Tata Starbucks to expand Reserve format as India growth accelerates

The move follows the launch of its second Reserve outlet in Delhi in November. 

Coffee chain Tata Starbucks plans to expand its premium Starbucks Reserve format in India, with new stores slated for Bengaluru, Hyderabad and Kolkata this year.

The move follows the launch of its second Reserve outlet in Delhi in November.

“India is one of Starbucks’ fastest growing markets globally, and we remain committed to expanding our portfolio here,” said Sushant Dash, CEO, Tata Starbucks, underscoring a sharper focus on experiential, coffee-first formats.

The company currently operates more than 500 stores across over 80 cities, including tier-2 and tier-3 markets, and is building a spectrum of formats, from Reserve stores for coffee enthusiasts and large experiential outlets to more accessible entry formats.

Coffee enthusiasts

Reserve stores, in particular, cater to a growing community of coffee enthusiasts, offering single-origin and small-lot coffees through diverse brewing methods.

The expansion comes as coffee consumption in India shifts from an occasional indulgence to an everyday ritual spanning work, commute, and social occasions.

With penetration estimated at 24–25 per cent compared to tea at nearly 95 per cent, the category still offers significant headroom for growth, he told businessline.

Sales growth

Same-store sales growth has improved for the second successive quarter to about 3 per cent, as average daily traffic, a key pressure point earlier, has stabilised while ticket sizes remain steady.

The emergence of specialty coffee start-ups and new entrants, Dash noted, reflects rising consumer interest and helps expand the overall market.

Transit-led formats are gaining traction as daily mobility patterns evolve. Tata Starbucks currently operates nine drive-through outlets and is expanding its presence across highways, airports and metro stations. As road infrastructure improves and commuting rises, these formats are expected to scale further.

Same-store sales growth has improved sequentially in recent quarters, supported by product innovation and stabilising footfalls.

Published on February 20, 2026