Restaurant India News: Starbucks India Narrows FY26 Losses to Rs 49.47 Crore as Store Expansion Fuels Growth

Tata Consumer Products-backed Tata Starbucks narrowed its net loss to Rs 49.47 crore in FY26, compared to Rs 135.7 crore in FY25, as the coffee chain benefited from higher sales and continued outlet expansion across India.

According to the latest annual report of Tata Consumer Products, revenue for the fiscal year increased 7 percent to Rs 1,367 crore. Tata Starbucks operates in India through a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation.

The company attributed growth largely to network expansion during the year, with 23 net new stores added in FY26. The business also saw traction from new beverage introductions, food menu innovations, seasonal collaborations, and a wider gifting portfolio. The performance reflects a continued focus on scale-led growth while improving operational metrics. Tata Starbucks also reported positive same-store sales growth during the fiscal year, indicating stronger consumer demand at outlets that have been operational for over a year.

During FY26, the company crossed the 500-store mark and expanded its presence to 80 cities. Alongside strengthening its footprint in metro markets, the chain accelerated expansion in Tier II and Tier III cities, highlighting the growing demand for premium café experiences beyond major urban centers.

The company said expansion was carried out in a calibrated and phased manner, with an emphasis on profitability and operational efficiency as competition intensifies in India’s organized café and quick-service restaurant segment.

“Tata Starbucks is expanding with discipline, focusing on calibrated store growth, deeper city penetration and stronger format innovation,” the company said in the report.

It added that the strategy is aimed at maintaining the brand’s premium positioning while improving accessibility across both metropolitan and emerging markets.