Tata Starbucks

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Tata Starbucks Private Limited
Starbucks "A TATA Company"
Formerly
Tata Starbucks limited
Joint Venture
IndustryCoffee shop
FoundedMumbai, Maharashtra, India (19 October 2012 (2012-10-19))
HeadquartersTower 2, Indiabulls Finance Center, Senapati Bapat Marg, Elphinstone Road, ,
India.[1]
Number of locations
162 stores (September 2019)[2]
Area served
India
Key people
Navin Gurnaney
(CEO)
Products
RevenueIncrease 3.45 billion (US$50 million) (FY18)
Increase 12.6 million (US$180,000) (FY18)
Decrease -305 million (US$−4.4 million)[3]
Owner
Number of employees
1200+ (May 2016)[4]
Websitestarbucks.in

TATA Starbucks Private Limited, formerly known as Tata Starbucks Limited,[5] is a 50:50 joint venture company, owned by Tata Global Beverages and Starbucks Corporation,[6] that owns and operates Starbucks outlets in India.[7] The outlets are branded Starbucks "A Tata Alliance".

History[edit]

India's first Starbucks outlet in Elphinston Building, Horniman Circle, Mumbai.

In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin opening Starbucks locations in India.[8] Despite a false start in 2007,[9] in January 2012 Starbucks finally announced a 50:50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd., which would own and operate outlets branded "Starbucks, A Tata Alliance".[10] Starbucks had previously attempted to enter the Indian market in 2007. Starbucks did not cite any reason for the withdrawal.[11]

On 19 October 2012, Starbucks opened its first store in India, measuring 4,500 sq ft in Elphinstone Building, Horniman Circle, Mumbai.[12][13] Starbucks opened its first roasting and packaging plant to supply its Indian outlets in Coorg, Karnataka in 2013.[14]

Starbucks expanded its presence to Delhi on 24 January 2013 by opening 2 outlets at Terminal III of the Indira Gandhi International Airport,[15] and later one in Connaught Place.[16] Tata Global Beverages announced in 2013 that they would have 50 locations by the end of the year,[17] with an investment of 4 billion (US$58 million).[18] However, the company would open its 50th store in India only on 8 July 2014.[19][20][21]

The third city of India to get a Starbucks outlet was Pune, where the company opened an outlet at Koregaon Park, on 8 September 2013.[22][23] Starbucks opened a 3,000-square-foot flagship store at Koramangala, Bangalore on 22 November 2013, making it the fourth city to have an outlet.[24][25][26][27]

Starbucks opened the largest coffee-forward store in the country at Vittal Mallya Road, Bangalore on 18 March 2019. The store measures 3,000 sq ft, and is Starbucks' 140th outlet in India.[28][29] Tata Starbucks opened 25 stores in 2017-18 and 30 in the 2018-19 fiscal year.[2]

On 21 February 2019, CEO Navin Gurnaney announced that Tata Starbucks would transition to using only compostable and recyclable packaging materials across all its stores from June 2020.[30][31]

Starbucks announced its entry into the Gujarat market on 7 August 2019. The company simultaneously opened five stores in Surat and Ahmedabad the next day. Starbucks' flagship store in the state is located at Prahlad Nagar, Ahemdabad and offers more vegetarian options than other Indian outlets.[2] CEO Navin Gurnaney stated that the company would open more than 30 stores in the 2019-20 fiscal year, of which 11 had already opened.[2]

Products[edit]

Apart from the usual products offered internationally, Starbucks in India has some Indian-style product offerings such as Tandoori Paneer Roll, Chocolate Rossomalai Mousse, Malai Chom Chom Tiramisu, Elaichi Mewa Croissant, Chicken Kathi Roll and Murg Tikka Panini to suit Indian customers.[32] All espressos sold in Indian outlets are made from Indian roasted coffees supplied by Tata Coffee. Starbucks also sells Himalayan bottled mineral water.[33] Free Wi-Fi is available at all Starbucks stores.[34]

In January 2017, Tata Starbucks introduced Starbucks' tea brand Teavana offering 18 different varieties of tea across its outlets in India. One of the varieties, called the India Spice Majesty Blend, was specifically developed for the Indian market and is only available in India. India Spice Majesty Blend is a blend of full leaf Assam black tea infused with whole cinnamon, cardamom, cloves, pepper, star anise and ginger.[35]

On 15 June 2015, Tata Starbucks announced that it was suspending the use of ingredients that had not been approved by the Food Safety and Standards Authority of India (FSSAI). The company did not specify what the ingredients were or which products they were used. The company also stated that it was in the process of applying for FSSAI approval for these ingredients.[36]

According to the Latte Index, a ranking of the cost of a tall hot latte at Starbucks in 44 countries, India was the fifth most expensive country to purchase the beverage based on January 2016 prices. The index published by US-based consumer research firm ValuePenguin found that a tall hot latte cost US$7.99 in India, far higher than the $2.75 it costs in the cheapest country, the United States, but much lower than the $12.32 in the most expensive country, Russia.[37]

