Starbucks, the world’s largest coffee chain, has decided to add ‘masala chai’ and ‘filter coffee’ to its menu to attract more Indian customers. For the last few weeks, the company has been busy revamping its menu to better suit the Indian palate. According to the report, Starbucks has already added street-style sandwiches and milkshakes.
Starbucks also serves ‘chole paneer kulcha’ and ‘turmeric latte.’ The new merchandise is being tested in four markets: Bengaluru, Gurgaon, Bhopal, and Indore. Based on the feedback from these cities, the items will be launched across the country.
“The aim is to learn, to observe consumer acceptance across markets, to see the subtleties, to check and adapt, and then to see where it goes,” said Sushant Dash, chief executive officer of Tata Starbucks.
In terms of pricing, the Starbucks chain in India is positioned at the premium level. Its competitors, such as Costa and Cafe Coffee Day (CCD), provide comparable beverage items at significantly lower prices.
Until 2021, the coffee chain had grown to over 260 locations in 26 cities across the country. In 2013, the first Starbucks coffeehouse opened in Mumbai. Tata Consumer Products Limited (formerly Tata Global Beverages Limited) and Starbucks Coffee Company have a 50:50 joint venture agreement, hence the name Tata Starbucks.
The move coincides with Mukesh Ambani’s Reliance’s efforts to bring the British sandwich and coffee chain Pret to India. Reliance Brands Ltd (RBL) CEO Darshan Mehta said in a joint statement on June 30 that the partnership was “rooted in the strong growth potential” of the Pret brand, known for its organic coffee and upmarket sandwiches, and the Indian food and beverage industry.