Tata Starbucks crossed the 1,000 crore-mark in FY23 net sales, the leading coffee retailer is accelerating its growth plans in the country. Starbucks India, the 50:50 joint venture between Tata Consumer Products Ltd and the American multinational coffee chain, is revamping its menu in the country to draw in a larger customer base and drive profitability from its existing stores. The coffee chain is planning to offer a range of locally-inspired beverages and low-priced food and drink options to appeal to a wider audience. The new menu selection will also include a smaller 6 oz cup size called ‘Picco’, which will be available in six hot beverages including cappuccino, latte, filter coffee, masala chai, elaichi chai, and hot chocolate. The move follows a successful pilot program in Bengaluru, Bhopal, Gurgaon, and Indore last year, where the company tested localized menus and small coffee portions to attract more customers. The company plans to expand the new menu offerings across all its outlets in India. The product overhaul is aimed at appealing to a wider audience, making Starbucks more accessible to those increasingly embracing the cafe culture and creating newer coffee-drinking occasions, said Sushant Dash, CEO, Tata Starbucks Pvt Ltd. “Today, we are in 340 stores in 43 cities, and towns, across the country. As we go to newer towns and newer catchments, we need to obviously get new consumers, because as we open new stores, we want to make them more profitable. And as we go to newer consumers, we realize that we need to create newer locations so that people come more often to Starbucks; secondly, we need to attract newer consumers and to attract newer consumers we also realize that we needed to make certain changes which make Starbucks a bit more familiar mainly for those who are not used to a Starbucks store or our offering,” he said. “Our pilot where we introduced a range of familiar beverages and a revamped food menu yielded fantastic results from both new and existing customers, which gave us the confidence to expand and go national,” Dash added. The move also follows the chain’s rapid expansion—Starbucks opened its first 100 stores in the first five years of its India debut; the second hundred stores took three and a half years. “We are nearly reducing the time by half in terms of what we are doing with opening stores. As you open stores, you need to get business into the store, you need consumers to come more often or get new consumers. We intend to continue to grow and expand both in terms of new cities as well as in current catchments,” he added.
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