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Starbucks Faces Lukewarm Reception in Southern India

Photo: Starbucks India

Coffee mega-giant Starbucks recently opened an outlet in Chennaiits 50th store in India — and the reception has been lukewarm. According to Scroll.In, Starbucks has been in the country for two years but waited until last month to open in the Southern city of Chennai, which is known for its "filter coffee." The regional style of coffee costs merely 25 Rupees ($.41 USD) at local shops but at Starbucks a cup starts at 120 Rupees ($1.97 USD). Besides charging nearly five times as much for coffee, Starbucks also already faces stiff competition from another foreign competitor, Café Coffee Day, which has been around since 1999 and serves Western-style coffee at lower prices: A cup starts at 75 Rupees ($1.23 USD).

A local cafe owner tells the site that currently Starbucks is for "youngsters who want to spend some time over cold coffee or another drink," but adds that "regular coffee drinkers still" go to local eateries. This is complete contrast to other countries, especially America, where Starbucks is incredibly popular. It was recently revealed that of the chain's 20,439 locations world-wide, nearly 12,000 are found in the U.S. Plus, New York City alone has nine Starbucks locations for every square mile.

· Chennai Scoffs at Starbucks [Scroll.In]
· All Starbucks Coverage on Eater [-E-]

Starbucks

142, Velachery Main Road, Velachery, Chennai, Tamil Nadu 600042, India

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