Global coffeehouse giant Starbucks, which had set up shop in India five years ago, remains optimistic on the growth opportunities here and is confident that the Indian market could break into its top five markets in the future.
Starbucks operates in India through a 50:50 joint venture with Tata Global Beverages. It also sources most of its coffee that it sells in its outlets across India from Tata Coffee's estates in South India.
Tata Starbucks opened its 100th outlet in the country on Oct 23, located in Mumbai's Kamala Mills area. It currently has presence in six cities in India and is planning to expand its business in Kolkata in early 2018, by opening three stores there, including one in the iconic Park mansion.
It opened 16 outlets in the last twelve months.
"We are very excited with the opportunities India plays for Starbucks going forward. Today we operate across 75 markets globally and India is one of the most important markets we operate in. One day it will be among the top five markets around the world," said John Culver, group president, Starbucks International.
Currently US, Canada, China, Japan and UK are Starbucks' top five markets globally.
The company currently employs around 1,300 employees or partners, as Starbucks calls them, in India and the plan is to more than double the number to 3,000 over the next five years. It also aims to increase the proportion of women employees to 40 per cent by 2022 from the present 25 per cent.
Starbucks will also look to expand its partnership with Tata Global Beverages and explore possibilities to launch more products sourced in India in other global markets.
"India was the very first market where Starbucks opened outlets, sourced and roasted the coffee here in this market. Our commitment to bring unique blends of coffee to our customers in India will continue. In addition we will look at unique ways to expand the coffee outside of India. Last year we had offered the India Estates Blend in several markets in Asia and we had developed the unique reserve blend through the Tata Nellore estates, which we launched in our store in Seattle," said Culver.
The company didn't reveal future investment or expansion plans, but hopes to turn profitable in the "near future" according to Sumi Ghosh, CEO of Tata Starbucks, who added that the two companies will continue to invest in the country for the long haul.
According to regulatory filings, for fiscal year ending March 2017, Tata Starbucks narrowed its losses to Rs 32 crore from Rs 41 crore a year earlier, while sales rose 14 per cent to Rs 272 crore.
India's largest cafe chain, Cafe Coffee Day, operated by Coffee Day Enterprises Limited (CDEL) reported a net profit of Rs 46 crore on revenue of Rs 3,552 crore in 2016-17.
