Premium coffee format set to enter Bengaluru, Hyderabad and Kolkata as consumption trends evolve
Coffee chain Tata Starbucks is preparing to expand its premium Starbucks Reserve format in India, with new outlets planned in Bengaluru, Hyderabad and Kolkata during the year. The development comes a few months after the company opened its second Reserve store in Delhi in November, signalling a deeper push into high-end coffee experiences.
At present, Tata Starbucks operates more than 500 outlets across over 80 cities, including several tier-2 and tier-3 locations. The retailer is building a diverse store network that ranges from premium Reserve cafés for serious coffee drinkers and large flagship-style outlets to smaller, more accessible formats.
Focus On Specialty Coffee Drinkers
Reserve stores are designed to serve a growing base of coffee enthusiasts, featuring single-origin beans and limited-lot coffees brewed through a range of specialised preparation methods.
The company’s expansion comes as coffee consumption in India gradually shifts from being an occasional indulgence to becoming part of daily routines such as work breaks, commuting and social gatherings.
Coffee’s penetration in the country is estimated at around 24–25 per cent, significantly lower than tea, which reaches close to 95 per cent, leaving considerable room for the category to grow, Dash said, according to media reports.
Sales Momentum Improving
Same-store sales have recorded sequential improvement for a second straight quarter, rising to around 3 per cent. Footfall, which had earlier been under pressure, has stabilised, while average spending per order has remained consistent.
According to Dash, the emergence of speciality coffee start-ups and new market entrants reflects rising consumer curiosity around coffee and contributes to expanding the broader category.
Transit-oriented store formats are also gaining traction as commuting patterns evolve. Tata Starbucks currently runs nine drive-through outlets and is expanding across highways, airports and metro stations. With improvements in road infrastructure and increasing mobility, the company expects these formats to grow further.
