Starbucks India reports 12% revenue growth amid widening losses
Tata Starbucks Private Limited, a joint venture between Tata Consumer Products Limited (TCPL) and American coffee giant Starbucks, has reported a 12% increase in its operational revenue for the fiscal year (FY) 2024. However, the company's losses have significantly widened to ₹81 crore from ₹23.9 crore in FY23. Despite experiencing its highest store growth since entering the Indian market in October 2012, weak demand for quick service restaurants (QSRs) impacted profitability.
Store expansion in FY24
As per Starbucks India, "The year witnessed demand softness in the overall QSR space, consequently our same-stores sales growth was subdued." Despite the financial challenges, the company opened 95 new stores across India in FY24, surpassing its previous record of opening 71 stores in the last fiscal year. This expansion has led to an increased operational revenue of ₹1,218 crore.
Starbucks India's ambitious expansion plans
Earlier this year, Starbucks India announced plans to open 1,000 stores by 2028. To achieve this goal, the company intends to double its workforce to approximately 8,600 employees and expand into tier-2 and tier-3 towns. Additionally, it plans to increase drive-throughs, airport outlets, and operate 24-hour stores for better customer service. This ambitious expansion comes amid a projected growth of India's coffee market at a compound annual growth rate (CAGR) of 9.2% until 2028, according to Statista.
