STARBUCKS is revamping its strategy to lure Indians, including children, with smaller, cheaper beverages as it looks to expand in small towns amid a fierce challenge from domestic startups in one of its fastest-growing markets.
Among the first foreign coffee brands to enter tea-loving India, the US giant has taken almost 11 years to open 343 stores, in contrast with private equity-backed chains Third Wave and Blue Tokai that opened about 150 in the last three years.
"As you grow in size, you need to get new consumers," said Sushant Dash, the chief executive of Starbucks in India, adding that the chain's "pricing play" would help shatter a perception that it is expensive.
The company has launched a six-ounce drink, "Picco", which starts at $2.24, and milkshakes for $3.33 as part of its revamp to target affluent Indians who prefer smaller servings.
Starbucks plans to open more stores in smaller towns, said an industry source, who spoke on condition of anonymity.
Both its new offerings are unique to India and unavailable in China, Singapore and the United States.
India's small but fast-growing specialty tea and coffee cafe market is worth $300 million and set to grow 12 per cent each year, Euromonitor estimates. Canada's Tim Hortons and Britain's Pret A Manger are also expanding, but have only a handful of outlets.
"Excessively large portion sizes are an American phenomenon," said Devangshu Dutta, head of retail consultancy Third Eyesight.
"Indian consumers are value-conscious. If adjusting portion sizes down to what is more normal helps make prices accessible, that's a double win."
He was among the analysts who felt the move by Starbucks, operating in India in a joint venture with Tata Group, could further boost its sales, which hit a record $132 million in fiscal 2022/23.
Although Starbucks still dominates in India, rivalry is fizzing in the capital, New Delhi, and the technology hub of Bengaluru, where many Third Wave cafes are often as crowded as Starbucks outlets.
"We've lost 30 cups a day to them," said a barista at a Starbucks shop in Delhi that sells 7,500 drinks a month, referring to a Third Wave that opened nearby months ago, but already sells 3,700.
Starbucks has faced homegrown challengers elsewhere, most notably in China, where its 6,200 stores service the biggest market outside the United States.
There, in just the last five years, Luckin Coffee has used discounts to lure customers to its 10,000 mostly pickup or delivery stores.
In India, where Starbucks has added domestic touches to its offerings over the years to boost their appeal, it is now stepping up that game, just as global giants McDonald's and Domino's have done.
It estimates that just 11 per cent of Indian homes drink coffee, as opposed to 91 per cent drinking tea. Hot milky tea, or "chai" as it is known in Hindi, is sold at roadside stalls by the hundreds of cups each day for as little as Rs 10 (12 US cents).
Starbucks, which offered for years just one milk chai "latte" made with tea syrup, has launched "Indian-inspired" tea offerings laced with spices and cardamom, both favourites in many Indian homes, which start at Rs 185 rupees ($2.24).
The drinks were introduced to attract those who do not drink coffee and shun Starbucks, said Dash, adding the company would retain its focus on coffee and not make chai a primary offering.
The launch of smaller, cheaper beverages in India indicates Starbucks may have seen "a decline in traffic related to a pushback" on higher prices, said Chas Hermann, a US-based restaurant consultant and former Starbucks executive.
Competition
In May, people lured by a one-for-one offer queued in a street outside the first Starbucks store in the western city of Aurangabad, a YouTube video showed in scenes reminiscent of when it first opened in India.
But its rivals are catching up and a price war has begun.
Soon after Starbucks' May launch of $3.33 milkshakes, designed to attract children, Third Wave launched its own range, a fifth cheaper at $2.71.
In Bengaluru, startup investors and founders hold meetings in Third Wave outlets. It has more than 40 stores there, exceeding the 35 of Starbucks, data from real estate analytics firm CRE Matrix shows.
Third Wave's chief executive, Sushant Goel, said he planned to add 60 to 70 stores every year, with a focus on big cities. He saw Starbucks' cheaper, small-sized drinks as a response to competition in "an incredibly price-sensitive market".
Matt Chitharanjan, chief executive of Blue Tokai, said it had "seen success in converting customers from Starbucks", partly because of lower prices.
While Dash said he was undeterred by competition, Starbucks recognises the threat, although privately.
In one lease deal for a Bengaluru mall reviewed by Reuters, Starbucks inserted a "cafe exclusivity" clause barring the mall owner from allotting space on the same floor to rival "premium" brands, including Third Wave and Blue Tokai.
