Tata Starbucks, a joint venture between Starbucks and Tata Consumer Products, said on Tuesday it plans to operate 1,000 cafes in India and double its workforce by 2028, amid fierce competition from local chains.
Since opening its first cafe in October 2012, Tata Starbucks’ store count has grown to 390. It has opened 57 stores so far this fiscal year and had added 71 in the previous fiscal.
The coffee chain said it plans to enter Tier-2 and Tier-3 cities in India and increase the number of its drive-through, airport-based and 24-hour cafes. It aims to double its headcount to 8,600.
The U.S. giant competes with Bengaluru-based Cafe Coffee Day and foreign entrant Barista, among others. It also faces growing competition from private equity-backed Third Wave and Blue Tokai which have opened about 150 stores between them in the last three years.
Tata Starbucks’ 14% on-year revenue growth in the three months to Sept. 30, 2023, was the slowest since the March quarter of 2020 when it had to close all its stores due to the COVID-19 pandemic.
Among the first foreign coffee brands to enter India, Starbucks has been revamping its strategy in India since last year, launching a six-ounce drink starting at $2.24 and milkshakes in an attempt to woo customers in the tea-loving country.
Reuters