Tata Starbucks plans to open more than 25 stores in 2019 across metros while it faces increasing competition from existing brands which are also expanding their footprint.
Tata Starbucks plans to open more than 25 stores in 2019 across metros while it faces increasing competition from existing brands which are also expanding their footprint. The company said it sees nearly 2,70,000 customers in their stores each week which is a double in the last two years.Ms. Veetika Deoras to head – marketing, category, loyalty and digital, Tata Starbucks, told FE that its loyalty programme has reached half-a-million members.
Tata Starbucks growth is in the backdrop of other brands also expanding their stores across the country. Currently, Coffee Day Enterprises, which operates the Café Coffee Day chain of stores, has more than 1,600 stores across the country and represents the biggest competition to Tata Starbucks.
The segment has also seen the rise of new players like Chayyos and Chai Point. However, Deoras says Starbucks’s value proposition, in terms of the coffee quality, variety and sourcing and service will drive its growth in the country. She added that the growth in India is the biggest the company is seeing in all the markets it operates in.
Tata Starbucks became ebitda positive this year after its sales doubled in FY18. In the annual report of Tata Global Beverages, it said Tata Starbucks had boosted sales by 28% in FY18 and posted `272 crore in sales during FY17. Tata Global Beverages also said that it had made a `10-crore investment into the joint venture in 2018.