Barista Coffee, India's largest homegrown coffee chain, has announced ambitious expansion plans to grow its network to 800-900 outlets by 2030, with a strategic focus on tier-II and tier-III towns. The company recently achieved a significant milestone by opening its 500th cafe in Patna, Bihar, driven by the growing coffee culture among India's youth, particularly in smaller towns where aspirations and disposable incomes are rising.

Expansion Strategy and Growth Targets

Barista's expansion strategy involves systematic growth through both company-owned and franchise models. CEO Rajat Agrawal outlined the company's confident approach to achieving these targets over the next few years.

"In the next 5 years, we are easily looking at going to about 800-900 stores. We are very confident in growing. We open about 50-60 outlets a year through company-owned and franchise networks. So, 800-900 stores in the next 4 years is quite doable," Agrawal explained.

Vending Machine Business Expansion

Barista is also significantly expanding its coffee vending machine segment, which represents a major growth opportunity for the company. This business vertical, launched two years ago, has become a significant focus area with ambitious scaling plans.

"Today, we have installed 500 vending machines. There is a huge growth path, and we are looking to have a 10x growth in this network in the next 5 years. So, we are looking at about 5,000 machines in the next 5 years," Agrawal stated.

Market Presence and Strategic Focus

The company has been concentrating on tier-II and III cities over the past few years due to better yields and lower operational costs. Store rentals are more manageable in these areas, making them attractive for expansion, with Agrawal noting that earnings profiles are more favourable in these smaller cities.

Barista's current market presence includes:

• Delhi NCR: Over 80 stores
• Mumbai: Strong presence established
• Bengaluru: Around 7-8 stores in development
• Kolkata: Approximately 5-6 stores

Market Outlook and Financial Projections

The Indian coffee market is experiencing significant growth, with the cafe chain industry currently valued at approximately ₹6,000 crore and expanding at a compound annual growth rate (CAGR) of 10-12%. This growth reflects an increasing density of coffee consumption across the country.

Barista anticipates achieving sales of ₹400 crore by FY26 at the network level, including franchise earnings. The company's strategy is geared towards profitable growth by extending its reach beyond metropolitan areas into smaller towns, capitalizing on the growing coffee culture and rising disposable incomes in these markets.