Costa Coffee has operated in India since 2005 via franchise partner Devyani International Limited | Photo credit: Costa Coffee

Costa Coffee is pursuing a ‘cluster-based approach’ for expansion across India to boost its store network across the country’s ‘top eight-10 cities’.
 

Vinay Nair, Costa Coffee’s General Manager for India & Emerging Markets, said India ‘can be a significant growth story for Costa Coffee’s global business’. The coffee chain currently operates 115 stores across India and is expected to continue its focus on airport, highway and healthcare sites. 

“Coffee culture is still in the early stage of category development in a tea-drinking nation of ours. Young consumers are increasingly embracing coffee as a category, and there is a thriving coffee community in India. There is a growing interest in speciality coffee. We are quite bullish about the India consumption story, as for us, coffee is a long-term bet,” Nair said. 

Costa Coffee has operated in India since 2005 via New Delhi-based franchise partner Devyani International Limited (DIL). 

Reporting its full-year results for the 12 months ended 31 March 2023, DIL highlighted strong revenue and outlet growth for Costa Coffee with sales for the coffee chain increasing 148% during the period to reach Rs. 1,018m ($12.3m). 

Costa Coffee’s full-year sales were also 24% higher than pre-pandemic levels. 

Additionally, DIL more than doubled Costa Coffee’s store network across India during the period, opening 57 net new stores — including its 100th Costa Coffee store in New Delhi’s Khan Market shopping district in January 2023. 

Founded in 1971, Costa Coffee operates 2,700 stores across the UK and a further 1,100 outlets in over 40 international markets.   

DIL, which also operates 543 KFC stores and 510 Pizza Hut restaurants, achieved 44% group revenue growth to reach Rs. 29,977m ($364m).