Tata Starbucks to Add 50-100 Outlets Annually; Eyes 8,000 Stores
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Tata Consumer Products Chairman N Chandrasekaran reveals Tata Starbucks plans to add 50-100 outlets annually, seeing potential for 8,000 stores in India. JV is now EBITDA positive.
Photograph: Anushree Fadnavis/Reuters
New Delhi, Jun 10 (PTI) Tata Consumer Products Chairman N Chandrasekaran on Wednesday said the company sees significant long-term growth potential for Tata Starbucks in India and believes the coffee chain could eventually scale up to around 8,000 stores in the country.
Terming the Starbucks QSR chain business as "a very high-potential business", Chandrasekaran said it has become EBITDA positive in FY26.
Discussions with the joint venture partner, Starbucks Corporation, indicate a substantial headroom for expansion in the Indian market, he said while addressing shareholders of the Tata group FMCG arm.
"We have had discussions with our partner, and we think eventually the company can have 8,000 stores in India. We are continuing to add 50 to 100 stores," said Chandrasekaran, who is also Chairman of Tata Sons.
Tata Starbucks, a 50:50 joint venture between Tata Consumer Products Ltd (TCPL) and US-based Starbucks Corporation, operates the QSR chain of Starbucks cafes in India.
In its latest annual report, TCPL informed that the JV recorded a 7 per cent rise in revenue to Rs 1,367 crore in FY26, and reduced its net loss to Rs 98.95 crore, aided by store expansion and positive same-store sales growth.
Chandrasekaran said the joint venture has turned profitable at the operating level.
"This year, we have made EBITDA positive," he said, adding that "now, as we grow, we want to also improve the margin and start adding to the profitability".
The JV currently operates 502 stores across 80 cities, strengthening its presence across metros while building momentum in Tier II and III cities.
Tata Starbucks operates in the premium cafe segment and competes with rival chains, such as Coca-Cola-owned British coffee chain Costa Coffee, Canadian coffee chain Tim Hortons and some homegrown chains like Third Wave Coffee and Blue Tokai.
India is witnessing a steady growth in the cafe culture, supported by the millennial population, growing urbanisation and rise in disposable income.
According to reports, the US is the largest market for Starbucks, where it operates nearly 16,900 stores, followed by China with 8,000 stores.
Terming the Starbucks QSR chain business as "a very high-potential business", Chandrasekaran said it has become EBITDA positive in FY26.
Discussions with the joint venture partner, Starbucks Corporation, indicate a substantial headroom for expansion in the Indian market, he said while addressing shareholders of the Tata group FMCG arm.
"We have had discussions with our partner, and we think eventually the company can have 8,000 stores in India. We are continuing to add 50 to 100 stores," said Chandrasekaran, who is also Chairman of Tata Sons.
Tata Starbucks, a 50:50 joint venture between Tata Consumer Products Ltd (TCPL) and US-based Starbucks Corporation, operates the QSR chain of Starbucks cafes in India.
In its latest annual report, TCPL informed that the JV recorded a 7 per cent rise in revenue to Rs 1,367 crore in FY26, and reduced its net loss to Rs 98.95 crore, aided by store expansion and positive same-store sales growth.
Chandrasekaran said the joint venture has turned profitable at the operating level.
"This year, we have made EBITDA positive," he said, adding that "now, as we grow, we want to also improve the margin and start adding to the profitability".
The JV currently operates 502 stores across 80 cities, strengthening its presence across metros while building momentum in Tier II and III cities.
Tata Starbucks operates in the premium cafe segment and competes with rival chains, such as Coca-Cola-owned British coffee chain Costa Coffee, Canadian coffee chain Tim Hortons and some homegrown chains like Third Wave Coffee and Blue Tokai.
India is witnessing a steady growth in the cafe culture, supported by the millennial population, growing urbanisation and rise in disposable income.
According to reports, the US is the largest market for Starbucks, where it operates nearly 16,900 stores, followed by China with 8,000 stores.
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