Starbucks India grows store network despite 65% widening in FY25 losses 

INDIA – Starbucks India, operating under the Tata Starbucks joint venture, reported a 5% increase in revenue from operations for the financial year 2025, reaching Rs 1,277 crore (US$150 million), up from Rs 1,218 crore (US$143 million) recorded in FY24. 

However, the company’s net losses widened by 65% to Rs 135.7 crore (US$16 million) in FY25, compared to Rs 82 crore (US$9.6 million) the previous year. The coffee chain attributed this decline in profitability to “demand softness in the overall quick restaurant service space.” 

Despite the loss, Tata Starbucks pursued aggressive expansion, opening 58 net new outlets and entering 19 new cities in FY25. The total number of outlets now stands at 479 across 80 cities, making it the largest organised café chain in India in terms of store count. 

The company operates as a 50:50 joint venture between Starbucks Corporation and Tata Consumer Products Limited (TCPL), under the brand Tata Starbucks Private Limited (TSPL). 

As part of its long-term strategy, TSPL aims to operate 1,000 stores across India, with a particular focus on expanding into tier two and tier three cities. 

The company continues to emphasize the ‘Third Place’ concept, creating welcoming environments where customers can meet, work, or unwind. 

Tata Consumer Products Chairman N Chandrasekaran addressed shareholders regarding the macroeconomic landscape, noting that 2025 began with optimism, driven by expectations of stable global growth and falling interest rates.  

However, renewed concerns over inflation, policy uncertainty, and shifting trade dynamics have impacted the global outlook. 

Despite global headwinds, India remains resilient, with strong demographics, structural reforms, and solid macroeconomic indicators.  

Chandrasekaran emphasized that India’s direct exposure to the United States is limited, with goods exports to the US accounting for just over 2% of GDP, among the lowest among emerging markets. 

The report concluded by highlighting the company’s continued belief in India’s long-term potential and consumer demand, despite short-term challenges in the foodservice industry. 

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