Tata Starbucks Banks On Local Flavours, Digital Loyalty
FMCG Food Food & Beverage. Interviews

Tata Starbucks Banks On Local Flavours, Digital Loyalty

Mitali Maheshwari, Head of Product and Marketing, Tata Starbucks, discusses product innovation, India’s growth opportunity, digital engagement and how the brand is differentiating itself in an increasingly competitive premium café market

 

Consumer preferences are evolving rapidly, with increasing demand for healthier beverages, local flavours and seasonal offerings. How is Tata Starbucks balancing global brand consistency with products tailored specifically for Indian consumers?
Although Tata Starbucks is a global brand, we have always focused on innovating at the intersection of global coffee craftsmanship and deep local insights. We have been present in India for around 12 years, and throughout this journey we have delivered the Starbucks experience while ensuring our menu reflects the tastes and preferences of Indian consumers.

You will notice a blend of familiar local flavours such as tamarind, chilli and ginger. At present, our stores also offer beverages such as the Malabar Coconut Cream and Black Palm Jaggery Latte. These distinctly Indian flavours are combined with globally recognised coffee platforms. For example, cold brew is one of Starbucks’ youthful, coffee-forward platforms. We have also introduced beverages such as the Cortado and Flat White, while continuing to innovate across familiar coffee formats and distinctive flavour profiles that resonate strongly with Indian consumers.

Another trend we have observed is that consumers are increasingly willing to make small upgrades to their daily routines without compromising on the Starbucks experience they enjoy. In response, we have expanded our zero-sugar flavour options, including hazelnut, caramel and vanilla, allowing customers to enjoy the same taste while customising their beverages to suit their health preferences.

Protein innovation has also been a significant focus for us. We introduced Protein Cold Foam, which can be added to virtually any iced beverage, whether it is a Cold Brew, Iced Latte or Iced Shaken Espresso. This innovation reflects the way Indian consumers are increasingly seeking products that combine indulgence with health-conscious choices. We have been able to meet these evolving preferences while maintaining the premium Starbucks experience.

Tata Starbucks has steadily expanded its footprint across India. What are the key growth priorities for the brand over the next two to three years, and which consumer or geographic segments present the biggest opportunities? How will Tata Starbucks scale while maintaining its premium positioning?
India remains one of Starbucks’ fastest-growing markets globally, and we continue to see significant long-term potential. Rapid urbanisation, rising disposable incomes, increased global exposure and a young, aspirational consumer base are all driving demand for authentic coffee experiences and speciality single-origin coffees.

For over 55 years, Starbucks has been at the forefront of delivering speciality coffee experiences worldwide. Our focus in India is to ensure consumers have access to the very best coffee experiences from around the world.

Our strategy is to open the right coffee houses in the right locations using the most appropriate formats. We continue to expand across metro locations, airports, shopping malls and high streets. More importantly, we want to be wherever our customers are, while consistently delivering the Starbucks ‘Third Place’ experience.

We also believe there is significant opportunity beyond metropolitan cities. Tier-II and Tier-III markets are increasingly contributing to our growth story, giving us confidence in our long-term expansion plans. Our expansion is thoughtful and measured, ensuring that we continue to meet evolving consumer expectations while staying ahead through innovation.

Digital ordering and loyalty programmes, including the recent revamp of Starbucks Rewards, are reshaping the café experience. How are technology and customer data influencing product development, marketing and customer retention?
Customer loyalty is central to delivering a seamless experience across both physical stores and digital channels. We recently reimagined Starbucks Rewards by introducing refreshed Green and Gold tiers, along with a new premium Reserve tier, which is our most aspirational membership level. Currently, around 7,000 customers are part of the Reserve tier.

Customers who have recently used the app would have noticed significant improvements to the user interface and user experience. Members can now earn Stars more quickly and redeem rewards faster. Members earn one Star for every Rs 10 spent, while Gold Members earn 1.2 times the Stars and Reserve Members earn 1.3 times the Stars on every Rs 10 spent.

The higher tiers also unlock personalised benefits. Reserve Members receive a personalised black metal membership card and, in some cases, an all-expenses-paid visit to one of Starbucks’ coffee-origin destinations for an immersive coffee experience.

We have also introduced initiatives such as Free Customisation Mondays, where customers can personalise beverages with additions such as Protein Cold Foam or flavoured syrups at no extra cost.

The rewards programme has become much more flexible. Previously, rewards were largely centred around complimentary beverages. Today, customers can redeem Stars across food, beverages and merchandise, while receiving more personalised offers tailored to their preferences.

Airport retail has emerged as a high-growth channel, driven by rising air passenger traffic and premium consumption. How does Tata Starbucks tailor its offering for airport locations, and what role will this channel play in your expansion strategy?
While airports are an important growth channel, our broader philosophy is to bring the Starbucks ‘Third Place’ experience to every store format. Whether it is an airport outlet or a high street café, we aim to create a welcoming space where customers can relax, connect and enjoy their coffee.

That philosophy extends to airport stores as well. We recognise that many travellers are looking for a quick coffee before boarding, but we still strive to create an inviting environment where they can unwind or spend time before their journey.

To cater to growing demand from travellers, professionals and coffee enthusiasts, we recently opened our fifth Starbucks Reserve store at Delhi Aerocity. Given its proximity to the airport, Aerocity provides an ideal destination for delivering an immersive coffee experience centred around the craft of speciality coffee.

The Reserve format is an important part of our expansion strategy, particularly for the premium travel segment.

The premium café market is becoming increasingly competitive, with both global and home-grown brands expanding aggressively. How does Tata Starbucks continue to differentiate itself?
We see increased competition as a positive development because it expands the overall coffee category. There is growing demand in India for speciality coffee, single-origin coffees and premium café experiences, creating opportunities for multiple brands to serve consumers.

As India’s coffee landscape evolves, our focus remains on delivering a differentiated coffee house experience. For more than a decade, Tata Starbucks has combined global coffee expertise with deep local insights, offering high-quality coffee, a strong digital ecosystem and a consistent customer experience.

We are available across leading delivery platforms such as Swiggy and Zomato, while our revamped loyalty programme continues to strengthen customer engagement. Above all, consistency remains our biggest differentiator—whether through our coffee, personalisation or customisation.

A customer recently described Starbucks as a place people return to because it feels like home. For many consumers, Starbucks has become their ‘Third Place’—a second home—and that emotional connection is a key part of our differentiation.

Innovation also plays a major role. Over the past year, we have introduced around 60–65 new beverages and food offerings, reflecting evolving consumer preferences for local ingredients, zero-sugar options, health-focused products and global coffee favourites. It has been rewarding to see how consumers across different parts of India have embraced this portfolio. We believe there is something for everyone at Starbucks, and while competition will continue to grow, our focus remains firmly on delivering the experience that defines our brand.

 

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