Starbucks India to resume aggressive store expansion after two-year reset

NEW DELHI: Starbucks is getting ready to put more stores on the menu. Starbucks India is set to resume an aggressive store expansion strategy after spending nearly two years recalibrating its business model amid a slowdown in discretionary spending, according to a PTI report.

The coffee chain, operated in India through a 50:50 joint venture between Tata Consumer Products (TCPL) and Starbucks Corporation, used the past 18 to 24 months to reassess several aspects of its operations, including store sizes, capital expenditure per outlet and beverage pricing.

The reset appears to be showing results, with Tata Starbucks reporting four consecutive quarters of same-store sales growth. The company is now preparing to accelerate store additions once again.

Tata Starbucks currently operates around 500 outlets across India. The company had previously targeted opening roughly 100 stores a year, a pace it moderated during the past 18 to 24 months as demand softened across discretionary consumption and the quick-service restaurant sector.

The renewed expansion will focus not only on opening new outlets but also on increasing store density in markets where Starbucks already operates.

The coffee chain is present in around 80 cities, a footprint that is expected to remain broadly stable as the company focuses more on adding stores within existing markets.

The strategy is partly driven by operating efficiencies. A greater concentration of outlets in a city can improve logistics, delivery and kitchen operations, helping the business make better use of its infrastructure.

The renewed expansion comes as Tata Starbucks continues to see India as a market with considerable room for growth.

Tata Consumer Products has previously indicated a longer-term ambition for Tata Starbucks to eventually approach the scale of Starbucks’ operations in China, which has around 8,000 stores.

That remains a significant target compared with the roughly 500 stores currently operating in India, highlighting the potential scale of the expansion opportunity.

For now, however, the focus is on strengthening the existing network rather than rapidly adding new cities.

Tata Starbucks reported 11 per cent revenue growth in the June quarter and added four new stores during the period. Two of the new outlets were Reserve stores in Kolkata and New Delhi, strengthening the chain’s premium positioning.

The joint venture had 498 Starbucks stores in India at the end of the June quarter.

According to Tata Consumer Products’ latest annual report, Tata Starbucks’ revenue rose 7 per cent to Rs 1,367 crore in FY26. Its net loss narrowed to Rs 98.95 crore, helped by store expansion and positive same-store sales growth.

The improvement gives Starbucks India a stronger base from which to restart its expansion plans.

With consumer demand showing signs of recovery and store economics being recalibrated, the next phase of Starbucks’ India strategy is likely to be less about entering every possible city and more about making existing markets denser, more efficient and more profitable.