Tata Consumer Denies Reports of Starbucks Planning Indian Exit

Tata Consumer Products (TCP) has strongly refuted claims suggesting that its joint venture (JV) partner, Starbucks, is planning to exit India. Reacting to a report alleging that Starbucks was considering leaving the Indian market due to high costs, poor taste, and mounting losses, TCP dismissed the information as “baseless.”

Tata Consumer share price traded 0.38% higher at ₹910.05 on the BSE on December 20, 2024, at 9:29 AM (IST), with a market capitalisation of ₹90,045.68 crore. The total traded volume stood at 4015 shares, resulting in a turnover of ₹36.32 lakh.

Tata Starbucks Adjusts Store Expansion Plans Amid Low Footfalls

Tata Consumer Products plans to adjust the timeline for opening some new Starbucks stores due to low footfalls. TCP CEO Sunil D’Souza stated that the company would “calibrate for the short term,” potentially opening 80 stores now instead of 100, while compensating next year by opening 120 instead of 100.

Despite this adjustment, Tata Starbucks remains committed to its goal of operating 1,000 stores by 2028. The joint venture, which currently operates over 450 Starbucks outlets in India, has more than doubled its store count over the past four years. Starbucks’ sales in India grew by 12% to $143.6 million in the last financial year, although revenue saw only marginal growth in the first half of FY24.

Expansion Drive Strategy

Tata Starbucks is also focusing on enhancing the customer experience with innovations. The company has introduced experiential stores in Mumbai and New Delhi, showcasing its commitment to elevating food, beverage, and store formats. Dash emphasised that similar innovations would continue to roll out across the country as part of their growth strategy.

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