IndiaRetailBiz

After three failed attempts at obtaining approval for its foray into India, the iconic coffee chain brand Starbucks has decided to withdraw its application to operate single-brand retail stores in India. While, it declined to offer any explanation for its decision, it is not abandoning its plans to do business in India.

“We’re committed to having a presence in the market,” said Brandon Borrman, a company spokesperson. “This is just a temporary decision as we assess our options and make revisions,” he added.

“Starbucks is reviewing all its options and evaluating how it will proceed with regard to entry into one of the fastest growing economies in the world,” said another spokes person T May Kulthol.

Starbucks, founded in 1971 in Seattle (USA), is the biggest coffee retailer in the world. Having clocked US$8.578 billion in sales, it operates 13168 stores with 145,000 employees worldwide.

Starbucks had chosen to make its foray into India through franchisee route as a foreign single-brand retailer can invest only up to 51% in a retail venture in India. Its application for opening single-brand stores was made through its master franchisee New Horizon Retail– a 51:49 joint venture between its Indonesian licensee V.P.Sharma and Kishore Biyani of the Future Group.

Starbucks had planned to open its first store in the national capital of India by 2007-end.

Starbucks has an ambitious plan to expand its network and is aiming at setting up 40,000 stores worldwide.