Third Wave Coffee names ex-KFC India head CEO; founder Sushant Goel shifts to board.

Third Wave Coffee, a specialty coffee chain, has announced that its founder and current CEO, Sushant Goel, will be transitioning into a board role. In his place, the company has appointed Rajat Luthra, who previously served as the head of KFC India and Nepal, as the new CEO. Luthra is set to join the company on April 1st and will also hold a position on the board.

This change comes amidst growing investor interest in the specialty coffee space, with new chains attracting capital from venture capital funds, as reported by ET. With 110 stores across the country, Third Wave Coffee aims to continue its expansion under Luthra’s leadership.

In a statement, Goel expressed his excitement about transitioning to the board and continuing to contribute to the company’s vision and growth from a different perspective. He highlighted Luthra’s experience in the Quick Service Restaurant (QSR) industry and expressed optimism about the future of Third Wave Coffee under his leadership.

Goel, along with co-founders Ayush Bathwal and Anirudh Sharma, started Third Wave Coffee in 2016. Collectively, the founders own close to 30% of the company, with investors including WestBridge Capital, Creagis, and others.

Third Wave Coffee secured $35 million in funding from private equity fund Creagis in September of last year. Goel will gradually transition out of his day-to-day operating role over the next nine months. The company recently underwent a restructuring with profitability in mind, leading to staff layoffs. It currently employs around 120 individuals.

A joint statement from WestBridge Capital and Creagis expressed confidence in Goel’s guidance on the board and welcomed Luthra’s appointment, citing his extensive experience in scaling QSRs. Luthra has spent over 12 years with KFC and previously served as the CEO of Celio Future Fashion Limited from 2008 to 2011.