HBI Staff | Hyderabad 
According to sources, In response to recent speculation about Starbucks’ exit from India, Tata Consumer Products Ltd. issued a statement calling the reports “baseless.” Starbucks, the globally renowned coffeehouse chain, operates in India through a joint venture with Tata Consumer Products.
The rumors stemmed from a report suggesting that Starbucks was planning to withdraw due to high operational costs, consumer dissatisfaction, and mounting losses. However, Tata Consumer clarified, “The company would like to state that the information in the said article is baseless.”
Despite its premium image, Starbucks has faced challenges in India since entering the market in 2012. High rental costs, reliance on imported ingredients, and the brand’s global pricing strategy have strained profitability. Additionally, Starbucks competes in a price-sensitive market dominated by local beverages like chai and filter coffee, which resonate more deeply with Indian cultural and taste preferences.
While Starbucks has a loyal urban customer base, critics often describe the brand as overpriced and disconnected from Indian palates. Many consumers prefer local alternatives, such as Café Coffee Day, McCafe, or independent cafes, which offer affordable, flavorful options.
The speculation highlights the challenges international brands face in navigating India’s diverse and price-sensitive market. For now, Starbucks and Tata Consumer Products remain committed to growing the brand in India, dismissing any claims of an exit.
