By launching these 24X7 stores, Tata Starbucks reaffirms its long-term dedication to one of the fastest-growing Starbucks markets worldwide. (Representative Image)
Tata Starbucks Private Limited marked the opening of its 338th store in India today by launching a new store in Agra, Uttar Pradesh. This is the first Starbucks location in the historic city.
Tata Starbucks has opened its 338th store in India, located in the historic city of Agra, marking the company’s 42nd city entry and third location in Uttar Pradesh after Lucknow and Kanpur. The new store aims to provide customers with the iconic Third Place experience.
The newly opened store will provide both locals and tourists from around the world with a fresh venue to socialize with friends or work together while indulging in their preferred Starbucks drinks.
“We’ve had an incredible journey in India so far; this year we crossed the 40th city milestone, bringing our presence to 338 stores across the country. After having successfully opened our doors to customers in Lucknow and Kanpur, we are delighted and honored to bring Starbucks to Agra, a city so culturally rich and vibrant”, said Sushant Dash, CEO, Tata Starbucks Pvt. Ltd.
The recently opened Starbucks store in Agra showcases a design that pays homage to the city’s rich historical architecture and a deep passion for coffee. The store’s architecture is inspired by intricate detailing and ornamentation, featuring rounded arches and modern decorative elements on both floors.
As customers enter the store, they are welcomed by a Starbucks craft bar and a double-height arch that displays a custom tapestry created in partnership with local artist Hemakshi Devi. The tapestry, meticulously crafted by a team of local artisans, pays tribute to traditional embroidery techniques like Dhurrie and Zardozi.
The store offers Starbucks merchandise and free Wi-Fi to customers. Additionally, the company is launching the Starbucks Rewards loyalty program in the city, which offers rewards and personalized benefits to members who make Starbucks a regular part of their daily routine. To ensure a safe and convenient experience for customers, Tata Starbucks has introduced contactless order and payment methods such as Mobile Order and Pay through the Starbucks India mobile application.
On Monday, delivery riders from Blinkit, the quick commerce platform owned by Zomato, had a meeting with Dinesh Kumar, Gurugram’s Deputy Labour Commissioner. During the meeting, the riders demanded various improvements, including a minimum pay of INR 25 for each order delivered, restoration of previous incentives, and better working hours. These riders have been on strike since the previous week.
Blinkit, a startup, has recently rolled out a new pay structure for its delivery riders in Delhi-NCR, where their payout will now be based on the distance travelled instead of a fixed amount. This move has led to hundreds of Blinkit riders going on strike, resulting in a disruption of services provided by the quick-commerce platform. Nearly 100 dark stores of the platform have been shut down in the region due to the strike.
During the meeting between the Labour Commissioner and the representatives of Blinkit’s driver partners, the management representatives were also present. The Labour Commissioner instructed the delivery executives’ representatives to prepare a list of their demands in writing and have it signed by the present delivery executives outside the office.
Blinkit Vs Driver Partners: The Issue
Blinkit has introduced a new pay structure for its delivery riders where they will be paid INR 12 per kilometre for delivering an order. This change has caused anger and frustration among the delivery drivers. The new pay structure also includes reduced pay rates for less busy hours, such as 11 AM to 7 PM, during which drivers will receive only INR 9 per kilometre.
The delivery partners have demanded a minimum pay of INR 25 for the first kilometre travelled, while the subsequent distance can be paid for according to the new pay structure.
The drivers argue that under the new pay structure, if a delivery partner completes two orders within an hour, travelling two kilometres each way, they would receive only INR 60 per hour, including incentives, which they consider unsustainable. As a result, the drivers are demanding a revised pay scale that would result in a payout of INR 100 per hour.
Previously, a group of approximately 380 drivers who were the first Blinkit delivery drivers in the Gurugram region were paid INR 50 per order. In contrast, the later joiners, comprising around 2,500 to 3,000 delivery partners, were compensated INR 25 per order.
The new pay regime has caused a significant disagreement, particularly for the early adopters who will experience a significant reduction in their earnings. This is because, under the new system, everyone, including the early joiners who were previously paid INR 50 per order, will receive the same amount.
