Tan Coffee, a pioneer in India’s specialty coffee market, has made significant strides by launching two new outlets within just 16 days. Under the visionary leadership of founders Nishanth Mittal and Shivank Verma, and in collaboration with BBFT (Building Brands For Tomorrow), Tan Coffee continues to redefine the premium coffee experience in India, showcasing impressive growth and strategic market positioning.
Strategic Expansion: Mohali and Faridabad
Tan Coffee’s new 2000-square-foot outlet in Sector 68, Mohali, and the 900-1000 square-foot outlet in Faridabad highlight the brand’s robust growth trajectory. The Mohali outlet, near CP 67 mall and housing brands like Blue Tokai, Anytime Fitness, and McDonald’s, accommodates up to 60 guests across two floors. This prime location ensures a steady stream of potential customers and enhances the outlet’s visibility. The Mohali outlet provides a sophisticated and welcoming environment, making it a hub for coffee enthusiasts. Its design caters to both individual and group seating, addressing diverse customer preferences.
The Faridabad outlet, positioned in a high footfall area with a lack of quality cafes within a 4-5 km radius, caters to 25-28 covers. This strategic positioning attracts both dine-in and delivery customers, making it a key asset in Tan Coffee’s expanding portfolio. This strategic entry into Faridabad is expected to drive significant business growth and market penetration in this premium residential area.
Nishant Mittal, Co founder, Tan Coffee, on the launch of Faridabad outlet added “Since our expansion kicked off in October 2023, we’ve rapidly grown to seven outlets, with two more poised to launch in Hyderabad and Connaught Place this quarter. Each location is strategically selected to accelerate our vision of leading India’s specialty coffee market. By FY25, we’re targeting 10 additional outlets, positioning Tan Coffee as a dominant player in the industry. Our aim is clear: to set the benchmark for specialty coffee paired with gourmet dining, making us the top choice for a premium casual experience across the country”
Robust Business Model and Financial Viability
BBFT has played a crucial role in Tan Coffee’s journey from a three outlet in January 2023 to seven outlets by July 2024, with several more in the pipeline. The brand’s innovative franchise model, with a setup cost of 60-70 lakhs, offers net profits ranging from 20-25% and a payback period of 18 to 24 months, presenting a compelling investment opportunity. This rapid expansion highlights Tan Coffee’s strategic approach and business acumen, making it an enticing proposition for investors. Notably, all current outlets of Tan Coffee are profitable, demonstrating the brand’s successful business model.
Enhanced Menu Offerings and In-House Bakery
In line with its expansion, Tan Coffee has introduced new items across its menu, enhancing its appeal and customer satisfaction. New offerings include Chili Pepper Pod Paneer/Chicken, Tandoori Paneer/Chicken Pizza, Fruit Sangria, and Pina Colada. Importantly, all bakery items are now prepared fresh in-house, ensuring superior quality and freshness. This move not only elevates the dining experience but also reinforces Tan Coffee’s commitment to excellence and innovation.
Future Expansions
Tan Coffee is set to open a substantial 3600-square-foot outlet in Hyderabad’s Hi-tech City, embracing a bold and innovative concept tailored for the region’s dynamic market. This expansion further solidifies Tan Coffee’s market position and its commitment to delivering unparalleled coffee experiences.
Rohit Singh, Founder and CEO of BBFT, remarked, “The goal is not to expand rapidly in numbers but to focus on building profitable, high-quality outlets. We prioritize ensuring that each new location offers outstanding experiences, generates strong returns, and makes a lasting impact. Scaling too quickly can pose risks to a business, so we are committed to growing Tan Coffee’s bandwagon through quality rather than sheer quantity’
Conclusion
Tan Coffee’s journey from a single outlet in 2023 to its current rapid expansion underscores its innovative vision and strategic execution. The brand’s unique positioning, combining premium specialty coffee and gourmet food, creates a distinct competitive advantage in the F&B market. Investors have the opportunity to partner with a brand that is not only poised for significant growth but also committed to setting new standards of excellence in the specialty coffee industry.
With strong leadership, a dedicated team, and strategic market positioning, Tan Coffee, supported by BBFT, is on a path to revolutionize the specialty coffee landscape in India. The recent launches in Mohali and Faridabad are just the beginning of a broader expansion strategy designed to capture market share and deliver substantial returns to investors.
