By exporting the nation’s coffee cafe culture around the globe, Starbucks has contributed more to the United States’ soft power than most people or official initiatives combined. When Starbucks initially entered India in November 2012, there was a sizable line outside its Mumbai location, which served as evidence of this strength. It is now a part of marketing and business culture in India.
Starbucks currently operates 252 locations in 26 Indian cities, and its FY22 sales increased by 76% to Rs 636 crore. Since making its debut in India, Starbucks has developed into both a necessary component of some people’s lives and a form of aspiration for other customer segments. This idea is exemplified by the menu, which features western inspirations such as the Frappuccino, New York Cheesecake, and Croissants.
In 2022, ten years later, it appears that Starbucks has shifted to a new desi flavour. Filter coffee, tea flavours including masala and cardamom, milkshakes, and small snacks have just been added to the menu. In addition, Picco, a new cup size that is smaller than Short, its smallest global size, has been introduced.
Starbucks India CMO Deepa Krishnan says, as they develop and have more diverse customers, they have to think about what they desire. She believes that after establishing the coffee credentials in a country, it’s time to experiment with local options. The earlier adventure involved launching Starbucks in India.
Picco’s size (180ml) fits India’s preference for small meals and drinks. Indians are used to smaller sizes, adds Krishnan. The new offerings won’t be offered pan-India but just in Bengaluru, Gurugram, Indore, and Bhopal. According to food and beverage expert KS Narayanan, people are put off by coffee prices over Rs 300. The brand’s Picco (beginning at Rs 175) has a cheaper unit price to reassure customers.
With the brand proposition established, one can witness its expansion drive deeper into Tier-I cities, where it already has a presence, says Narayanan.
Starbucks and celebrity chef Sanjeev Kapoor collaborated in 2021 to launch mouthwatering items like the Masala Chicken Croissant, Bhuna Murgh Pie, and Red Poha with Coconut Stew. There is a huge trend in the country’s entire QSR or HoReCa segment, according to managing partner of BOD Consulting, Saurabh Uboweja, food is experiencing a rebirth in India.
Due to the increased popularity of fusion cuisine and adventurous patrons, everyone is under pressure to innovate and conduct extensive consumer behaviour research. If Starbucks doesn’t do that, it will be perceived as outdated and insufficiently modern, according to Uboweja.
The addition of vegan food to Starbucks’ new menu in association with Impossible Meats, a business headed by celebrity couple Genelia D’Souza and Riteish Deshmukh, is significant. Eight cities now have access to it.
Krishnan says, this is, once again, something that has come about as a result of people’s asking for vegan meals. Has Starbucks thus fallen victim to a fad? In Krishnan’s opinion, veganism is not a trend. Customers are choosing it as a strategic aspect of their lifestyle, in her opinion.
According to brand consultant Abhimanyu Mishra from Brandfizz, India is no Singapore, Dubai, or any far-east country. The possibilities are that whatever there is on the menu, there can be 99% of the time an Indian substitute for it, and that’s where it is important for food brands to keep evolving with time as per the taste and desires of Indians.
