Coffee retail chain Barista Coffee Company has roped in consulting firms PriceWaterhouseCoopers (PwC) and KSA Technopak to frame its franchising strategy.
Confirming this, Barista Coffee Company vice-president marketing & strategy, Brotin Banerjee told FE that a techno-feasibility strategy has been prepared by the two firms. An overall potential report is expected to come soon.
The mandate was to identify the potential regions Barista could tap, and develop a franchise network and a franchise model for the chain. The firms will also help formulate business processes for Barista’s franchise network.
The coffee chain, which has so far expanded its operations through company-owned outlets has, after its takeover by the Sterling Group, taken a strategic decision to focus on franchising to drive expansion. For this, the company is planning to invest Rs 250 crore across three years in its operations. Of the total investment, Rs 200 crore will be raised through franchisees, while the rest would be invested by the company, director-strategy TV Krishnamurthy had told FE some time back.
Though Barista is yet to finalise its franchisee model, the company plans to kick off its first franchisee operation next month in Bangalore. “In the next 6 to 8 months, we will open 20-25 franchise outlets. The first one is opening in Bangalore next month. Eventually, we will have 3 to 4 franchisee-owned stores in Bangalore,” Mr Banerjee said. The company has 10 company-owned outlets in Bangalore.
Barista Coffee, where Sterling Group and Tata Coffee hold 65% and 35% respectively, has about 120 company-owned outlets across the country.
Meanwhile, the retail chain is currently overhauling and renovating its stores across the country and according to Mr Bannerjee has spent about Rs 2 crore on the same. “Forty of our stores will sport a new contemporary look soon,” he added.