain.  CEO from 1986 to 2000 and again from 2008 to 2017. Howard Schultz believes in providing a high-quality product to customers. He is opposed to franchise models, which he sees as a way to acquire finance access by utilizing other people's money to expand.

Starbucks provides premium quality to customers, which is difficult to learn and explain to clients, requiring a well-trained team. If Starbucks had franchised their business model, it would have been extremely difficult to maintain the same level of consumer attentiveness. Starbucks, a retail corporation that primarily offers coffee-related beverages, operates under the company-owned, chain business model.

How Much Does It Cost To Open A Starbucks Franchise?

Starbucks franchise fee: Before selecting, an individual should do their complete research and evaluation regarding Starbucks stores. However, there will be some costs that the individual must meet. Owning or renting a location and obtaining a general food license will cost a significant amount of money. From February 2020, the quoted rent fee is around 6 lakhs, i.e., the average rent for a Starbucks location in India is 6 lakhs. 

The store's furnishings and the employees' salaries will be costly. The average amount will be around ₹ 1.5 lakh per employee yearly. They will also be required to pay the company a specific fee amount. The cost of investment will also differ depending on the outlet's location. Individuals having prior expertise in the food and beverage industry can only open a Starbucks-licensed shop.

  • Starbucks' annual revenue in India is estimated to be between ₹ 2.5 and 3 crores.
  • Starbucks locations in India makes ₹90,000-95000 per month, implying a yearly income of approximately ₹ 25-30 lakh.
  • Starbucks experienced 14% revenue growth in 2021. 

Starbucks Franchise Profit

There are no particular figures or statistics available to illustrate Starbucks's profitability. A person who owns a Starbucks, on the other hand, is almost certain to make a lot of money. This is due to Starbucks' well-known brand, high-quality coffee and other items, excellent customer service, and devoted fan following. Combining these elements provides sufficient certainty that anyone investing in the company would profit handsomely.

What Are The Starbucks Franchise Requirements?

Every business has its own set of criteria, and a Starbucks licensed outlet has its own set of regulations. Location, mindset, talents, experience, and other factors are a few factors that hold importance. The following are the major prerequisites that you should review for opening a Starbucks franchise:

Skills Required

You can't start a successful business with no experience. Skills are the lifeblood of any successful business, so make sure you have relevant skills before starting a Starbucks franchise.

To create a Starbucks franchise, you'll need the following skills:

  • Communication and leadership abilities.
  • Positive attitude, fast speed, and a good understanding of doing buisness
  • Excellent client service.
  • Experience and skills in management.

These abilities, along with other skills such as hard work, and motivation will aid you in running a successful business.

Also Read: How To Set up a KFC Franchise In India

Location

  • Starbucks can be found in all of India's wealthy areas, where there is a larger probability of attracting more customers.
  • As a result, make sure the place you begin is suitable for generating sales money.

Mindset

  • Think big, have faith in yourself, have a growth mindset, have a fantastic vision for your company, and be enthusiastic about it.
  • To manage a Starbucks franchise efficiently, the owner must have a positive mindset and business and financial skills.

Experience

  • Before you get started, it's important to note that Starbucks exclusively hires entrepreneurs with prior experience in the food and beverage business.
  • Candidates must also have experience running a multi-location firm.

How To Get Starbucks Franchise In India?

To keep in mind, Starbucks does not offer separate franchises. However, a company-licensed store in a specific area is possible. The individual in this situation would not be the outlet's owner. There is no application form for a Starbucks franchise in India, but you can contact them using the information listed on their official website: https://www.starbucks.in/coffee. 

Starbucks does have a specific sub-domain website for job openings, internships, store managers, retail and non-retail vocations, and other opportunities. You can learn more about the employment opportunities at Starbucks by visiting this link - Careers in India's Starbucks.

  • If a person wishes to run a Starbucks business, the first thing they must do is purchase or rent a spot in a prominent location with high foot traffic. 
  • After that, go to the company's website and fill out an application form to apply for a Starbucks license. 
  • The candidate must fill out the form with certain personal and official details. 
  • The company then evaluates the application to see if the applicant is qualified for the job. The employer will then contact the applicant for an interview.

