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Why is Starbucks a Midget in India?

Why is Starbucks a Midget in India?

Coffee Day Enterprises, which owns Café Coffee Day, India’s largest café chain by store size, competes with Starbucks and Barista. It also has outlets in Austria, the Czech Republic, and Malaysia.

Quartz reports, Café Coffee Day is all about scale: the company had 1,423 outlets across India and abroad at the end of 2014, and over the last few months this number has grown to 1,538 stores. As of April 2015, Starbucks operates 76 outlets in 7 cities of India per the company Website.

Cafe Coffee Day

“Competitive pricing has attained better consumer penetration and strong connection with the young consumers,” Café Coffee Day says in its prospectus.

 Café Coffee DayStarbucks
Small Cappuccino$1.2$1.85
Small Expresso$1.06$1.54
Small Hot Chocolate$1.55$2.08

 

“Out of 1.3 billion population, we are considering the market of around 30% of India,” V.G. Siddhartha, chairman and founder of Coffee Day Enterprises told CNBC-TV18. “So, according to us, there is a mind-boggling opportunity in big cities, small cities and even the highways.”

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