Barista Coffee to invest Rs 61 crore; add 140 outlets

The Rs 30-crore Italian coffee chain, Barista Coffee (in which Tata Coffee has a 34.3 per cent stake) has embarked on an expansion spree. In the current fiscal it plans to add 140 outlets to its existing 110; in effect, adding one outlet every 48 hours. The company has allocated Rs 61 crore for this exercise, and hopes, if all goes as planned, to clock a turnover of Rs 65-Rs 70 crore next year. Currently, Barista is present in the cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Chandigarh, Goa, Pune, Ahmedabad, Lucknow, Kanpur, Shimla, Ludhiana, Baroda and Dehra Dun.

According to the company, 66 per cent of the total sales of Barista currently comes from beverages (Cappuccino is the hottest selling item), while 34 per cent comes from foods. With the view to increasing sales of both foods and beverages, Barista Coffee is extending its product offering in the two categories. The improved food range at Barista Coffee would include a variety of Italian sandwiches and Baguette (a long narrow cylindrical loaf of French bread). All the food items are procured from the Taj Hotels with which Barista has a co-marketing deal.

In addition, Barista Coffee has launched a new range of deserts. The entire range of deserts and snacks is competitively priced between Rs 45-Rs 60. The company is planning the launch of around five new beverages too. Sandeep Vyas, executive vice-president, marketing and communication, Barista Coffee, is certain that competition cannot match its range or its price. "People come to Barista not just for the coffee, but the experience that comes with the coffee," he says.

"Introducing the new range of authentic Italian food would not only recreate the ambience of a neighbourhood Espresso Bar as encountered in the coffee houses of Italy, but also give us another opportunity to delight the Indian customer," says Ravi Deol, managing director, Barista Coffee. True to the Italian spirit, the furniture in every Barista Coffee outlet is imported from a town close to Venice (Italy) called Udina and the coffee is served in porcelain cups (as it is traditionally done in that country), sourced from various countries, as India does not manufacture porcelain.

Initially, the new range of foods will be available in 67 outlets in Delhi, Mumbai and Bangalore. And then, in a phased manner, the offerings would be introduced in the remaining outlets.

Advertising is not very high on Barista Coffee's agenda. However, the company officials did not overrule the possibility in the future. "Billboard is the main vehicle for us," says Vyas. The company relies more on innovative marketing alignments to further the brand. For example, Barista Coffee and ABN AMRO have recently launched a new concept called Bancafe. Bancafe stands for 'Cafe in a Bank'. Barista Coffee has entered into similar alliances with brands such as Planet M and Crossword in Ahmedabad and Hyderabad, and Ebony to set up its Espresso Corners. The company plans to set up more such Espresso Bars at airports and hotels. Barista Coffee also plans to launch a new music collection by entering into a tie-up with Evian and Fareerllel, players in the mineral water segment. © 2002 agencyfaqs!