Starbucks boss checks out his competition in India

Starbucks chairman Howard Schultz recently paid a visit to Barista, which is India’s largest and fastest growing chain of espresso bars, but declined to sample its coffee. The chain's majority owner, C. Sivasankaran, pledges: "I will make Barista the Starbucks of India." (Calcutta Telegraph)

Comments

[Dhruti]

lolol yeah...Mr. Sivasankaran needs to keep a good control on its prices......thats where Starbucks can kill them....and i guess they are already facing great compitetion from Cafe Coffee Day....which seems more affordable to students these day...!!

[Jateen]

A price war is something both Barista and Starbucks don't want...

I think Starbucks will make their presence as soon as they can... But students alone their main leverage in India would be their strong branding...

[Vishal]

Well, I wonder what they are waiting for. I heard about the chairman's visit, and the deal with Tata coffee for sourcing beans from India.Although it might be a little complicated if Starbucks were to launch in India now, as one of their competitors will be their suppliers(with Tata buying about a third of Barista). Either way we've been hearing Starbucks go on and on about how India is such a favourable market to launch their products ( and services) for about 5 years now ! People @ starbucks if you're listening enough talk already ! go out and do what you're best at doing - making and selling coffee. India's not gonna wait forever.

[Jones]

Starbucks is missing out on Indian's recent social culture of kids hanging out at coffee houses. Indians will spend $2-3 for a cup of coffee and starbucks would set a new standard. Its important that they come in as a 100% player, which isn't permitted today. Indians will want to be seen at a Starbucks.

[Vishal]

I can see the merit of entering as a 100% player but I'm quite sure Indians will not pay $2-3 for a cup of coffee, currently at the highest end of this market is Barista- where prices are rarely over $1.Also coffee houses are fast losing their status as a hang out joint where kidslove to be seen. It was definitely the case about 5 years ago when coffee houses came on the scene. It is now a more stable crowd to the coffee houses as the pub culture has hit India big time and that's where the youth want to be.

[Anuj]

Hey Guys, I havent checked out the site yet, but jus hit upon this thread...Jus wanted to let yu all know that SBUX has signed on a deal with Pantaloon in India as its local Joint Venture partner....They were havin meetings with both Pantaloon and Planet Sports(which is the Joint Venture partner in Indonesia), but fnalised the former...The problem they were facing to launch operations in India was that jus like China, India requires any foreign company to have a local Joint Venture partner so that the ownership is not 100% foreign...But now with the signin of this deal, expect SBUX to launch operations in India very soon....

[Janaki Raman]

Inviting you to launch at 4th Edition Coffee Tea India Fest @ Chandigarh, 21st-23rd October 2005. India's only authentic Event sponsored by Ministry of commerce Govt of India and coffee Board India.
contact Janaki Raman at Pune, India on 09823055525

[Piyush Katakwar]

hey guys, i think according to the news flashing in the newspapers is the SBUX is on the verge of finalising the deal with the Raheja's as their franchisee for upto government is not allowing the FDI. And i am completely agree with Anuj that Indian population is yet not prepared to pay $2-3 for a cup of coffee. Or probaly SBUX will come up with some inventive thinking to sandwich price between Taste and Experience at SBUX

[dipti]

hey all..where do u think starbucks should focus in terms of strategy if it does eventually enter the indian market. Why would you want to go to a starbucks and not a barista or a ccd given that starbucks is competitively priced..?

[Robusta]

Barista? Its all fun and no value.Thats where they "catch them young".
Starbucks is serious and has a value attached to its products. It'll make through, very smooth.

The rumor in Seattle is that Starbucks is going to make a majority of its International Liscensed Stores company owned. That would be interesting.

[Raq]

Agreed that SBUX wont be able to sell at 2-3 $ in India.The only way they can survive or make a difference is by offering quality hhealth food. Neither CCD nor Barista has them as of now.and guys.. are they entering thru franchise network?

