Starbucks is sharpening its focus on India, which CEO Brian Niccol described as a “key part” of the company’s global ambitions, according to a report by The Times of India. On his first trip to the country since taking charge last September, Niccol toured stores, met employees, and held discussions with Tata Sons chairman N Chandrasekaran.
Starbucks runs its India operations through a 50:50 venture with Tata Consumer Products. The brand now leads the Indian market in terms of store count, ahead of both domestic and global rivals, and will hit 500 outlets next week with the opening of a Starbucks Reserve in Delhi.
According to consultancy firm The Knowledge Company, the broader café and tea bar segment is valued at Rs 3,200 crore and is forecast to touch nearly Rs 7,000 crore by 2030 at a 17% CAGR. Cafe Coffee Day trails Starbucks with about 423 stores.
Niccol said that the company plans to expand “in the right places,” noting, “We’re here to invest, share, and grow with India, building India’s coffee culture for the long-term.” He added that Starbucks is adapting formats “from compact neighbourhood cafes to immersive coffeehouses,” aiming to offer everything from quick-service stops to deep coffee-culture experiences “that feel local, welcoming and distinctly Starbucks.”
According to TOI, The push comes as the brand faces muted performance in the US -- where comparable sales were flat -- and strong competition in China, a market in which it recently sold a 60% stake to Boyu Capital for $4 billion. Even so, the latest quarter delivered a 1% rise in global comparable sales, the first positive result in seven quarters.
It is reported that the brand enjoys strong pull in India and a relatively narrow price gap with rivals such as Blue Tokai and Third Wave Coffee. Still, as Ravindra Yadav noted, Starbucks has not expanded in India at the pace seen in some other international markets.
The company, which remains profitable here, is in what Niccol called an investment phase and has also launched a farmer-support initiative targeting 10,000 growers by 2030.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
