Barista Coffee, India’s largest homegrown coffee chain, plans to scale up its retail footprint to 800–900 outlets by 2030, with a strong focus on tier-II and tier-III towns. The strategy reflects the rapid spread of coffee culture among young consumers beyond metropolitan cities.

The expansion push comes as Barista recently opened its 500th café in Patna, marking a milestone in its national growth journey. CEO Rajat Agrawal said rising aspirations, higher disposable incomes and changing lifestyles in smaller cities are driving demand for café experiences.

Focus on smaller cities

Barista has been steadily shifting its growth strategy towards tier-II and III locations over the past few years. According to Agrawal, these markets offer better yields due to lower rentals and operating costs compared to metros, while consumer enthusiasm for branded cafés continues to rise.

The company plans to add 50–60 outlets every year through a mix of company-owned and franchise models. “In the next five years, reaching 800–900 stores is quite achievable,” Agrawal said, adding that the brand is confident about sustainable and profitable expansion outside large urban centres.

Coffee vending machines a key growth driver

Beyond cafés, Barista is aggressively expanding its coffee vending machine business. Launched two years ago, this vertical currently has around 500 machines installed across offices and institutions. The company is targeting a tenfold expansion over the next five years, aiming to deploy nearly 5,000 machines nationwide.

“This is a significant growth opportunity for us,” Agrawal said, noting that demand for convenient, quality coffee solutions is rising in workplaces and commercial spaces.

Presence in metros, eyes beyond

While Barista maintains a strong presence in metro markets—over 80 stores in Delhi NCR, a solid base in Mumbai, 7–8 outlets in Bengaluru and 5–6 in Kolkata—the company’s future growth is clearly anchored in smaller cities.

Growing café market

India’s café chain industry is currently valued at around ₹6,000 crore and is growing at a CAGR of 10–12%, driven by increasing coffee consumption density. Riding this trend, Barista expects to achieve network-level sales of about ₹400 crore by FY26, including franchise revenues.

With its renewed focus on tier-II and III towns, Barista is positioning itself to capture the next wave of India’s café culture boom.