[Nitasha]

Dear sir,

I want to know the stores of starbucks in India to have coffee.

Awaiting your reply.

Regards
Nitasha

[krizkross]

Hey Guys,
Once Starbucks gets to India, all of you will enjoy great coffee in a great place. But one thing to remember, they are not a coffee shop selling to people, they are more a people shop selling coffee. You will know what I mean when they come to India and go into their stores a few times. The first few times, this giant of a brand will cover all of these emotional bindings, but as time goes by, their partners (employees) will become part of your lives with their legendary service offered at their stores.

[Ajit Dhavale]

hey Starbucks Team,
hi ! My name is Ajit .I live in Pune, India.I am a franchise to Fresh and Honest Cafe(C.Shivshankaran of Barista is our CEO).I have been in the coffee brewing business for more than a year.I have lived in the US and have been a great fan of Starbucks there.But when it comes to India , Barista will continue to have a home advantage (The news is that Starbucks have started their Indian operations)..My biggest question to Starbucks folks is how will you price your coffee at Rs 5 in comparision to your price of 3.5 $ which you charge in your cafes in the United States.Thats the key...But by the time you do that C.Shivshankaran will have left no place for Starbucks in India!
Cheers
Ajit email : universalbeverages@yahoo.com

[jobe]

i came to hear all sorts of roumers about youre venture into the indian market . i am a regular customer of starbucks and crazy about it. since its coming to india me and a friend of mine are interested in asociating with you be helping you out to franchise it .

if interested please inform us and we can provide you the necessary details requird by you
regards
jobe

[STARBUCKS GOSSIP webmaster]

Dear Ajit and Jobe -- This site is not run by Starbucks (as clearly stated in the ABOUT THIS SITE section). It is run by a Starbucks customer.

[Count]

i think that star bucks should not come to india as indian people are very poor to afford a cofee cup priced at 3.5$. secondley, look at your climate people????. stop being westernized and remeber what u acctually are!!!!!!!!!!!!!!

[khyati pandya]

hiii ther....to all
being an indian student studin in london...i had exprienced both barista as wel as starbucks. i guess both are good in their own way...i dnt mind starbucks comin to india as long as they increase the range of tea(chai)beside tazo chai..after all we belong to chai-culture country..and best would be to have some bhajiyas as wel wid chai....wht say??????????they ll have highly cumtomise they product for india...for high profit...after all we are special plp...isn't it???
cheers

[mira]

You all keep on harping about Starbucks. Ever heard of Tchibo?

[leonard]

Hi there im ur competitor fm CCD.Nice to U guys SBUX comin to India wud hv a grt & healthy competition.
Good Luck.

HEY

Starbucks can enter in India, but for this it has to make some startegies.

[DILRAJ S BAJAJ]

Hi i would like to have a franchiee of starbucks
plz send me some deatils

This site is not run by Starbucks (as clearly stated in the ABOUT THIS SITE section). It is run by a Starbucks customer.

[Boston Starbucks Rebel]

Starbucks will succeed wherever we go. It doesn't matter because we have already entered Europe and other countries throughout the world. Barista is just another place to take on once again. Starbucks can buy any location it wants in India by simply by outbidding to get the lease. Starbucks has a "war chest" and that is the key to global dominance. Starbucks also sells Arabica beans which are a much higher quality than other beans sold throughout the world. None may stand against the Siren! NONE! (Cue evil laughter from Uncle Howie!)

[aamir sayeed]

i m working in costa coffee
as shift manager for
past 5 months.and i want to
join star bucks in india.

[aamir sayeed]

i m working in costa coffee
as shift manager for
past 5 months.and i want to
join star bucks in india.

[aamir sayeed]

i m working in costa coffee
as shift manager for
past 5 months.and i want to
join star bucks in india.

[sumit kumar]

i m working in costa coffee
with 1year experience as shift manager.

[sumit kumar]

i m working in costa coffee
with 1year experience as shift manager.

[TonySan]

BSR You crack me up! =0)

Have a Grande!

