-by Jaya Pathak
Walk into any Indian city and you will notice a striking feature there. You can find coffee shops everywhere. Like every week there’s something new. A specialty roaster here. Some trendy place there.
The whole thing is backed up by real numbers though. Last year 600 new cafes opened. A growth of 12.7% has been noticed since last year. For food and beverage? That’s actually wild. And it’s not like random growth either. There are legit patterns happening. Four things reshaping the entire space.
Trend 1: Specialty Coffee Just Became Normal
Like back in the day, Indian coffee was instant coffee. That’s it. Maybe you’d go to Barista or CCD and get a basic espresso. Everyone got the same thing. Not anymore. Now you’ve got single-origin, small-batch roasting, ethical sourcing, all that stuff. That’s what premium means today.
Third Wave Coffee is the perfect case study. Started 2016. 2022 they did ₹32 crore revenue. Then 2023 hit ₹144 crore. That’s 4.5x in literally one year. Mind-boggling honestly. They’re at 200+ outlets across 22 cities, selling 7.1 million cups annually. Investors threw in $35 million. This isn’t hype. Real people are actually buying this stuff.
Why’s specialty winning? Few things. One, Indians actually pay more. Average spend is ₹660.86 when you add food to beverage. People drop cash on quality. Two, homegrown brands exploded. Blue Tokai, Subko, Nothing Before Coffee—over 200 specialty roasters now exist. They get Indian consumers better. They take global specialty standards but make it Indian. Three, specialty created new revenue streams. Subscriptions. Bean sales. Equipment. Old cafés never did this. Coffee became lifestyle. Wellness stuff. Sustainability messaging. Gen Z and millennials eat it up. Specialty grows 12.6-15 percent yearly. Faster than everything else.
Trend 2: Cafés Turned into Hangout Spots
Most people don’t realize this but Indian café culture works completely different. People don’t grab coffee and run. They sit there. Hours sometimes.
One third of cafe visits in India happened after 5:00 PM. It shows that people here prefer evening social time. 24 percent visit daily. 50 percent weekly. This is like habitual community space. Indians had the “adda” forever—just spots where people gathered and talked. Cafés are becoming that now.
Dine-in is 48.12 percent of business. Way higher than takeaway or delivery. Owners understand this. They build spaces for staying. Comfortable seats. Music playing. Wi-Fi that actually works. Space to sit and work. Because people aren’t rushing anywhere.
Coffee raves are this interesting trend in Mumbai, Delhi, Bangalore, Chennai. Morning events. DJs. Live music. Physical stuff happening. Coffee. Totally alcohol-free. And people actually show up. They want that community vibe without nightlife mess. It’s smart. Competitively this matters big time. Location and fast service? That’s baseline now. What wins is actual experience. The vibe. Whether you feel like you belong. That’s what brings people back.
Trend 3: Secondary Cities Are Actually the Play
For so long it was metros only. But this figure is slipping and henceforth opening opportunity zones for tier 2 and tier 3 cities as well.
Why’s this happening? Multiple things at once. Disposable income is going up in secondary cities. People have money now for premium stuff. Infrastructure improved—highways, airports, malls. Retail space exists where it didn’t. And 65 percent of India is under 35. Young people in smaller cities see metro café culture and want it. That gap between metros and secondary cities? That’s where money is.
Economics look different too. Real estate way cheaper. Labor cheaper. Operations simpler. Profit happens faster—18-24 months in secondary cities versus way longer in metros. That attracts operators. But you simply cannot just copy the concepts of metro cities and drop them in some Tier 2 or tier 3 cities as it will not work there. Successful operators customize everything. Menus. Pricing. Space design. Value-focused places win. Good quality but affordable. That’s the sweet spot.
Trend 4: Indian brands are gaining popularity
Start a Starbucks has around 400 plus outlets in the cities and around 9% market share. Barista got 465. Café Coffee Day has 425. They’re solid. But fastest growing? Third Wave and Café Buddy’s Espresso each added 56 outlets recently. That’s the real story. Indian brands that actually understand local markets.
Food became way more important than people expected. Used to be cafés sold coffee and food was just bonus. Now it’s core business. Just beverages? ₹426.22 per customer. Add food? ₹660.86. That’s 55 percent more money. So operators started doing “freestyle dining”—small plates, brunch stuff, light meals across the whole day.
Bagels dominate breakfast in Delhi, Mumbai, Hyderabad. Bangalore? Everyone wants pancakes. Smart operators customize. Homegrown brands get this naturally. They understand local preferences better than global companies with one menu everywhere.
Digital matters too. Homegrown operators were quick. Mobile ordering. Loyalty apps. Delivery integration. Younger customers expect it to just work. Third Wave built loyalty systems with rewards and subscriptions that keep people coming back consistently.
Where This All Goes
Indias café market you went from niche to mainstream and has more than 5000 outlets now. Experts estimate that by 2030, 10,000 outlets will be open at India which shows a 13.2% yearly growth.
So basically, the four trends define where the Indian market is going forward. So, if you are thinking to open a coffee shop then there must be some speciality in your coffee and you must provide space for social gathering. Secondary cities are real opportunities. Operators who adapt metro concepts but respect local preferences and keep unit economics tight will make bank. For investors, profitability exists across segments.
Frequently Asked Questions
Q1: What is the estimated worth of India’s café market?
India’s cafe market has the birth of about 380- 440 million dollars with 5000 plus outlets. This number will increase by 2030 up to $30 billion.
Q2: Which brands are winning?
Starbucks is having around 400 plus outlets in India holding 9% market share. Barista and coffee café coffee day has also more than 400 outlets.
Q3: How do Indians actually use cafes?
People in India see cafes as a place which can be used for social gathering. A recent data shows that around 1/3 of visits happen during the evening time yeah.
Q4: Why should operators look at secondary cities?
94 percent of operators are moving there. Profitability in 18-24 months versus longer in metros. Real estate, labor, operational costs substantially lower. Just need to customize menus, pricing, space for local preferences.
Q5: How important is food for café business?
Food increases revenue by 55 percent per customer. Beverages alone make ₹426.22. With food it becomes ₹660.86. Small plates, brunch, light meals across dayparts drive repeat business. Regional preferences shape menus heavily. Customize and you win.
