India is set to become one of Starbucks’ most important growth markets globally, with Tata Starbucks unveiling plans to add between 50 to 100 new stores every year as the coffee giant accelerates its expansion across the country. The move comes as the joint venture between Starbucks Corporation and Tata Consumer Products edges closer to sustained profitability and doubles down on its long-term confidence in the Indian market.
Speaking at Tata Consumer Products’ 63rd Annual General Meeting, Chairman N. Chandrasekaran described Starbucks as a “high-potential business” and said discussions with Starbucks Corporation have reinforced confidence in India’s long-term growth prospects. According to Chandrasekaran, the partners believe India could eventually support as many as 8,000 Starbucks outlets, highlighting the scale of opportunity in the country’s rapidly evolving café sector.
The announcement marks a significant step-up in growth ambitions for Tata Starbucks, which currently operates 502 stores across India. The company has expanded steadily since entering the market in 2012 through a 50:50 joint venture between Starbucks and Tata Consumer Products.
A key driver behind the renewed expansion push is improving financial performance. Chandrasekaran told shareholders that the business has achieved positive EBITDA and EBIT, a milestone that signals progress toward sustainable profitability after years of investment-led growth. Management now plans to focus on strengthening margins while continuing to expand its footprint.
The latest strategy builds on Starbucks’ previously announced ambition of reaching 1,000 stores in India by 2028. In January 2024, the company outlined plans to open one new store every three days, expand into Tier II and Tier III cities, increase its drive-thru and airport presence, and double its workforce.
However, Tata Consumer executives have also acknowledged the need for measured growth. Managing Director and CEO Sunil D’Souza recently indicated that net additions for FY26 could be closer to 40–50 stores as the company balances expansion with demand conditions, store economics, and the availability of quality retail locations. The company has suggested that its earlier 1,000-store timeline may require recalibration as it prioritises profitable growth over rapid rollout.
India remains one of Starbucks’ fastest-growing international markets. The chain is benefiting from rising disposable incomes, a growing middle class, increasing café culture adoption, and strong demand from younger consumers. The company is also pushing deeper into emerging cities beyond traditional metro markets, a strategy expected to fuel its next phase of growth.
Starbucks’ expansion comes amid intensifying competition in India’s premium coffee segment, where brands such as Costa Coffee, Tim Hortons, Third Wave Coffee, and Blue Tokai Coffee Roasters are also scaling rapidly. Despite the competitive landscape, Tata Starbucks believes the market remains significantly underpenetrated and capable of supporting thousands of additional cafés in the years ahead.
For the franchise and retail sectors, Starbucks’ latest roadmap underscores a broader trend: global foodservice brands are increasingly viewing India not just as an emerging market, but as a long-term growth engine capable of delivering scale comparable to some of the world’s largest consumer economies.
