Tata Pushes Back Against Claim Starbucks Could Exit India – CoffeeTalk

Tata Consumer Products (TCPL) has denied a report suggesting Starbucks could exit India due to rising losses and high operating costs. The report, published by Rajasthan-based media organisation The Philox, suggested that Starbucks could shut shop in India due to price-conscious Indian consumers preferring cheaper local substitutes. Starbucks entered India in 2012 through a partnership with Tata Consumer Products. The Philox report did not quote any Tata official and acknowledged that “no official statement has been made” even as it claimed that Starbucks beverages are perceived as “overpriced and shallow” in India.

Tata Starbucks Private Limited, the joint venture of Tata Consumer Products Limited and American coffee chain Starbucks, saw its losses widen to ₹81 crore and revenue from operations grow 12% in fiscal year 2024. TCPL denied the possibility of exiting India in a letter titled “Clarification on News Article Titled – Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses.” The company stated that the information in the said article is “baseless”. Tata Consumer CEO Sunil D’Souza told Reuters that it will delay plans for some new Starbucks store openings until as fewer customers are walking into its cafes in India.

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