Blue Tokai Coffee Roasters: scaling India’s specialty coffee culture

Learning outcomes

At the end of the case study discussion, the participant will be able to:

Case overview/synopsis

This case explores the emerging specialty coffee market in India. It examines the opportunities and challenges for new entrants in the sector, such as issues of quality control, pricing, consumer education and infrastructure limitations. The case highlights the optimistic trajectory of specialty coffee consumption in India, juxtaposed against its relatively low penetration compared to global markets. The discussion invites students to consider whether entering this niche yet growing market presents a viable business opportunity and what strategies might be required to succeed.

The case is centered on Blue Tokai Coffee Roasters (BT) – one of India’s pioneering specialty coffee brands. BT has grown rapidly, recording revenues of INR 127 crore (US$15.3 m) [1] in FY23 and INR 216 crore (US$26 m) in FY24, but with losses widening from INR 43 crore (US$5.2 m) to INR 63 crore (US$7.6 m). The company has set an ambitious goal of reaching INR 1,000 crore (approximately US$120 m) in revenue by FY27 through aggressive café expansion (80–90 outlets per year). This growth ambition, however, collides with the realities of consumer price sensitivity, low coffee penetration (3.9% in 2024) and questions of whether India’s café culture can sustain such rapid scaling. The case situates the central dilemma around whether BT should continue pursuing aggressive retail expansion or focus on preserving its brand authenticity as an artisanal specialty coffee player in the market.

Complexity academic level

The case study can be used in business management programs, particularly in courses such as Business Strategy, Entrepreneurship and Emerging Markets Strategy.

Subject code

CSS 11: Strategy.