Starbucks bullish on India growth story; opens first Reserve store in east India at Kolkata

Tata Starbucks is bullish on India despite macroeconomic headwinds and sees significant long-term growth potential in the countrys underpenetrated coffee market, a top company official said on Friday. Mishra said Starbucks Reserve stores are positioned as destination cafs offering premium small-lot coffees sourced globally, with customers typically spending one to two hours at such outlets.

Tata Starbucks is bullish on India despite macroeconomic headwinds and sees significant long-term growth potential in the country's underpenetrated coffee market, a top company official said on Friday. The Tata Consumer Products Ltd- Starbucks joint venture on Friday launched its first Starbucks Reserve store in eastern India and the fourth in the country in Kolkata. ''We are very bullish. For us, India has been a great story so far. It is reflective in over 500 stores, market share and us investing in these kind of formats,'' Starbucks India COO Adrit Mishra said. The Kolkata outlet is also Starbucks' first rooftop store in India and spans 3,600 sq ft, nearly three times the chain's average India store size. Mishra said Starbucks Reserve stores are positioned as destination cafés offering premium small-lot coffees sourced globally, with customers typically spending one to two hours at such outlets. ''Reserve is a very elevated, very differentiated form of coffee experience where consumers come, consume different coffees, sit there and want to see the brewing equipment,'' he said. The company launched its first Tata Reserve store in Mumbai three years ago, followed by Gurugram, Delhi and now Kolkata. On expansion plans, Mishra said more Reserve stores are in the pipeline this year, though he declined to share numbers. India remains one of Starbucks' fastest-growing global markets with 506 stores across 81 cities, he added. ''We are now 506 stores… and you would have heard in the TCPL commentary three straight quarters of same-store sales growth positive, which is great news for us,'' Mishra said. The company opened 42 new stores in FY26 so far, he said. On reports that Starbucks India has slowed store additions from earlier aggressive targets, Mishra said the focus is now on sustainable and profitable growth. ''We are still very much focused on how we can open more stores. Exact number, when it will happen, will transpire, but we are here to build the market,'' he said. Mishra said coffee penetration in India remains low compared TO global markets, offering huge headroom for growth. ''In India, coffee penetration is around 20-25 per cent, while tea penetration is 96 per cent. Five years back, coffee penetration was around 15 per cent. So, it is growing,'' he said. On pricing, Mishra said Reserve coffee variants are priced around 10-25 per cent higher than regular Starbucks offerings because of premium sourcing and select imports. ''Reserve coffee is a very small lot premium coffee… some of the reserve coffees don't repeat after a season,'' he said. The company is also betting on newer product categories such as cold brew, green coffee ''refreshers'', protein coffee and zero-sugar variants to drive growth. It also offers alcoholic flavoured coffee without any alcohol. ''Indians are very conscious of their health. So, we are going towards how coffee can play a significant part in your lifestyle,'' Mishra said. Tata Starbucks also plans to establish its first farmer support centre in India this year as part of its global network. ''In five years, we are going to partner with 10,000 farmers and give 5 million Arabica seedlings which will be disease- and climate-resistant,'' he said.