[Rohit]

starbux should be on india caz lot of people they can know the real taste of latteeeeeeeeeeeeeeeeeeeeeeeeeeeee
and the sbx is the best in the world... but stilll cafe coffee day is the sbx of india

[AC]

Starbucks coffee isn't that good. Not in the UK at least. Caffe Nero is the better alternative over here where the coffees actually tastes like coffee and not some sort of hot milkshake.

[Anniruddh]

I want to know their India Office Address, If somebody have it, please send me across my email.

[amit saraf]

Hi i would like to have a franchiee of starbucks
plz send me some deatils

[mukesh]

Starbucks starbucks starbucks…………….. please come fast, we are waiting for you in India, we want some tough competitor now ,,Barista is no more a competitor for us

Best Of Luck

[Jazzie]

Can anyone confirm if Starbucks has infact finalised a JV deal with the Goenka's (the RPG Group) for starting up their India operations? Cheers...

[srinivas]

Hope Starbucks is looking for a project Manager for setting up outlets in india. looking for an opertunity to work with Starbucks..

[jaideep]

Hey I Think People should not change there brand loyalties, you should be loyal to your coffee brands, treat them like your wives. Coffee is like a companion that stands with you in tough, rough, and nice times.

And my advice to my country men ,its high time to be patriotic. Dont let USA rule you. Promote Barista and not Starbucks.

[amit jha]

respected sirs,
i would like to join your organisation with more than 3 years of experience in uk in haagen dazs cafe london and always had the desire to work for such esteemed organisation and that to in my country india would be my privilege

[VPATEL]

Guy & Gals,

i work for Costa Coffee in UK. With regards to starbucks. It is finding difficult to make profit in UK (Last year was the first time they posted a profit of 1 Million pound compared to Costa and nero's at 12 Mill & 7 mill respectively. )

What chance has starbuck got againts Costa and Nero's in India. ?

Costa has already opened 25 stores and plan to open 300 by 2009

[S.Chandra]

I am General Manager with Nirulas , New Delhi.(Fun Food for Families in and around NCR). Soon goping to catch up with national scenario

[Raman]

Well there is plenty of room for everyone..whether Barista or SBUX. Let there be more players and market will mature accordingly.

[Karan]

Hi Friends

I want to know the contact no. of the person dealing with the franchisee of Star Bucks coffee in India.

[SANJAY BHASIN]

looking for starbucks coffee franchise in delhi,india

[sivasankaran]

The year 2005 could not have ended on a better note than this for rookie businessman C Sivasankaran. He has walked away with $800 million (around Rs 3,600 crore) by selling off his GSM business - Aircel - to a Malaysian company Maxis Communications and Dr Prathap Reddy’s family.

Sivasankaran said that the deal was signed with Maxis on Friday. “I am an $800 million bald headed kalu. Frankly, I have yet not decided what I will do with the money. The details on that will be known by Wednesday. I am happy I found a good suitor, I am on permanent vacation. I have it easy. Strange considering I suffer from HIV. I have never worked a day in my life. I am such an ugly motherfucker it would have been better if my father had worn rubber. All this is a good augury for Aircel.

“I only respect money. I do not respect my former Aircel employees who have slogged extra hard to make me my money. I am an NRI businessman. I am only here for easy money. If someone gives me over Rs 2,000 crore (Rs 20 billion) because the company has grown a hundred fold in value due to the sweat of my employees I will surely consider it. I want at least ten times of EBIDA. My employees of course get nothing except the sack if the company that has acquired my company wants to cut costs. Sooner or later they realise that I cheated them.

“My modis operandi is simple. I sit at home, build the business for a few years, create value through the sweat of my employees and sell it for a profit, moving on to other interests. I am a tough negotiator who can extract the cheapest price from vendors or when I buy a business. I formed Aircel eight years ago. I hired several people and paid them lunch money fifty grand a month. That is the good thing about India. There are so many people looking for work that you can just exploit them. After hiring them I just sat at home, ate gourmet food, slept 12 hours a day and watched four movies every week. Today see how rich I am.

