Starbucks has announced ambitious plans to open up to 100 outlets annually in India, marking an accelerated expansion in one of the company’s most rapidly growing global markets.
Sushant Dash, CEO of Tata Starbucks, emphasized the potential for significant expansion in India, despite the country’s dominant tea culture. Coffee remains a smaller category, but the industry size and potential for growth cannot be overlooked.
Tata Starbucks, a successful joint venture between Starbucks and the Tata Group, presently manages more than 500 outlets across India, accounting for roughly 30% of the nation’s structured coffee market. The partnership plans to amplify its presence by inaugurating between 50 to 100 stores each year.
According to Dash, India ranks as one of Starbucks’ fastest expanding markets globally. The renowned coffee chain has more than doubled its number of stores in the country within the last four to five years.
This aggressive expansion comes in response to the observed increase in coffee consumption amongst the youth and urban consumers in India. This uptick has sparked intensified competition from both local and international brands.
To seize this opportunity, Tata Starbucks is considering a multi-format expansion strategy that includes drive-through outlets, highway locations, kiosks, and experiential stores. The company has also invested in its Starbucks Reserve concept, with six locations currently operating across major cities like Mumbai, Delhi, and Kolkata.
This most recent expansion supports the company’s aspiration to reach 1,000 stores in India by 2028. In line with this goal, Tata Starbucks aims to increase its workforce to approximately 8,600 partners and further extend its network of drive-through outlets, airport cafes, and 24-hour locations.
Notably, the company’s expansion plans extend beyond metropolitan areas. Tata Starbucks seeks to tap into India’s next wave of consumer growth by stepping up its presence in Tier 2 and Tier 3 cities.
What are Starbucks’ expansion plans in India?
Starbucks plans to open between 50 to 100 outlets annually in India, aiming to reach 1,000 stores in the country by 2028.
Is coffee popular in India?
Despite India’s tea-dominant culture, the consumption of coffee is rising, particularly among the younger and urban demographics, leading to a surge in growth opportunities for coffee retailers.
How does Starbucks plan to capture the growing coffee market in India?
Starbucks, through its joint venture with the Tata Group, aims to leverage the growing coffee market in India by expanding its network of drive-through outlets, airport cafes, and 24-hour locations. The company is also broadening its reach to Tier 2 and Tier 3 cities.
