RedEye

Starbucks opens first store in tea-centric India

Coffee giant Starbucks has now ventured into India, the land of chai teas and lassi yogurt drinks.

A luxurious new store opened Friday in the Elphinstone Building in one of Mumbai’s most well-heeled neighborhoods – there’s a Hermes store nearby. Part of a joint venture with Tata Global Beverages, the store precedes two cafes also set to open in Mumbai next week.

The flagship location tries hard to sell the idea of an East-West union. Its standard offerings are served alongside Himalayan mineral water and foods such as the Elaichi Mawa Croissant, the Murg Tikka Panini and the Tandoori Paneer Roll. The décor is lavish, with Indian teakwood furniture, henna-like floor designs, bright billowing curtains and more.

Starbucks may be branching into businesses beyond coffee, opening up its Evolution Fresh juice stores and trying dedicated Tazo tea shops, but the Seattle-based giant is still expanding the reach of its original coffee shop concept.

That requires the company to gain traction in countries where tea rules. The company plans to have 1,500 stores in China alone by 2015, making the Asian superpower Starbucks’ second largest market.

India could be on the same track. Chains such as Barista Coffee, Café Coffee Day and Java City, along with more recent foreign arrivals such as Costa Coffee and Gloria Jeans, have primed the Indian market for the arrival of massive players such as Starbucks.

Rising incomes and an increasingly urban workforce also have hastened the growth of coffee culture. But Indians may be more interested in convenient brew – volume sales of instant coffee soared 66% from 2005 to 2010, compared with a 19% bump for fresh coffee, according to research group Euromonitor.

“We are investing for the long-term and see great potential for accelerated growth in India,” said Chief Executive Howard Schultz in a statement.

In late morning trading in New York, Starbucks shares were down 3.75%, or $1.78, to $45.63 a share.

ALSO:

Starbucks to open first Tazo tea shop in Washington

Starbucks to sell single-cup machines, challenging Keurig

Starbucks goes natural, opens first Evolution Fresh juice store

Copyright © 2015, RedEye
Related Content
  • Vegetarian McDonald's: Its first non-meat restaurant to open in India

    Vegetarian McDonald's: Its first non-meat restaurant to open in India

    McDonald’s, that carnivore’s haven of beefy Big Macs and chicken McNuggets, is going vegetarian.

  • The 10 biggest beer brands

    The 10 biggest beer brands

    You might be surprised by the biggest beer brands worldwide. Sure, Budweiser and Heinken have spots on the list, as expected. But there’s also a selection of international beers just now becoming popular in the U.S. And just try to guess the top beer label as ranked by trade publication the Drinks...

  • Where to go to laugh while The Second City undergoes repairs

    Where to go to laugh while The Second City undergoes repairs

    The early-afternoon fire on Aug. 26 that started in the Adobo Grill restaurant next door to The Second City has forced the historic theater to move or cancel all of its performances in their Mainstage, e.t.c and UP Comedy Club theaters until at least Sunday, Sept. 20, which will mark 26 days without...

  • City to offer ticket, tax amnesty program

    City to offer ticket, tax amnesty program

    Faced with pushing through City Council a massive property tax increase and other fees as part of a 2016 budget, Mayor Rahm Emanuel is trying to slightly soften that politically difficult package by offering an amnesty program for people who have unpaid tickets and back taxes they owe the city.

  • O'Hare noise complaints top 2 million for year

    O'Hare noise complaints top 2 million for year

    Complaints about jet noise from O'Hare International Airport topped 2 million during the first seven months of this year — eight times the number filed in all of 2014, the Chicago Department of Aviation said Friday.

  • Second City to move or cancel shows through Sept. 20 after fire

    Second City to move or cancel shows through Sept. 20 after fire

    Second City announced Friday it is moving or canceling all performances scheduled in its Mainstage, e.t.c. Stage and UP Comedy Club theaters through Sept. 20 as the comedy company works to clean up after an extra-alarm fire destroyed its Old Town offices last week, though not the performance spaces.

Comments
Loading
75°