In India coffee is not only a drink; it is also a sentiment that has aided in the creation of memories. This explains why all of the top companies have made their mark in the Indian market. From Starbucks to Cafe Coffee Day, the range is pretty vast. However, the latest rumors have been that Starbucks, the global chain of coffee shops, is planning to leave the Indian market. Scroll down to read the truth.
According to reports, Starbucks intends to withdraw from the Indian market because of the country’s high operating costs, low profitability, and departure from Indian consumer preferences. The brand is losing money and has chosen to leave the Indian market because of the hype created by expensive rentals, imported ingredients, and budget-conscious consumers.
On December 19, Tata Consumer Products Ltd. responded to the commotion by telling the media that rumors that Starbucks is considering leaving India are “completely false and baseless”.
According to the FMCG company, Tata and Starbucks have a solid connection based on their shared values and dedication to India.
As per a business media outlet, Tata Starbucks’ net loss increased from Rs 25 crore to Rs 80 crore during the previous fiscal year, despite a 12% increase in sales to Rs 1,218 crore. Revenue increased just little in the first half of this year. The Tata With more than 450 locations, Starbucks, a joint venture between the Indian conglomerate and the US coffee brand, is the biggest cafe chain in the nation. Starbucks’ extensive selection of coffee blends is well-known. They provide a tasty selection of hot and caffeinated drinks, ranging from lattes to cappuccinos.
Tofler, a source of business insights, claims that Tata Starbucks’ sales more than doubled in the most recent fiscal year when compared to four years prior.
Indian customers typically favor affordable, regional alternatives like chai, filter coffee, and neighborhood cafés that better fit their tastes and culture, according to the rumors surrounding Starbucks’ departure. And because of these circumstances, there are rumors that the corporation is leaving. It goes on to add that in order to remain in business, Starbucks must change and be able to provide local menus, reduced costs, and efficient operations that cater to the Indian market.
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