Branding is crucial to India’s speciality coffee chains

A new wave of coffee chains is tapping changing tastes and lifestyles among younger Indian consumers and taking advantage of a pandemic-induced slump in property costs with ambitious plans to grow across India.

Why it matters

China, another tea-drinking nation that has embraced coffee in its cities, has also seen ambitious – and failed (witness the rise and fall of Luckin Coffee) – efforts to digitally disrupt the market. The approach being taken in India is rather more traditional, relying on distinctive branding, Mint reports, and stores that are designed as places for younger consumers to hang out. 

Who they are 

• Blue Tokai is expanding from its current 40 cafes to 120-150 within two years.
• Third Wave Coffee plans on having 300 cafes in 20 cities by 2023 (it currently has 21 stores).
• Dope Coffee is taking a slightly different tack, opening experience centres and outlets within existing restaurants and cafe chains.

Background

Demand for coffee has grown in recent years, thanks to a combination of higher disposable incomes and wider exposure to global trends. Now younger consumers are looking for more than “commodity coffee” and are showing an interest in specialty coffees, with small roasters now expanding into hospitality. Fresh, gourmet food and coffee up to 25% cheaper than the likes of Starbucks are also a draw for the new chains.

Sourced from Mint [Image: Third Wave Coffee]