Third Wave Coffee is strategically planning its next phase of expansion, with a strong focus on densifying its presence in existing markets such as Bengaluru and Chennai while selectively entering new high-potential cities.
The Bengaluru-headquartered specialty coffee chain aims to open its next 100 stores primarily in cities where it already operates.
“The market for premium coffee in India is vast, with both independent and organized players scaling rapidly. In Bengaluru alone, we see a coffee outlet every couple of kilometers, and we believe the city can accommodate at least 50 more stores. But our vision extends beyond Bengaluru—Chennai, for instance, presents a major opportunity,” said Rajat Luthra, Chief Executive Officer, Heisetasse Beverages Pvt Ltd, which owns Third Wave Coffee.
The company launched its second outlet in Chennai, located in Kilpauk, marking its 140th store overall. It aims to reach 150 stores by the end of this fiscal year and scale up Chennai to match Bengaluru’s presence within 12-18 months while continuing nationwide expansion.
Luthra noted that India, historically a tea-drinking nation, is witnessing a growing shift towards coffee, especially among Gen Z and millennials. Cold brews and flavored iced coffees are gaining immense popularity, further fueling demand.
After opening their first store in Chennai in December 2024, Third Wave is now launching its second outlet, with three more under construction. By April, two of these will be operational, and a third will follow soon after. This approach ensures optimized logistics and cost efficiency, he said.
Third Wave Coffee maintains a fully sustainable sourcing model, using 100 per cent Arabica beans from Chikmagalur and Coorg. The company has direct relationships with farms, ensuring ethical sourcing and strict quality control.
With increasing consumer demand for premium coffee on the go, the brand is actively setting up outlets at high-traffic expressways.
“We have already secured a location on the Pune Expressway and signed agreements for two more highway outlets, expected to be operational by mid-to-late April,” Luthra said.
Unlike standalone highway cafés, Third Wave Coffee’s outlets will be strategically placed within food court clusters, ensuring better footfall and visibility.
The brand’s new locations typically reach EBITDA-positive status within four to five months. Currently, 90 per cent of its outlets are EBITDA-positive.
With double-digit growth, Third Wave Coffee’s revenue is projected to reach ₹300 crore this fiscal year, with a target of achieving profitability in the coming years.
Beverages contribute 60-65 per cent of revenue, with the remaining 35-40 per cent coming from food offerings..