Tata Starbucks posts steady third quarter outlet and sales growth

Tata Starbucks’ Carter Road store in Mumbai, India | Photo credit: Starbucks

Mumbai-based Tata Starbucks has posted sustained outlet expansion and improved sales growth in its third quarter. 
 

Tata Starbucks, a 50:50 joint venture between US coffee giant Starbucks and Tata Consumer Products, opened 16 net new stores and entered four new cities during the three months ended 31 December 2024 to reach 473 outlets across 70 cities.  

The largest branded coffee shop chain in India, Tata Starbucks ramped up expansion in East India during the period with new outlets in Patna, Ranchi, Jamshedpur, Bilaspur and Gangtok. 

Tata Consumer Products also reported ‘improved sequential performance’ for Tata Starbucks during the quarter with sales increasing 8% year-on-year and 10% quarter-on-quarter. 

The results will be welcome news for Tata Starbucks after the joint venture announced plans to reign in outlet growth in December 2024 after noting that sustained high inflation was negatively impacting out-of-home coffee consumption.  The coffee chain has a longer-term goal to reach 1,000 stores by 2028 – a target which requires the coffee chain to open a new store every three days.  

In November 2024, Tata Starbucks launched its single origin Monsoon Malabar coffee across all its 19 Starbucks Reserve stores in a bid to better cater to growing demand among Indian consumers for home-grown specialty coffees. Priced at Rs 2,400 ($27.55), Monsoon Malabar was also made available at US Starbucks Reserve stores earlier in 2024.