‘Consumers becoming more discerning; creating opportunities beyond traditional coffee occasions:’ Rajat Agrawal

NEW DELHI: Coffee lovers in India are becoming more discerning, creating opportunities for cafes to go beyond the regular products. Barista Coffee CEO Rajat Agrawal sees increasing demand for premium coffee, matcha, bubble tea and protein-led beverages reflecting different tastes, lifestyles and consumption needs. Excerpts:Ques. How is coffee consumption in India changing with time?Ans. Consumers are becoming more curious and discerning, and that is creating opportunities beyond traditional coffee occasions. For organised café chains, the opportunity is to innovate while keeping the menu focused, operationally practical and commercially viable. We look at taste, ingredient quality, customer interest, preparation time, sourcing reliability and contribution margins before scaling a new product.Pricing must communicate value rather than simply follow trends. A balanced portfolio with familiar favorites, accessible upgrades and selective premium or functional options can attract new customers, encourage trial and support higher-value visits.Ques. As competition intensifies in India’s café sector, what is becoming the bigger differentiator for brands: product quality, ambience, convenience or the overall customer experience?Ans. Product quality is the foundation, but the differentiator is increasingly the experience customers receive every time they visit. Great coffee must be supported by warm service, a comfortable and relevant space, dependable availability and convenient ways to order.At Barista, we see a café as more than a place to buy a beverage, it is a space for connection, work and everyday moments. We are focused on consistency across product and service, relevant menu innovation, accessible formats and stronger engagement with customers. Loyalty is earned through the small details repeated well, remembering preferences, delivering on expectations and giving people a reason to return.Ques. What are the key factors that determine the profitability of an individual café and how do you evaluate the commercial viability of a new outlet?Ans. A café’s profitability is shaped by a combination of location, rentals, customer footfall, average bill value, product mix, operating costs and the ability to generate repeat visits. Strong sales alone do not guarantee healthy economics, disciplined control over food costs, manpower, wastage, utilities and delivery commissions is equally important.We evaluate a proposed outlet through catchment potential, consumer profile, visibility, accessibility, competitive intensity and realistic revenue projections. We also assess the investment required, expected payback and operational feasibility. The objective is not simply to open more cafés, but to build outlets that can sustain profitable operations over the long term.Ques. Barista just opened its 555 café. What has driven this growth?Ans. Reaching 555 cafés reflects the strength of our brand, the trust of our customers and the commitment of our teams and partners. Our growth has been driven by a clear proposition: making quality coffee and welcoming café experiences accessible across diverse markets. As we expand, we remain focused on choosing the right locations and formats, strengthening training and operating processes, and maintaining consistency in sourcing, preparation and service.We believe expansion and efficiency must move together. Each new café has to fit the local market, meet our operating standards and contribute to a healthy business. Sustainable growth is ultimately about building capability, not just adding outlets.Ques. How do you adapt the business model to local consumer behaviour?Ans. A successful city strategy begins with understanding how people live, work, socialise and consume. We study the local catchment, customer profile, price expectations and food preferences before shaping the outlet proposition. The core experience remains consistent, while the menu, communication and operating choices can respond to local demand.In markets where customers seek a more substantial food occasion, for example, freshly prepared food can complement the coffee offering and increase relevance across breakfast, lunch and evening visits. The aim is to strike the right balance: local relevance without losing the brand’s identity, and customer choice without creating unnecessary operational complexity.You use AI every day. Now get your AI Quotient. Take the AIQ test.