The Starbucks franchise is gaining popularity in India as it is making its way into many cities. People in India are huge fans of quality international brands of tea, coffee, and other beverages. A significant part of the population is daily consumers of tea and coffee. Coffee is the first thing that many people need in the morning before they can start their day.
Starbucks is a premium brand of coffee, well-known across the world. In the last few years, the company has become the biggest name in the coffee industry. No other company enjoys this kind of popularity. If anyone has a passion for the company and enough money to invest, they can invest in Starbucks, as it is the best coffee brand in the business.
Starbucks is an American company and a reputed coffeehouse chain worldwide. The company was born in Seattle, Washington, in 1971 by the efforts of three university students Zev Siegiu, Gordon Bowker, and Jerry Baldwin. The brand started the second wave of coffee all around the world. Currently, it is present in 78 countries and six continents.
If you have a passion for premium coffee shops and can make a significant investment in the business, you must consider Starbucks as an option. This brand has popularity unmatched by any other brand and is famous for its premium quality of beverages. Now, let's get into the details of their business model and further we’ll discuss the cost of setting up the Starbucks franchise in India.
Starbucks in India
Starbucks has opened 191 stores in India. It entered the Indian market in Jan 2012 with a joint venture with Tata Company, named 'Starbucks, A Tata Alliance.' Since then, it has been opening company stores in various locations in India. The two companies came together with a passion for tea, coffee, and other innovative beverages.
First, you must understand the non-franchise model of the company. The Starbucks franchise goes against the franchise business model and has its own rules for opening a chain shop in a city. You can not easily apply for Starbucks in the general way you do with other franchises. They have a unique policy in franchise business worldwide, as the company does not offer the franchise to anyone. It's a challenging task to manage the Starbucks franchise. The company requires a very qualified and professional workforce.
1. Know More about the Starbucks Business Model
The company does not follow the traditional franchise business model. However, you can send an application request on their website to open a store in India, as no individual can independently set up a Starbucks Coffee Shop. They have to collect permission from the company to open a licensed store in India. Starbucks has these guidelines to keep the ownership of the stores and control the management of the business.
The company itself helps set up every licensed store and manages many aspects, such as the menu, promotions, interior design, equipment, onsite visits, support and training, etc. This is why Starbucks focuses more on licensing rather than giving a franchise; Starbucks needs to have control over service and product quality. The company's sole focus is to maintain the premium quality of coffee rather than opening as many stores as possible. However, the brand has been successful in making inroads into the Indian market.
2. Requirements for a Starbucks Outlet
Anyone can apply for a licensed shop at preferable retail locations in India, like universities, airports, etc. The number of Starbucks coffee shops has been increasing every year. If you want to start an outlet, you will need to obtain a license, as Starbucks does not provide franchises to individuals.
Starbucks has maintained its status in delivering the best value services to its customers. The company has some guidelines and set of requirements to set up a licensed store in India. Such as a license for the store, best location in the market, prior business experience in the beverages industry, high-level investment, a positive growth mindset, required skills for franchise business, and much more.
Starbucks is the top-class coffee shop in the world and also the top outlet in India. It has been giving competition to other coffee stores such as Cafe Coffee Day. The company only allows candidates who can meet all the above requirements as franchise owners. Go through the whole checklist and understand the process correctly.
The company requires a mandatory skill-set and a prime location to set up a Starbucks store in India. Experience is a significant factor that determines whether you will get a franchise or not. Starbucks only accepts entrepreneurs who have good prior experience in the food and beverages industry and those who already run multi-site businesses.
You can easily apply by writing an email to them and getting in touch with them. The potential candidates need to submit their contact details with information about franchising and licensing for their company. You can check out all the details on their official website.
Also Read: Coffee Brands in India
3. Cost of a Starbucks Franchise
As per the report by various institutions and newspapers, the Starbucks outlets in India have a payout of almost Rs. 6 lakhs as rent. Although, there is no official information anywhere on the internet. They do not provide any franchise to the individuals or have no prior experience in the business. The rent rates keep fluctuating, and there are many other things to pay for; the information remains elusive on the subject.
However, there are some significant benefits to opening a Starbucks store in India. People are crazy here for foreign company stores and controlling the product quality they offer. Starbucks has a proven business formula that ensures growth. You can do extensive research on the demand of the beverage in the market and learn new business regimes.
If you want to invest in big and world-class franchises, you can apply for a licensed Starbucks in India. Starbucks is a famous brand in all the corners of the world and has a massive fanbase for the products they provide. Go into in-depth details of the business with Starbucks and open a franchise in India.
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Q. How much profit can I earn in the Starbucks Franchise?
Ans. It is not possible to chalk out the actual figures in the business, but some websites provide some details. On average, one Starbucks outlet can earn over Rs. 93,000 per day in India. This amount can sum up to Rs 27.9 lakhs as monthly earnings and Rs. 3 crore yearly.
Q. How many expenses are involved in setting up a Starbucks Franchise?
Ans. There are some expenses like rent that depend on factors such as the location. You may have some other costs in the franchise business. The best way to track your expenses is to use OkCredit, which has a secure and intelligent way to record all your expense data.
Q. Can I get a Starbucks franchise in India?
Ans. The company does not provide any franchise or license to any individual. Starbucks has stated terms and conditions on its official website. If you want to apply for a licensed store, then visit their website.
Q. Does Starbucks provide ownership?
Ans. No, that is not possible technically. You will only get permission to start a licensed store whose ownership will stay with the company. Starbucks works in a business model where it likes to have complete control over the management and quality of its product.
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