Its net sales for FY23 were Rs 1,087 crore, reflecting a 71% increase over FY22. In its financial presentation, the corporation stated that the business was profitable before interest and taxes (EBIT) for the year. Tata Starbucks, a joint venture between Tata Consumer Products Limited and Starbucks Coffee Company, achieved the Rs 1,000-crore sales milestone for the first time in FY23, ten years after it began operations.
The company stated that during the January-March quarter, Tata Starbucks increased revenue by 48%, bringing FY23 growth to 71%, albeit on a lower basis due to the pandemic.
Tata Starbucks established 71 new locations and expanded into 15 new cities in FY23, the company’s highest-ever annual store increase. With this, the total number of stores in 41 cities has increased to 333.
According to the company’s investor presentation, the coffee chain is now hoping to significantly increase its presence in the next years. “To achieve this, we are looking to increase its relevance for more consumer segments,” the company noted.
It also mentioned in its presentation that the My Starbucks Rewards reward program had reached 2.3 million members, representing a 100% year-on-year increase.
The company stated that it ran its test program in four locations in 2022. It included reintroducing classic beverage options, introducing a new 6oz ‘picco’ size in hot beverages, updating its food menu, and renovating shop interiors.
According to the company, the pilot stores revealed improved operating KPIs, and these workstreams will be carried out nationally in 2023.
Tata Starbucks first opened its doors in India in October 2012, as a collaboration between Starbucks Coffee Company and Tata Consumer Products Limited. Since then, the brand has grown even as competition has increased.
