Sushant Dash, CEO, Tata Starbucks
Despite a slowdown in India’s FMCG sector, and subdued urban consumption, Tata Starbucks CEO, Sushant Dash remains optimistic about the country’s café market, highlighting its continued double-digit growth.
While acknowledging occasional market fluctuations, Dash emphasised the company’s focus on a long-term approach, stating that Starbucks is focused on creating demand and expanding the category.
“There will be blips, but I think it is more important to look at the medium- to long-term picture. For us, it is about creating demand and expanding the category. Unlike FMCG, we are not operating in a mature market,” he explained.
Speaking to businessline at the launch of Starbucks’ first drive-thru in South India in Bengaluru on Thursday, Dash stated that its retail expansion aligns with its long-term growth strategy, “In the first eight years, we opened around 220 stores. In the last four years alone, we have added 270 more stores. Additionally, while we were present in only 15-16 cities in our initial years, we are now in 80 towns. We are bullish not just about larger cities but also about the broader trend of café culture expanding across the country.”
Financial performance and future strategy
In FY24, Tata Starbucks recorded a revenue of ₹1,218 crore, but its losses widened to ₹80 crore. Addressing concerns about profitability, Dash emphasised the balance between scalability and financial sustainability.
He noted that the while aggressive expansion is expected to impact the bottom line in the short term, the company remains focused on a medium- to long-term growth strategy.
Starbucks is also observing a shift in consumer behavior, with nearly 15 per cent of its revenue now coming from food delivery platforms. To strengthen its reach, the company has expanded its presence on Swiggy Bolt and Zomato Drive. Additionally, Starbucks recently launched a pilot partnership with BigBasket in Bengaluru, enabling 10-minute deliveries of its coffee, marking an aggressive push toward convenience-driven consumption.
Published on April 3, 2025
