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Reading: Pret A Manger Brews Up Expansion Plans in India Amidst Stiff Competition
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Marketing In Asia > Blog > Business > Pret A Manger Brews Up Expansion Plans in India Amidst Stiff Competition
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Pret A Manger Brews Up Expansion Plans in India Amidst Stiff Competition

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Last updated: 2023/05/17 at 2:35 AM
Eshita
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With its first store now brewing in Mumbai’s BKC, UK-based coffeehouse chain Pret A Manger has boldly ventured into the Indian market. Known for its organic coffee and ready-to-eat foods, Pret has marked India as its 10th market for rapid expansion in the coming years.

Joining forces with Reliance Brands Ltd (RBL)—a subsidiary of Reliance Retail Ventures—Pret’s entry into India arrives at a promising time. Major coffee chain operators in the country are increasingly optimistic about India’s potential for consistent growth. The Indian coffeehouse market, currently worth $3.2 billion, is growing at a CAGR of 9 per cent and is expected to reach a robust $4.2 billion (Rs 34,000 crore) by 2025.

Labeling it as the “most ambitious global franchise partnership”, Pret’s CEO Pano Christou stated that the company is banking on RBL’s market acumen in India to drive the brand’s success. “We have collaborated with RBL to develop an offer for Indian consumers that embodies the Pret brand, while accommodating local tastes and dietary habits,” Christou stated. While official responses are still awaited, insider reports hint at plans to open nearly 100 stores over the next five years.

Also Read: How These 5 Chai Startups Are Revolutionizing India’s Tea Culture

However, industry observers caution that Pret’s path in India is fraught with challenges. Harish Bijoor, Founder of Harish Bijoor Consults, believes that the chain will need a powerful brand-building campaign to resonate with Indian consumers. “Starbucks enjoys a unique stature among Indian consumers that no other coffee brand has. Plus, India’s preference leans more towards tea than coffee,” he notes. As a point of reference, Starbucks opened an impressive 71 outlets and ventured into 15 new cities in FY23, increasing its store count to 333. Sunil D’Souza, MD & CEO of Tata Consumer Products, which manages Starbucks in India, revealed plans for significant expansion in the coming years.

Deven Choksey, Founder & Promoter of KRChoksey Holdings, suggests that Reliance’s nearly 18,000 outlets across various formats could be pivotal for Pret. “Reliance might leverage its store presence to sell Pret branded products through its existing counters. It could present Pret as a more affordable option, a strategy that Reliance has consistently implemented across its business segments,” he speculates.

This news article is based on a BusinessToday report.

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TAGGED: Coffee Market, Coffeehouse Chain, Consumer Preference, Expansion, Growth Strategy, Indian Market, Pret A Manger, Reliance Brands Ltd, starbucks

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    Eshita Chaurasia May 17, 2023 May 17, 2023
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    By Eshita Chaurasia
    With a Post Graduate degree from NIFT and 9 years of experience, I am a skilled professional in Fashion Marketing, Brand Management, and Fashion/Retail Merchandising.
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