"Costa will be expanding in a big way in India. Since the launch of its first outlet in September 2005, Costa Coffee has added 11 stores. This year Costa will add another 50 outlets," Devyyani International Ltd (DIL), Costa Coffee master franchisee, CEO Virag Joshi told PTI.
"We expect to be in all major cities in the next two years," Joshi said talking about the Costa's expansion plans.
Upbeat about Costa Coffee's prospects in India, managing director Mark Phillips said, "India will be a very important market for Costa. Our long-term plan is to have 300 outlets in the next 3-4 years."
Joshi said coffee consumption in India is on the rise and has increased from 55,000 tonnes to 75,000 tonnes in the last three years after decades of stagnation.
"With the overall fast food segment growing at the rate of 40 per cent every year, coffee consumption is set to grow further. Coffee chains in India are expected to grow at a CAGR of over 30 per cent in the next couple of years," he said.
DIL has also set up a fully-owned commissary in Gurgaon that supplies savories and desserts for Costa outlets in India, Joshi said.
"Excellent pricing is the trump card. The brand has decided to rationalise prices in India as per market realities. Thus, we have priced our products very competitively. A 340 ml (smallest size) Cappuccino at Costa costs Rs 44, while the average price for the smallest Cappuccino, that is, 190 ml, is Rs 35-Rs 45," he said.
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