INDIA – Tata Starbucks, the joint venture between Tata Global Beverages and Starbucks has posted 30% jump in sales in the financial year 2019, attributed to increased number of stores.
Economic Times reports that the company which owns and operates Starbucks outlets in India recorded US$49.43 million (Rs 346 crore) in 2018 with US$64.27 million (Rs 450 crore).
During the year, the firm opened about 30 stores bringing its store count to 146 in the country.
In the last quarter, it opened 15 cafes strengthening its strategy to grow its presence in key Indian states.
Reports have it that Tata Starbucks made profits at store level and all cities were profitable.
“Double digit top-line growth for the full year was driven by new stores and improved store performance,” noted Tata Global Beverages, in its latest investor report.
Stores driving sales
ET report reveals that Starbucks recorded the fastest store expansion in the company’s 48-year history in the initial few years.
“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,” said Himanshu Nayyar and Poorvi Khandelwal, analysts at Systematix Investments.
In February, Starbucks outlined plans to open 10 new stores in India within two months, attributing the move to overall good consumer response.
To grow its business against rival and market leader Cafe Coffee Day, Tata-Starbucks started food delivery through online food aggregator apps like Swiggy.
Starbucks entered India with the opening of its first store at Horniman Circle in Mumbai in 2012.
In the financial year 2018, the company posted its first positive EBITDA after sales increased by 28% as a result of strong performance in in-store and new stores opened during the year.