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Tata Starbucks | 13 years to 500 stores, and the 50-50 joint venture is still not profitable

2026.09.19

Article summary

Tata Starbucks is a joint venture owned 50:50 by Tata Consumer Products and Starbucks of the United States. The Tata side handles store operations and openings, the Starbucks side holds the brand and the products, and coffee beans are also sourced from Tata's estates. In a little over 13 years from the first store in October 2012, it reached more than 500 outlets across 80 cities in FY2026 (fiscal year ended March 2026). The net loss for that year narrowed to ₹49.5 crore (1 crore = 10 million rupees), but it is not yet profitable. India is a market where street-corner chai costs ₹10 to ₹20, so espresso-based drinks at ₹200 to ₹400 reach only a slice of the urban population. The company is holding back its opening pace to build profitability outlet by outlet.

This article is based on what we could verify As of September 19, 2026 This page is based on the disclosures and news reports from each company that we were able to confirm as of that date. Amounts in the text follow the notation commonly used in India, with ₹1 crore = 10 million rupees, and yen figures are approximations calculated at a little over 1.7 yen to the rupee. Store counts, funding raised, and results at Indian companies change over short periods, so when making a business decision, please check the latest information in primary sources such as each company's own announcements.

Tata Starbucks is a joint venture owned 50:50 by Tata Consumer Products and Starbucks of the United States. In a little over 13 years from the first store in October 2012 it has passed 500 outlets, but it is not yet profitable.

Company profile

Item	Details
Legal name	TATA Starbucks Private Limited
Year founded	2012
Headquarters	Mumbai (Maharashtra)
Ownership	Tata Consumer Products 50%／Starbucks Corporation 50%
Number of stores	More than 500 outlets in 80 cities (as of the end of FY2026 = fiscal year ended March 2026)
Net loss in FY2026	₹49.5 crore (narrowed from the year before)
Listing	Unlisted (the parent, Tata Consumer Products, is listed on the BSE and NSE)

Division of roles and in-house raw materials

The Tata side handles store operations and openings, while the Starbucks side holds the brand and the products. Tata takes on the parts that can only be moved locally, such as securing real estate, dealing with government procedures, and hiring staff.

Coffee beans are also sourced from the estates of Tata Consumer Products, which absorbed the former Tata Coffee business. A structure that can be run in-house from raw material to counter is less exposed to exchange rates and duties than one that relies on imports.

A timeline of 500 outlets over 13 years

India is a country of tea and filter coffee. Street-corner chai costs ₹10 to ₹20, and in south Indian homes filter coffee is part of daily life. Bringing in espresso-based drinks at ₹200 to ₹400 a cup therefore limits the customer base to a slice of the urban population.

In FY2026 (fiscal year ended March 2026) the outlet count passed 500 and reached 80 cities. The net loss for the year narrowed to ₹49.5 crore. The loss is shrinking, yet even with a global brand paired with one of the country's largest conglomerates, the venture is still not profitable in its 14th year.

The company is taking the approach of going deeper into cities while holding back its opening pace. The decision is to build profitability outlet by outlet rather than chase numbers.

Points for Japanese companies

This is the most realistic yardstick for a Japanese restaurant company drawing up a business plan for India. Even with all three of world-class brand power, one of the largest local partners, and in-house raw materials, it took 13 years to reach 500 outlets and profitability has still not arrived. Anyone planning to recover an investment in less time than that has to be able to explain the basis for it.

The way the joint venture is built is also worth studying. Splitting brand and products to the head office and operations and store openings to the local side is easier to run in a market where regulation and business practice are complicated.