We are here to stay – TATA Starbucks

In a regulatory filing to the stock exchanges, Tata Consumer, the holding company of the Joint Venture between the Tata Group and Starbucks has clarified that the media report citing its exit is baseless.

“This is with reference to the news article titled “Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses”.

The Company would like to state that the information in the said article is baseless.

We request you to take the above on record and note the compliance under Regulation 30(11) of SEBI, said Delnaz Dara Harda, Company Secretary & Compliance Officer, Tata Consumer Products Limited.

The issue began when a Jaipur based website wrote an article days after Tata Consumer CEO Sunil D’Souza told PTI that Starbucks will slow down its growth.

“We will open 80 instead of 100 cafes and in the next year, we will add 120 instead of 100”, Sunil D’Souza had said.

This was interpreted by various media houses as well as individuals who shared on social media platforms that the company is planning to wind up its decade long presence in India.

TATA Starbucks joint venture began in 2012 and in its formative years, the cafe chain took a measured approach towards expanding cafes.

This was also due to streamlining its operations, reengineering its food menu to suit the Indian palette and most importantly understanding the Indian consumer preferences.

Right after the Covid-19 lockdown, Starburcks went on an expansion spree and has opened over 200 cafes over the last 3 years or so.

Starbucks operates over 33,000 cafes worldwide, at least a third of which are in the United States of America.

The company recently terminated its less-than 2-years old CEO, Laxman Narasimhan and replaced him with Niccol Brian, former CEO of Chipotle.

Starbucks has found its own footing in India, especially over the last few years. The cafe chain is greeted with Qs outside its cafes on the inauguration day in Tier 2/3 towns and holiday destinations.

Starbucks is not selling over-priced coffee rather offers a wholesome experience to discerning consumers who prefer a third and alternate place after work & home.