🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Tata to rethink Starbucks' outlet expansion strategy amid lower footfall

VCCircleVCCircle · 8m ago
Tata to rethink Starbucks' outlet expansion strategy amid lower footfall
Medial

Tata to rethink Starbucks' outlet expansion strategy amid lower footfall An employee takes a customer's order at a Starbucks' outlet in New Delhi | Credit: Reuters India's Tata Consumer Products "will calibrate" its plans to open Starbucks stores in the near term at a time when fewer customers are walking into its cafes in the world's most populous country, its top boss said on Monday. City dwellers in India are cutting spending on everything from cookies and coffee to fast food as persistently high inflation squeezes middle class budgets, with wages failing to keep pace. Tata Starbucks, a joint venture between U.S. coffee brand Starbucks SBUX.Oand the Indian conglomerate, operates the largest cafe chain in the country with more than 450 outlets. Advertisement Starbucks has more than 40,000 stores globally. "We will calibrate for the short term ... In the near term there will be pressure," Tata Consumer CEO Sunil D'Souza told Reuters, adding that its Tata Starbucks joint venture is still focused on reaching its 2028 goal to operate 1,000 stores by 2028. However, Tata Consumer's CEO still expects its bet on coffee to pay off in the longer run as the country's coffee culture grows and cafe density is still low compared with other Asian countries such as Indonesia, Vietnam and the Philippines. Advertisement Separately, D'Souza also said Tata Consumer's revenue would increase in the double-digit percentage range in the second half of the financial year, with profit coming under pressure due to higher prices of raw materials, including tea. Share article on Leave Your Comments

Related News

Cool beans! cafes are having a field day this summer

Economic TimesEconomic Times · 1y ago
Cool beans! cafes are having a field day this summer
Medial

Cafes in northern India are seeing an increase in footfall and sales due to the scorching summer heat. Chains like Third Wave Coffee, Chaayos, AbCoffee, and Boba Bhai are benefiting from the demand for iced beverages and summer-specific menu items. These cafes are also popular among remote workers and individuals seeking refuge from the heat. This growth in the cafe business stands in stark contrast to the decline in sales and footfall reported by restaurants, pubs, and bars in the region. Specialty coffee and tea chains are particularly attracting venture investor interest as they expand their operations. Even Starbucks, in partnership with Tata Consumer Products, has introduced a summer-specific menu. Overall, cafes are capitalizing on the summer season and evolving consumer preferences to drive growth.

Starbucks India revenue goes past Rs 1,000 Cr in FY23

EntrackrEntrackr · 1y ago
Starbucks India revenue goes past Rs 1,000 Cr in FY23
Medial

Starbucks India, a joint venture between Starbucks and Tata, has recorded impressive growth in the last two fiscal years, surpassing Rs 1,000 crore in operating revenue. Its financial statement reveals a three-fold increase in revenue, reaching Rs 1,087 crore in FY23 compared to Rs 360 crore in FY21. Most of the revenue is generated from the sale of coffee and related products, with additional income coming from the loyalty program, My Starbucks Rewards. The company has significantly reduced losses and improved its ROCE and EBITDA margin. With its high-end positioning and recognition as a global brand, Starbucks holds an advantage over local rivals in terms of controlled promotion costs. However, expensive rentals remain a challenge for further expansion.

Download the medial app to read full posts, comements and news.