Starbucks India back on expansion track after business recalibration

Starbucks India is dusting off its growth playbook. The joint venture between Tata Consumer Products Ltd and Starbucks Corp. plans to resume aggressive store expansion after an 18- to 24-month pause that management used to reshape the business.

Same-store sales have risen four quarters in a row, indicating the recalibration is working, Tata Consumer Products Managing Director and CEO Sunil D’Souza told PTI. “Now, we will again start to expand the number of stores aggressively,” he said.

The chain runs about 500 cafes across 80 Indian cities. D’Souza said the city count is unlikely to rise much – 80 is “a good number” – but density will increase. More than five stores per city unlocks delivery and kitchen efficiencies, he added.

Starbucks India had been opening roughly 100 stores a year before slowing down as discretionary spending and quick-service restaurant traffic softened. The JV used that window to retool. Store sizes, capital expenditure per outlet and beverage pricing all came under review, D’Souza said. “We do think Starbucks has a significantly longer runway in India.”

Tata Starbucks reported 11% revenue growth in the June quarter, adding four new stores including two Reserve outlets in Kolkata and New Delhi. The annual report for FY26 shows revenue of ₹1,367 crore, up 7% from the prior year. Net loss narrowed to ₹98.95 crore, helped by store additions and the four straight quarters of positive same-store sales.

D’Souza pointed to a longer-term ambition voiced by Tata Sons Chairman N Chandrasekaran at the company’s annual general meeting in June. Chandrasekaran said Tata Starbucks should eventually match the scale Starbucks has built in China, which operates roughly 8,000 stores.

That target would require years of sustained building. For now, the JV is focused on getting back to the old cadence: more stores, better density and the operating leverage that comes with both.