Starbucks India Plans Fresh Store Expansion After 18-24 Month Reset

Starbucks India is preparing to accelerate store expansion after spending the past 18 to 24 months reassessing its operating model amid weaker discretionary spending, according to a PTI report. The company is expected to focus on increasing store density in existing markets rather than making a major push into new cities.

Tata Starbucks, operated through a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation, used the period to review store formats, outlet-level capital expenditure and beverage pricing. The reset followed a slowdown in discretionary consumption and pressure across the quick-service restaurant sector.

The strategy is showing early signs of improvement, with Tata Starbucks recording four consecutive quarters of same-store sales growth. The company currently operates around 500 outlets across India and had previously targeted approximately 100 new stores annually before moderating the pace during the recalibration period.

The next phase of expansion is expected to concentrate on markets where Starbucks already has a presence. The chain currently operates in around 80 cities, with the company looking to increase outlet density within these markets rather than significantly expand its geographic footprint.

Higher store concentration could also help Tata Starbucks improve operating efficiency through better logistics, delivery coverage and kitchen utilisation. The approach reflects a broader focus on improving store economics alongside outlet growth.

India remains a long-term expansion market for the joint venture. Tata Consumer Products has previously indicated an ambition for Tata Starbucks to eventually approach the scale of Starbucks' operations in China, which has around 8,000 stores. Against the roughly 500 stores currently operating in India, that leaves considerable headroom for future expansion.

For the immediate term, however, the focus remains on strengthening the existing network. Tata Starbucks reported 11 per cent revenue growth in the June quarter and opened four stores during the period, including Reserve outlets in Kolkata and New Delhi.

The joint venture had 498 Starbucks stores in India at the end of the June quarter. According to Tata Consumer Products' latest annual report, Tata Starbucks' revenue increased 7 per cent to Rs 1,367 crore in FY26, while its net loss narrowed to Rs 98.95 crore.

The combination of improving same-store sales, revised store economics and stronger performance gives Tata Starbucks a base to resume expansion. The company's approach is now shifting from broad geographic expansion towards building a denser and more efficient store network in markets where it already operates.