# Starbucks India to resume aggressive store expansion

2026-08-24T08:36:29+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Starbucks India is set to resume aggressive store expansion after nearly two years of recalibrating its business model amid a slowdown in discretionary spending, Tata Consumer Products MD and CEO Sunil D'Souza said. The company, operated through a 50:50 joint venture between TCPL and Starbucks Corporation, currently runs about 500 cafes across 80 cities. D'Souza told PTI that the last 18-24 months were used to recalibrate store size, capital expenditure per outlet and beverage pricing. He noted that Tata Starbucks has now reported four successive quarters of same-store sales growth, with acceleration visible. The company had earlier targeted opening 100 stores annually but moderated expansion due to softer demand in the QSR segment. The renewed push will combine new store additions with greater density in existing cities, aiming for more than five stores per city to achieve operational efficiencies. TCPL Chairman N Chandrasekaran has articulated a longer-term ambition for Starbucks India to eventually match the chain's scale in China, which has around 8,000 stores. Tata Starbucks reported 11% revenue growth in the June quarter and narrowed its net loss to Rs 98.95 crore in FY26.

## Indian Opinion Analysis

Starbucks entered India in 2012 and has faced persistent profitability challenges, with cumulative losses exceeding Rs 1,200 crore before this improvement. The focus on density over city count is a strategic shift: operating fewer than five stores in a city is inefficient for supply chain and kitchen logistics. The China comparison is telling: 8,000 stores there versus 500 here suggests India is still a fledgling market. With same-store sales growth now consistent for four quarters, the next signal to watch is whether the JV can turn net profitable in FY27.

## Coverage

- retail.economictimes.indiatimes.com <https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/starbucks-india-brews-up-a-fresh-plan-puts-expansion-back-on-the-menu/133449715>
  Straightforward business reporting based on PTI interview, no slant or editorialising.

This story was synthesised by AI from the source linked above.

Tags: QSR, Starbucks, Sunil D'Souza, Tata Consumer Products, Tata Starbucks
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