Tata Starbucks doubles down on smaller-format stores in bid to reach 1,000 outlets

Starbucks CEO Laxman Narasimhan with Starbucks employees on a visit to India in January 2024 | Photo credit: Starbucks

Tata Starbucks has announced an ambitious goal to scale its operations in India from 390 stores to 1,000 by 2028. 
 

In a press release, Tata Starbucks said outlet growth will focus on further penetration of India’s Tier 2 and 3 cities, as well as the expansion of its drive-thru, airport and 24-hour store network. 

The move marks an acceleration of Tata Starbucks’ shift from large footprint sites to smaller-format stores, first announced in October 2021 to reverse sluggish outlet growth. 

A renewed focus on ‘lean stores’ has resulted in average annual net outlet growth of 69 stores over the last two years. To reach 1,000 stores by 2028 Starbucks will need to open one new store every three days – nearly double its current rate. 

India is currently one of Starbucks’ fastest-growing markets globally and, with the country’s economy projected to become the world’s third-largest by 2030, is considered a market of ‘strategic importance’. 

“Over the past 11 years, the India market has grown to become one of Starbucks fastest-growing markets in the world. With a growing middle class, we are proud to help cultivate the evolving coffee culture while honouring its rich heritage. With our trusted business partner, Tata, and our green apron partners, we are well-positioned to capture the limitless opportunities as we open one store every three days in India and further our aspiration to become truly global,” said Laxman Narasimhan, CEO, Starbucks. 

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Tata Consumer Products Limited and Starbucks formed Tata Starbucks in 2012 with the first store of the 50/50 joint-venture opening in the Elphinstone Building, Horniman Circle, Mumbai, in October of the same year. 

Starbucks is currently the second largest branded coffee chain in India behind Bengaluru-based Café Coffee Day, which had 467 stores as of 30 June 2023. 

The Seattle-based coffee chain operates more than 38,000 outlets across 86 markets globally, with a footprint above 1,000 stores in the US, China, Canada, South Korea, Japan and the UK.