Third Wave Coffee: A Strategic Approach to Expansion
In a bustling world full of coffee enthusiasts, Third Wave Coffee has emerged as a frontrunner in the race for premium coffee dominance. With a strategic growth plan in place, this Bengaluru-based specialty coffee chain is making waves in existing markets like Bengaluru and Chennai, while eyeing new cities for expansion.
Rajat Luthra, the Chief Executive Officer of Heisetasse Beverages Pvt Ltd, the company behind Third Wave Coffee, expressed the brand’s vision for the future. “The market for premium coffee in India is vast, with both independent and organized players scaling rapidly. In Bengaluru alone, we see a coffee outlet every couple of kilometers, and we believe the city can accommodate at least 50 more stores. But our vision extends beyond Bengaluru—Chennai, for instance, presents a major opportunity.”
Expanding Horizons: Second Outlet in Chennai
With a firm foothold in Bengaluru, Third Wave Coffee recently opened its second outlet in Chennai, situated in the vibrant neighborhood of Kilpauk. This launch marked a significant milestone, bringing the total store count to 140. The company aims to reach 150 stores by the end of the fiscal year and aims to match Bengaluru’s presence in Chennai within 12-18 months.
Luthra highlighted the evolving coffee culture in India, particularly among the younger generations. “India, historically a tea-drinking nation, is witnessing a growing shift towards coffee, especially among Gen Z and millennials. Cold brews and flavored iced coffees are gaining immense popularity, further fueling demand.”
Sustainable Sourcing and Quality Control
One of the key factors setting Third Wave Coffee apart is its commitment to a fully sustainable sourcing model. The company exclusively uses 100 per cent Arabica beans sourced from Chikmagalur and Coorg, maintaining direct relationships with farms to ensure ethical practices and stringent quality control measures.
Looking Towards the Highways: A Growth Strategy
In a strategic move to capture the on-the-go coffee market, Third Wave Coffee is setting its sights on high-traffic expressways. Unlike traditional standalone highway cafés, the brand’s outlets will be strategically positioned within food court clusters, guaranteeing maximum footfall and visibility.
“We have already secured a location on the Pune Expressway and signed agreements for two more highway outlets, expected to be operational by mid-to-late April,” Luthra revealed. This innovative approach not only caters to the needs of travelers but also aligns with Third Wave Coffee’s commitment to operational efficiency and profitability.
Driving Growth and Revenue Projections
With a trajectory of double-digit growth, Third Wave Coffee is on track to achieve revenue of ₹300 crore in the current fiscal year, with profitability on the horizon. Beverages account for 60-65 per cent of the brand’s revenue, complemented by a range of delectable food offerings that make up the remaining 35-40 per cent.
As Third Wave Coffee continues to carve its path in the world of specialty coffee, its strategic approach to expansion, sustainable practices, and unwavering commitment to quality set a strong foundation for future success. Whether you’re a coffee aficionado or a casual sipper, the aroma of freshly brewed beans and the promise of a premium coffee experience await at Third Wave Coffee’s ever-expanding network of outlets.