June 25: Tata Starbucks, a joint venture between Tata Consumer Products and Starbucks Corporation, has revealed an aggressive expansion strategy to increase its store count in India to 1,000 by the end of FY28. The company made steady progress in FY25 by launching 58 new outlets, bringing its total to 430 stores across 60 Indian cities.
Driven by increasing demand for premium coffee experiences, Tata Starbucks recorded 19% year-on-year revenue growth in FY25. The company aims to accelerate this momentum by opening over 100 new stores annually in the coming years, focusing on both metropolitan areas and emerging urban markets.
According to Tata Consumer Products, the company entered 14 new cities during the last fiscal year, including locations such as Jammu, Jalandhar, Siliguri, and Hoshiarpur. This expansion marks a shift toward tapping into the potential of tier-2 and tier-3 cities, where evolving consumer preferences are creating new opportunities for lifestyle-driven retail.
“Tata Starbucks is on a strong growth path in India. Our FY28 target is ambitious but reflects the growing love for coffee culture in the country,” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, during a recent earnings call.
To further strengthen customer engagement, Tata Starbucks has been introducing locally inspired food and beverage items alongside its international menu. Offerings such as Indian filter coffee, masala chai, and regional snack options have been added to cater to a wider consumer base. Additionally, the Starbucks Rewards Program and rising usage of online ordering platforms have contributed to enhanced customer loyalty.
Industry experts view the brand’s localization strategy as a key driver of its sustained growth in India. “Starbucks has successfully adapted its global model for Indian consumers. Expansion into smaller towns will be crucial in maintaining growth while staying competitive,” said retail consultant Rajeev Mehta.
India’s organized café market, currently valued at approximately ₹4,500 crore, is witnessing increased competition from both domestic and international brands. Players such as Café Coffee Day, Barista, Blue Tokai, and Third Wave Coffee are also expanding their footprints to meet rising demand.
As more young Indians embrace café culture and out-of-home consumption grows, Tata Starbucks’ strategy to blend premium experiences with regional relevance is expected to give it a competitive edge in the evolving coffee landscape.
Conclusion:
Tata Starbucks’ roadmap to reach 1,000 outlets by FY28 highlights the company’s strong belief in the potential of India’s café retail sector. With a focus on innovation, expansion into untapped markets, and a localized approach, the brand is well-positioned to solidify its presence as a leading coffee chain in the country.
