The Indian franchise group, which opened its 100th Costa Coffee store during the third quarter of its fiscal 2023, says year-to-date sales for the UK-based coffee chain have reached 167% of 2022 total revenues
DIL opened 15 new Costa Coffee stores during its last quarter to reach 103 outlets | Photo credit: Costa Coffee
Devyani International Limited (DIL) has reported robust revenue and outlet growth for Costa Coffee across India, with sales surpassing its full-year 2022 total.
Reporting on the three months ended 31 December 2022, the Gurugram-based franchise group said the UK-based coffee chain achieved 104% year-on-year sales growth to reach Rs 291m ($3.5m).
Costa Coffee’s revenues for the first nine months of DIL’s 2023 fiscal year reached Rs 688m ($8.3m), 67% higher than its full-year 2022 sales.
Additionally, DIL reported the coffee chain’s gross profit reaching Rs 226m ($2.7m) in its third quarter, 98% higher than the same three-month period last year.
DIL, which has been Costa Coffee’s franchise partner in India since 2005, opened 15 new Costa Coffee stores during its last quarter to reach 103 outlets.
This included new outlets across its target Delhi and Mumbai markets and its 100th store in New Delhi’s Khan Market shopping district.
DIL, which also franchises the KFC and Pizza Hut brands across India, Nepal and Nigeria, achieved 27% year-on-year third quarter group revenues of Rs 7.9bn ($95.6m).
The strong performance of Coca-Cola-owned Costa Coffee in India follows 42% revenue growth for Tata Starbucks in its third quarter. The Starbucks licensee opened 11 new stores in the quarter to reach 311 across India.
Fellow international coffee chains Tim Hortons and Pret A Manger have also set out growth plans for the Indian market.
Canada’s Tim Hortons debuted in India in August 2022 and now operates 11 stores across the country. The coffee chain plans to reach 120 stores across India by 2026.
Meanwhile, in June 2022, UK-based Pret A Manger announced a franchise agreement with Reliance Brands Limited to launch in India. The companies plan to open 10 stores within the next six months and up to 100 Pret A Manger outlets across India by 2027.