The Indian franchise group opened 67 new Costa Coffee stores last year, including 25 in its fourth quarter, and is expected to scale the brand further with a planned food court roll-out
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Costa Coffee’s full-year revenues in India grew 49% year-on-year to Rs 1.5bn ($18.2m) | Photo credit: Costa Coffee
Devyani International Limited (DIL) ramped up Costa Coffee expansion across India in its fourth quarter to post robust full-year outlet and sales growth for the UK-based coffee chain.
DIL opened 25 net new Costa Coffee stores in the three months ending 31 March 2024, and 67 across the last year, to reach 179 outlets – its highest quarterly and annual additions since becoming the coffee chain’s exclusive India licensee in 2005.
Costa Coffee’s full-year revenues in India grew 49% year-on-year to Rs 1.5bn ($18.2m), with fourth quarter sales rising 36% to Rs 451m ($5.4m).
In a press release, DIL said the coffee chain is well poised for further outlet growth in India across the next 12 months. In October 2023, Costa Coffee CEO Philippe Schaillee highlighted India as one of its ‘priority markets’ globally, expected to contribute 40-50 new stores annually to its global footprint.
In an update accompanying its full-year results, DIL said food courts would form an ‘essential component of its growth strategy’ moving forward as it seeks to tap into increasing consumer demand for ‘food on-the-go' and strengthen its presence in high-footfall locations.
DIL is the largest franchisee for Yum Brands in India and operates KFC & Pizza Hut stores alongside its licensed Costa Coffee outlets. The group has partnered with Indian cinema chain PVR INOX to develop and operate food courts in shopping centres across the country.
The partnership follows a strategic agreement in October 2023 to sell hot and cold Costa Coffee products at select premium screens across PVR INOX’s 360 sites.
“To cater to the rising ‘quick’ trend, we are making food courts one of the important pillars of our growth aspiration across various consumption channels and touch points of travel and shopping. Our existing bouquet of brands will help us with this strategy,” said Ravi Jaipuria, Non-Executive Chairman, DIL.
DIL’s total group revenues for the 12 months ending 31 March 2024 reached Rs 35.6bn ($425.8m) – an 18% increase on 2023. The business operates 1,782 stores, including 906 KFC sites across India, Thailand, Nigeria and Nepal, and expects to reach 2,000 outlets across its foodservice brands by the end of 2024.