Tata Consumer Products will postpone its plans to open more Starbucks coffee stores in India due to declining demand, Reuters reported.
“We will calibrate for the short term – maybe instead of opening 100, we will open 80 now, and next year we will open 120 instead of 100,” Sunil D’Souza, Tata Consumer CEO, told the newswire.
According to the report, locals have been reducing their discretionary spending amid inflationary pressures.
And while the Starbucks India store network has more than doubled from four years ago, D’Souza said that a lack of quality locations remains a challenge.
Meanwhile, D’Souza said that the company is still focused on hitting its target to operate 1000 stores by 2028.
In the last financial year, Tata Starbucks saw its net loss widen to 800 million rupees (US$9.4 million) from 250 million rupees.
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