CEO STORIES

Third Wave Coffee ropes in ex-KFC India head as CEO; founder Sushant Goel to move to board role

SUMMARY

Third Wave Coffee undergoes a significant leadership transition as founder Sushant Goel moves to a board role, welcoming Rajat Luthra, former KFC India head, as the new CEO. With heightened investor interest in specialty coffee, the company aims for continued expansion, bolstered by a $35 million investment last year.

Goel will gradually transition out of his operational role over nine months, aligning with the company's restructuring efforts. Luthra's extensive experience in QSRs positions him to drive growth. The move reflects Third Wave Coffee's commitment to strategic evolution and sustained success in the dynamic coffee industry.

Specialty coffee chain Third Wave Coffee announced a significant transition in its leadership team. Founder and Chief Executive Officer (CEO) Sushant Goel will step into a board role, paving the way for Rajat Luthra, the former head of KFC India and Nepal, to take over as the new CEO effective April 1. This strategic move comes amid heightened investor interest in the specialty coffee sector, with new chains securing capital from venture capital funds.

With 110 stores nationwide, Third Wave Coffee is poised for further expansion under Luthra's leadership. Goel expressed confidence in the brand's growth trajectory and his ongoing contribution to its vision from a board perspective. Alongside Goel, Ayush Bathwal and Anirudh Sharma, the co-founders, collectively own close to 30% of the company. Notable investors include WestBridge Capital and Creagis.

Last September, Third Wave Coffee secured a $35 million investment from private equity fund Creagis, setting the stage for its next phase of growth. Goel will gradually transition out of his operational role over the next nine months, a move aligned with the company's recent restructuring efforts aimed at enhancing profitability. Despite earlier layoffs, Third Wave Coffee currently employs approximately 120 staff members.

In a joint statement, WestBridge Capital and Creagis expressed confidence in Goel's continued strategic guidance from the board and extended a warm welcome to Luthra, highlighting his extensive experience in scaling Quick Service Restaurants (QSRs). Luthra's tenure of over 12 years at KFC, coupled with his previous CEO role at Celio Future Fashion Limited, positions him as a seasoned leader poised to drive Third Wave Coffee's success in the evolving market landscape.

This leadership transition signifies Third Wave Coffee's commitment to sustained growth and strategic evolution, leveraging Luthra's expertise to navigate new opportunities and challenges in the dynamic specialty coffee industry. As the company prepares to embark on its next chapter, stakeholders eagerly anticipate the positive impact of this strategic move on its future trajectory.