If you are a coffee lover in India, you are in for a treat. Tata Starbucks, the joint venture between Tata Consumer Products and Starbucks, has announced its ambitious plans to operate 1,000 stores in India by 2028, marking a new era of rapid expansion in the country. The company, which currently has 390 stores across 54 cities, plans to open a new store every three days and also enter tier-2 and tier-3 cities, according to a press release.
Why India is a Hot Cup for Tata Starbucks
India is not just another market for Tata Starbucks, it is a strategic one. With over 500 million smartphone users and a low penetration rate of around 35%, India is the second-largest smartphone market in the world and has a huge potential for growth and expansion. India is also a young and aspirational market, with a median age of 28 years and a rising middle class.
Tata Starbucks has been eyeing India for a long time, but has faced several hurdles, such as high import duties, low affordability, and stiff competition from local and international players such as Cafe Coffee Day, Barista, Costa Coffee, and McCafe. However, Tata Starbucks has also seen some silver linings, such as a strong demand for its premium products, a loyal customer base, and a growing online and offline retail network.
How Tata Starbucks Plans to Stir Up the Market
Tata Starbucks’ expansion strategy is based on three pillars: scaling operations, elevating customer experiences, and contributing to the growth of the economy. Tata Starbucks plans to enter tier-2 and tier-3 cities, expand drive-thrus, airports, and introduce 24-hour stores to cater to diverse customer needs. The company also plans to launch a second Starbucks Reserve store and introduce a new Indian Arabica coffee, enhancing the coffee experience in India.
Tata Starbucks aims to double its workforce to 8,600 employees by 2028, providing vocational skills training for under-served young women seeking careers in the F&B retail industries. The company also aims to build a large ecosystem of Indian suppliers, including a Tata Group unit, to support its production in India.
What Tata Starbucks’ Expansion Means for India and the World
Tata Starbucks’ expansion plan is expected to have a positive impact on both the company and the country. For Tata Starbucks, it means more cost savings, more market access, and more customer satisfaction. For India, it means more jobs, more exports, and more innovation.
Tata Starbucks’ expansion plan is also aligned with its long-term ‘Triple Shot Reinvention Strategy’ with focus on sustainability, social responsibility, and community engagement. The company has committed to reduce its environmental footprint, support local farmers, and empower women and youth in India.
Tata Starbucks’ expansion plan is a testament to its vision, strategy, and execution. It also shows how India can become a global hub for manufacturing and exporting high-end electronics, with the right policies and incentives. Tata Starbucks’ India-made iPhones are not only a symbol of quality and innovation, but also a source of pride and inspiration for the country.
