Mumbai: Tata Starbucks Private Limited, the joint venture of Tata Consumer Products Limited (TCPL) and American coffee chain Starbucks, saw its losses widen to ₹81 crore and revenue from operations grow 12% in fiscal year 2024, according to TCPL’s annual report released on Thursday. In fiscal year 2023 the coffee chain had reported a loss of ₹23.9 crore. Tata Consumer Products invested ₹25 crore in Tata Starbucks Private Limited in FY24.
The coffee chain also opened the highest number of stores in India in FY24 since it entered the market through a 50:50 joint venture with Tata Consumer Products Limited in October 2012. It said weak demand for quick service restaurants (QSRs) in general hampered profitability.
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Revenue from operations came in at ₹1,218 crore, up 12% year-on-year, on account of a larger number of stores. It opened 95 new stores in FY24, breaking the record of 71 stores it set in the previous fiscal year.
“TSPL now has 421 stores across 61 cities in India. The year witnessed demand softness in the overall QSR space, consequently our same-stores sales growth was subdued. During the year, we ran a number of campaigns to increase footfall and strengthen our leadership position in coffee,” the company said.
A thousand Starbucks by 2028?
Earlier this year, Starbucks said it aimed to open 1,000 stores in India by 2028. “We will continue to elevate customer and partner (employee) experiences and invest in infrastructure while executing strategic cost-saving initiatives to improve profitability,” the company said.
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To achieve this target, the company will double its workforce to about 8,600 as it looks to enter tier-2 and tier-3 towns, and expand drive-throughs, airport outlets and 24-hour stores to serve customers where they are, it said in January.
India’s coffee market was worth $0.5 billion in 2023 and projected to grow at a compound annual growth rate (CAGR) of 9.2% until 2028, according to data platform Statista.
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Published: 23 May 2024, 01:37 PM IST