69
/ 3
Min Read
Following nearly two years of recalibrating its business strategy, Tata Starbucks is now preparing to accelerate store expansion as improving sales momentum strengthens its growth outlook in India.
The coffee chain, operated through a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation, had used the past 18 to 24 months to reassess key aspects of its operations amid a slowdown in discretionary spending. The exercise included reviewing store sizes, capital expenditure per outlet and beverage pricing.
The reset now appears to be delivering results, with Tata Starbucks reporting four consecutive quarters of same store sales growth. With business performance showing improvement, the company is preparing to step up store additions once again.
Tata Starbucks currently operates around 500 outlets across India. While the company had earlier targeted opening roughly 100 stores annually, it moderated the pace of expansion during the past 18 to 24 months as discretionary consumption weakened and the quick service restaurant sector faced pressure.
The next phase of growth, however, will not be centred solely on entering new cities. Instead, Tata Starbucks is expected to focus on increasing its store density in markets where it already has an established presence.
Currently present in around 80 cities, the company is likely to maintain a broadly stable city footprint while adding more outlets within existing markets. A denser network can also create greater operating efficiencies by improving logistics, delivery and kitchen operations and enabling better utilisation of existing infrastructure.
India continues to offer significant long term growth potential for the brand. Tata Consumer Products has previously indicated its ambition for Tata Starbucks to eventually approach the scale of Starbucks' operations in China, which has around 8,000 stores.
That represents a substantial opportunity compared with the nearly 500 outlets currently operating in India. However, the immediate strategy appears to be focused on strengthening and optimising the existing network before undertaking a wider geographical push.
Tata Starbucks reported 11 per cent revenue growth in the June quarter and added four new stores during the period. Two of these were Reserve stores in Kolkata and New Delhi, further strengthening the brand's premium positioning. The joint venture had 498 Starbucks stores in India at the end of the June quarter.
According to Tata Consumer Products' latest annual report, Tata Starbucks' revenue rose 7 per cent to Rs 1,367 crore in FY26, while its net loss narrowed to Rs 98.95 crore, supported by continued store expansion and positive same store sales growth.
With consumer demand showing signs of recovery and store economics undergoing a reset, Tata Starbucks is entering its next growth phase with a sharper focus. The strategy is likely to be less about expanding into every possible new city and more about building denser, more efficient and potentially more profitable networks in the markets where the brand already has a strong presence.
