Restaurant India News: Tata Starbucks Narrows Losses, Accelerates Café Expansion Across India

Tata Consumer Products is preparing to accelerate the expansion of its Starbucks business in India, with plans to add between 50 and 100 outlets annually as the coffee chain moves closer to sustained profitability. The growth roadmap was outlined by Chairman N. Chandrasekaran during the company's 63rd Annual General Meeting.

Positioning Starbucks as a high-growth business within its portfolio, Chandrasekaran highlighted the long-term potential of the Indian market following discussions with Starbucks Corporation, Tata Consumer Products' joint venture partner.

According to Chandrasekaran, the partners believe India has the capacity to support as many as 8,000 Starbucks outlets over time, reflecting confidence in the country's evolving café culture and increasing consumer preference for out-of-home dining experiences.

The expansion plans come on the back of improving financial performance at Tata Starbucks, the 50:50 joint venture between Tata Consumer Products and Starbucks Corporation. The company currently operates 502 stores across India and recorded a net addition of 23 outlets during FY26.

Chandrasekaran noted that Tata Starbucks achieved positive EBITDA and EBIT during the financial year, marking a significant milestone in the business's path towards profitability. He added that the focus going forward would be on strengthening margins while continuing the company's expansion efforts.

Tata Starbucks had earlier outlined plans to reach 1,000 stores by 2028, and the latest update indicates that the company remains committed to scaling its footprint while maintaining operational efficiency and financial discipline.

The company's FY26 financial performance reflected this improving trajectory. Revenue from operations increased 7 percent year-on-year to Rs 1,367 crore, while net losses narrowed to Rs 49.47 crore from Rs 135.7 crore reported in the previous fiscal year.

In its annual report, Tata Starbucks stated that growth was supported by a combination of network expansion and positive same-store sales growth. The company added that new store openings were executed in a calibrated manner with a stronger emphasis on profitability and operational discipline.

The report further noted that product innovation, the introduction of new offerings, and cost optimisation initiatives contributed to revenue growth and improvements in the company's bottom line.

Tata Starbucks' expansion strategy highlights the increasing maturity of India's organised café market, where operators are shifting focus from scale alone towards balancing growth with sustainable profitability. The company's continued investment in the Indian market signals confidence in changing consumer behaviour and the long-term potential of premium coffee experiences across both established and emerging urban centres.