Written By: Resham Daswani

Opening a Starbucks franchise in India could be a great way to cash in on the country's rising coffee culture and high demand for high-end café experiences. Quality coffee, atmosphere, and way of life are all associated with the globally famous Starbucks brand. The question of how to create a Starbucks in India, how much money would be needed, and how profitable it could be is something that many would-be entrepreneurs in the country wonder.

Learn all about opening a Starbucks franchise in India in this detailed blog post. We'll cover the fees, eligibility criteria, application process, and possible profits.

Starbucks Franchise Business Opportunity in India 2025 - An Overview

The Starbucks and Tata Consumer Products established a fifty-fifty partnership in 2012 with the goal of introducing Starbucks to India. Starbucks does not provide the standard franchise model in India, unlike in other international countries. Throughout the nation, Tata Starbucks owns and operates every one of its locations.

An Overview:

• Concept: Corporate-owned stores through joint ventures; no franchise
• Across key cities in India, there will be 400+ outlets by 2024.
• Managing Company: Tata Starbucks Business Limited
• Expansion Plan: Centred on Densely Populated Locations, Such as Shopping Centres, Airports, and Corporate Zones
• Model for Making Money: Using Loyalty Programs, Localise Products (such as Turmeric Lattes and Masala Chais)
• Annual Growth Rate: In the double digits, with a focus on rapidly expanding into tier-2 cities.

How It All Started in Indian Markets:

All of the Starbucks locations in India are now run by Tata Starbucks Private Limited, a wholly owned subsidiary of the original joint venture.

Launched in Elphinstone Building, Horniman Circle, Mumbai, the first Starbucks in India was a watershed moment in the history of retail and the food and beverage industry in India. The store's fusion of international branding with traditional Indian design elements laid the groundwork for a Starbucks experience that was distinctively Indian.

Coffee chain Starbucks was able to:

• Stay true to international quality standards while catering to Indian consumers' tastes
• Maximise growth by capitalising on prime real estate and establishing a strong brand identity.

Is it possible to start a Starbucks franchise in India?

The most important question to answer before we get into the specifics of how much it will cost to start a Starbucks franchise in India is this: Is it possible for individuals to do so?

No, not directly. That's the short version.

There is no franchise model for Starbucks in India. Rather, it iconstitutes a 50/50 collaboration with Tata Consumer Products. This joint venture runs all Starbucks India outlets.

However, for those who possess very desirable commercial real estate in ideal locations, there are prospects for strategic partnerships or leasing, even though you cannot apply for a conventional Starbucks franchise.

The Fundamental Values of the Starbucks Franchises in India

#1. Starbucks Entry Into Indian Markets

• Launched in 2012 in the Indian market
• Around 400 outlets in India (by the year 2024)

#2. Reasons Why Starbucks Is Highly Desired

• Exceptional coffee and reliable quality
• International renown and devoted patronage
• Stores, airports, computer parks, and main streets all benefit from this

Starbucks Franchise in India: What You Need to Know About the Investment 

There is no way to use the typical franchise cost model with Starbucks India because the company does not provide conventional franchises. But to give you an idea of what it usually costs to open a high-end coffee shop like Starbucks, here they are:

Nonetheless, this is an approximation based on a similar high-end coffee shop. The details of Starbucks' investments are not disclosed outside of Tata Starbucks.

Steps to Form an Alliance with Starbucks in India

The following procedures can be followed by any property owner or legal organisation interested in forming a partnership:

#1. Proposals for Real Estate

Tata Starbucks is always looking for prime locations with lots of foot traffic and good signage. In order to submit a proposal, you must meet the following criteria:

• Possess real estate in a prime area
• Will be able to fulfil operational and architectural requirements
• Present leasing terms that meet Tata Starbucks' needs

Further, On the Tata Starbucks website, locate the "Contact Us" or "Real Estate Opportunities" sections, and use those to submit your offers.

#2. Job Opportunities or Supplier Partnerships

Plus, you could:

• Post an ad for a supplier position in the field of packaging, logistics, etc.
• Take on a corporate job and become an affiliate of the brand.

Maximising Earnings from Starbucks Franchises in India

Although we don't have direct franchising, therefore we don't have access to individual franchise earnings. Nevertheless, we may still learn about economics by looking at the statistics and making comparisons:

A typical premium café's revenue projections are:

• Daily Revenue Projection: ₹50,000 - ₹2,00,000
• Earnings every month: 15–60 lakhs
• Approximate Gross Margin: 65%
• Margin of Net Profit: 10% to 15%

Given Starbucks' exceptional track record of steady performance and high brand loyalty, the expected return on investment is estimated to be approximately 3 to 5 years.

Alternative Coffee Franchise Opportunities to the Starbucks Franchise in India

These options should be considered if you have a strong desire to be involved in the coffee industry but are unable to franchise Starbucks directly:

#1. Open a High-End Coffee Shop

• Draw ideas from the success story of Starbucks.
• Consider investing in high-quality legumes, barista training, and the ambience of the establishment.

#2. Different Cafe Brands for Franchising: There are franchise opportunities available for the following coffee companies in India:

• CCD
• The Coffee Bean & Tea Leaf Franchise
• Barista Franchise
• Third Wave Coffee Franchise
• Blue Tokai Franchise

These provide organised franchise support and need moderate investments.

In Conclusion,

Although it is not yet feasible to acquire a Starbucks franchise in India in the conventional sense, there are opportunities for partnerships, particularly for those with prime commercial assets or business-to-business skills. Even while there are other ways for entrepreneurs to get into the thriving Indian coffee market, the brand's exclusivity makes it more appealing.

The café industry in India is booming, and if you want in on the action, you should look into similar ventures or start your own premium coffee company.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.