There is a list of five demands presented by the drivers:
The company should increase the minimum pay to INR 25
The riders don’t want any changes to the pay scale. The company may increase the pay but should not decrease it
The company will not terminate access for a rider even if they are unable to log in for 20 days and will inform the rider before doing so
The company will revert to giving payment from cash on delivery orders to SM (store manager) so that the drivers can work easily
The company should arrange for water and toilets for the drivers
The drivers have submitted these demands, and the letter has been signed by hundreds of them, to the Gurugram Labour Commissioner.
Several riders have reported that the disruption has caused delays in their payments. As most of them live from paycheck to paycheck, managing their expenses has become challenging.
Moreover, the drivers have raised concerns about the difference between the delivery distance displayed on Blinkit’s app and the actual distance covered while completing an order.
According to a complaint filed by one of the drivers, Blinkit has reportedly terminated a few drivers who participated in the strike last week. These drivers were fired on April 15 and 16. Furthermore, the quick-commerce app has purportedly suspended the driver IDs of several other drivers who took part in the strike.
Industry bodies have strongly criticized Blinkit’s actions. The Indian Federation of App-Based Transport Workers (IFAT) has urged the quick-commerce startup to reconsider its stance on the issue.
Around 1,000 Blinkit delivery executives in the National Capital Region have recently joined competing quick-commerce firms like Swiggy Instamart, Zepto, and BB Now. (Representative Image)
The strike of Blinkit’s delivery executives in Delhi-NCR since mid-last week is likely to have already resulted in approximately 1% revenue loss to the quick-commerce arm of Zomato in Q1 of the financial year 2023-24 (FY24), ICICI Securities said in a research note on Monday (April 17).
Since the start of the strike over Blinkit’s new pay structure for delivery partners on April 12, more than 50% of the 200 Blinkit dark stores in the region have remained closed.
“We estimate Blinkit was operating about 370 dark stores pan-India as of Q3 FY23. This implies almost 25% of the dark stores are currently not operational. Given that at least 3-4 days’ sales have already been lost, this implies about 1% loss in revenue from Blinkit and almost 0.15% of consolidated revenue for Q1FY24 – already,” said ICICI Securities note on Zomato.
After the strike started, a message on the Blinkit app in some areas of the national capital said: “Sorry for the inconvenience. Your store is under maintenance.” Later, in a statement, the startup said, “We have introduced a new payout structure for our partners that compensates them based on their effort to deliver an order. This is an opt-in exercise, and our teams are on the ground to answer any questions from the partners.”
Blinkit’s decision to reduce the delivery fees of its delivery executives, leading to the ongoing strike, coincides with Zomato’s drive to reach its profitability targets. The foodtech giant has already implemented various restructuring measures in its other business segments, including staff reductions and exiting the food delivery business in several cities.
According to ICICI Securities, the change in Blinkit’s delivery fee structure is a reflection of Zomato’s drive towards cost control. The brokerage believes that the change will enable Blinkit to expand the delivery radius for its existing dark stores and enhance its network coverage while limiting capital expenditure.
“We believe strikes/agitations are unavoidable in the sector given the large exposure to an urban ‘blue-collared’ workforce. However, given that the strike (at Blinkit) is happening in the national capital and has already garnered political attention, we think the company should try to resolve the issue at the earliest,” said the brokerage.
After the Blinkit delivery executives’ protest began, Yashpal Batra, a spokesperson of the Bharatiya Janata Party (BJP) from Haryana, supported the protest and met with Gurugram Labour Commissioner Dinesh Kumar to seek swift resolution of their concerns. Recently, the delivery executives met with Kumar to request a minimum payment of INR 25 per order delivered.
ICICI Securities has suggested that Blinkit can tackle the issue by providing better clarity on the anticipated change in earnings for delivery partners, and offering some concessions on the delivery fee.
ICICI Securities has maintained its ‘buy’ rating on Zomato’s stock, despite the growth challenges in the food delivery segment and the recent problems at Blinkit.
