Tata Starbucks aims to expand presence to 1,000 stores in India by 2028

Tata Starbucks aims to expand presence to 1,000 stores in India by 2028

Starbucks, the world’s largest coffee chain, said on Tuesday that it is planning to more than double its presence in India by operating 1,000 stores by 2028, from 390 outlets in 54 cities now. This would mean that Starbucks, which operates under a joint venture with Tata Consumer Products in India, would open one new store every three days in the country.

The company proposes to do this by tapping into a growing coffee consumption culture in India, moving beyond metros into Tier II and III cities, expanding drive-thrus, increasing presence at airports and launching 24-hour cafes to serve customers where they are. Its workforce will also double to 8,600 people in four years from 4,300 now, Starbucks said, as it steps up its presence in the country.

“The pace of expansion of stores, unique coffee experiences that have been innovated to serve local consumers, and the long-term growth and potential of the business, are results of two partners who share the same values,” he said.

Tata Starbucks crossed the Rs 1,000-crore mark in turnover in FY23, with losses narrowing to Rs 25 crore in the period under review, according to regulatory filings. The company has said that it proposes to add around 80-100 stores in FY24, higher than the 71 stores added in FY23. It has also rolled out new affordable options such as a 177-ml Picco sized cup this year, launching Indian food and menu options as well as affordable milk shakes as it takes on rivals in a growing market.

Experts value the country’s coffee chain market at Rs 4,500 crore, growing at an annual rate of about 8-9%, led by both national (Barista, Third Wave, Blue Tokai) and international brands (Starbucks, Tim Horton, Pret A Manger, Costa Coffee).

Starbucks also announced that it would open a second Starbucks Reserve store in India – the first being in Fort, Mumbai – later this year. Starbucks Reserve is a selection of the chain’s most rare and extraordinary coffees available on their menus.

The chain would also be introducing a new Indian Arabica coffee – Monsooned Malabar – which would be available at both the Reserve stores in India and the United States of America from later this year.