Barista, IOCL Tie-up To Start Highway Coffee Bars

Neeti Chopra - New Delhi

Barista, chain of coffee and espresso bars has recently announced a strategic tie-up with Indian Oil Corporation Ltd (IOCL) to open outlets at select petrol pumps located on highways. The alliance will involve investments from both companies to the tune of Rs 14 - 16 lakh per outlet wherein Barista's contribution will be approximately Rs 7-8 lakh.

Barista will explore IOCL sites within metros and mini metros to launch these outlets. Starting with the Delhi-Agra and Delhi-Chandigarh highways that are awaiting clearance from IOCL, the company is looking at adding approximately 200 more outlets in the next three years.

Says Brotin Banerjee, chief operating officer, Barista, "Barista has played a pioneering role in developing the coffee culture in India. Seeing the immense potential in the retailing its products on highways the company now has plans to foray into this segment by targeting strategic locations such as the Delhi-Chandigarh, Delhi-Mathura, Delhi-Jaipur, Delhi-Agra, Mumbai-Pune, Chennai-Pondicherry and the Bangalore-Mysore highways. Most of these outlets will offer their services throughout the day and night."

While the highway format will have a take-away option, it would primarily cater to a highway travellers looking for a refreshing break, en-route to their destination. The highway outlets will ideally be spread over a 500 square feet area with both indoor and outdoor seating arrangements.

Though the look and feel of the outlets will revolve around Barista's corporate colour and identity although one would see a marked difference in the pricing, ambience and the offerings. According to Banerjee, this new retail format would contribute an approximate of 10 to 15 per cent of the top line within the next two years.

In line with its expansion plans, Barista is also looking at opening 55 to 60 outlets in various towns and cities apart from the ones under the agreement with IOCL. "We plan on intensifying our focus in southern and western India. With the introduction of these new outlets we are looking at a 50 per cent increase in the overall revenue this year," concluded Banerjee. On contacting IOCL, their spokesperson was not available for comments.