1 week ago
Starbucks India Resumes Aggressive Expansion After Business Recalibration
Starbucks India slowed down its store openings for almost two years.
During that time, it reviewed store sizes, costs, and drink prices.
The company says sales at existing stores have grown for four quarters in a row.
Because of this improvement, it plans to open stores more quickly again.
It will add stores in new places but mainly put more stores in cities where it already operates.
Starbucks India is present in about 80 cities.
The company says having more than five stores in one city can make deliveries and kitchens work more efficiently.
Tata Starbucks currently operates nearly 500 stores in India.
Tata Starbucks plans to accelerate store expansion after nearly two years of business-model recalibration.
The joint venture has recorded four consecutive quarters of same-store sales growth, according to Sunil D'Souza.
Expansion will focus on adding stores and increasing density in existing markets, with limited additions to the current 80-city footprint.
Tata Starbucks operated 498 stores at the end of the June quarter and reported 11% quarterly revenue growth.
The company’s FY26 revenue rose 7% to ₹1,367 crore, while its net loss narrowed to ₹98.95 crore.
- Who
- Tata Starbucks, the 50:50 joint venture between Tata Consumer Products and Starbucks Corporation, led in the comments by Tata Consumer Products CEO Sunil D'Souza.
- What
- The company plans to resume aggressive store expansion after recalibrating its business model and seeing four consecutive quarters of same-store sales growth.
- Where
- India, where Tata Starbucks operates in about 80 cities and had 498 stores at the end of the June quarter.
- When
- The announcement was reported on August 23, 2026; the company’s latest cited results cover the June quarter and FY26.
- Why
- Expansion was moderated amid weaker discretionary spending and quick-service restaurant demand, while renewed growth and operational efficiencies are supporting a faster rollout.
Key facts
- Joint venture
- Tata Consumer Products and Starbucks Corporation each own 50% of Tata Starbucks.
- Current footprint
- Tata Starbucks operated 498 stores at the end of the June quarter and has a presence in about 80 cities.
- Expansion approach
- The renewed strategy will combine new store openings with greater store density in existing cities.
- Same-store sales
- The company reported four successive quarters of same-store sales growth.
- June-quarter revenue growth
- Revenue increased 11% in the June quarter, when four new stores opened.
- FY26 financials
- Revenue rose 7% to ₹1,367 crore, while net loss narrowed to ₹98.95 crore.
- China comparison
- Tata Consumer Products Chairman N Chandrasekaran has described a longer-term ambition to approach Starbucks’ scale in China, which has around 8,000 stores.
Quotes
Sunil D'Souza
Managing Director and CEO of Tata Consumer Products
“We had four successive quarters of same-store sales growth now, and we are seeing acceleration coming in. Now, we will again start to expand the number of stores aggressively”
thehindubusinessline.com
“But we also took the opportunity to recalibrate our entire business model, because we do think Starbucks has a significantly longer runway in India”
thehindubusinessline.com
Sources
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