Starbucks to introduce smaller sizes, masala chai, filter coffee to its menu

In a bid to lure more customers and appeal to Indians' craving for their daily brew, Starbucks will add local favourites 'masala chai' and 'filter coffee' to its menu.

The new options will also include sandwiches, milkshakes, and smaller beverage cups to help steer more customers to its fold by making these more affordable. The array of launches is a part of its strategy to drive growth and acquire new customers.

Starbucks has also introduced a new size for its beverages 'Picco' to offer drinks in smaller, cheaper portions.

“Some of the food items that we are launching as the starting point in a Starbucks become more affordable and attract a larger segment of consumers,” Sushant Dash, CEO of Tata Starbucks told The Economic Times.

Starbucks' menu already featured chai latte and some Indian options, however, this time around, affordability is the key approach to target customers.

The move also comes at the back of British snack chain Pret launching in India, in partnership with Reliance. Pret had also said it would adapt its menu to local tastes when it opens in Indian cities and airports.

Pret's entry into the sector will be a big challenge to rivals Starbucks, Cafe Coffee Day and Costa Coffee as well as Tim Hortons of Canada, which said in March it will launch in India this year.