Tata Starbucks expands sales by 30% in FY19 on back of outlet additions

Tata Starbucks has reported that its sales grew by 30% in FY19. This has been achieved on the back of the addition of new outlets as demand for quality beverages increased in Indian metro cities.

Tata Starbucks, a joint venture between the Tata Group and Starbucks, posted sales of Rs 346 crore in FY18. It had garnered revenue of about Rs 450 crore during the last fiscal.

Last year, the Seattle-based coffee chain added about 30 stores. Now, it has a store count of 146. Tata Starbucks unveiled 15 cafes just last quarter.

Started operations in India in October 2012, Starbucks recorded the fastest store expansion in the company’s history in the initial few years.

Himanshu Nayyar and Poorvi Khandelwal, Analysts at Systematix Investments, said, “The strong double-digit growth in the Tata Starbucks JV should remain driven by the improved in-store performance with 25% store-level margins and new store rollout of about 40 additions annually.”