Daybreak

Third Wave built a coffee brand. Now it's betting against it

July 22 · 10 min · Episode 799 · 9.9 MB
0:00-10:16

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No coffee chain in India is clearly profitable. Third Wave Coffee, which lost 110 crore rupees in FY24 with nearly 70% of its stores in the red, is trying to change that with cake. Its new sub-brand, Third Rush, has put around 200 dessert items on the menu, with plans for 50 cafes by year-end.

CEO Rajat Luthra, former head of KFC India, has already pared the losses. The dessert margins clear 50% and the chain badly needs the footfall.

But customers walk into Third Wave for coffee not tres leches.

Can desserts turn the business around without changing its identity?

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