ICICI Securities has predicted that Blinkit’s growth will be at 30% quarter-on-quarter in the fourth quarter of FY23, primarily due to its expansion in more locations. In contrast, the brokerage anticipates that Zomato’s gross order value (GOV) in its food delivery segment will remain stable in the same quarter, despite the activation of Zomato Gold, because of the seasonal weakness and waning online consumption. Nonetheless, the brokerage has maintained its ‘buy’ rating on the Zomato stock despite the recent issues at Blinkit affecting its growth in the near term.
It is worth noting that Zomato’s consolidated net loss widened both year-on-year (YoY) and quarter-on-quarter (QoQ) to INR 346.6 crore in Q3 FY23, despite total adjusted revenue of INR 2,363 crore. Blinkit’s contribution to the adjusted revenue in the quarter was INR 301 crore.
ICICI Securities has reiterated its price target (PT) of INR 65 on Zomato, which represents a potential upside of 20.7% based on the stock’s closing price on the BSE.
Today, Motilal Oswal started covering Zomato and gave a ‘buy’ rating with a PT of INR 70. This PT indicates an increase of 30% to the stock’s closing price on Friday.
According to Motilal Oswal’s report, while Blinkit is demonstrating good scalability and profitability, the space is still in its early stages for Zomato, as there are a significant number of players in the ecosystem.
“We view the acquisition of Blinkit as an additional risk and high attrition at senior management level remains a concern,” the brokerage said.
Despite facing stiff competition in the food delivery industry, Motilal Oswal predicted a 29% revenue compound annual growth rate (CAGR) for Zomato between FY23-25 due to the rapid growth of the industry in India, fuelled by increasing internet penetration, consumption, and urbanisation. As a leading player in the industry, Zomato is expected to gain from this trend.
“We expect strong growth to be complemented by the company turning profitable over FY25, despite elevated competitive intensity,” the brokerage added.
Although the stock market saw a decline in most new-age tech stocks today, Zomato’s shares remained relatively stable, trading at INR 53.8 on the BSE during noon trade.
Ynsect SAS, a startup in the insect farming industry, has successfully raised additional funding to support its global expansion plans and prioritize producing higher-value food for both pets and humans.
Having recently closed a financing round of €160 million ($175 million), the French company’s total funds raised to date amount to roughly $625 million. With the aim of increasing profitability in the face of soaring costs of energy, raw materials, and debt, the company is transitioning away from animal feed – such as mealworms for fish – and towards higher-margin products, such as pet food and food ingredients.
“We are really focused today on where the value, the revenue are the highest,” and where the climate and biodiversity footprints are best, Ynsect co-founder Antoine Hubert said in an interview. “Animal feed is a good market, but it takes more time to make a positive financial and economic impact.”
Insects have gained recognition as a sustainable protein source, with regulatory approvals in Europe. However, they remain a niche market and comparatively expensive food item in the West. Additionally, securing funding for startups and new technologies has become increasingly challenging due to heightened investor scrutiny and limited funding opportunities.
Hubert emphasized the difficulties the industry confronts, noting that investors are now more thoughtful about their investment decisions.
“It’s positive to see in this tough environment, to find support and people who believe in what you are doing,” he said.
The identities of the investors in the latest funding round were not disclosed by Hubert, as Ynsect is currently in discussions for a second tranche of funding set to conclude later this year. Ynsect has previously received backing from investors such as Astanor Ventures, Bpifrance, and Robert Downey Jr., who played the lead role in the Iron Man movie franchise.
Ynsect, whose farms are located in France, the Netherlands, and the US, is currently expanding its operations in Mexico and exploring potential entry into the Asian market. With approximately $175 million in secured supply contracts and ongoing negotiations for customer deals worth around $1 billion, the company is poised for further growth.
Ynsect is pursuing an “asset-light” business model that involves a combination of joint ventures and licensing agreements, requiring less capital investment. This shift in strategy will result in a reduction of the company’s global workforce of 360 employees by approximately 20%. However, Ynsect still intends to hire around 40 people for new positions.
