Close on the heels of Indian chain Cafe Coffee Day’s plans to open 50 highway outlets serving desi fare, Barista Lavazza, the Indian subsidiary of Italian coffee giant Lavazza, has said it will open 15 highway outlets this year to dish out local delicacies.
The menu for these 10,000-square-feet Barista Lavazza joints will sport a fusion of desi and western items including paratha, idli and vada, along with cappuccinos and doughnuts. The breakfast options would cost between Rs 66 and Rs 99 and will be catered to by the existing food and beverages department at Barista Lavazza.
“We have been experimenting with one such outlet on the Bangalore-Mysore highway for some time. Owing to its success, now we will roll out around 15 such outlets this year and many more going ahead,” said Vishal Kapoor, head, marketing & product development, Barista Lavazza.
This new format will be in addition to its existing formats —Creme, which is on the premium end, and the more affordable espresso bar.
Apart from entering the new format, the company is adding 300 new outlets to its existing 230 in the next three years. For this, the parent company Lavazza will invest around Rs 150 crore. The company is also looking to expand its minor presence in foreign destinations like the Middle East, Sri Lanka and Bangladesh.
Lavazza acquired the company from Sterling Infotech Group in 2005. It has been in existence for nine years, during which it has seen four different owners. Kapoor said he expects the company to break even in three years. He added that the size of the coffee chain business is around Rs 500 crore currently.
“The industry is largely undertapped and I expect the size of the industry to grow substantially going ahead. The fact that so many international chains are entering the market shows its potential,” he added. Currently the company earns nearly half its income from North India where around 40% of its outlets are based.
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