Tata Starbucks is stepping up its expansion plans in India after achieving a net sales of over INR 1,000 crore in FY23. To appeal to a wider range of customers and increase consumption diversity, the renowned coffee retailer is rolling out an Indian-influenced menu that includes popular items like masala chai and filter coffee across the country. As part of its growth strategy, Starbucks will also introduce the “Picco” – the first small cup size worldwide.
Sushant Dash, CEO, Tata Starbucks Pvt Ltd said, “We have been increasing the pace at which new stores are being launched over the last decade. It took us five years to open our first 100 stores and the next 100 were added within three and half years. Infact, out of the 340-odd stores, 120 were added in the last 24 months. So, we will continue to accelerate the expansion trajectory of the brand. It is not just about achieving numbers but about tapping the potential of the brand, with right kind of real estate opportuities enabling us to full justice to the brand.”
During FY23, the chain expanded its presence by opening 71 new restaurants and currently operates 341 stores across 43 cities. The company also recorded a net sales of INR 1,087 crore, a significant 71% increase compared to the previous fiscal year.
“To ensure profitable growth, we are sharpening our focus on adding new consumers to our fold. We also need to ensure that we cater to more consumption occasions. We are making certain changes in our strategy and launched a slew of products to offer more familiar beverages to consumers such as masala chai and filter coffee. We are also adding a new range of food products, which are bite-sized and shareable, to cater to family and group consumption occasions,” he added.
The coffee chain has introduced a range of new regionalized menu items, including filter coffee, masala chai, elaichi chai, and its signature milkshakes. Its shareable menu includes the Hazelnut Triangle, Chicken Puffin, Chocolate Eclairs, as well as a variety of freshly prepared sandwiches. Dash, the company’s spokesperson, stated that this move will not only attract new customers but also create new consumption opportunities for current patrons.
“Indian consumers are not used to consuming beverages in large sizes like other markets. That has been the insight behind the launch of the new cup size “Picco”, he explained. The national launch of the new menu offerings is being done post a pilot run done across Bengaluru, Bhopal, Gurugram, and Indore.
Responding to a query on the current macroeconomic conditions, Dash said, “Inflationary pressures remain and we have been managing that by making our supply chain more resilient. But consumers are back and spending. We have grown quite significantly last fiscal and our same-store growth numbers have been strong.”
