Devyani International surpasses 200 Costa Coffee stores in India

DIL became Costa Coffee’s exclusive Indian licensee in 2005 | Photo credit: Costa Coffee

Gurugram-based Devyani International Limited (DIL) has posted steady second quarter outlet and sales growth for its Costa Coffee franchise in India. 
 

DIL opened 15 net new Costa Coffee stores in the three months ended 30 September 2024 to reach 207 outlets. The UK-based coffee chain achieved 41% year-on-year revenue growth in India during the second quarter to reach Rs. 490 ($5.8m),7.5% higher than the previous quarter, and achieved 8.7% like-for-like sales growth during the period. 
 

DIL became Costa Coffee’s exclusive Indian licensee in 2005 and opened the coffee chain’s first store in the country in New Delhi’s Connaught Place in the same year. The partnership reached 100 stores in January 2023 with a new outlet in New Delhi’s Khan Market shopping district. 

Costa Coffee is DIL’s third largest brand by both outlets and sales, behind fast-food chains KFC and Pizza Hut. The franchise group currently operates approximately 1,000 licensed KFC stores across India, Thailand, Nigeria and Nepal, alongside 600 Pizza Hut outlets. 

DIL’s total second quarter revenues increased 49% year-on-year to Rs. 1,222 Cr ($144.5m), with KFC and Pizza Hut sales growing 7% and 0.5% respectively to Rs. 543 Cr ($64.3m) and Rs. 184 Cr ($21.9m).  

However, while new outlets drove revenue growth for the business, DIL’s two largest brands posted respective 7% and 6% like-for-like sales declines during the period.  

The food and beverage operator has also signed a master franchise agreement to operate Malaysian bubble tea chain Tealive in India. 

The Loob Holding-owned bubble tea chain previously partnered with franchise development group World Iconic Brands Hospitality to enter India in 2018 and outlined plans to open over 100 Tealive stores in New Delhi, Mumbai and Bangalore within five years. However, a lengthy court battle between Tealive and its former parent company Chatime halted expansion plans before the partnership was dissolved during the pandemic. 
 

Founded in 2017, Tealive currently operates more than 900 stores in its home market and a further 100 stores across seven international markets. In October 2024, Tealive signed a master franchise agreement with Dubai-based Eureka Restaurant & Café to launch in the UAE.