Tata Starbucks, a joint venture between the Tata Group and Starbucks, crossed Rs 1000 crore sales mark after starting operations in the country a decade ago.

For fiscal 2022-23, the Indian unit of the world’s biggest coffee retailer expanded sales by 71% to Rs 1087 crore, paced by the addition of new outlets as demand for quality beverages increased in Indian metro cities. In FY22, it had sales of Rs636 crore.

Tata Consumer, in its earnings presentation said it ran a pilot in 2022 across four cities in India to drive familiarity among consumer segments, create more occasions for consumers to visit Starbucks and grow the consideration set for different types of consumers.

“Tata Starbucks is looking to rapidly expand its presence in the coming years. To achieve this, we are looking to enhance its relevance for more segments of consumers,” it added. “The pilot stores demonstrated improved operating metrics. As such, these workstreams will be rolled out nationally in 2023.”

Last year, Starbucks, on a pilot basis, launched masala chai and filter coffee in India and also revamped its menu to attract consumers with Indianised and more affordable options The menu now also included street-style freshly assembled sandwiches, milkshakes, bite-sized snacks and a smaller beverage cup.

Starbucks, which started its India operations in October 2012, also recorded the fastest store expansion last fiscal when it added 71 stores, taking the overall door count to 333. Starbucks’ positioning in India is premium compared to its rivals Cafe Coffee Day and McCafe, which have significantly lower prices.

However, its two global rivals – Canadian coffee chain Tim Hortons and US-based food and organic coffee chain Pret a Manger are now already present in India. Analysts feel it will be competition to Starbucks in the long term and high pricing of the US coffee retailer could come under risk.