Culture & Entertainment · India Bureau
Tata Starbucks set to accelerate expansion after business restructuring
Tata Starbucks is preparing to resume aggressive store expansion after recalibrating its business model over the past 18-24 months. The coffee chain's Indian operator has reported four consecutive quarters of same-store sales growth, signalling a turnaround from the slowdown in discretionary consumer spending.
LSN India ·
Tata Consumer Products, which operates Starbucks in India through a 50:50 joint venture with Starbucks Corporation, has completed a comprehensive review of its operations that will pave the way for renewed growth. The restructuring phase examined store formats, capital expenditure per outlet, and beverage pricing to better align with market conditions.
Managing Director and CEO Sunil D'Souza said the recalibration strategy has begun to yield results. "We had four successive quarters of same-store sales growth now, and we are seeing acceleration coming in," D'Souza said, adding that the company will now resume its expansion drive.
The joint venture currently operates approximately 500 Starbucks outlets across India. The pause in aggressive expansion allowed Tata Starbucks to optimize its operational efficiency and refine its market approach during a period when consumer spending on discretionary items slowed. With momentum now building, the company is positioned to capitalise on improving market conditions.
The renewed expansion strategy underscores growing confidence in India's premium beverage segment recovery, as consumer demand for specialty coffee experiences stabilises following the previous economic headwinds.