Tata Starbucks launched the Starbucks Delivers program in early 2019. The service offers home delivery from Starbucks outlets through a partnership with Swiggy. The service was first launched in Mumbai, with plans to roll it out to other cities.[38][39]

Locations[edit]

As of March 2019, Starbucks operates 140 outlets in 10 cities of India. The 100th store came up at Kamala Mills in Mumbai.[40]

State/Region City No. of Outlets First outlet
Delhi New Delhi 17 24 January 2013
Delhi NCR Gurgaon 7 10 July 2013[41][42]
Noida 3 15 February 2016[43]
Maharashtra Mumbai 46 19 October 2012
Pune 11 8 September 2013
Karnataka Bangalore 19 22 November 2013
Tamil Nadu Chennai 8 8 July 2014[44]
Telangana Hyderabad 7 1 October 2014
West Bengal Kolkata 4 21 March 2018
Chandigarh Chandigarh 2 19 October 2018
Gujarat Ahmedabad 3 8 August 2019
Surat 2 8 August 2019

Legal issues[edit]

The US-based Starbucks Corporation filed a lawsuit in the Delhi High Court in July 2018 against Delhi-based coffee chain SardarBuksh for allegedly copying their name and logo. The owner of SardarBuksh agreed to change its name on 28 September 2018. Sanmeet Singh Kalra, co-founder of SardarBuksh, said, "Our name rhymed with Starbucks which is why the court has ruled in their favour."[45] Kalra also stated that his company would not change its logo. Its logo features a circle of green and black with a figure at the centre, similar to the Starbucks logo, except with a man in a turban instead of a mermaid.[46]

In March 2019, an investigation by the Directorate General of Anti Profiteering (DGAP) found Tata Starbucks guilty of profiteering 45.1 million (US$650,000) by not reducing the goods and services tax (GST) charged on coffee. The GST Council had reduced the tax rate on restaurants from 18% to 5% from 17 November 2017. However, the DGAP found that Tata Starbucks had raised the base price of one coffee variant such that its retail price remained the same even after the tax rate was reduced. The case is pending before the National Anti-Profiteering Authority (NAA), which will issue the final verdict.[47][48]

International presence[edit]

The Tata Group and Starbucks Corporation also collaborate on some ventures outside India. Starbucks Reserve Tata Nullore Estates, the first-ever Starbucks Reserve coffee sourced exclusively from India, became the first Indian coffee to be roasted and sold at Starbucks home city of Seattle in 2016. The coffee was later rolled out across Starbucks outlets in the United States. In the same year, Starbucks began selling Himalayan bottled mineral water at its outlets in Singapore and also began retailing its products on board all flights of Vistara, a joint venture between the Tata Group and Singapore Airlines.[49]

See also[edit]

References[edit]

