The coffee chain’s Indian franchisee Devyani International opened 19 new Costa Coffee stores in its second quarter amid impressive year-on-year revenue growth
Costa Coffee achieved 134% year-on-year sales growth to reach Rs 220m ($2.7m) | Photo credit: Costa Coffee
Costa Coffee continues to achieve improved sales and profits in the increasingly competitive Indian coffee shop market.
Delhi-based Devyani International Limited (DIL), Costa Coffee’s franchise partner in India, opened 19 new stores during the last quarter to reach 88 outlets.
Reporting on the three months ended 30 September 2022, DIL said Costa Coffee achieved 134% year-on-year sales growth to reach Rs 220m ($2.7m).
Revenues to date this financial year have reached 96% of total revenues in the company's previous financial year.
DIL became Costa Coffee’s Indian franchisee in 2005 and announced a five-year extension of its partnership with the coffee chain in August 2021.
Costa Coffee’s second quarter outlet growth represents wider market expansion in the country, with international brands seeking to catalyse increasing demand for premium coffee amongst Indian consumers.
In October 2022 Starbucks, which operates 300 stores across 36 cities in India, opened its first Reserve store in the country in Mumbai. The announcement followed a $613m investment by the US coffee chain’s Global Coffee Alliance partner, Nestlé, to expand its coffee product portfolio in the country.
Canadian coffee chain Tim Hortons has opened five stores in New Delhi and one in Chandigarh amid plans to open “hundreds of stores” in India over the next ten years.
Additionally, Reliance Brands recently appointed Chandramohan Ramadasan as Business Head to oversee operations of UK-based Pret A Manger in India, where it is targeting 10 stores by July 2023.
DIL is also the largest franchisee of Yum Brands in India, where it operates licenced stores of the fast-food brands KFC, Pizza Hut and Taco Bell.