“India is a very good place for a businessman. I employed people for Aircel and paid them low wages, and made them slog for long-hours. I paid my employees insulting salaries. Often I made employees work on a contract for several months and then I cynically laid them off and re-employed them later to rob them of their protection against unfair dismissal and other employment rights.

“I forced my employees to sign opt-outs from the working time regulations. I threatened them with the pain of losing their jobs or because they need a second job simply to pay the rent. I do my homework before coming to the table. I know the weakness of the
guy with whom I am negotiating and am able to drive down prices by promising fabricated volumes. I prefer to pay cash upfront to vendors rather than go for credit lines so that I can negotiate with them from a position of strength. I am such a greedy chap it would good if the mafia gives me a kneecap.

“At Aircel I created conditions for my employees that are a disgrace to a modern democracy in the 20th century and did the business profession proud. My employees were left vulnerable to my unscrupulous desires.

“I do my homework before coming to the table. I know the weakness of the guy with whom I am negotiating and am able to drive down prices by promising fabricated volumes. I prefer to pay cash upfront to vendors rather than go for credit lines so that I can negotiate with them from a position of strength. I am such a greedy chap it would good if the mafia removed a kneecap.

“It was the hunger for easy money that brought me into telecom. I sensed that the GSM cellular market would take off, so I shifted base to Delhi in the early nineties and intelligently bid for GSM licences that were being offered by the government. After a protracted legal battle as there was a sense that I did not want to work at all (initially I won licences in Delhi, Mumbai and Chennai) I won the Delhi GSM
licence. And in the second round of bidding I picked up three more licences. Money grows on trees in the mobile telecom sector. Just ask Analjit Singh, Rajeev Chadrashekhar.

“I am not an organisational man. I most certainly do not believe in nurturing one at all. I look at each business for a maximum of five years. I just want a quick buck. I have created wealth without lifting a finger and I must enjoy it in this life. God may punish me for my laziness but hey that is okay. I jet set the world like Romeo. One day it is Delhi, the next San Francisco, Frankfurt, Zurich, the works.

“Over the next six months I will luxuriate at the presidential suite in the Ritz Carlton in Singapore. I will get up at 10 in the morning and have a buffet breakfast. I consider that to be hard work. Then I will watch a movie. For lunch I will enjoy lobster, tiger prawns, smoked salmon, roasted duck. Then I will sleep for three hours in the afternoon. In the evening I will watch the same movie again as I have no work. Then I will hang out in bars and nightclubs. The next six months I will spend in my swanky home in San Francisco. I will hang out with my tall, tough American women friends. I can afford this luxury through the blood and sweat my former Aircel employees put in to create value worth billions of rupees while I just sat at home and took it easy. Many of them will lose their jobs when Dr. Reddy realises that he has overpaid me to the tune of $500 million.”

[Raghunath.KR]

I hope starbucks will creat history in indian market creating "THIRD PLACE' for the CUSTOMER.I am Expecting Starbucks to open more Stores in BANGALORE known as IT city.

Raghunath.KR

[dicky]

dear sir,
i would like to have info about franchise in india,punjab,ludhiana.i am gr8 fan of ur coffee which i had almost everyday on my recent tour to new york..well please send me soon ur franchise deals
thanks

[Ajit]

hey Uncle Howie,
where is starbucks .Not seen anywhere yet !Starbucks may a war chest but in this business it doesnt count only having a war chest.its much more than that.Its all about Pricing Uncle Howie !...how many Indians will drink your Columbian flavoured coffee when you have great home grown Coffee beans here in India.Ultimately its the numbers game 10 folks having your columbian flavour and 100 folks having the home grown flavor.
cheers
Ajit (universalbeverages@yahoo.com)

[hrish]

Hi i would like to have a franchiee of starbucks
plz send me some deatils