How Barista is brewing the perfect concoction of innovation, experiences and expansion

Incepted in 2000, Barista Coffee Company Ltd started with the objective to deliver a truly international coffee experience to its customers in a warm, sociable, and peaceful environment. The ideology was to change the scenario in the Indian palate of people bonding over coffee with heartfelt conversations. One of the leading chains of espresso bars and cafés in India, Barista thrives to provide an international experience in terms of cafés and coffee culture.

Barista not only provides several types of coffee, but has also diversified its menu with mouth-watering eatables. Adding to their portfolio, they also cater to their guests with products such as chocolates, coffee powder, and cookies through their outlets and general trade stores across pan India.

In an interaction with Adgully, Rajat Agrawal, CEO, Barista Coffee Company, speaks about offering a consistent coffee experience to its customers, introducing diner vertical to the business, growing the franchise business, expansion in the Sri Lanka market, and more.

How do you ensure the quality and consistency of your coffee, and what measures do you take to train your baristas?

Coffee is core to our business and our biggest strength as a brand, we have detailed SOPs laid down, which help to be consistent and savor the same experience each time a cuppa is brewed. All raw materials are centrally procured and there are no gaps or compromise on raw materials, which helps us to be consistent. Recurring training is an important aspect of our business, which we take very sincerely and have laid our processes for On-the-job and classroom refresher programs to create recurring learning as a culture within our team of Baristas.

What are the key challenges that you face in the coffee industry, and how do you stay competitive in a crowded market?

Manpower is the biggest challenge in today’s scenario at the store level, further inflationary cost pressures can also be noticed in the last two years. Consistent experience is the key to the game and we have been able to manage the same efficiently across our 350-plus operating stores with our well-drafted SOPs and real-time monitoring even at the distant store. Technology is playing an important role today for us to be able to manage the entire value chain efficiently.

What is your approach to sustainability, and how do you ensure that your business operates in an environmentally responsible manner?

We keep on running consumer education programs related to the use of coffee waste, lesser usage of paper, and usage of biodegradable takeaway cups/ cutleries. These are all been worked upon to make the environment sustainable.

What do you see as the future of the coffee industry, and how do you plan to adapt to changing consumer preferences and trends?

Specialty coffee and innovation around functional coffee is the new future, we as a brand have continuously adapted to changing consumer demands and preferences. We have also launched specialty coffees, On-the-Go coffees, and Travel-friendly coffees, which are relatable in the current context. We have also given choices to the consumer the option of the non-dairy milk (vegan) like Oat/ Almond at our stores.

How do you approach innovation and new product development, and what role do customer feedback and market research play in this process?

We have a dedicated R&D team that works closely with the market team on new global trends and help us innovate along with sourcing partners.

How do you engage with your customers, and what steps do you take to build brand loyalty and customer advocacy?

We have our privilege card offerings for our loyal guests and also we are working towards launching our loyalty program this fiscal year.

What are your plans for expansion and growth in the future, and what new initiatives can we expect to see from Barista Coffee in the coming years?

We have been growing at a rapid pace with almost 70 stores opened in the last 12 months, taking our current strength to 360 stores. We are targeting 500 stores over the next two years.

Could you share more about Barista Coffee’s expansion in Sri Lanka? How has the growth of your cafe chain been received by the local market, and what strategies have you implemented to establish yourselves as the largest cafe chain in the country?

We are the largest café chain in Sri Lanka, with 25 operating stores and a pipeline to be at 30-plus stores by the end of this fiscal year. We have been able to consolidate the market well over the last three years and have grown at a rapid pace. Engagement with consumers has been our biggest asset along with being consistent with our experience and has been able to manage the toughest three years of the Sri Lankan economy and have come out as a winner and consumers have bestowed their faith in us.

What opportunities do you see in the Dubai market, and how do you ensure that the quality of your coffee products is maintained during the exporting process?

We have standardised packs that have been approved by local authorities in Dubai, where they have a rigorous screening process. Our entire production is done by large organised players and consistently reviewed for quality by our Quality team before the shipments.

Could you provide more details about Barista Coffee’s entry into the Diner segment? What inspired the expansion into offering Italian, continental, and other cuisines? How do you ensure the same level of quality and customer experience in this new segment as you do in your cafe business?

The diner is a newly added vertical to our business focusing on food as a big opportunity. We have been focusing on the same for the last 2-3 years and growing steadily. India as a market always wants something more than coffee and this format gives you an entirely fresh food experience made to order at our stores curated by our culinary experts. Our Culinary team has laid down SOPs and standardised our sourcing to make our products consistent at all stores, the kitchen and service team is trained periodically to deliver a consistent experience at all levels.

According to your current Franchise Model, which is the most beneficial market for you? How do you plan to leverage this business model?

North India is our biggest franchise market in the current times, however, we are geared up to grow this model further to other parts of India. Our inquiry pipeline is healthy and we are looking to further step up the pace of expansion in the coming times. We have also signed a few states/ cities under the Master Franchisee arrangement and our in discussion for many other states/ towns.

Could you suggest five strategies for growth in the franchise model?

The five most important strategies to expand the market are:

Map your strength markets
Scout for partners who can be good Operators
Set the right expectation with partners
Focus to grow with existing partners, from singular to multiple
Never lose control on franchise operations