In India, the global coffee chain Starbucks is celebrating its 10th year. As part of it, the brand has Indianised its menu by offering an array of Picco-size beverages such as Cardamom Chai, Masala Chai, and Filter Coffee at its outlets in Bengaluru, Bhopal, Indore, and Gurugram. What is the reason behind this change?
According to Sushant Dash, CEO, Tata Starbucks, the Picco size, which is 6 oz, is specific to the Indian market. It is because Indians mostly don’t consume huge quantities of liquid. The stomach share of Indians is much lower than that of their western counterparts. Also, Indians are familiar with items such as Masala Chai or Filter coffee. This will bring more groups to the stores.
Starbucks has also reduced the food portion size as there were complaints about Starbucks’ large food portion size. So, Starbucks has introduced three categories of food-bite sizes which target mainly in-between meal occasions. For groups, there is something called ‘shareable.’ There are also sandwiches with regional flavours.
Sushant says when it comes to Indianising a global brand, the challenge is to remain true to what the brand stands for at the core. In the case of Starbucks, it will always be about coffee and the food that goes with coffee. That is why Starbucks has launched the Indianised versions only in four cities. The pilot will help the brand learn about the new scenario.
Starbucks opened the highest number of stores in the last year. It opened 50 stores. Sushant says the brand will go on with the expansion. Although inflation has affected coffee bean prices, Sushant says, we have to live with that. And, Starbucks is working on areas that can be optimized to tackle inflation.
