Starbucks to Open More Stores in India

May 15, 2013

【Unlocking Word Meanings】

Read the following words/expressions found in today’s article.

1. unfazed
[uhn-FEYZD] (adj.) – not worried or disturbed
Example: The CEO remains unfazed despite the company’s increasing problems.

2. setback [SET-bak] (n.) – a difficulty that delays the progress or success of an activity
Example: Strong businesses succeed despite economic problems and setbacks.
3. not all roses [not awl rohz es] (idiom) – comes with both unpleasant and pleasant things
Example: Opening a new business is not all roses as it also comes with a lot of problems.

4. potential [puh TEN shuh l] (n.) –  the possibility of becoming real or successful
Example:   Online businesses have big potential to grow in today’s generation.

5. rise to the challenge [RAHYZ too thuh CHAL-inj] (idiom) – to deal with a difficult situation
Example: Good businessmen rise to the challenge of opening a business in times of crisis. 


Read the text below.

Starbucks Coffee remains unfazed and will continue to put up more stores in India despite massive delays.

Starbucks, world's largest coffee chain, entered the Indian market in 2012 and originally planned to open 50 stores by the end of the same year. However, the first store did not open until October. And by the end of 2012, the company managed only nine stores in Mumbai and New Delhi.

Despite this setback, the company is still determined to expand and make India one of Starbucks’ top five markets worldwide.

India has recently been attracting heavy investments from foreign businesses that see tremendous potential in the nation. The growing middle class and a younger population, who are increasingly acquiring Western tastes, drive the country’s market potentials.

However, expanding the coffee business to India is not all roses. Most Indians are tea-drinkers, which can be a challenge for a company like Starbucks that sells exceptional coffee-based beverages.

But Starbucks seems willing to rise to the challenge as it kept Indian prices much lower than in other markets like China. While their profits may be affected, the move will undoubtedly make the brand more accessible to India’s tea-loving crowd.

India’s coffee consumption has increased by 80% in the last decade. And in the next few years, the coffee market in the country is expected to reach $500 million. Starbucks thus hopes that its investment in India will be fruitful and successful.

【Viewpoint Discussion】

Enjoy a discussion with your tutor. 

Discussion A

·         Do you think that lowering coffee prices in India is a good strategy for Starbucks? Why or why not?
·         In your opinion, how else can Starbucks attract more Indians to buy the company’s coffee and other products?

Discussion B

·         If you were a businessman, what factors would you consider before investing in another country? Please explain your answer.
·         What are some of the challenges in putting up a business overseas?


May 15, 2013