Tata Starbucks’ revenue surges 76% to USD 81 million last fiscal year

Cafe company Tata Starbucks Private Limited has reported a 76% increase in its revenue to USD 81 million for the financial year 2021-22, as its net loss reduced significantly with easing Covid restrictions.

According to the latest annual report by Tata Consumer Products, the café company’s revenue growth was due to recovering operations of existing stores and the opening of the new stores during the FY 2021-22. However, the company is yet to disclose the details of the net loss for FY22.

After the second wave of the COVID-19 pandemic, Tata Starbucks saw a strong recovery and opened 50 new outlets in the country that now tally to 268 stores across 26 cities.

Analysts claimed that during the FY22 the company made equity investments worth USD 11 million. Moreover, as COVID-19 restrictions eased, the company made a robust recovery in sales while opening 50 new stores and expanding to 8 new cities across the country.

Even the user base for My Starbucks Rewards, a loyalty program, increased by 21% to 1.1 million customers. The company’s focus is on establishing a strong bond with its customers, innovation, and digital transformation to navigate the personalized and engaging experience of Starbucks in the COVID-19 pandemic.

Notably, Tata Starbucks’s delivery business has managed to outperform consistently even after the COVID-19 curbs were lifted. The business delivered a breakeven point at the operating profit level before depreciation and amortization.

Meanwhile, as COVID-19 restrictions eased, Tata Starbucks witnessed a significant recovery in terms of sales by the end of FY22, with its store operation index reaching 95%. The company further saw an increase in average daily transactions on their delivery channel as compared to the pre-COVID levels and after the pandemic restrictions eased.

For the uninitiated, Tata Starbucks was formed in 2012 and is a 50:50 joint venture between Tata Consumer Productions Ltd. and Starbucks Corporation.

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https://www.business-standard.com/article/companies/tata-starbucks-sees-76-growth-in-revenue-to-rs-636-crore-for-2021-22-122060500165_1.html