Barista to double its retail presence to 800 outlets in next 5 years, ET Retail

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<p>Rajat Agarwal, CEO, Barista Coffee</p> — Rajat Agarwal, CEO, Barista Coffee

Coffee chain Barista Coffee, which opened its 400th outlet recently, is planning to double the store count in the next five years, Rajat Agrawal, CEO Barista Coffee told ETRetail.

Considering that the brand has a strong presence in north India – 65 per cent of its outlet – it further plans to have a good hold in west, east, and south India.

“As the overall market sizing is maturing and the overall appetite for consumers to eat out is increasing, we plan to double our presence in India in the next 4-5 years. As have pretty much been in a stable state in terms of the way we are growing the network. The idea is not to just grow, rather, the idea is to have a balanced set of growth,” he said.

“Apart from north India, we plan to have a healthy share of other regions as well in our revenue. In the next two years, there’s a definite strategy to look at west India as an opportunity area. Cities like Mumbai and Pune and other highways originating from these cities will be a focus area for us. We will be betting big on both tier I and tier II cities,” he further added.

Currently, out of the 400 stores that the brand operates, 30 per cent are company-owned and the remaining 70 per cent are run by franchise partners. However, going ahead, it plans to take this ratio to 50:50.

The brand, which currently has a presence in 120 cities, has 40 per cent of the outlets in tier II and beyond and the remaining 60 per cent are located in tier I and metro cities.

“Going ahead, the plan is to strengthen the network in these cities rather than expanding into the newer cities. However, by the next five years, we will have a presence in 200 cities,” he said.

At present, 70 per cent of the revenue of the brand comes from beverages and the remaining 30 per cent is contributed by its merchandise and food portfolio.

“Going ahead, there will be a big focus on food and it will further help us to expand the overall revenue portfolio,” he said.

Currently, the average ticket size for the brand at the store level stands between Rs 450-Rs 500 and 15-20 per cent of its revenue comes from online ordering.

“At a store level, we are at a double-digit profitable and we are poised to clock Rs 240 crore revenue this fiscal,” he said.

Next fiscal, the brand is eyeing 20-25 per cent growth over FY23-24.