"Going deeper into smaller cities, beyond the metros, is the only way to grow," said Ankur Bisen, head of retail at India's Technopak Advisors.
Choksi, accused in a bank fraud case in India, has been arrested in Belgium and plans to appeal for release, citing medical grounds. (Photo: Getty Images)
FUGITIVE jeweller Mehul Choksi accused India of orchestrating his kidnapping to extradite him on fraud allegations, with his lawyers telling London's High Court on Monday (16) that only India had the motivation and resources to do so.
Choksi – who was arrested in Belgium in April – is wanted in India over his alleged involvement in one of India's biggest bank frauds at Punjab National Bank, which in 2018 announced it had discovered alleged fraud worth $1.8 billion (£1.29bn).
Choksi is separately suing the Indian government in London, arguing that the state was responsible for his kidnapping in Antigua in 2021, when he says he was abducted and taken to Dominica in an attempt to extradite him to India.
India's lawyer Harish Salve said in court filings that "there is no evidence of India having anything to do with the alleged events".
Choksi alleges he was beaten in a failed attempt to extort a false confession and implicate India's political opposition, which he says points to state involvement in the incident.
Choksi's lawyer Edward Fitzgerald told the court: "The evidence points inevitably to India being behind this – they had the motivation, they had the resources."
Monday's hearing, the first since Choksi filed his case last year, was held to decide when India's application to throw out Choksi's lawsuit on state immunity should be held.
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The Consumer Prices Index (CPI) stood at 2.6 per cent in March, down from 2.8 per cent in February, the Office for National Statistics (ONS) said. (Representational image: iStock)
UK INFLATION eased slightly in May but remained above expectations, according to official figures released on Wednesday, adding to speculation that the Bank of England will keep interest rates unchanged this week.
The Consumer Prices Index fell to 3.4 per cent in May from 3.5 per cent in April, which had marked a 15-month high, the Office for National Statistics (ONS) said.
Analysts had expected a bigger drop to 3.3 per cent.
The release came after separate data last week showed that the UK economy contracted more than expected in April.
Gross domestic product fell by 0.3 per cent, driven by a tax increase on UK businesses and a sharp decline in exports to the United States linked to president Donald Trump's tariffs.
Political responses
Chancellor Rachel Reeves said, "Our number one mission is to put more money in the pockets of working people."
Mel Stride, the finance spokesperson for the opposition Conservatives, said inflation staying "well above" the Bank of England's 2 per cent target "is deeply worrying for families".
The Bank of England is expected to leave its key interest rate unchanged at 4.25 per cent when it announces its decision on Thursday.
Mixed price movements
"A variety of counteracting price movements meant inflation was little changed in May," said Richard Heys, acting chief economist at the ONS.
"Air fares fell this month, compared with a large rise at the same time last year," he said. However, higher prices for chocolate and meat helped to offset the fall in motor fuel costs.
Danni Hewson, head of financial analysis at AJ Bell, said, "The escalating conflict between Israel and Iran has impacted the oil price in the past week, with UK motorists already bracing themselves for hikes and airfares also expected to soar."
Interest rate outlook
The Bank of England cut interest rates last month by a quarter point, its fourth reduction in nine months, as tariffs continued to weigh on economic growth.
Analysts expect the central bank to maintain that pace of easing until at least early next year.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said, "The fact that inflation has fallen back slightly... should bring some comfort to the Bank of England as it considers the next move for interest rates."
"They were expecting inflation to remain well above target at this point in the year, so it won't necessarily spark a rethink on rates.
"Before the announcement, the markets were expecting two more cuts by the end of the year, and there's a reasonable chance this won't move significantly on the back of today's news," she added.
Meta has announced the appointment of Arun Srinivas as the new Managing Director and Head of its India operations. He will assume the role from 1 July 2025, reporting to Sandhya Devanathan, who was recently promoted to oversee Meta's operations in both India and South East Asia.
Expanded role for Srinivas
In his new position, Srinivas will be responsible for aligning Meta’s business, innovation, and revenue priorities to better serve partners and clients across India. His focus will include strengthening strategic relationships with advertisers, developers, and brands, as well as continuing to support Meta’s long-term growth in the region.
Srinivas will lead efforts to drive the company’s India charter and will play a key role in supporting initiatives around Reels, AI, and messaging services, which are key strategic priorities for the tech giant in the country.
