Homegrown specialty coffee startup Blue Tokai has made aggressive expansion plans aiming to launch 80-90 new outlets annually, more than doubling its current store count.
Blue Tokai sets ambitious plans
According to a recent report by Moneycontrol, the co-founder and CEO of the specialty coffee and bakery brand, Matt Chitharanjan revealed their target to reach an annual revenue run rate of Rs 1,000 crore in the next three years.
“We have crossed Rs 400 crore in ARR (annualised revenue run rate)...We are looking to reach an ARR of Rs 1,000 crore over the next three years...(we also) expect to close this financial year (FY26) with 155 or so outlets...opening around 80-90 outlets annually,” Chitharanjan stated.
Notably, Blue Tokai is in stiff competition with other players like Third Wave Coffee, Slay Coffee, etc., as well as industry giants like Café Coffee Day and Starbucks.
However, it is confident in its ability to differentiate itself through a unique coffee experience that resonates with customers.
According to the market research firm Redseer, India’s out-of-home coffee market is expected to reach $2.6-$3.2 billion by 2028, with a compound annual growth rate (CAGR) of 15-20 percent.
“We are seeing out-of-home consumption growing much faster than in-home consumption. Most of the growth is coming from offline expansion, through our own outlets. So that is where our focus is,” Chitharanjan said.
Currently, the coffee startup is focusing on carving its niche by offering its customers a more specialised coffee experience by opening five stores across Delhi, Mumbai and Bengaluru with live kitchens and expansive coffee offerings.
Incidentally, the brand has also partnered with Swiggy’s 15-minute food delivery app, SNACC, to sell breakfast staples, bakes, beverages, and quick snacks.
Chitharanjan also shared, “Right now, we are at 30 locations with them (SNACC). It is a bit early for us to say how it is going to play out.”
“(But) we see it as very complementary to the deliveries from our own cafes, because it is a much smaller menu there. If consumers are looking for something like an immediate coffee, we are now on Snacc. If they want a wider set of options, we are also on Swiggy and Zomato,” he added.
Also read: “We Don’t Want Ultra-Processed Garbage Delivered in 10 Min!” Doctor-Turned-Wellness Startup Founder Bashes Zomato, Swiggy (startuppedia.in)