Barista, India’s second-largest integrated coffee house, is expanding beyond metro cities to increase its footprint and drive growth, according to CEO Rajat Agrawal. Despite growing competition from international chains and local coffee-related startups, Agrawal believes that Barista has already outgrown some of the newer brands that have just entered the market. He said that the company is growing at a rapid pace, with about 60-70 outlets per year, and aims to reach the count of 500 stores in the coming two years.

Barista, which was launched in 2000 and was among the first brands to introduce Indians to the truly Italian coffee experience, has successfully operated in metro cities over the past two decades. However, the brand is now looking beyond metros, where it is already witnessing a lot of new growth, according to Agrawal. He explained that the way the infrastructure is developing in the country and the way people are traveling has led to even non-metros people being educated about what they are consuming, and a branded product is always an aspirational value.

India’s coffee culture has only started to pick up in the last 6-7 years, and there is a huge potential for every player to grow, said Agrawal. He highlighted the huge gulf between the average consumption of coffee in India and Western countries, with the average Indian drinking barely 100 grams of coffee per year compared to 12 kg per annum by a person living in Western countries. Agrawal believes that India has a lot of catching up to do to be even closer to some of the international market dynamics, and this presents a huge potential for all players to grow and the industry to evolve in the near future.

In conclusion, Barista is optimistic about its growth prospects and is looking beyond metro cities for expansion. The company is confident in its ability to outgrow new players in the market, and with its rapid pace of growth, it aims to reach 500 stores in the next two years. The Indian coffee culture has huge potential for growth, and the industry is expected to evolve in the near future.