  1. ^ "Terms of Use | Starbucks Coffee Company". Starbucks.in. 18 September 2012. Retrieved 3 March 2015.
  2. ^ a b c d Tandon, Suneera (7 August 2019). "Starbucks enters Gujarat, set to open a lot more cafes in India this year". Mint. Retrieved 10 August 2019.
  3. ^ Pinto, Viveat Susan (22 February 2019). "Tata Starbucks plans to improve sales, cut losses: CEO Navin Gurnaney". Business Standard India. Retrieved 24 March 2019.
  4. ^ "Starbucks hints at training aid to retain talent at Indian JV". The Hindu. 8 July 2014. Retrieved 3 March 2015.
  5. ^ http://www.starbucks.in/about-us/company-information
  6. ^ "Starbucks to open first India store in Oct, appoints chief executive : India, News - India Today". Indiatoday.intoday.in. 28 September 2012. Retrieved 3 October 2012.
  7. ^ Business Standard (29 September 2012). "The lady who knows what's brewing at Tata Starbucks". Business-standard.com. Retrieved 3 October 2012.
  8. ^ "Tata Coffee brings Starbucks to India". Business-standard.com. 14 January 2011. Retrieved 7 July 2011.
  9. ^ Chatterjee, Saikat (20 July 2007). "Starbucks Delays India Entry, Withdraws Application (Update2)". Bloomberg L.P. Retrieved 15 April 2009.
  10. ^ "Tata Global Beverages and Starbucks Form Joint Venture to Open Starbucks Cafés across India". Starbucks Press Release. Archived from the original on 4 February 2012. Retrieved 21 October 2014.
  11. ^ "Starbucks set for festive season flag-off from Mumbai". The Times Of India. 26 June 2012.
  12. ^ "First look at Starbucks' India store". Businesstoday.intoday.in. 7 July 2013. Retrieved 17 July 2013.
  13. ^ Special Correspondent. "Business / Companies : Starbucks India Store in Mumbai 28".
  14. ^ Pandey, Piyush. "Tata, Starbucks to extend their partnership beyond India". The Hindu. Retrieved 12 May 2017.
  15. ^ "Tata Starbucks opens two outlets in Delhi". The Hindu. Chennai, India. 25 January 2013. Retrieved 5 February 2013.
  16. ^ "Starbucks opens in central Delhi". The Economic Times. 7 February 2013. Retrieved 25 March 2013.
  17. ^ "Starbucks adds three more outlets to its network in India". The Economic Times. 3 June 2013. Retrieved 17 July 2013.
  18. ^ "Starbucks adds two more stores in Mumbai | Business Standard News". Business-standard.com. 10 September 2013. Retrieved 3 March 2015.
  19. ^ "Tata Starbucks forays into Chennai; takes tally of stores to 50 - Economic Times". Articles.economictimes.indiatimes.com. 8 July 2014. Retrieved 3 March 2015.
  20. ^ "Tata Starbucks opens Chennai outlet; Hyderabad next". Financial Express. 9 July 2014. Retrieved 3 March 2015.
  21. ^ "Tata Starbucks opens first Chennai store". Livemint. Retrieved 3 March 2015.
  22. ^ "Tata Starbucks to open Pune outlet on Sunday". The Times Of India. 5 September 2013.
  23. ^ "Starbucks to Open First Store in Pune - NDTV Food". Cooks.ndtv.com. Retrieved 3 March 2015.
  24. ^ "Starbucks Continues Expansion in India with Opening of New Flagship Store in Bangalore | Starbucks Newsroom". News.starbucks.com. Retrieved 3 March 2015.
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  26. ^ "Starbucks opens first store in Bangalore". The Seattle Times. 22 November 2013. Retrieved 3 March 2015.
  27. ^ "Starbucks opens first store in Bangalore, plans 2 more by yr-end". Firstpost. 22 November 2013. Retrieved 3 March 2015.
  28. ^ "Starbucks Opens India's Largest Coffee Forward Store in Bangalore". Outlook India. Retrieved 17 April 2019.
  29. ^ "Starbucks' new outlet in Bangalore is in a quaint bungalow". Architectural Digest India. 15 March 2019. Retrieved 17 April 2019.
  30. ^ "Tata Starbucks to use only fully compostable/recyclable items from next World Environment Day: CEO". The Economic Times. 21 February 2019. Retrieved 7 May 2019.
  31. ^ Writer, Staff (21 February 2019). "Starbucks to switch to compostable and recyclable packaging in India by June". Mint. Retrieved 7 May 2019.
  32. ^ "Menu-Drinks and Food". Tata Starbucks.
  33. ^ India, Press Trust of (27 September 2016). "Tata Starbucks revenue up 39% in 2015-16 at Rs 235 cr". Business Standard India. Retrieved 12 May 2017.
  34. ^ "Starbucks opens three new stores in Delhi and Mumbai". Indiaretailing.com. 4 June 2013. Retrieved 17 July 2013.
  35. ^ Correspondent, Special. "Tata Starbucks introduces Teavana to serve tea in India". The Hindu. Retrieved 12 May 2017.
  36. ^ http://www.dnaindia.com/money/report-starbucks-suspends-use-of-ingredients-not-approved-by-fssai-2095724
  37. ^ "India among the most expensive places to order a Starbucks latte". Mint. 12 May 2017. Retrieved 12 May 2017.
  38. ^ "Tata Starbucks CEO Interview: We will be thoughtfully aggressive in India". The Financial Express. 29 March 2019. Retrieved 17 April 2019.
  39. ^ "Starbucks to open 10 new stores in India within two months". Business Today. Retrieved 17 April 2019.
  40. ^ official website of TATA Starbucks, retrieved 21 July 2014.
  41. ^ "Starbucks opens first outlet in Gurgaon, tally at 8 in Delhi-NCR - Business Today". Businesstoday.intoday.in. 10 July 2013. Retrieved 3 March 2015.
  42. ^ "Starbucks Opens its First Store in Gurgaon - NDTV Food". Cooks.ndtv.com. 10 July 2013. Retrieved 3 March 2015.
  43. ^ "New entry in Noida mal -mile this month". Times of India. 18 September 2015. Retrieved 18 September 2015.
  44. ^ "Starbucks stores in Tamil Nadu". Starbucks.in. 19 January 2016. Retrieved 19 January 2016.
  45. ^ "Sued by Starbucks, Indian coffee chain changes name - ET Retail". ETRetail.com. Retrieved 7 May 2019.
  46. ^ "Starbucks vs SardarBaksh: Local coffee chain agrees to change logo, name to Sardarji-Bakhsh". Business Today. Retrieved 7 May 2019.
  47. ^ "GST investigation arm finds Tata Starbucks guilty of profiteering Rs 4.51 crore". The Economic Times. 30 April 2019.
  48. ^ "GST evasion: DGAP finds Tata Starbucks guilty of profiteering Rs 4.51 cr, firm says it complies with local laws, regulations". Firstpost. Retrieved 7 May 2019.
  49. ^ "Starbucks extends Tata partnership beyond India - The Economic Times". The Economic Times. Retrieved 12 May 2017.

External links[edit]