Starbucks Corp, the world’s largest coffee retailer, narrowed losses in India to Rs 40 crore as sales jumped 39%, helped by premium pricing and locations that attract more customers.
Net sales rose to Rs 235 crore during the year ended March, according to filings with the Registrar of Companies. With 84 stores in India, a back-of-the envelope calculation shows that each Starbucks shop sold coffee, snacks and merchandise worth Rs 2.8 crore in FY16, three times higher than most cafes and quick-service restaurant (QSR) chains.
“We are focused on a long-term, disciplined and focused approach to building our brand in this dynamic market, earning the trust and respect of Indian consumers,” said Sumitro Ghosh, CEO of Tata Starbucks. Starbucks, which posted 11% growth in global net revenue to $21.3 billion in fiscal 2016, has expanded its local partnership beyond India by launching the Tata Group’s single-origin coffee in the US and Himalayan mineral water in Singapore.
In June, the company announced that Starbucks Reserve Tata Nullore Estates would be the first coffee from India to be roasted and launched in Seattle, where Starbucks is based. Coffee Day Global, which runs the country’s top coffeehouse chain, Cafe Coffee Day, had retail revenue of Rs 1,253 crore from 1,607 cafes and 579 kiosks.
Starbucks also overtook Jubilant FoodWorks, which had over 1097 Domino’s Pizza and Dunkin’ Donuts outlets and clocked sales of Rs 2,410 crore last year, equivalent to Rs 2.2 crore per store on average.