India Coffee Retail Chains

Coffee retail chains are multi-unit operations marketing and selling coffee beverages, snacks, and related products using a common company brand image. These chains operate through the company-owned and franchise businesses and pay much attention to customer care, atmosphere, and location. They are usually divided by consumers’ type, such as students, working individuals, or families, and have a lifestyle appeal.

The India Coffee Retail Chains market is set to show a growth rate of about 8.20% during the forecast period (2025-2033F). The primary growth drivers of the India Coffee Retail Chains market are the increasing urbanization, shift in the population’s consumer habits, and an increased trend among the youth to spend time in cafes. Also, the higher disposable income and the ongoing trend to select superior, away-from-home endorsements fuel further growth. Moreover, access to more digital platforms and franchises also enhances the size of the market. To achieve growth in the coffee retail chains market, major players in the coffee retail chains market in India are franchising, setting up franchises in Tier II & III cities, and using technology in the form of loyalty apps and online ordering.

For instance, on January 30, 2025, Coffee Island announced its debut in India in partnership with Vita Nova. This strategic entry marks a significant milestone for the brand as it forays into one of the world's most dynamic coffee markets to offer a distinctive European Coffee Culture experience.

• Based on the type of outlet, the market is segmented into dine in, take away. Among these, the dine-in café market held the dominant share of the market in 2024. The dine-in segment contributes a lot towards the growth of India’s coffee retail chain market by offering places where one can work, interact with others, and relax. Chained cafés with franchisees and a bright, comfortable atmosphere, wireless Internet access, and selected food and beverages are popular among youngsters and businesspeople who need something beyond beverages. This consumer behaviour increases traffic and repeated use, which helps the kind of growth in urban areas. For instance, on March 27, 2025, UK-based freshly made food and organic coffee chain Pret A Manger launched its first-ever full-service dine-in store globally in India. Located in Pune at Phoenix Mall of the Millennium, the 989 sq. ft. outlet offers guests the brand’s first-ever global sit-down dining experience.
• Based on the ownership model, the market is segmented into company-owned outlets, franchise-owned outlets. Among these, the franchise-owned outlets segment is expected to grow with a significant CAGR during the forecast period (2025-2033) due to the desire to own a café franchise, and the large players expand their reach at a faster pace at the national level. Franchisee-owned models are quite effective in fast expansion because of low capital exposure and better knowledge of the local market. This segment helps in reaching out to the second and third tier towns with unified and homogenized services and products.
• For a better understanding of the market adoption of the India Coffee Retail Chains market, it is analyzed based on its state-wise presence in India, such as North India, East India, West India, and South India. South India is expected to grow with a significant CAGR during the forecast period due to the growth of the market. South India, in particular region is a major consumer of coffee in India as it is also a traditional region where coffee is consumed in India. Bengaluru, Chennai, Hyderabad, Kerala, and Coimbatore are among the more urbanized cities where the coffee literacy level is high and consumers are loyal and well ingrained in coffee culture. The younger and tech-savvy urban population, especially the students and working-class people, provides a steady market for the dine-in cafés and specialty coffee brands. This is one of the reasons that many brands subject new products to testing and launch in this area. Moreover, cultural convenience coupled with the coffee drinking pattern and the presence of skilled human resources make South India a strong and most suitable area to venture into. For instance, on April 04, 2025, Starbucks, the Seattle-headquartered cafe chain, opened its first drive-thru outlet in South India in Bengaluru. The cafe chain’s India operation, TATA Starbucks, a 50:50 joint venture between Starbucks Coffee Company and Tata Consumer Products Limited, opened its maiden drive-thru cafe at Electronics City, also the 50th store in Bengaluru. TATA Starbucks currently has eight drive-thru coffee outlets in the country.
• Some major players running in the market include Cafe Coffee Day (Coffee Day Global Limited), Starbucks Coffee Company (Tata Sons Private Limited), Barista Coffee Company Limited, Third Wave Coffee, Coffee By Di Bella, Blue Tokai (Muhavra Enterprises Private Limited), SLAY Coffee, Costa Coffee (Coca Cola group), HATTI FOOD AND BEVERAGES PRIVATE LIMITED, Brewbay Innovations Private limited (abCoffee).