Specialty coffee chain Third Wave Coffee is expanding its presence to multiple cities, as it looks to add nearly 34 stores by the end of March 2025.
The Bengaluru-based company currently has 116 cafés across the country, with plans to reach 150 by the end of the financial year, Rajat Luthra, CEO, Third Wave Coffee told businessline. The speciality coffee chain aims to launch 80 to 100 cafes annually from 2025.
“We plan to open new stores in Chennai, Mysuru, and Mangaluru. Additionally, we are looking to deepen our presence in Mumbai, Bengaluru, and Delhi NCR,” said Luthra.
He added that the company sees scope for expansion in the cities where it has a presence and is also evaluating opportunities in prime locations, such as malls or airports.
Scaling with Purpose
The Bengaluru-based company prioritises customer experience, consistent product quality and service standards, ensuring each customer has the same experience, regardless of location.
“Adding stores is not difficult; what is challenging is producing the same consistency and goodness at scale. That’s why we set up infrastructure before expansion,” said Luthra. He noted that the company is looking at consistent product quality and service standards, ensuring each customer has the same experience, regardless of location.
Financials
Third Wave Coffee posted a 67 per cent increase in operating revenue for the last financial year ended March 31. The company posted a net loss of ₹110 crore for fiscal 2024, compared with ₹54 crore the year before, according to its financial statements sourced from Tofler. Operating revenue rose to ₹241 crore from ₹144 crore.
Luthra said that the company is achieving unit economics comparable to global standards. “Our unit economics are almost comparable to western standards now, with a return on investment in 2-2.5 years for new stores,” he noted.
Luthra added that by carefully selecting store locations and optimizing costs, the company has improved profitability despite inflationary pressures and rising coffee bean prices.
The company has opened a new roastery in Bangalore. Opened in September, the facility enables the brand to control costs while ensuring product consistency. “The new roastery allows us to scale to 600-700 outlets, ensuring consistency and positioning us to grow other business streams effectively,” said Luthra.
“We’ll also tie it with quick commerce companies and other e-commerce platforms to ensure availability because we now have the capacity, and I’d like to believe we have the best coffee as well,” he noted.
Around 76 per cent of the company’s revenue comes directly through its stores and app, supported by a well-received loyalty program. “Our app and loyalty program have been instrumental in driving repeat visits, which are among the highest in the industry,” said Luthra.