IndiaRetailBiz

Barista, among the pioneering coffee retail chains of India, which last year was acquired by Italian coffee major Luigi Lavazza SpA, is planning to expand its retail network from 206 stores to 300 stores, at an investment of Rs. 32 crore ($8 million), this fiscal, reports Financial Express.

Coffee business in India, according to Coffee Board, is witnessing a boom time with compounded annual growth rate of 30-35%

Under the expansion, Barista will set up twenty new company owned stores in the towns where it is currently not present. Barista will also set up two new stores in Bangladesh. Barista is currently operating seventeen overseas stores located in West Asia, UAE, and Oman. It is looking to open two new café store in Bangladesh.

Interstingly, the company which reviews its stores operations every year, has shut down 10 stores last year, while 10 more are in line for closure this year. “We do look at stores on an annual basis, some of these are mistakes and some suffer due to high rentals” said Partha Dattagupta, Chief Executive Officer, Barista Coffee.

The new stores will comprise three formats; Corporate, High-street, and Exclusive. While, corporate stores will be set up near office complexes, high-street ones will be set up near shopping centres. The Exclusive format stores, eleven of which are currently in operation, are the important ones for the company. Ten more stores of this format, costing Rs. 40 laks each, are planned to come up during the proposed expansion.

The company is improving efficiency and creating new recepies to cushion the impact of rising prices.

Cafe Coffee Day is the largest retail coffee shop chain operating in the country.