Tata Starbucks to open up to 100 new stores annually in India
The coffee chain reduced losses in FY26 while expanding its footprint and reporting positive same-store sales growth across India.
INDIA – Tata Starbucks plans to accelerate its expansion in India by opening between 50 and 100 new outlets annually as the coffee chain seeks to strengthen its position in one of its fastest-growing markets globally.
The company, a joint venture between Starbucks Corp and Tata Group, currently operates more than 500 stores across India, having more than doubled its footprint over the last four to five years.
Speaking in an interview with Bloomberg Television, Tata Starbucks Chief Executive Officer Sushant Dash said India continues to be a strategic growth market for the company.
“India is one of the fastest growing markets for Starbucks globally,” Dash said, adding that the company currently commands around a 30% share of the country’s coffee shop market.
Growing disposable incomes and changing consumer preferences are driving coffee consumption in India, creating opportunities for expansion despite increasing competition from domestic brands such as Blue Tokai and abCoffee, alongside international players.
According to Dash, only about 24% of Indians consume coffee compared with approximately 93% who drink tea, highlighting the significant growth potential in the market.
Starbucks has intensified its focus on India as it seeks new growth opportunities. The company has been restructuring operations in the United States while facing consumer boycotts in South Korea and the Middle East. It also divested a 60% stake in its China business last year.
Tata Starbucks operates multiple store formats, including drive-through outlets, highway stores, kiosks and experiential cafés. The company also runs four Reserve stores that offer premium coffee experiences.
The format, first introduced in Mumbai and recently expanded to Delhi and Kolkata, has recorded stronger-than-expected demand for premium beverages, according to Dash.
Although the business remains loss-making, the company intends to continue investing in growth.
“The company won’t sacrifice growth for profitability,” Dash said.
For the financial year ended March 31, 2026, Tata Starbucks reported a substantial reduction in net losses, supported by steady revenue growth and positive same-store sales.
Net losses declined to Rs49.47 crore (US$5.12 million) from Rs135.7 crore (US$14.05 million) in FY25. Revenue from operations increased by 7% year-on-year to Rs1,367 crore (US$141.51 million).
The company attributed the improved financial performance to stabilising unit economics, increased customer footfall and higher average transaction values.
Tata Starbucks also sources most of its products locally, including Indian-grown espresso beans that are roasted domestically, helping the company mitigate global supply chain disruptions while supporting its continued expansion strategy in the country.
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