Starbucks Doubles Down on India with 500 Stores Despite Tough Competition and Losses
November 20, 2025
Starbucks, the world’s largest coffee chain, is pouring more heart and money into India. After 12 years and about 500 stores, its journey is slower than China’s giant leap of 8,000 cafes in 25 years. Why? India’s coffee market is spicy with competition, and profits aren’t flowing easily yet.
Brian Niccol, Starbucks’ global CEO, called India "one of its fastest growing markets globally." He said in an email to ET, "...we are committed to grow strategically and sustainably in this market in the long term. We believe there is enough room in the market for both independent stores and chains to grow and thrive along with us." Starbucks is still in an investment phase but is seeing positive growth in same-store sales.
In fiscal 2025, Starbucks India’s sales grew by 5% to ₹1,277 crore. But the losses got stingier, widening by almost two-thirds to ₹135.7 crore. Why the loss? Coffee lovers in India tend to sip slowly in cafes, making real estate costs hurt more. Unlike global trends where quick takeaway boosts margins, Indian cafes see people hanging out for hours, which means higher cost per square foot.
Adding to the buzz, many global and local coffee chains are flooding India. Tim Hortons and Pret A Manger have stormed into the market, and Indian favorites like Third Wave and Blue Tokai already run over 300 stores combined. Niccol says, "The market here is evolving rapidly, and we feel there is room for growth. With rising urbanisation, increasing disposable incomes, globalisation and cross-cultural influences, there is an increasing interest in exploring global brands. But India is a very unique market, and we don't have a one-size-fits-all approach."
Starbucks is also tightening its operations worldwide with its 'Green Apron Service' to improve speed and staff energy. In India, it serves smaller drinks like the 6-ounce "Picco" cup and offers Indian-flavored beverages to reach more customers.
Their bond with Tata Consumer has grown stronger too. Starbucks recently announced a Farmer Support Partnership aiming to train 10,000 farmers by 2030, supply 1 million arabica seedlings, build model farms, and use digital tools to help growers. Niccol praised Tata’s commitment, saying, "Their passion, dedication and strong connection with customers (in India) is the model for the rest of the world."
With CEO Laxman Narasimhan out last year, Niccol—joining from Chipotle—seems ready to brew a fresh mix of plans. India’s cafe story is brewing strong, and Starbucks wants to stay in this race for the long sip!
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Tags:
Starbucks
India market
Tata Partnership
Coffee Chains
Retail Expansion
Cafes
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