Starbucks Locations In India

Starbucks is located at the following locations in India:

Starbucks Outlets In India

State/ Region

No. of outlets

Delhi

26

Delhi NCR

14

Maharashtra

58

Karnataka

27

Tamil Nadu

11

Telangana

10

West Bengal

7

Chandigarh

4

Punjab

4

Gujarat

11

Uttar Pradesh

4

Kerala

2

Madhya Pradesh

5

Rajasthan

2

Product Range of Starbucks

Starbucks primarily sells coffee and food to provide a soothing environment for clients with hectic schedules. They serve a variety of bakery treats, sandwiches, wraps, salads and muesli, desserts, and more. Iced Shaken, Freshly Brewed Coffee, Crème Frappuccino, Cold Brew, Espresso, Coffee Frappuccino, Teavana Tea, and more beverages are also available. 

Here are some of Starbucks' most popular items:

  • Latte with Vanilla.
  • Mocha with iced white chocolate.
  • Pumpkin Spice Latte
  • Cinnamon Roll Frappuccino: Blended Coffee
  •  Java Chip Frappuccino: Blended Coffee
  • Hot Chocolate, among other things

Benefits of Opening a Starbucks India franchise

Before entering the market, a businessman always considers the benefits and uniqueness of the company. However, there are several advantages to launching a Starbucks franchise in India. People love coffee and Starbucks has an established name for its quality coffee. Starbucks has a tried-and-true business formula that ensures long-term success. You can conduct extensive research into the market's demand for the beverage and learn new business strategies. The following is a list of Starbucks' benefits and unique selling propositions:

  • You have the benefit of a tried-and-true business model. Starbucks has conducted a substantial study on the coffee market, which you can apply as well.
  • In keeping with Indian culture, they provide hot tea to entice Indian tea 'Chai' drinkers.
  • Starbucks stands apart from its competition by offering a unique value proposition of becoming the "third place" for customers after their home and workplace. 
  • Starbucks is the world's largest coffee chain.
  • Starbuck’s USP is that each customer receives a premium coffee, as their tagline states: "Love your beverage or let us know. We'll always make it right."

Also Read: Smart Franchise business opportunities in India

Conclusion

We hope that this article provides sufficient information regarding the Starbucks franchise in India. By following the rules and regulations, you can open a Starbucks franchise in the country. Ensure you have the appropriate investment for opening the store and maintaining it. You would require a significant amount of experience for opening the Starbucks India franchise. Therefore, we hope you have understood how to get Starbucks franchise in India, Starbucks locations in India, and information regarding Starbucks franchise price. 

Follow Khatabook app for more business tips and information about income tax, GST, salary and payments in India.

FAQs

Q: How much does it cost to open a Starbucks franchise?

Ans:

There is no particular information available on the internet about the amount of money required to own a Starbucks franchise. However, certain apparent costs are associated with owning and operating a Starbucks location. Some of the fees that an individual will incur are space for an outlet, a general food license, employee salaries, interior décor, and so on.

Q: Is it possible for some individual to open a Starbucks franchise?

Ans:

No, Starbucks does not sell franchises to people, but anybody can apply to run a licensed Starbucks location.

Q: What kind of assistance does Starbucks provide?

Ans:

When a person obtains a Starbucks license, the firm provides them with Starbucks items. The company also provides training to the individual and the staff.

Q: What are some of the best coffee shop franchises to invest in?

Ans:

Starbucks is the definitive answer to this question, and there isn't a larger name in the coffee market today than Starbucks.

Q: How many Starbucks locations do you think there are in India?

Ans:

In India, there are more than 140 stores in various cities.

Q: What is the Starbucks Franchise profit margin in India?

Ans:

There is no concrete data available on the internet. Still, according to Kotak Institutional Equities on Business Insider research, a single Starbucks location in India generates a little more than ₹ 93,000 per day, or roughly ₹ 27.9 lakhs per month. Starbucks India earns an average of ₹ 3 crore per year in revenue.

Q: Is Starbucks a privately held company?

Ans:

Starbucks stores in India are not privately owned because the corporation does not believe in the franchise business model.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.