Next time you have Starbucks coffee in any of the neighboring countries in South-East Asia, know that you are paying more than at home. Coffee prices at Starbucks in India are lower, thanks to its local sourcing arrangement with Tata Coffee.
“Starbucks prices in India are definitely lower than in Singapore and Malaysia. In fact, India is the only country where Starbucks is sourcing beans for its coffee chain. At the same time, the Starbucks experience in India can be compared to any of its outlets across the world,” said Meera Harish, Vice-President, Sales and Marketing, Tata Coffee.
Starbucks in India is at an advantage than in other countries where it has to import its coffees.
“There are cost advantages, as Starbucks can avoid freight charges involved in getting coffee from Europe or the US. The operating costs too are lower for Starbucks when it sources locally,” said Harish.