Tata Starbucks scales back plans to open 80 cafes this year, down from 100, due to declining consumer spending and rising inflation in India.
Persistently high inflation squeezes middle-class budgets, leading to lower foot traffic in Tata Starbucks cafes across Indian cities.
Tata Starbucks still aims to operate 1,000 stores by 2028, adjusting short-term plans without compromising its long-term strategy.
Tata Starbucks' revenue rose 12% to ₹12.18 billion last year, but net losses widened to ₹800 crore due to higher operational costs.
Securing high-traffic locations is a challenge for Tata Starbucks in India, unlike China’s rapid development of malls.
Despite challenges, Tata bets on India’s growing coffee culture, highlighting opportunities in low cafe density compared to Southeast Asia.
Tata Consumer Products predicts double-digit revenue growth in H2 FY24, even as tea and raw material costs rise.