Starbucks is setting its sights on India, one of its fastest-growing markets worldwide, with plans to launch up to 100 stores per year. The renowned coffee chain, despite coffee being a less popular choice than tea in India, sees substantial potential for growth in the region.
Tata Starbucks, a joint venture between Starbucks and the Tata Group, currently boasts over 500 stores across India, holding around 30% of the country’s structured coffee market. It intends to continue expanding its footprint by adding 50 to 100 outlets each year.
Sushant Dash, Tata Starbucks CEO, highlighted the significant growth rate India represents for Starbucks on a global scale. He noted that the store count in India has more than doubled over the last four to five years. This growth coincides with the rise in coffee consumption among younger and urban consumers, which has sparked competition from both local and international entrants.
To seize the emerging opportunities, Tata Starbucks is broadening its horizons by diversifying its store formats, including drive-through stores, highway locations, kiosks, and experiential outlets. The company is investing in the Starbucks Reserve concept, now operating in six different locations in Mumbai, Delhi, and Kolkata.
This expansion aligns with the company’s ambition to operate 1,000 retailers in India by 2028. In line with this aspiration, Tata Starbucks intends to increase its workforce to approximately 8,600 partners and extend its network of drive-through stores, airport cafes, and 24-hour locations.
In addition, the company is exploring opportunities beyond major metropolitan areas, intending to extend its presence in Tier 2 and Tier 3 cities to capitalize on India’s upcoming wave of consumer growth.
What is Starbucks’ growth plan for India?
Starbucks plans to open up to 100 stores per year in India, aiming to operate 1,000 stores by 2028.
How is Tata Starbucks adapting to the Indian market?
Tata Starbucks is diversifying its store formats to meet local needs, including drive-through stores, highway locations, kiosks, and experiential outlets. It is also expanding its presence in Tier 2 and Tier 3 cities.
What is the current position of Starbucks in the Indian coffee market?
Starbucks, through its joint venture with the Tata Group, Tata Starbucks, currently operates over 500 stores and holds about 30% of the country’s structured coffee market.
