Tata Consumer Products (TCPL) stated at the release of its March quarter results that Tata Starbucks intends to aggressively grow its market share in the years to come.
This expansion follows a test programme the coffee chain launched last July in Bengaluru, Bhopal, Gurgaon, and Indore for the Picco size and localised menu selections.
Sushant Dash, CEO of Tata Starbucks, stated in an interview with CNBC-TV18 that the company’s goal is to open up new growth opportunities by giving customers additional reasons to visit a Starbucks location.
“As we grow, we want customers to discover familiar items and then stick around for what Tata Starbucks stands for. For instance, a number of customers complained that the food portions were excessively large, which negated the purpose of their snacking. So now we have ‘bite sized’ possibilities, he explained, adding that the development of new events will foster growth and draw in new clients.
At a reduced price range of Rs 160 and Rs 185, respectively, the introduction of bite-sized meal selections and the Picco-sized beverage would be made available.
“Because of our lower size, we are now more reasonably priced, and the entry price point has improved.” “That does increase our appeal, particularly when we enter new catchments (markets),” Dash continued.
This is also important since Tata Starbucks is expanding its shop network, particularly in smaller areas. In its March quarter results, Tata Consumer Products (TCPL) stated that Tata Starbucks plans to significantly increase its market share in the upcoming years.
With the most recent Tata Starbucks locations launching in Agra and Meerut, Dash claimed that the growth in smaller towns will continue. Following its expansion into 14 new cities during the previous fiscal year, the coffee company now operates 341 outlets throughout 43 cities.
Starbucks is quite well-liked everywhere. will continue to open in accordance with demand; wherever there is a need for merchandise and suitable property, we will set up shop.
Following its entry into India ten years ago, Tata Starbucks announced net sales of Rs. 1,087 crore for the fiscal year 2023, surpassing the 1000-crore threshold. Dash predicts that the markets where Starbucks is presently active will drive the next phase of expansion.
“There’s a plenty of headroom. We have a lot of room to develop because coffee in India is just 10% as prevalent as tea. I think there will be headroom as the economy expands and the younger generation enters the workforce. Additionally, Dash said, “We’ll keep growing into new markets.
Plans for Starbucks’ growth and expansion come as the market for coffee chains is experiencing increased competition.
Pret A Manger, a UK-based coffee business, opened its first location in India last month thanks to Reliance Brands, which has aggressive expansion plans for this coffee chain. Tim Hortons, a Canadian coffee chain, wants to open 120 additional locations over the next 36 months after opening its first location in Delhi last year.
However, Dash doesn’t appear to be concerned about the opposition. Competition will help the category grow, he added, adding that there is plenty of room for growth in the coffee market.