Tata Starbucks Plans to Open 100 Stores a Year as Profits Strengthen

Tata Consumer Products is gearing up to accelerate the expansion of its Starbucks business in India with plans to open 50 to 100 new outlets annually as the coffee chain edges closer to sustained profitability. Chairman N. Chandrasekaran outlined the growth strategy while addressing shareholders at the company's 63rd Annual General Meeting.

Describing Starbucks as a high-potential business, Chandrasekaran said discussions with partner Starbucks Corporation have reinforced confidence in the long-term opportunity within the Indian market.

He noted that the joint venture believes India has the potential to support as many as 8,000 Starbucks stores over time, underscoring the vast opportunity presented by the country's evolving café culture and increasing out-of-home consumption trends.

The expansion push follows improving financial performance at Tata Starbucks, the 50:50 joint venture between Tata Consumer Products and Starbucks Corporation. The company currently operates 502 stores across India and added a net 23 outlets during FY26.

According to Chandrasekaran, Tata Starbucks achieved positive EBITDA and EBIT during the year, marking an important milestone in its journey toward profitability. Going forward, the company intends to focus on strengthening margins while maintaining its expansion momentum.

Tata Starbucks had previously set a target of reaching 1,000 stores by 2028 and the latest plans indicate that the company remains committed to aggressive growth while balancing operational efficiency and financial discipline.

The company's FY26 performance reflected this improving trajectory. Revenue from operations grew 7 percent year-on-year to ₹1,367 crore, while net losses narrowed substantially to ₹49.47 crore from ₹135.7 crore in the previous fiscal.

In its annual report, Tata Starbucks attributed the growth to a combination of network expansion and positive same-store sales growth. It added that new store openings were undertaken in a calibrated manner with greater emphasis on profitability and operational discipline.

The report further highlighted that product innovation, new offerings and cost optimisation initiatives contributed to revenue growth and supported improvements in the company's bottom line.