Tata Starbucks Exceeds Rs 1,000 Crore Revenue in FY23

In FY23, Tata Starbucks has achieved a remarkable growth of 71%, crossing the Rs 1,000 crore revenue mark for the first time.

Tata Consumer Products announced in their earnings release that the year was significant for their business, as they were able to achieve a top line in the four-digit range.

The company's net sales for the year amounted to Rs 1,087 crore, and according to its earnings presentation, the business earned a positive earnings before interest and taxes (EBIT) for the year. The company acknowledged that the growth in top line for the financial year was measured against a base that had been affected by the pandemic.

Tata Starbucks achieved a revenue growth of 48% in the January-March quarter. During FY23, the coffee chain expanded by opening 71 new stores and entering 15 new cities, which is the highest-ever annual store addition, bringing its total store count to 333 across 41 cities.

According to the company's presentation, the My Starbucks Rewards loyalty program experienced a year-on-year growth of 100%, surpassing 2.3 million members.

Tata Starbucks stated its intention to rapidly increase its presence in the coming years, and to achieve this, they aim to improve their relevance to a wider range of consumer segments. The company also noted that pilot stores had shown improved operating metrics.

The company conducted a pilot program across four cities in 2022, which included introducing familiar options in the beverage menu, revamping the food menu, refurbishing store interiors, and adding a piccolo size to its hot beverage offerings. These initiatives will be implemented nationally in 2023.

In 2012, Starbucks made its entry into the Indian market by opening its first store in Mumbai, through a joint venture with the Tata Group.