For years, Anushka Sharma and Virat Kohli have been the epitome of relationship goals. Apart from their undeniable chemistry, the couple shares a passion for food. While Anushka savors South Indian delicacies and other traditional cuisines, Virat indulges in his favorite cheat meal, chole bhature. Nonetheless, their latest choice of refreshment has sparked a discussion about their preference for healthier options. Following Virat’s IPL match on Saturday, the duo was spotted having a wonderful time together, relishing some invigorating sparkling water.
Virat’s drink also included some lemon and mint. Anushka Sharma shared a selfie and wrote, “Post match drinks sesh – sparkling water. We party hard(ly),” along with a laughing emoji.
It is noteworthy that Anushka Sharma and Virat Kohli are proponents of healthy living and clean eating. In a recent interview with Grazia India, Anushka disclosed that she and Virat follow a distinct lifestyle. When their neighbors, Vicky Kaushal and Katrina Kaif, invited them for dinner last month, Anushka and Virat had to confess that they dine at 6 pm and retire by 9:30 pm.
Anushka said, “Katrina and Vicky have invited us to their home, but we eat dinner at 6 and we sleep at 9:30. So I said (to Katrina Kaif), for you, we’ll eat at 7-7:30 but we have to leave soon.”
During a visit to Delhi, Anushka Sharma embarked on a flavorful culinary adventure, treating her taste buds to a variety of mouth-watering delicacies. Her food diary featured two staple meals – the first being Virat’s favorite chole bhature, and the second consisting of kulcha with delectable paneer and flavorful dal. Anushka shared pictures of her indulgent meals with her online followers, showcasing the special chole bhature platter that came with sides of onions, green chutney, and pickle. With the other plate comprising a delectable kulcha served with paneer ki sabzi and dal, Anushka playfully captioned her post with “When in…”. Be sure not to miss out on the mouth-watering sides of onions, green chutney, and pickles.
On a previous occasion, the two were spotted enjoying a delightful coffee and cookie date. Anushka humorously remarked, “Feeling mighty victorious when you manage to sneak in a quick breakfast.”
According to a report by Motilal Oswal Financial Services, the food delivery market in India is expected to grow at a compound annual rate of 19% between FY23-25, while other markets are experiencing a slowdown. This growth is expected to be driven by an increase in the number of transacting users and order frequency, resulting in a higher proportion of online food ordering.
The report suggests that online food ordering in India is set to reach a 24% share by FY25E, up from 13% in FY21. The report also includes an analysis of Zomato, with a target price of INR 70.
On April 17, the shares of the restaurant aggregator and food delivery company were trading at INR 53.42 apiece on the BSE, indicating a 0.76% decline.
According to the brokerage firm, the adoption of online delivery in India has been fueled by increasing internet penetration, urbanization, and consumption. With a projected internet user base of 1 billion by 2025, as estimated by Redseer, and only 9% of the population currently using the internet (in comparison to 36% in China and 50% in the US), there is a vast untapped market with plenty of room for growth. This suggests a long-term potential for growth in the sector.
As per MOFSL, the food delivery market in India has now become a stable duopoly with Zomato holding a 55% market share and Swiggy holding 45%, following Amazon’s exit. The high barrier to entry, requiring significant capital to displace the established players, creates a considerable competitive advantage or “moat” for the incumbents.
“We expect Zomato to gain from the relatively early stage of the food delivery ecosystem in India, as increased formalisation along with a growing share of platform-led delivery (currently at 7% of overall food consumption) should help boost its Food delivery gross order value (GOV) to INR 38,400 crore in FY25 from INR 21,300 crore in FY22.”
Financials & Growth:
According to research analysts Mukul Garg, Raj Prakash Bhanushali, and Pritesh Thakkar at MOFSL, Zomato is expected to achieve a robust 29% revenue compound annual growth rate (CAGR) between FY23 and FY25. This growth is anticipated to be driven by increased penetration, a higher proportion of users making transactions, and an increase in the frequency of orders.
Additionally, the analysts predict that Zomato will reach breakeven by FY25, building on the food business segment’s EBITDA level breakeven achieved in 1QFY23. MOFSL also expects Zomato’s gross margin to improve significantly from 5.3% in FY22 to 33.5% in FY25.
