Starbucks First Eco-Friendly Store Launch In India

on Apr 18, 2024 | 4928 views

Written By: Smita B

Starbucks coffee chain, the global FMCG brand has unveiled India’s first-ever eco-friendly Starbucks outlet in Ayali Kalan, Ludhiana. The Sunview Enclave Store of Ayali Kalan has effectively implemented the Starbucks Greener Store Framework in their licensed store. Moreover, they received the title of India’s first Starbucks Greener Store. Also, this Ayali Kalan-based Starbucks outlet won the Global Greener Stores Of The Year Award. So let us explore more about the Starbucks Franchise today!

The Sunview Enclave store is incorporating Starbucks's new initiative, which promotes sustainable growth and reduces environmental carbon footprints. This Starbucks Cafe outlet has introduced an eco-friendly infrastructure, EV charging stations, rainwater harvesting programs, and some other initiatives to get certified as greener stores by the global brand.

Starbucks has been focusing on eco-friendly business operations. These include sustainable designs, reduced energy and water consumption in-store operations, waste recycling, increased renewable energy usage, and community engagement to create awareness among the people.

Starbucks' unique initiatives are adding value to its business expansion in India. However, the brand has replaced the conventional franchise business model with licensed ownership. Also, Indian investors are looking forward to receiving Starbucks' master franchise business plan to achieve sustainable growth in cafe franchises.

Starbucks - A Successful Alliance With TATA Group

Starbucks's strategic alliance with the TATA group since 2012 has accelerated Starbucks' growth in the Indian market. Starbucks and TATA Consumer Products Ltd. have introduced stores across 54 cities with a 50%:50% partnership in India.

TATA Starbucks Private Limited has more than 390 stores in cities like Pune, Mumbai, New Delhi, Chennai, Kolkata, Hyderabad, Bangalore, Ludhiyana, and many other cities.

This alliance is planning to open around 1000 Starbucks Cafe outlets by the year 2028. To fulfil its goal of opening 1000 Starbucks outlets across various regions in India, the brand is concentrating on training local cafe business enthusiasts to operate the outlets while upholding its reputation as a global brand.

Starbucks Offering Sustainable Cafe Franchise In India

The brand formed the Starbucks Greener Store Framework by associating with the World Wildlife Fund (WWF) in 2021 to encourage environmentally conscious business operations in its franchise businesses.

Starbucks provides the certification of Greener Store to licensed Starbucks cafe owners after fulfilling 25 requirements mentioned in the Greener Store Framework. This requirement supports to reduction of environment-harming activities like water wastage, electricity wastage, extensive use of toxic material, etc.

Regions like Latin America and the Caribbean have started implementing the Greener Store Framework in their Starbucks outlet since 2022. The cafe outlet owners are incorporating sustainable practices such as rainwater harvesting or water recycling tanks, solar energy panels, composting, eco-friendly paints, food donations, etc. This is to get certified as Starbucks Greener Store by the global brand.

Recently, one Indian TATA Starbucks Outlet, Sunview Enclave, Ayali Kalan also received this valuable certification from Starbucks. This Starbucks cafe outlet has taken the initiative to form a sustainable cafe franchise by applying things like EV charging stations, rainwater collection, coffee waste distribution in local areas for fertilization purposes, local building materials ( clay bricks), energy-efficient devices, etc. The Ayali Kalan Starbucks outlet also received the award of the best Greener store in the same year. This is by defeating 6 regions Starbucks Greener Store Outlets.

Starbucks Eco-Friendly Move Poses Challenges In Indian Market

The brand’s extensive move of Greener Stroes is facing some challenges. The franchise partners have started implementing eco-friendly guidelines in their franchise stores. However, adaption of this change is taking time to settle for franchise partners as well as customers.

Especially, in India where consumers are very price-sensitive and prefer affordable things. Hence, managing sustainability costs for brand partners and offering affordable prices for consumers will be a real challenge for the Starbucks brand.

In addition, the country's developmental stage adds limitations to the store's eco-friendly practices. For instance, incorporating, proper waste management infrastructure, sourcing eco-friendly materials, efficient usage of renewable energy resources, etc. are challenging for India.

Therefore, the overall implementation of sustainable practices in the Indian market necessitates strategic planning, investment, and strong local support. This is so as to conquer cultural, regulatory, and infrastructural obstacles.

Innovative Starbucks Franchise Business Model

Unlike traditional franchise businesses, Starbucks offers its store ownership in a very different format. Starbucks holds the right of all the stores to maintain its brand reputation and international image. Starbucks holds ownership of all the outlets by controlling its infrastructural set-up, staff training, marketing, product range, and test, etc.

Interested entrepreneurs need to apply on Starbucks’s official website to show interest in Starbucks coffee outlet. Starbucks accepts applications only through the official websites and prefers licensing over the conventional franchise agreement. In this process, aspirant business owners have to submit genuine details of their professional background, previous experience in the cafe franchise or beverage sector, financial status, preferred location, contact details, etc.

Starbucks franchise cost in India is not applicable. However the brand charges around ₹ 6 Lakhs for its licensed stores (check the official website for more information).

Brand reviews the applications and decides the store allotment for exciting locations such as   Universities, airports, malls, etc. These locations are more suitable for this premium category of Starbucks Coffee and beverage business.

Investors Are Excited For Starbucks Master Franchise Opportunities

Starbucks’ innovative business strategies and its ultimate beverage category in India are grabbing the attention of Indian investors. For instance, the recently launched Starbucks Greener Store, Starbucks Reserve outlet, and its alluring menus like barista coffee, ice creams, milkshakes, food items, merchandise, and a variety of roasted coffee beans, etc. are USP of the brand making it popular among the Indian consumers.

The application of an eco-friendly Starbucks franchise business highlights the importance of the Starbucks master franchise model in India’s retail landscape. However, the brand is not accepting franchise partners for cafe outlets. Instead, they are accepting store licensing business models.

Yet many investors and coffee business enthusiasts are waiting for Starbucks’ master franchise opportunity to be involved in this amazing franchise business. However, the brand is planning its brand expansion. This is by bringing in regional franchise partners who have similar missions and visions to expand the brand’s footprint across the country.

Many Indian investors are looking forward to leveraging Starbucks's master franchise opportunity in the future. This cooperative strategy will indeed help the brand to expand its business. Also, it will promote the country’s growth, employment, and entrepreneurial landscape.

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.

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