Lavazza To Reenter India Via Franchise Route

Lavazza To Reenter India Via Franchise Route

Italian major Lavazza has joined hands with private equity company Everstone Capital to reenter India’s retail landscape.

A franchise pact has been signed between Everstone and Lazazza to run the latter’s coffee outlets in India, according to a media report.

According to the report, both the companies have signed a deal several weeks ago. As part of the agreement, PE major Everstone will also sell also sell Lavazza coffee vending machines in India.

The US-based food chains Burger King and Subway are being operated by Everstone, and the coffee chain Lavazza would supplement its portfolio.
Burger King outlets have BK coffee shops, and Everstone intends to add Lavazza across its Subway stores.

Lavazza shuttered India operations citing mounting operational expenses several years ago. In a bid to focus on its profit making fresh & honest coffee brewing machine business, the Italian group sold Barista Coffee chain to Carnation Hospitality for Rs 100 crore in 2014. The company changed ownerships four times to turn the brand viable.

India’s coffee culture has brought in Canada’s Tim Hortons, which plans to open 100 outlets over the next four years, US-based Starbucks, which is a major coffee chain player in India, also runs 300 outlets across the county.

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