Additionally, the brokerage noted that Zomato Gold is anticipated to contribute to the company’s growth. The early indications of Gold adoption are positive, with 900,000 users signing up in the first month alone. The brokerage believes that this trend will help Zomato to improve its growth trajectory, as the frequency of orders is expected to increase after declining in recent quarters.
However, MOFSL also expressed concern about the limited differentiation between Zomato and Swiggy’s offerings, with both companies providing food delivery, dine-in, and quick commerce services. A fragmented market without a clear leader could negatively impact margins due to the absence of efficiency gains from order bunching. MOFSL anticipates a contribution margin of 5.6% of gross order value (GOV) for Zomato in FY25E, compared to its medium-term target of 8%.
Biggies Burger, the popular Indian burger chain, is excited to unveil its latest addition in Sarjapur, Bengaluru. As the 14th store in Bengaluru, Biggies Burger continues to make its mark in the city with a hyperlocal expansion strategy, bringing its delicious offerings even closer to the people.
Biggies Burger, a well-known brand among Indian consumers, has initiated an aggressive expansion plan this year, with the goal of reaching 350 stores nationwide by 2024. With over 130 stores already in operation throughout the country, Biggies Burger is well on its way to achieving this ambitious target.
Biraja Rout, the Founder of Biggies Burger, is confident that the brand will achieve a revenue of INR 100 crore by the end of the financial year 2023. Biggies Burger has gained popularity as a successful Indian QR brand for franchising. As part of its franchising program, the brand has launched the ‘Biggies Entrepreneur Programme,’ which empowers aspiring foodpreneurs to build a profitable QSR business as franchisees, ensuring long-term sustainability.
Located in Natura Walk, Sarjapur, the newly opened Biggies Burger store showcases the brand’s signature menu, featuring a range of mouth-watering burgers, delectable sides, and refreshing beverages.
“We are excited to open a new store in Bengaluru. We have been building a loyal customer base across the country and we are confident that we will reach our 350-store mark by 2024, said Biraja Prasad Rout.
He added “Our menu is diligently planned to suit the tastes of the local people, and we are confident that the new store will be a hit among the local community.”
Biggies Burger’s latest store opening in Sarjapur is a testament to its commitment to providing customers throughout India with authentic grilled burgers.
According to Srikant Sree Ram, Director of Amazon Fresh, the online grocery arm of Amazon has expanded its reach in India to over 50 cities, compared to around 22 cities in April of last year.
Srikant Sree Ram added that more than 50% of the online grocery platform’s customers are from Tier 2 and 3 cities, making them a crucial customer base for Amazon Fresh as it expands its presence to over 50 cities in India.
“In the last year, we have more than doubled the number of cities that we are available in. We are now available in 50 plus cities including many Tier 2, 3 cities like Chandigarh, Kochi, Trivandrum and many more.”
According to him, Amazon Fresh’s priority is to expand further into Bharat while also making sure that it provides a complete range of products to its customers.
Despite the emergence of several players offering 30-minute quick grocery delivery models, Amazon Fresh has been emphasizing its slotted grocery delivery service to its customers.
According to Sree Ram, the key factors that most online grocery shoppers in India look for are quality and value for money. He cited a recent survey by LocalCircles, which revealed that 50% of the respondents prefer to pre-plan their online grocery purchases and opt for a delivery slot that is convenient for them.
“Our focus has remained squarely on ensuring we provide high-quality products, especially in fresh fruits and vegetables and ensure that we offer our customer the best value. Whether it comes through pricing or through offers. Grocery for us has been one of our fastest growing categories nationally,” he added.
Last year, in 2021, Amazon merged its grocery stores – ‘Fresh’ and ‘Pantry’ – into a single store called Amazon Fresh. Additionally, Amazon.in provides free delivery on all orders above INR 249 for its Prime members.
Around 1,000 Blinkit delivery executives in the National Capital Region have recently joined competing quick-commerce firms like Swiggy Instamart, Zepto, and BB Now. (Representative Image)
IFAT (Indian Federation of App-Based Transport Workers) has urged Blinkit, the quick-commerce unicorn owned by Zomato, to reconsider its stance on recent reductions in pay for delivery drivers.
