Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
Tata Consumer has responded to reports that Starbucks was exiting India due to high costs and mounting losses. This comes after reports that the coffee chain is delaying plans for the opening of some new Starbucks stores until later in its current schedule.
According to a Reuters report, Tata Consumer has termed reports of Starbucks exiting India as “baseless”.
Meanwhile, shares of Tata Consumer Products Ltd were trading 0.69 per cent higher at Rs 915.60 today. At this mentioned price, the stock has fallen 14.16 percent in calendar year 2024 so far.
STARBUCKS PRESSURE POINTS
According to a separate report published earlier this week in Reuters, fewer customers are entering coffee shops, forcing Starbucks to recalibrate its plan to open more stores.
Tata Consumer CEO Sunil D’Souza told the news agency last week: “We will calibrate for the short term; maybe instead of opening 100, we will open 80 now, and next year we will open 120 instead.” of 100″. However, Starbucks remains focused on its goal of opening 1,000 stores by 2028.
“In India, good quality real estate with traffic… is a challenge,” he said, contrasting that with the “massive development of shopping malls” in China. Despite the challenges, the Tata Consumer CEO remains optimistic about the long-term prospects of his coffee investment.
In the last financial year, Starbucks reported a 12 percent increase in sales, reaching $143.6 million, however, its net loss widened. The company’s revenue in the first half of this year showed only a slight increase.
According to data from business information provider Tofler, Starbucks’ revenue in the last financial year more than doubled compared to four years ago.