Background and previous experience
Srinivas is currently the Director and Head of Ads Business for Meta in India, a position he has held since joining the company in 2020. In that role, he has worked with many of India’s top advertisers and agency partners, contributing to Meta’s growth in the region.
An alumnus of IIM Kolkata, Srinivas brings nearly 30 years of experience in sales and marketing. He has held senior roles at Hindustan Unilever, Reebok, OLA, and investment firm WestBridge Capital.
Leadership comments
Commenting on the appointment, Sandhya Devanathan, Vice President for India and South East Asia, said: “Arun’s track record in building high-performing teams and fostering strong partnerships makes him the ideal leader to drive Meta’s continued investment in India.”
Meta considers India a key growth market and continues to focus on expanding its presence through innovations in AI, Reels, and WhatsApp.
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President Trump reported earning over $8 million in 2024 from various licensing agreements
The Trump Organization has announced the launch of Trump Mobile, a branded mobile phone service and a $499 smartphone, both expected to debut in September 2025. This marks the latest in a growing list of commercial ventures associated with President Donald Trump.
The 47 Plan: patriotic branding and telecoms offering
Trump Mobile’s service package, dubbed The 47 Plan, will cost $47.45 per month and include unlimited calls, texts, and data. Customers will also receive roadside assistance and access to a “Telehealth and Pharmacy Benefit”. Both the name and pricing of the plan are symbolic, referencing Trump’s political position as the 47th president of the United States.
A smartphone branded as the “T1” will also be available, priced at $499. Promotional images depict the phone with a gold-coloured casing etched with an American flag and the campaign slogan “Make America Great Again” displayed on the home screen.
Primarily a licensing venture
According to the Trump Mobile website, the service is not directly operated by the Trump Organization. Instead, it functions through a licensing agreement. A disclaimer states: “Trump Mobile, its products and services are not designed, developed, manufactured, distributed or sold by The Trump Organization or any of their respective affiliates or principals.”
This approach follows a familiar pattern in Trump’s business dealings, where his name is licensed to products and services in exchange for royalties. Previous examples include Trump-branded watches, trainers, wine, and even Bibles.
Financial and ethical implications
President Trump reported earning over $8 million in 2024 from various licensing agreements. While these ventures present lucrative opportunities, they continue to attract ethical scrutiny due to concerns about a sitting president profiting from branded commercial activity.
Nonetheless, Trump Mobile represents another step in merging political identity with consumer branding.
How it compares in the telecoms market
At $47.45 per month, Trump Mobile’s 47 Plan is more expensive than many competitors. Verizon-owned Visible offers a similar unlimited plan for $25 per month, while Mint Mobile charges $30 for its comparable package.
T1 , priced at $499The Trump Organization
Despite this, Trump Mobile claims to provide “the same coverage as the 3 nationwide phone service carriers”, a reference to Verizon, AT&T and T-Mobile. It also promotes a US-based customer support centre, though representatives have declined to confirm the location for “security reasons”.
Market reception and outlook
While major wireless providers have not commented on the launch, Trump Mobile may appeal to a customer base aligned with President Trump’s brand and values. Whether the venture will gain broader traction in the competitive telecommunications market remains to be seen.
As the launch date approaches, Trump Mobile is likely to generate further attention—both for its political undertones and its attempt to reshape how presidential branding intersects with consumer technology.
Executives from the Madhvani Group, including Shrai Madhvani, his wife Aparna Madhvani, and director Nitin Gadhia, met Indian Prime Minister Narendra Modi at his official residence in New Delhi on Saturday to discuss the group’s proposed investments in India, including the acquisition of Hindustan National Glass Ltd (HNGIL).
The meeting focused on the group's plans to invest in India through INSCO, which is seeking to acquire HNGIL, the country’s largest container glass manufacturer. The acquisition is currently awaiting approval from the National Company Law Tribunal (NCLT), following key rulings by the Supreme Court of India on January 29 and May 16, 2025.
On the same day, the Committee of Creditors, led by the State Bank of India, approved INSCO’s resolution plan with 96.14% voting in favour.
Prime Minister Modi welcomed the proposed investment, highlighting its potential to generate employment and contribute to India’s economic development.
During the meeting, Madhvani presented Modi with Tide of Fortune, a book written by his late father, Manubhai Madhvani, and Flowers from the Bhagavad Gita, authored by his brother, Kamlesh Madhvani. Aparna Madhvani also shared two poems she had written for the Prime Minister as a personal tribute.