Tata Starbucks has announced its plans to open ten new stores in India over the next two months, increasing the total number of stores in the country to around 145.
Tata Starbucks is a 50:50 joint venture (JV) between India-based Tata Global Beverages (TGBL) and US-based Starbucks Coffee. The JV saw around 30% growth in the October-December 2018 period.
Tata Global Beverages Group chief financial officer (CFO) L Krishnakumar told PTI: “We currently have around 136 stores and we would open another between five to ten stores by the end of the year (fiscal). We have seen an increase in the store roll out. We look at activating more stores roll out in the next few years, what we have seen in the past.
“On run rate, we would be somewhere between Rs4bn ($56m) to Rs5bn ($70m).”
All Tata Starbucks stores are operated by TGBL and more than 90% of the coffee used for Tata Starbucks’ beverages is sourced from Tata Coffee.
By leveraging its Starbucks relationship, TGBL has launched a selection of its coffee products in markets such as the US.
Starbucks moved into India with the opening of its first store in Mumbai in 2012.
The company has recently been offering food delivery services in India through online food aggregator apps such as Swiggy.