Tata Starbucks Crosses Rs 1,000-Crore Sales Last Fiscal

Cafe chain major Tata Starbucks, a joint venture between the Tata Group and Starbucks Corporation, has achieved a significant milestone by crossing Rs 1,000 crore in sales during a fiscal year. This achievement marks a significant success for the brand, which has been operating in India since 2012.

Its net sales for FY23 totaled Rs 1,087 crore, an increase of 71% from FY22. The business had positive profits before interest and taxes (EBIT) for the year, according to the company's financial presentation.

According to the coffee major, it increased revenue by 48% in January-March quarter, bringing FY23 growth to 7%, although on a pandemic-affected basis.

The highest-ever annual store increase for Tata Starbucks was in FY23, when it opened 71 new locations and expanded into 15 new cities. With this, there are currently 333 stores altogether across 41 cities.

In a pilot initiative last year, Starbucks introduced 'masala chai' (spice tea) and filter coffee in India and revamped its menu with more affordable and Indianized options to attract customers. The updated menu now features street-style sandwiches, milkshakes, bite-sized snacks and smaller beverage cups.

According to the company's investor presentation, the coffee chain is currently trying to substantially increase its presence in the upcoming years. "To achieve this, we are looking to enhance its relevance for more segments of consumers," the company added.

During its presentation, the company reported a 100% year-on-year growth as its My Starbucks Rewards loyalty program surpassed 2.3 million members. Additionally, it was mentioned that the company conducted a pilot program in four cities in 2022, which involved introducing familiar options in its beverage menu, adding a new 6-oz 'picco' size in hot beverages, revamping its food menu, and renovating store interiors. According to the company, the pilot stores showed improved operating metrics, and these initiatives will be launched nationwide in 2023.

Tata Starbucks debuted in India in October 2012. Since that time, the brand has expanded despite growing competition.