Advertising
‘Why will I buy time? I will buy end outcomes’: Tata Motors CMO Shubhranshu Singh
Tata Starbucks' losses surge to Rs 135 crore in FY25, eyes 1,000 outlets in India
Tata Consumer invested Rs 125 crore in Tata Starbucks Private Limited in FY25.
In FY25, Tata Starbucks opened 58 net new stores, taking its presence to 19 new cities.
Starbucks India witnessed a 65% surge in losses to Rs 135.7 crore in fiscal year 2025. The US-headquartered company operates via a 50:50 joint venture with Tata Consumer Products as one of the shareholders in India, known as Tata Starbucks Pvt Ltd. Consequently, Tata bore half of the total losses, amounting to Rs 67.85 crore (half of 135.7 crore). In fiscal 2024, Starbucks registered Rs 82 crore of loss on revenue at Rs 1,218 crore.
The company's revenue from operations stood at Rs 1,277 crore, an increase of 5%, driven by a higher number of stores.
"The year witnessed demand softness in the overall QSR (Quick Service Restaurant) space consequently the sales growth was subdued, however, the demand has started to rebound in the second half of the year," the company mentioned in its annual report. However, profitability will remain muted due to demand softness on the overall QSR space, it projected.
Tata Consumer invested Rs 125 crore in Tata Starbucks Private Limited in FY25.
Over the past year, Tata Starbucks has significantly expanded its presence, reaching over 479 stores across 80 cities. In FY25, Tata Starbucks opened 58 net new stores, expanding its operations in 19 new cities. The coffee chain has aimed to operate 1,000 stores as the long-term strategy to expand across Tier-2 and Tier-3 cities in the country.
"We will also continue to invest in infrastructure while executing strategic cost-saving initiatives to improve profitability," the company mentioned.
In tea-loving India, Tata Starbucks has managed to tide over multiple challenges and cemented its reputation for over a decade. However, the company is facing intense competition from private equity-backed chains like Third Wave and Blue Tokai, as well as, Canada's Tim Hortons and Britain's Pret A Manger.
Blue Tokai Coffee Roasters has 130 outlets in the country and registered revenue of Rs 216 crore in FY2024, representing a five-fold rise over the past four fiscal years. Third Wave Coffee’s revenue has also seen an uptick, reaching Rs 241 crore in FY24.
The Canadian quick service restaurant chain Tim Hortons, which made its entry into India in 2022, has now expanded its store presence to 37 across Tier-1 cities.
Meanwhile, Reliance's British coffee chain Pret A Manger is gradually growing in India, having opened its first outlet in Bengaluru in 2024.
According to Redseer Strategy Consultants, India's coffee market is projected to grow at a CAGR of 15-20% to become $2.6-3.2 billion by 2028.
SPOTLIGHT
Storyboard18's signature initiative 'Share The Spotlight' returns with its Delhi edition, bringing together business leaders and changemakers to honour women rewriting the rules and sparking transformation.
Read MoreIN PHOTOS: At Global Pioneers Summit, visionaries chart the future of business and creativity
From the chiefs of Nestle, Diageo, Colgate, PepsiCo, Zetwerk and CRED to AI visionaries, marketing mavens, top creators, ad legends and leading global agencies' CEOs, the brightest minds converged at the Storyboard18 Global Pioneers Summit for an action-packed day of meaningful dialogues on creativity, commerce and culture.