The joint venture remains confident it can reach 1,000 stores by 2028, despite slower outlet growth in its fourth quarter
Tata Consumer Products has posted a positive full-year performance for its Tata Starbucks joint venture, boosted by strong revenue growth in the second half of its fiscal year.
Formed in 2012 as a 50:50 joint venture between Tata Consumer Products and and Starbucks to launch the US coffee chain in India, Tata Starbucks is now the South Asian country’s largest branded coffee chain, with 479 outlets across 80 cities. In December 2024, Tata Starbucks said it would rein in outlet growth after high inflation dented consumer confidence, but could ‘calibrate’ to open more stores in 2025 and stay on track to reach 1,000 stores by 2028.
Tata Starbucks opened 58 net new stores over the 12 months ended 31 March 2025, but added just six stores in its fourth quarter.
“Given the traffic movement that we were seeing, we have tempered our outlet opening a bit. But overall, we remain the largest coffee operator in the country and in the city of Mumbai, we now have over 100 stores,” Tata Starbucks said in a statement.
Alongside reaching 100 stores in Mumbai, Tata Starbucks also reached 50 sites in Bengaluru in the fourth quarter and has entered 19 new cities in India over the last 12 months.
Despite restrained consumer spend and slower outlet growth, Tata Starbucks achieved 5% year-on-year full-year revenue growth over the 12-month period. Sales growth improved sequentially, rising 7% in the second half of the year compared to 3% in the first.
Tata Consumer’s full-year total revenues grew 16% year-on-year to Rs 17,618 Cr ($200m). Alongside Tata Starbucks, the group manages a vast portfolio of packaged tea, coffee and food brands, including Tata Tea, Tata Coffee, Tetley Tea, Tea Pigs and Organic India.
