The joint venture between Starbucks and Tata Consumer Products achieved 21% revenue growth, reached 348 outlets and introduced a new value-focused coffee and food menu during its first quarter
A Starbucks store at the VR Chennai shopping centre in Chennai, India | Photo credit: Tata Starbucks
Tata Starbucks has recorded robust sales and outlet growth in its first quarter amid the roll-out of a new value focused coffee and food menu.
Formed in 2012, Tata Starbucks is a joint venture between Starbucks and Tata Consumer Products to scale the US coffee chain across India.
Reporting on the three months ended 30 June 2023, Tata Starbucks achieved 21% revenue growth and opened 16 net new stores to reach 348 outlets. Expansion included first stores in four new cities, including Agra and Aurangabad.
In an investor presentation accompanying its results, Tata Consumer Products said Tata Starbucks remains EBIT positive despite its outlet growth and plans to ‘rapidly expand in the coming years’.
Tata Starbucks also introduced a new Indian-inspired menu across select stores during its first quarter, including South Indian Filter Coffee and a Masala Chai range alongside a food menu focused on smaller ‘bite-sized options’. Additionally, Tata Starbucks has continued the nationwide roll out of its value-focused 6oz ‘picco’ cup size.
CEO Sushant Dant said the move will make Tata Starbucks a ‘more familiar and accessible brand’ for Indian consumers.
Tata Starbucks was a key contributor to Tata Consumer Products’ Rs 3471 Cr ($422m) total first quarter sales, which were 12% higher than the same period in 2022. Group net profits increased 22% in the period to reach Rs 338 Cr ($41m).
Tata Consumer Products’ retail packaged coffee division in India recorded a 21% year-on-year increase in sales, while international segment sales grew 7%. The latter’s performance was driven by a strong performance for its Tetley, Good Earth and teapigs tea brands in the UK.