‘In India, if you sell somebody a coffee for ₹200…’: Nikhil Kamath, Blue Tokai & Subko founders decode Starbucks’ struggle

When Starbucks came to India, expectations were great. The global coffee giant, known for its premium pricing and mass calls abroad, seemed to be ready to dominate the market. However, despite the rapid expansion of 97 cities, profitability remains evasive.

Recently, Zeroda co-founder Nikil Cap and the founders of blue Toky and Subko coffee were recently distributed to why the brand struggles even in India despite its global success.

Rahul Reddy, co-founder of the sub-project, noted that Starbucks’ positioning fluctuates sharply by country. “Starbucks in India is the largest specialized brand of coffee, although I and Matti would not apply to it as a specialized coffee brand,” Redy said. “What is the fascinating, the meaning of the price, Starbucks is sometimes more expensive than we are?”

Despite its premium pricing, Starbucks stands unique market challenges that limit its yield.

Blue Toky co-founder, blue Toky co-founder highlighted Starbucks aggressive location strategy as the main factor.

“The structure of their expenses is completely different in India against other places,” he explained. “It’s returning to real estate.

Before premium areas are visible, they also blow operational expenses, making it harder to profit.

The main difference between the Indian and American coffee culture is how customers use cafes areas. “Many people in America are buying coffee and walking,” said Arat. “In India, if you sell coffee for 200 rupees, they are going to sit there for an hour.”

This shift of consumer’s behavior means fewer transactions for each table, directly affecting the sales volume. When Arat put it, “if I opened America, 100 people will come in the morning in the morning, go and walk. In India, if five people come, I have eight tables, and five are captured, I can’t serve again. “

Reddy stressed that brands like Starbucks should go out to be a graveyard name and actively change consumer habits.

https://www.youtube.com/watch?v=WHQIEWZ8K9G

“All the items I constantly say about differentiation becomes a hyperplet,” he said. “There must be a change in coffee.”

He accredited the brand of Blue Tokai and Cafe Cafes, the role in this shift. Chitanjan also mentioned that Indian consumers no longer have the same blind connection to international brands as decades ago.

“That idea I can just be an international brand and automatically I will have a line, no longer applicable,” he said.