Costa Coffee's India Growth Hits a Caffeine Dip

Costa Coffee's India Growth Hits a Caffeine Dip

Despite a strong sales increase of 36.3% year-on-year for Costa Coffee in India, the coffee chain, owned by Devyani International Limited (DIL), saw a slowdown in new outlet openings due to a challenging economic climate. With only eight new stores launched in the latest quarter compared to 23 in the previous one, the total count stands at 154. DIL's profits sharply fell by 87% year-on-year, reflecting the tough market conditions. However, overall revenue grew by 6.6% year-on-year thanks to new outlets. While DIL remains optimistic about a recovery in the coming quarters, it faces stiff competition from both international brands like Starbucks and Tim Hortons and domestic players like Third Wave Coffee and Barista, all of which are expanding aggressively in India.

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