As Tata Starbucks crossed the ₹1,000 crore-mark in FY23 net sales, the leading coffee retailer is accelerating its growth plans in the country. As part of its growth strategy, the American brand is launching an Indian-inspired menu offerings such as masala chai and filter coffee nationally  to woo new consumers and for diverse consumption. This strategy includes introducing “Picco” , the new small cup size, the first for Starbucks globally.

Sushant Dash, CEO, Tata Starbucks Pvt Ltd told businessline, “ We have been increasing the pace at which new stores are being launched over the last decade. It took us five years to open our first 100 stores and the next  100 were added within three and half years. Infact, out of the 340-odd stores, 120 were added in the last 24 months. So, we will continue to accelerate the expansion trajectory of the brand. It is not just about achieving numbers but about tapping the potential of the brand, with right kind of real estate opportuities enabling us to full justice to the brand.”

The chain added 71 restaurants in FY23 and now operates 341 stores in 43 cities. It clocked ₹1,087 crore in net sales, up 71 per cent compared to the previous fiscal.

“To ensure profitable growth, we are sharpening our focus on adding new consumers to our fold. We also need to ensure that we cater to more consumption occasions. We are making certain changes in our strategy and launched a slew of products to offer more familiar beverages to consumers such as masala chai and filter coffee. We are also adding a new range of food products, which are bite-sized and shareable, to cater to family and group consumption occasions,” he added.

The coffee chain’s new regionalised offerings include filter coffee, masala chai and elaichi chai and  its range of signature milkshakes. Shareable range includes Hazelnut Triangle, Chicken Puffin and Chocolate Eclairs besides a range of freshly assembled sandwiches. Dash said this will also help create new consumption occasions for existing consumers.

“Indian consumers are not used to consuming beverages in large sizes like other markets. That has been the insight behind the launch of the new cup size “Picco ‘‘, he explained. The national launch of the new menu offerings is being done post a pilot run done across Bengaluru, Bhopal, Gurgaon, and Indore.

Responding to a query on the current macroeconomic conditions, Dash said, “Inflationary pressures remain and we have been managing that by making our supply chain more resilient. But consumers are back and spending. We have grown quite significantly last fiscal and our same-store growth numbers have been strong.”