"The impressive growth expected of specialist coffee chains in India offers numerous opportunities for both local and international players, provided that they can overcome inherent obstacles," says Nitin Kalani, Rabobank beverage analyst and author of the report.Sourcing coffee beans is not the key barrier for specialist coffee chains, with coffee beans accounting for an insignificant proportion of the total cost of a cup of coffee. For example, the cost of coffee beans in a cappuccino is about 8 percent of the sale price. To be successful, operational efficiency (e.g., managing rent and labor costs) is more important than focusing solely on raw material costs.
Rabobank Report: "Raj-accino"- The Rise Of Coffee Culture In India
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