Starbucks is now the largest cafe chain in India by revenues

The company has announced the opening of its first coffee experiential store at Punjabi Bagh in New Delhi. This unique store in India marks a milestone in Starbucks commitment in presenting a diverse range of coffees from across the world and India to consumers.

Sushant Dash, CEO, TATA Starbucks, said “Having served the Signature Starbucks Experience to consumers in India for over a decade, we remain committed to pushing the boundaries of product innovation and customer experience.

The launch of our first coffee experiential store in New Delhi, our first store among many upcoming similar stores in the country, represents our celebration of Indian coffee heritage through variety, artistry and food theatre, complimented by a host of international coffee offerings.

Starbucks has surpassed the turnover of Coffee Day Enterprises during FY 23-24 to emerge as the largest cafe chain in India by revenues. The international coffee chain, which operates over 33,000 locations worldwide entered India in 2012 in a JV with the TATA Group.

For the financial year ending 31 Mar. ‘24, TATA Starbucks reported a turnover of INR 1,218 Cr, a 12.05% increase over the previous year when it reported INR 1,087 Cr in revenues. These numbers are from its standalone annual financial statements filed with the Registrar of Companies.

Coffee Day Enterprises, which operates over 400 cafes across India as well as over 10,000 points of coffee machines at institutions reported a turnover of INR 1,013 Cr for FY 23-24.

Several new players such as Third Wave Coffee, Blue Tokai, Rage Coffee among others have been expanding their offline locations in a country that was and is currently a largely tea drinking market.

Starbucks currently operates over 450 cafes in India currently. starting with its first outlet in Mumbai, the company has penetrated Tier 2/3 towns as well to take advantage of a floating population.

The company has almost doubled its number of locations from its base after the Covid-19 lockdown. Increased mobility, higher brand recall, a burgeoning middle class with an aspirational attitude has ensured the company’s growth during the last four years.

However, the company’s expenditure far outdid its earnings for the previous fiscal year. Starbucks’ expenses on rent, employee costs, marketing and operational costs was recorded at INR 1,320 Cr. During FY 22-23, its expenditure was INR 1,140 Cr.