The industry body’s national General Secretary, Shaik Salauddin, said, “The sudden reduction in their wages not only undermines the workers’ hard work and dedication but also puts their livelihoods at risk.”
Salauddin stated that approximately 600 delivery personnel met with company officials on April 14 to address the pay reduction issue, but the company persisted with its decision to continue with the cut.
As a reminder, Blinkit reduced the remuneration of its delivery staff from INR 50 per order to INR 14 last week, prompting protests and indignation across Delhi/NCR. According to IFAT, over half of the 200 dark stores that Blinkit operates in Delhi, Gurugram, Faridabad, Ghaziabad, Noida, and Greater Noida have closed since April 13.
Last week, in response to a SnackFax query on the pay cuts, a Blinkit spokesperson had said, “We have introduced a new payout structure for our partners that compensates them based on their effort to deliver an order. This is an opt-in exercise, and our teams are on the ground to answer any questions from the partners.”
IFAT stated that Blinkit previously paid INR 50 per order to its first group of delivery staff, while the more recent employees earned INR 25 per order. The organization further revealed that the quick-commerce firm offered incentives and fuel expenses, which could amount to INR 1,400 per week in certain situations, in addition to the delivery payments.
“The protesting workers are also angry as these incentives have been gradually tapered out,” said Salauddin, adding, “We strongly condemn this unilateral decision by Blinkit and call on the company to reconsider its stance.”
The involvement of Yashpal Batra, a BJP representative from Haryana, in discussions with a local industry association in Gurugram that represents striking Blinkit staff last week has added a political aspect to the ongoing developments.
Numerous industry specialists, such as Ashneer Grover, the former CFO of Blinkit (formerly known as Grofers) and cofounder of BharatPe, have been expressing their views on the overall feasibility of the quick-commerce business model.
In 2017, Grover departed from Blinkit, then known as Grofers, and recently took to Twitter to voice his concerns about the sustainability of the quick-commerce model.
“BlinkIt/Zepto – [the] problem is not INR 15 for delivery against INR 50. [The] problem is 10 Min delivery has no economics – low ticket size and low margin can never be solved through forced low delivery cost. BlinkIt journey: 90 Min (bull run) —> Next day (bear run) —> 10 Min (bull run) —> ??,” wrote the ex-CFO on Twitter on April 16.
Zomato’s Q3 FY23 financial report indicates that Blinkit’s order volume rose by 21% QoQ to 3.16 Cr, although the average order value (AOV) decreased by 2.6% to INR 553.
Zomato founder Albinder Dhindsa remarked that although the AOV is significant, the company could still establish a profitable business even with an AOV that is 20% lower than the current level.
Coca-Cola, the beverage giant, is reportedly poised to make its first investment in an Indian startup. The company is said to be purchasing a minority stake in Thrive, a food ordering platform that competes directly with Swiggy and Zomato. Thrive is a search and delivery platform that has formed partnerships with over 5,500 restaurants.
As per a Coca-Cola executive, the strategic investment in Thrive will provide a competitive advantage to Coca-Cola and incentivize customers to exclusively order Coca-Cola beverages alongside their food orders. Additionally, the investment will aid customers in personalizing their orders, purchasing bundled deals, meal combinations, and loyalty codes.
Coca-Cola’s investment in Thrive will facilitate greater consumer engagement as Thrive has a significant number of mid-sized restaurant partners.
Coca-Cola offers a range of beverages that includes aerated drinks like Coke and Thums Up, as well as juices like Minute Maid, water under the brand Kinley, and coffee under the brand Georgia.
In 2020, three entrepreneurs, Dhruv Dewan, Karan Chechani, and Krishi Fagwani, founded Thrive to enable customers to order food from a selection of restaurant partners. Additionally, the platform provides restaurants the option to construct their own sub-portals. Previously known as Hashtag Loyalty and focused on offline food retail businesses, Thrive Now was launched amidst the pandemic in 2020.
Among its list of investors are Jubilant Foodworks, which holds the master franchise for Domino’s Pizza in India, and the payment company Razorpay.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
