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

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? Apply to become The Ken’s Intermission Producer: https://the-ken.com/jobs/intermission-producer/Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.