Early last year, Tatas claiming Starbucks a success in India targeted to open 1000 stores by 2028 (390 then).
- As per the Nov 2025 PPT, Starbucks currently has 492 stores in India. So about 100 stores in 2 years since the announcement. If target is to be met, 500 stores to be opened in the next 3 years.
Now as per newspaper reports, Tatas have paused further investments and are pushing Starbucks Headquarters to revamp the business model in India; to make it more affordable.
- Affordability would involve smaller stores, lighter equipment and accessible pricing
- Tatas hava argued that Starbucks’ global model — built around large 3,000 sq ft stores, equipment designed for 700 cups a day and premium pricing at an average ₹400 a cup — is ill-suited to the competitive out-of-home coffee market, value-conscious consumers and high rentals.
- The effort is obviously towards unit economics and profitability.
Starbucks Global CEO is expected to pay a visit to Tatas soon.